Bill Amendment: IL HB4873 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PEN CD-VARIOUS

Status: 2025-01-07 - Session Sine Die [HB4873 Detail]

Download: Illinois-2023-HB4873-House_Amendment_001.html

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Rep. Stephanie A. Kifowit

Filed: 3/6/2024

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AMENDMENT TO HOUSE BILL 4873
AMENDMENT NO. ______. Amend House Bill 4873 by replacing
everything after the enacting clause with the following:
"Article 1.
Section 1-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, 2-119.1, 14-103.10, 15-111,
18-125, and 18-128.01 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
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,

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7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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.

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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, except as otherwise
provided in this subsection, 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

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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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable

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to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsections (b-15) and (b-20)
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

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1 of each year.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of

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disability or other payments made between January 1, 2011 and
January 1, 2024.
(b-15) Beginning January 1, 2026 and until January 1,
2029, 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 under Article 14,
16, or 17 to whom this Section applies shall not exceed the
amount determined under subsection (b-5) plus the earnings
limitation adjustment for that year.
In this subsection, "earnings limitation adjustment" means
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (b-5)
for that calendar year by (ii) the smoothing factor for that
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for
the coming calendar year and the amount calculated under
subsection (b-5) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and

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(3) for calendar year 2028, 75%.
In this subsection and subsection (b-20), "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(b-20) Beginning January 1, 2029, 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 under Article 14, 16, or 17 to whom this Section
applies shall not exceed the federal Social Security wage base
then in effect.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

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after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

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member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

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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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section

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12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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

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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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 if the person is 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

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attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, 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 55,
regardless of whether the attainment of age 55 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

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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

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provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

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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)

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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, except as otherwise
provided in this subsection, 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) (Blank).
(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".

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A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsections (b-15) and (b-20)
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

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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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any

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limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(b-15) Beginning January 1, 2026 and until January 1,
2029, 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 under Article 14,
16, or 17 to whom this Section applies shall not exceed the
amount determined under subsection (b-5) plus the earnings
limitation adjustment for that year.
In this subsection, "earnings limitation adjustment" means
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (b-5)

10300HB4873ham001 - 23 - LRB103 35886 RPS 69833 a
for that calendar year by (ii) the smoothing factor for that
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for
the coming calendar year and the amount calculated under
subsection (b-5) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and
(3) for calendar year 2028, 75%.
In this subsection and subsection (b-20), "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(b-20) Beginning January 1, 2029, 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 under Article 14, 16, or 17 to whom this Section
applies shall not exceed the federal Social Security wage base
then in effect.
(c) A member or participant is entitled to a retirement

10300HB4873ham001 - 24 - LRB103 35886 RPS 69833 a
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,

10300HB4873ham001 - 25 - LRB103 35886 RPS 69833 a
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age

10300HB4873ham001 - 26 - LRB103 35886 RPS 69833 a
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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:

10300HB4873ham001 - 27 - LRB103 35886 RPS 69833 a
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

10300HB4873ham001 - 28 - LRB103 35886 RPS 69833 a
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).

10300HB4873ham001 - 29 - LRB103 35886 RPS 69833 a
(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

10300HB4873ham001 - 30 - LRB103 35886 RPS 69833 a
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 conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

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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.

10300HB4873ham001 - 32 - LRB103 35886 RPS 69833 a
(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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement

10300HB4873ham001 - 33 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 34 - LRB103 35886 RPS 69833 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, except as otherwise
provided in this subsection, 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) (Blank).
(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".

10300HB4873ham001 - 35 - LRB103 35886 RPS 69833 a
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsections (b-15) and (b-20)
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

10300HB4873ham001 - 36 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the

10300HB4873ham001 - 37 - LRB103 35886 RPS 69833 a
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(b-15) Beginning January 1, 2026 and until January 1,
2029, 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 under Article 14,
16, or 17 to whom this Section applies shall not exceed the
amount determined under subsection (b-5) plus the earnings
limitation adjustment for that year.
In this subsection, "earnings limitation adjustment" means

10300HB4873ham001 - 38 - LRB103 35886 RPS 69833 a
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (b-5)
for that calendar year by (ii) the smoothing factor for that
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for
the coming calendar year and the amount calculated under
subsection (b-5) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and
(3) for calendar year 2028, 75%.
In this subsection and subsection (b-20), "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(b-20) Beginning January 1, 2029, 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 under Article 14, 16, or 17 to whom this Section

10300HB4873ham001 - 39 - LRB103 35886 RPS 69833 a
applies shall not exceed the federal Social Security wage base
then in effect.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written

10300HB4873ham001 - 40 - LRB103 35886 RPS 69833 a
application if he or she has attained age 65 and has at least
10 years of service credit 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective

10300HB4873ham001 - 41 - LRB103 35886 RPS 69833 a
date of Public Act 100-23) 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).
(d-15) Each person who first becomes a member or

10300HB4873ham001 - 42 - LRB103 35886 RPS 69833 a
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with

10300HB4873ham001 - 43 - LRB103 35886 RPS 69833 a
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

10300HB4873ham001 - 44 - LRB103 35886 RPS 69833 a
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

10300HB4873ham001 - 46 - LRB103 35886 RPS 69833 a
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

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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. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was

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elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an

10300HB4873ham001 - 49 - LRB103 35886 RPS 69833 a
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889), the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, except as
provided in subsection (a-5) or (a-10), beginning January 1,
2011, the highest salary for annuity purposes may not exceed
$106,800, except that that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) the annual unadjusted percentage
increase (but not less than zero) in the consumer price

10300HB4873ham001 - 50 - LRB103 35886 RPS 69833 a
index-u for the 12 months ending with the September preceding
each November 1. "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 Board by November 1 of each
year.
(a-5) Beginning January 1, 2026 and until January 1, 2029,
for a participant who first becomes a participant of this
System on or after January 1, 2011, the highest salary for
annuity purposes may not exceed the amount determined under
subsection (a) plus the earnings limitation adjustment for
that year.
In this subsection, "earnings limitation adjustment" means
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (a)
for that calendar year by (ii) the smoothing factor for that
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for

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the coming calendar year and the amount calculated under
subsection (a) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and
(3) for calendar year 2028, 75%.
In this subsection and subsection (a-10), "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(a-10) Beginning January 1, 2029, the highest salary for
annuity purposes may not exceed the federal Social Security
wage base then in effect.
(b) The earnings limitations of subsection (a), (a-5), and
(a-10), whichever is applicable, apply to earnings under any
other participating system under the Retirement Systems
Reciprocal Act that are considered in calculating a
proportional annuity under this Article, except in the case of
a person who first became a member of this System before August
22, 1994 and has not, on or after the effective date of this
amendatory Act of the 97th General Assembly, irrevocably
elected to have those limitations apply. The limitations of
subsection (a), (a-5), and (a-10), whichever is applicable,
shall apply, however, to earnings under any other

10300HB4873ham001 - 52 - LRB103 35886 RPS 69833 a
participating system under the Retirement Systems Reciprocal
Act that are considered in calculating the proportional
annuity of a person who first became a member of this System
before August 22, 1994 if, on or after the effective date of
this amendatory Act of the 97th General Assembly, that member
irrevocably elects to have those limitations apply.
(c) In calculating the subsection (a), (a-5), or (a-10),
whichever is applicable, earnings limitation to be applied to
earnings under any other participating system under the
Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of

10300HB4873ham001 - 53 - LRB103 35886 RPS 69833 a
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the
System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.

10300HB4873ham001 - 54 - LRB103 35886 RPS 69833 a
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67, have
the amount of the retirement annuity then being paid increased
by 3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less.
In this subsection, "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 Board by
November 1 of each year.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make

10300HB4873ham001 - 55 - LRB103 35886 RPS 69833 a
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)

10300HB4873ham001 - 56 - LRB103 35886 RPS 69833 a
Sec. 14-103.10. Compensation.
(a) For periods of service prior to January 1, 1978, the
full rate of salary or wages payable to an employee for
personal services performed if he worked the full normal
working period for his position, subject to the following
maximum amounts: (1) prior to July 1, 1951, $400 per month or
$4,800 per year; (2) between July 1, 1951 and June 30, 1957
inclusive, $625 per month or $7,500 per year; (3) beginning
July 1, 1957, no limitation.
In the case of service of an employee in a position
involving part-time employment, compensation shall be
determined according to the employees' earnings record.
(b) For periods of service on and after January 1, 1978,
all remuneration for personal services performed defined as
"wages" under the Social Security Enabling Act, including that
part of such remuneration which is in excess of any maximum
limitation provided in such Act, and including any benefits
received by an employee under a sick pay plan in effect before
January 1, 1981, but excluding lump sum salary payments:
(1) for vacation,
(2) for accumulated unused sick leave,
(3) upon discharge or dismissal,
(4) for approved holidays.
(c) For periods of service on or after December 16, 1978,
compensation also includes any benefits, other than lump sum
salary payments made at termination of employment, which an

10300HB4873ham001 - 57 - LRB103 35886 RPS 69833 a
employee receives or is eligible to receive under a sick pay
plan authorized by law.
(d) For periods of service after September 30, 1985,
compensation also includes any remuneration for personal
services not included as "wages" under the Social Security
Enabling Act, which is deducted for purposes of participation
in a program established pursuant to Section 125 of the
Internal Revenue Code or its successor laws.
(e) For members for which Section 1-160 applies for
periods of service on and after January 1, 2011, all
remuneration for personal services performed defined as
"wages" under the Social Security Enabling Act, excluding
remuneration that is in excess of the annual earnings, salary,
or wages of a member or participant, as provided in subsection
(b-5) of Section 1-160, but including any benefits received by
an employee under a sick pay plan in effect before January 1,
1981. Compensation shall exclude lump sum salary payments:
(1) for vacation;
(2) for accumulated unused sick leave;
(3) upon discharge or dismissal; and
(4) for approved holidays.
(f) Notwithstanding the other provisions of this Section,
for service on or after July 1, 2013, "compensation" does not
include any stipend payable to an employee for service on a
board or commission.
(Source: P.A. 98-449, eff. 8-16-13.)

10300HB4873ham001 - 58 - LRB103 35886 RPS 69833 a
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings.
(a) "Earnings": Subject to Section 15-111.5, an amount
paid for personal services equal to the sum of the basic
compensation plus extra compensation for summer teaching,
overtime or other extra service. For periods for which an
employee receives service credit under subsection (c) of
Section 15-113.1 or Section 15-113.2, earnings are equal to
the basic compensation on which contributions are paid by the
employee during such periods. Compensation for employment
which is irregular, intermittent and temporary shall not be
considered earnings, unless the participant is also receiving
earnings from the employer as an employee under Section
15-107.
With respect to transition pay paid by the University of
Illinois to a person who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department:
(1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this amendatory
Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act
of the 91st General Assembly only if (i) employee

10300HB4873ham001 - 59 - LRB103 35886 RPS 69833 a
contributions under Section 15-157 have been withheld from
that transition pay or (ii) the employee pays to the
System before January 1, 2001 an amount representing
employee contributions under Section 15-157 on that
transition pay. Employee contributions under item (ii) may
be paid in a lump sum, by withholding from additional
transition pay accruing before January 1, 2001, or in any
other manner approved by the System. Upon payment of the
employee contributions on transition pay, the
corresponding employer contributions become an obligation
of the State.
(b) For a Tier 2 member, the annual earnings shall not
exceed $106,800; however, except as provided in subsection
(b-5) and (b-10), 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
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

10300HB4873ham001 - 60 - LRB103 35886 RPS 69833 a
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.
(b-5) Beginning January 1, 2026 and until January 1, 2029,
for a participant who first becomes a participant of this
System on or after January 1, 2011, the annual earnings may not
exceed the amount determined under subsection (b) plus the
earnings limitation adjustment for that year.
In this subsection, "earnings limitation adjustment" means
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (b)
for that calendar year by (ii) the smoothing factor for that
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for
the coming calendar year and the amount calculated under
subsection (b) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and
(3) for calendar year 2028, 75%.
In this subsection and subsection (b-10), "Social Security

10300HB4873ham001 - 61 - LRB103 35886 RPS 69833 a
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(b-10) Beginning January 1, 2029, the annual earnings may
not exceed the federal Social Security wage base then in
effect.
(c) With each submission of payroll information in the
manner prescribed by the System, the employer shall certify
that the payroll information is correct and complies with all
applicable State and federal laws.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a

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participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final

10300HB4873ham001 - 63 - LRB103 35886 RPS 69833 a
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889),
final average salary shall be the average monthly salary
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number

10300HB4873ham001 - 64 - LRB103 35886 RPS 69833 a
of months of service in that period; however, except as
provided in subsection (b-10) and (b-15), beginning January 1,
2011, the annual salary may not exceed $106,800, except that
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) 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.
"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 Board by November 1st of each year.
(b-10) Beginning January 1, 2026 and until January 1,
2029, for a participant who first serves as a judge on or after
January 1, 2011, the annual salary may not exceed the amount
determined under subsection (b-5) plus the earnings limitation
adjustment for that year.
In this subsection, "earnings limitation adjustment" means
the product that results from multiplying (i) the difference
between the federal Social Security wage base for the coming
calendar year and the amount calculated under subsection (b-5)
for that calendar year by (ii) the smoothing factor for that

10300HB4873ham001 - 65 - LRB103 35886 RPS 69833 a
calendar year. The earnings limitation 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 December 1 of each year. If the
difference between the federal Social Security wage base for
the coming calendar year and the amount calculated under
subsection (b-5) for that calendar year is zero or less than
zero, the earnings limitation adjustment shall be zero.
In this subsection, "smoothing factor" means:
(1) for calendar year 2026, 25%;
(2) for calendar year 2027, 50%; and
(3) for calendar year 2028, 75%.
In this subsection and subsection (b-15), "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430).
(b-15) Beginning January 1, 2029, the annual salary may
not exceed the federal Social Security wage base then in
effect.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),

10300HB4873ham001 - 66 - LRB103 35886 RPS 69833 a
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)
(40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
Sec. 18-128.01. Amount of survivor's annuity.
(a) Upon the death of an annuitant, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity the annuitant was receiving immediately prior to
his or her death, inclusive of annual increases in the
retirement annuity to the date of death.
(b) Upon the death of an active participant, his or her
surviving spouse shall receive a survivor's annuity of 66 2/3%

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of the annuity earned by the participant as of the date of his
or her death, determined without regard to whether the
participant had attained age 60 as of that time, or 7 1/2% of
the last salary of the decedent, whichever is greater.
(c) Upon the death of a participant who had terminated
service with at least 10 years of service, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity earned by the deceased participant at the date of
death.
(d) Upon the death of an annuitant, active participant, or
participant who had terminated service with at least 10 years
of service, each surviving child under the age of 18 or
disabled as defined in Section 18-128 shall be entitled to a
child's annuity in an amount equal to 5% of the decedent's
final salary, not to exceed in total for all such children the
greater of 20% of the decedent's last salary or 66 2/3% of the
annuity received or earned by the decedent as provided under
subsections (a) and (b) of this Section. This child's annuity
shall be paid whether or not a survivor's annuity was elected
under Section 18-123.
(e) The changes made in the survivor's annuity provisions
by Public Act 82-306 shall apply to the survivors of a deceased
participant or annuitant whose death occurs on or after August
21, 1981.
(f) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or after

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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 on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service
on or after the effective date of this amendatory Act of 1991,
but shall not accrue for any period prior to January 1, 1990.
(g) Notwithstanding any other provision of this Article,
the initial survivor's annuity for a survivor of a participant
who first serves as a judge after January 1, 2011 (the
effective date of Public Act 96-889) shall be in the amount of
66 2/3% of the annuity received or earned by the decedent, and
shall be increased (1) on each January 1 occurring on or after
the commencement of the annuity if the deceased participant
died while receiving a retirement annuity, or (2) in other
cases, on each January 1 occurring on or after the first
anniversary of the commencement of the annuity, but in no
event prior to age 67, by an amount equal to 3% or the annual
unadjusted percentage increase in the consumer price index-u
as determined by the Public Pension Division of the Department
of Insurance under subsection (b-5) of Section 18-125,
whichever is less, of the survivor's annuity then being paid.
In this subsection, "consumer price index-u" means the
index published by the Bureau of Labor Statistics of the

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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 Board by
November 1 of each year.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
Article 2.
Section 2-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-119.1, 3-111.1, 4-109.1, 5-167.1,
6-164, 15-136, and 18-125.1 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
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,
7, 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 or to any

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participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 71 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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

10300HB4873ham001 - 72 - LRB103 35886 RPS 69833 a
average salary" shall be substituted for the following:
(1) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings

10300HB4873ham001 - 73 - LRB103 35886 RPS 69833 a
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the

10300HB4873ham001 - 74 - LRB103 35886 RPS 69833 a
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age

10300HB4873ham001 - 75 - LRB103 35886 RPS 69833 a
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.

10300HB4873ham001 - 76 - LRB103 35886 RPS 69833 a
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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,

10300HB4873ham001 - 77 - LRB103 35886 RPS 69833 a
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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age

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specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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) Except as otherwise provided in this subsection, any
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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,

10300HB4873ham001 - 79 - LRB103 35886 RPS 69833 a
2022 or who makes the election under item (i) of subsection
(d-15); and beginning on July 6, 2017 (the effective date of
Public Act 100-23), 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; or (ii) 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. Except as otherwise provided in this subsection,
each 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.
Beginning January 1, 2026, any retirement annuity or
supplemental annuity of a member or participant under Article
14, 16, or 17 who is subject to this Section shall be subject
to annual increases on the January 1 occurring after the first
anniversary of the annuity start date. Each annual increase
for a member or participant of a retirement system or pension
fund established under Article 14, 16, or 17 who is subject to
this Section shall be calculated at 3% of the originally
granted retirement annuity.

10300HB4873ham001 - 80 - LRB103 35886 RPS 69833 a
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 if the person is 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

10300HB4873ham001 - 82 - LRB103 35886 RPS 69833 a
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.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, 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 55,
regardless of whether the attainment of age 55 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

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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).

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(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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be

10300HB4873ham001 - 85 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 86 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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) (Blank).
(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".

10300HB4873ham001 - 87 - LRB103 35886 RPS 69833 a
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 88 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or

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wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to

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this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to

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service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

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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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be

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subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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) Except as otherwise provided in this subsection, any
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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15); and beginning on July 6, 2017 (the effective date of
Public Act 100-23), 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; or (ii) 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. Except as otherwise provided in this subsection,
each Each annual increase shall be calculated at 3% or

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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.
Beginning January 1, 2026, any retirement annuity or
supplemental annuity of a member or participant under Article
14, 16, or 17 who is subject to this Section shall be subject
to annual increases on the January 1 occurring after the first
anniversary of the annuity start date. Each annual increase
for a member or participant of a retirement system or pension
fund established under Article 14, 16, or 17 who is subject to
this Section shall be calculated at 3% of the originally
granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in

10300HB4873ham001 - 95 - LRB103 35886 RPS 69833 a
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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.

10300HB4873ham001 - 97 - LRB103 35886 RPS 69833 a
(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

10300HB4873ham001 - 98 - LRB103 35886 RPS 69833 a
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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
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,
7, 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 or to any
participant of the retirement plan established under Section

10300HB4873ham001 - 99 - LRB103 35886 RPS 69833 a
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 100 - LRB103 35886 RPS 69833 a
(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, except as otherwise
provided in this subsection, 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:

10300HB4873ham001 - 101 - LRB103 35886 RPS 69833 a
(1) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number

10300HB4873ham001 - 102 - LRB103 35886 RPS 69833 a
of months (or years) of service in that period.
(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.
(b-10) Beginning on January 1, 2024, 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

10300HB4873ham001 - 103 - LRB103 35886 RPS 69833 a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is

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subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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

10300HB4873ham001 - 105 - LRB103 35886 RPS 69833 a
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

10300HB4873ham001 - 106 - LRB103 35886 RPS 69833 a
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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the

10300HB4873ham001 - 107 - LRB103 35886 RPS 69833 a
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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) Except as otherwise provided in this subsection, any
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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

10300HB4873ham001 - 108 - LRB103 35886 RPS 69833 a
(d-15); and beginning on July 6, 2017 (the effective date of
Public Act 100-23), 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; or (ii) 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. Except as otherwise provided in this subsection,
each 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.
Beginning January 1, 2026, any retirement annuity or
supplemental annuity of a member or participant under Article
14, 16, or 17 who is subject to this Section shall be subject
to annual increases on the January 1 occurring after the first
anniversary of the annuity start date. Each annual increase
for a member or participant of a retirement system or pension
fund established under Article 14, 16, or 17 who is subject to
this Section shall be calculated at 3% of the originally
granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the

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changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and

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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

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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. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,

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which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the
System for the entire period from January 15, 1969 through

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December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article
and except as otherwise provided in this subsection, a
participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67, have
the amount of the retirement annuity then being paid increased
by 3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less.
Notwithstanding any other provision of this Article,
beginning January 1, 2026, a participant who first becomes a
participant on or after January 1, 2011 (the effective date of
Public Act 96-889) shall, in January or July next following
the first anniversary of retirement, whichever occurs first,
and in the same month of each year thereafter, have the amount
of the retirement annuity then being paid increased by 3%.
In this subsection, "consumer price index-u" means the

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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 Board by
November 1 of each year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an

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increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following
attainment of age 60 if it occurs after the first anniversary

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of retirement, by 3% of the originally granted pension and by
an additional 3% of the originally granted pension in January
of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by
1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an

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additional 3% of the originally granted pension in January of
each year thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) Notwithstanding the other provisions of this Section,
beginning with increases granted on or after July 1, 1993, the

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second and all subsequent automatic annual increases granted
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 60 or the first anniversary of the pension
start date, whichever is later. Before January 1, 2026, each
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 pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased. On and after January 1, 2026, each annual increase
shall be calculated at 3% of the originally granted pension.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that

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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 pension funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each

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year the firefighter received pension payments. In each
January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable

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on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be

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recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the

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firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Before January 1,
2026, each 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 pension. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
pension shall not be increased. On and after January 1, 2026,
each annual increase shall be calculated at 3% of the
originally granted pension.
For the purposes of this subsection (g), "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

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the boards of the pension funds.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.

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Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 94th General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial

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increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary

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deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first

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becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Before January 1, 2026, each 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 a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased. On and
after January 1, 2026, each annual increase shall be
calculated at 3% of the originally granted retirement annuity.
For the purposes of this subsection (d), "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 pension funds by November 1 of each year.
(Source: P.A. 103-582, eff. 12-8-23.)

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(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before

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January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of

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his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is

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age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase

10300HB4873ham001 - 134 - LRB103 35886 RPS 69833 a
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or
after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Before January 1, 2026, each 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

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retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased. On and
after January 1, 2026, each annual increase shall be
calculated at 3% of originally granted retirement annuity.
For the purposes of this subsection (d), "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 pension funds by November 1 of each year.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities; amount annuities -
Amount. The provisions of this Section 15-136 apply only to
those participants who are participating in the traditional
benefit package or the portable benefit package and do not
apply to participants who are participating in the
self-managed plan.
(a) The amount of a participant's retirement annuity,

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expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for each
year of service in excess of 20 but not exceeding 30, and 2.30%
for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an

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actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who
retires on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by

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(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1. A Tier 2
member is eligible for a retirement annuity calculated under

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Rule 4 only if that Tier 2 member meets the service
requirements for that benefit calculation as prescribed under
this Rule 4 in addition to the applicable age requirement
under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that
transfer until the employee's next termination of service
with the University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided
under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
each month the participant is under age 60 at the time of
retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has

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exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(b-5) The retirement annuity of a Tier 2 member who is
retiring under Rule 1 or 3 after attaining age 62 with at least
10 years of service credit shall be reduced by 1/2 of 1% for
each full month that the member's age is under age 67.
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in his
or her retirement annuity as follows:
Effective January 1 immediately following the date the

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retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is

10300HB4873ham001 - 142 - LRB103 35886 RPS 69833 a
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.
(d-5) Except as otherwise provided in this subsection, a A
retirement annuity of a Tier 2 member shall receive annual
increases on the January 1 occurring either on or after the
attainment of age 67 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.
Beginning January 1, 2026, a retirement annuity of a Tier
2 member shall receive annual increases on the January 1
occurring either on or after the first anniversary of the
annuity start date. Each annual increase shall be calculated
at 3% of the originally granted retirement annuity.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the

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retirement annuity shall be increased as of January 1, 1987,
or the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement

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systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8�
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory
Act of the 101st General Assembly apply retroactively to
January 1, 2011.
(Source: P.A. 101-610, eff. 1-1-20.)

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(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.
Notwithstanding any other provision of this Article and
except as otherwise provided in this Section, a retirement
annuity for a participant who first serves as a judge on or
after January 1, 2011 (the effective date of Public Act
96-889) shall be increased in January of the year next
following the year in which the first anniversary of
retirement occurs, but in no event prior to age 67, and in
January of each year thereafter, by an amount equal to 3% or
the annual percentage increase in the consumer price index-u
as determined by the Public Pension Division of the Department
of Insurance under subsection (b-5) of Section 18-125,
whichever is less, of the retirement annuity then being paid.
Notwithstanding any other provision of this Article,
beginning January 1, 2026, a retirement annuity for a
participant who first serves as a judge on or after January 1,
2011 (the effective date of Public Act 96-889) shall be

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increased in January of the year next following the year in
which the first anniversary of retirement occurs, and in
January of each year thereafter, by an amount equal to 3% of
the retirement annuity then being paid.
In 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 Board by November 1 of each
year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
This Section is not applicable to a participant who
retires before he or she has made contributions at the rate
prescribed in Section 18-133 for automatic increases for not
less than the equivalent of one full year, unless such a
participant arranges to pay the system the amount required to
bring the total contributions for the automatic increase to
the equivalent of one year's contribution based upon his or

10300HB4873ham001 - 147 - LRB103 35886 RPS 69833 a
her last year's salary.
This Section is applicable to all participants in service
after June 30, 1969 unless a participant has elected, prior to
September 1, 1969, in a written direction filed with the board
not to be subject to the provisions of this Section. Any
participant in service on or after July 1, 1992 shall have the
option of electing prior to April 1, 1993, in a written
direction filed with the board, to be covered by the
provisions of the 1969 amendatory Act. Such participant shall
be required to make the aforesaid additional contributions
with compound interest at 4% per annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge
after receiving a retirement annuity under this Article shall
have the amount of his or her retirement annuity increased by
3% of the originally granted annuity amount for each year of
such resumed service, beginning in January of the year next
following the date of such resumed service, upon subsequent
termination of such resumed service.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
Article 3.

10300HB4873ham001 - 148 - LRB103 35886 RPS 69833 a
Section 3-5. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; accelerated pension
benefit payments. To provide for the expeditious and timely
implementation of accelerated pension benefit payments under
Articles 2 and 18 of the Illinois Pension Code, emergency
rules implementing the accelerated pension benefit payments
under Article 2 may be adopted in accordance with Section 5-45
by the Board of Trustees established under Article 2 of the
Illinois Pension Code and emergency rules implementing the
accelerated pension benefit payments under Article 18 may be
adopted in accordance with Section 5-45 by the Board of
Trustees established under Article 18 of the Illinois Pension
Code. The adoption of emergency rules authorized by Section
5-45 and this Section is deemed to be necessary for the public
interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
Section 3-10. The Illinois Pension Code is amended by
adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11,
18-161.5, and 18-161.6 as follows:

10300HB4873ham001 - 149 - LRB103 35886 RPS 69833 a
(40 ILCS 5/2-154.5 new)
Sec. 2-154.5. Accelerated pension benefit payment in lieu
of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a retirement annuity under this
Article;
(3) has not received any retirement annuity under this
Article; and
(4) has not made the election under Section 2-154.6.
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable
survivor's or disability benefits.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the System shall
calculate, using actuarial tables and other assumptions
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the
System to be equal to 60% of the present value of his or her
pension benefits in lieu of receiving any pension benefit. The

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offer shall specify the dollar amount that the eligible person
will receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar
year. The System shall make a good faith effort to contact
every eligible person to notify him or her of the election.
Until June 30, 2027, an eligible person may irrevocably elect
to receive an accelerated pension benefit payment in the
amount that the System offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other benefit; except that to the extent that
participation, benefits, or premiums under the State Employees
Group Insurance Act of 1971 are based on the amount of service
credit, the terminated service credit shall be used for that
purpose.
(d) If a person who has received an accelerated pension
benefit payment under this Section returns to active service
under this Article, then:

10300HB4873ham001 - 151 - LRB103 35886 RPS 69833 a
(1) Any benefits under the System earned as a result
of that return to active service shall be based solely on
the person's creditable service arising from the return to
active service.
(2) The accelerated pension benefit payment may not be
repaid to the System, and the terminated creditable
service may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(g) The Board shall adopt any rules, including emergency

10300HB4873ham001 - 152 - LRB103 35886 RPS 69833 a
rules, necessary to implement this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
(40 ILCS 5/2-154.6 new)
Sec. 2-154.6. Accelerated pension benefit payment for a
reduction in annual retirement annuity and survivor's annuity
increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 participant's
retirement annuity and survivor's annuity using the formula
applicable to the Tier 1 participant and the present value of
the automatic annual increases to the Tier 1 participant's
retirement annuity using the formula provided under subsection
(b-5) and survivor's annuity using the formula provided under
subsection (b-6).
"Eligible person" means a person who:
(1) is a Tier 1 participant;
(2) has submitted an application for a retirement
annuity under this Article;
(3) meets the age and service requirements for
receiving a retirement annuity under this Article;
(4) has not received any retirement annuity under this

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Article; and
(5) has not made the election under Section 2-154.5.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until June
30, 2027, the System shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the System shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in retirement
annuity calculated in accordance with the formula provided
under subsection (b-5) and any increases in survivor's annuity
payable to his or her survivor's annuity beneficiary
calculated in accordance with the formula provided under
subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of
a retirement annuity otherwise payable under this Article.
(b-5) Notwithstanding any other provision of law, the
retirement annuity of a person who made the election under
subsection (b) shall be subject to annual increases on the
January 1 occurring either on or after the attainment of age 67
or the first anniversary of the annuity start date, whichever
is later. Each annual increase shall be calculated at 1.5% of
the originally granted retirement annuity.

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(b-6) Notwithstanding any other provision of law, a
survivor's annuity payable to a survivor's annuity beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or
after the first anniversary of the commencement of the
annuity. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's annuity.
(c) If a person who has received an accelerated pension
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in retirement annuity shall be calculated in
accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the System.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.

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(d-5) Upon receipt of a participant's irrevocable election
to receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the participant's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
(40 ILCS 5/17-156.10 new)
Sec. 17-156.10. Accelerated pension benefit payment in
lieu of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a service retirement pension under
this Article;
(3) has not received any service retirement pension
under this Article; and
(4) has not made the election under Section 17-156.11.

10300HB4873ham001 - 156 - LRB103 35886 RPS 69833 a
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable
survivor's pensions, duty disability pensions, and disability
retirement pensions.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the Fund shall
calculate, using actuarial tables and other assumptions
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the Fund
to be equal to 60% of the present value of his or her pension
benefits in lieu of receiving any pension benefit. The offer
shall specify the dollar amount that the eligible person will
receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar
year. The Fund shall make a good faith effort to contact every
eligible person to notify him or her of the election. Until
June 30, 2027, an eligible person may irrevocably elect to
receive an accelerated pension benefit payment in the amount
that the Fund offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may

10300HB4873ham001 - 157 - LRB103 35886 RPS 69833 a
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other pension benefit; except that to the extent
that participation, benefits, or premiums under the State
Employees Group Insurance Act of 1971 are based on the amount
of service credit, the terminated service credit shall be used
for that purpose.
(d) If a person who has received an accelerated pension
benefit payment under this Section returns to active service
under this Article, then:
(1) Any benefits under the Fund earned as a result of
that return to active service shall be based solely on the
person's creditable service arising from the return to
active service.
(2) The accelerated pension benefit payment may not be
repaid to the Fund, and the terminated creditable service
may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this

10300HB4873ham001 - 158 - LRB103 35886 RPS 69833 a
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the Fund to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the Fund shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the Fund, and the Fund
shall transfer the amount into the member's eligible
retirement plan or qualified account.
(g) The Board shall adopt any rules necessary to implement
this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan
under the Internal Revenue Code of 1986.
(40 ILCS 5/17-156.11 new)
Sec. 17-156.11. Accelerated pension benefit payment for a
reduction in annual service retirement pension and survivor's
pension increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum

10300HB4873ham001 - 159 - LRB103 35886 RPS 69833 a
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 member's service
retirement pension and survivor's pension using the formula
applicable to the Tier 1 member and the present value of the
automatic annual increases to the Tier 1 member's service
retirement pension using the formula provided under subsection
(b-5) and survivor's pension using the formula provided under
subsection (b-6).
"Eligible person" means a person who:
(1) is a Tier 1 member;
(2) has submitted an application for a service
retirement pension under this Article;
(3) meets the age and service requirements for
receiving a service retirement pension under this Article;
(4) has not received any service retirement pension
under this Article; and
(5) has not made the election under Section 17-156.10.
"Tier 1 member" means a person who first became a member
before January 1, 2011.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until June
30, 2027, the Fund shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the Fund shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer

10300HB4873ham001 - 160 - LRB103 35886 RPS 69833 a
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in service
retirement pension calculated in accordance with the formula
provided under subsection (b-5) and any increases in
survivor's pension payable to his or her survivor's pension
beneficiary calculated in accordance with the formula provided
under subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of
a service retirement pension otherwise payable under this
Article.
(b-5) Notwithstanding any other provision of law, the
service retirement pension of a person who made the election
under subsection (b) shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 or the first anniversary of the pension start date,
whichever is later. Each annual increase shall be calculated
at 1.5% of the originally granted service retirement pension.
(b-6) Notwithstanding any other provision of law, a
survivor's pension payable to a survivor's pension beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or
after the first anniversary of the commencement of the
pension. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's pension.
(c) If a person who has received an accelerated pension

10300HB4873ham001 - 161 - LRB103 35886 RPS 69833 a
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in service retirement pension shall be calculated
in accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the Fund.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the Fund to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(d-5) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the Fund shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the Fund, and the Fund
shall transfer the amount into the member's eligible
retirement plan or qualified account.

10300HB4873ham001 - 162 - LRB103 35886 RPS 69833 a
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan
under the Internal Revenue Code of 1986.
(40 ILCS 5/18-161.5 new)
Sec. 18-161.5. Accelerated pension benefit payment in lieu
of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a retirement annuity under this
Article;
(3) has not received any retirement annuity under this
Article; and
(4) has not made the election under Section 18-161.6.
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable
survivor's or disability benefits.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the System shall
calculate, using actuarial tables and other assumptions

10300HB4873ham001 - 163 - LRB103 35886 RPS 69833 a
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the
System to be equal to 60% of the present value of his or her
pension benefits in lieu of receiving any pension benefit. The
offer shall specify the dollar amount that the eligible person
will receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar
year. The System shall make a good faith effort to contact
every eligible person to notify him or her of the election.
Until June 30, 2027, an eligible person may irrevocably elect
to receive an accelerated pension benefit payment in the
amount that the System offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other benefit; except that to the extent that
participation, benefits, or premiums under the State Employees

10300HB4873ham001 - 164 - LRB103 35886 RPS 69833 a
Group Insurance Act of 1971 are based on the amount of service
credit, the terminated service credit shall be used for that
purpose.
(d) If a person who has received an accelerated pension
benefit payment under this Section returns to active service
under this Article, then:
(1) Any benefits under the System earned as a result
of that return to active service shall be based solely on
the person's creditable service arising from the return to
active service.
(2) The accelerated pension benefit payment may not be
repaid to the System, and the terminated creditable
service may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller

10300HB4873ham001 - 165 - LRB103 35886 RPS 69833 a
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(g) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
(40 ILCS 5/18-161.6 new)
Sec. 18-161.6. Accelerated pension benefit payment for a
reduction in annual retirement annuity and survivor's annuity
increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 participant's
retirement annuity and survivor's annuity using the formula
applicable to the Tier 1 participant and the present value of
the automatic annual increases to the Tier 1 participant's
retirement annuity using the formula provided under subsection
(b-5) and survivor's annuity using the formula provided under
subsection (b-6).
"Eligible person" means a person who:

10300HB4873ham001 - 166 - LRB103 35886 RPS 69833 a
(1) is a Tier 1 participant;
(2) has submitted an application for a retirement
annuity under this Article;
(3) meets the age and service requirements for
receiving a retirement annuity under this Article;
(4) has not received any retirement annuity under this
Article; and
(5) has not made the election under Section 18-161.5.
"Tier 1 participant" means a person who first became a
participant before January 1, 2011.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until June
30, 2027, the System shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the System shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in retirement
annuity calculated in accordance with the formula provided
under subsection (b-5) and any increases in survivor's annuity
payable to his or her survivor's annuity beneficiary
calculated in accordance with the formula provided under
subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of

10300HB4873ham001 - 167 - LRB103 35886 RPS 69833 a
a retirement annuity otherwise payable under this Article.
(b-5) Notwithstanding any other provision of law, the
retirement annuity of a person who made the election under
subsection (b) shall be subject to annual increases on the
January 1 occurring either on or after the attainment of age 67
or the first anniversary of the annuity start date, whichever
is later. Each annual increase shall be calculated at 1.5% of
the originally granted retirement annuity.
(b-6) Notwithstanding any other provision of law, a
survivor's annuity payable to a survivor's annuity beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or
after the first anniversary of the commencement of the
annuity. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's annuity.
(c) If a person who has received an accelerated pension
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in retirement annuity shall be calculated in
accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the System.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must

10300HB4873ham001 - 168 - LRB103 35886 RPS 69833 a
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(d-5) Upon receipt of a participant's irrevocable election
to receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the participant's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
Article 4.
Section 4-5. The Illinois Pension Code is amended by
adding Sections 1-168, 3-118, 4-136, and 7-142.2 as follows:

10300HB4873ham001 - 169 - LRB103 35886 RPS 69833 a
(40 ILCS 5/1-168 new)
Sec. 1-168. Deferred retirement option plan.
(a) In this Section:
"Applicable pension fund or retirement system" means the
pension fund or retirement system established under Article
14, 15, 16, or 17 under which the eligible member or DROP
member participates.
"Deferred retirement option plan" or "DROP" means the plan
created under this Section that provides an alternative method
of benefit accrual in the pension fund or retirement system.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than January 1,
2029.
"Eligible member" means a participating member under a
pension fund or retirement system established under Article
14, 15, 16, or 17 who, at the time of the member's election to
participate in the DROP:
(1) is otherwise eligible to retire under the
applicable Article with a full and unreduced pension as
determined by the retirement system or pension fund of
which the member is an active member at the time of the
election to participate in the DROP;
(2) is not in receipt of a disability or retirement
annuity from the applicable retirement system or pension
fund at the time of his or her election to participate in

10300HB4873ham001 - 170 - LRB103 35886 RPS 69833 a
the DROP; and
(3) is actively employed in a position that is covered
under a collective bargaining agreement.
(b) The DROP shall be made available to eligible members
no later than January 1, 2026.
(c) Eligible members must make their election to
participate in the DROP in writing with the applicable pension
fund or retirement system in a form acceptable to the
applicable pension fund or retirement system. The applicable
pension fund or retirement system must process the election
and begin crediting an account on behalf of the DROP member as
soon as is practicable after the election has been received.
At the time of or prior to electing to participate in the
DROP, a member must, unless otherwise provided by law, make
all other elections required to be made at or before the date
of retirement, including, but not limited to, purchase of
optional service, election of an accelerated pension benefit
payment, or any other election identified by the retirement
system or pension fund.
(d) An eligible member may participate in the DROP for a
period not to exceed 5 years from the date of the eligible
member's election.
(e) During the period of the DROP member's participation
in the DROP, the applicable pension fund or retirement system
shall transfer and credit into a notional account on behalf of
the DROP member an amount equal to the monthly amount of

10300HB4873ham001 - 171 - LRB103 35886 RPS 69833 a
retirement annuity the DROP member would otherwise be eligible
to receive if the DROP member had retired on the date of the
election under this Section. A DROP member who is entitled to a
benefit from a participating system under the Retirement
Systems Reciprocal Act shall be eligible to have the benefit
the DROP member would have otherwise been eligible to receive
if the DROP member retired on the date of the election under
this Section deposited with the applicable pension fund or
retirement system in the DROP member's DROP account and
administered in a manner consistent with the requirements of
this Section. The applicable pension fund or retirement system
shall deduct any amounts required to be deducted under State
or federal law, including, but not limited to, payments
required under a Qualified Illinois Domestic Relations Order
under Section 1-119. Any automatic annual increases that would
have otherwise been applied to the DROP member's benefit if
the DROP member had elected to retire instead of participate
in the DROP shall accrue to the DROP member's monthly payment
placed into the account prior to the expiration of the DROP and
shall otherwise apply to the DROP member's annuity upon
expiration of the DROP. The account shall be held on behalf of
the DROP member.
(f) DROP members shall make contributions to the
applicable pension fund or retirement system during their
participation in the DROP in an amount equal to the employee
contributions under the applicable Article that would

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otherwise be required if the DROP member were an active
participant of the applicable pension fund or retirement
system. Those amounts shall be credited to the member's DROP
account, minus any administrative costs determined by the
pension fund or retirement system to be attributable to the
administration of the DROP benefits experienced by the
applicable pension fund or retirement system.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the applicable pension fund or
retirement system. The amounts in the DROP account shall not
accrue interest. The applicable pension fund or retirement
system shall reduce the amounts in the DROP account on a
schedule set by the applicable pension fund or retirement
system to cover all of the administrative costs of the
applicable pension fund or retirement system that are deemed
to be attributable to the administration of the DROP account
and any duties required under this Section.
(h) Upon expiration or termination of the DROP member's
participation in the DROP, the account balance shall be paid
to the DROP member as a lump sum. The applicable pension fund
or retirement system shall provide options for the transfer of
the account consistent with its fiduciary duty and any
applicable State or federal law. The expiration or termination
of a DROP member's participation in the DROP may not occur
after January 1, 2034.
(i) The DROP election is irrevocable, and the DROP member

10300HB4873ham001 - 173 - LRB103 35886 RPS 69833 a
may not, except as otherwise provided in this Section, access
the account prior to the date established as the last day of
the DROP when the DROP member made the initial election to
participate in the DROP. The DROP member must terminate
employment with the employer upon expiration of his or her
participation in the DROP. The DROP member's participation in
the DROP shall terminate prior to the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the pension fund or
retirement system; or
(3) upon the death of the DROP member.
Upon termination from the DROP, the member shall commence
his or her retirement annuity from the pension fund or
retirement system. After termination or expiration of a
member's participation in the DROP, the member may not
participate in employment in any way that would require the
member to become an active contributing member of the
retirement system or pension fund.
The applicable pension fund or retirement system may allow
for the payment of the balance of the DROP account prior to the
last date of participation in the DROP established by the DROP
member when the DROP member made the initial election to
participate in the DROP if (i) the member's participation in

10300HB4873ham001 - 174 - LRB103 35886 RPS 69833 a
the DROP terminated and (ii) the applicable pension fund or
retirement system determines the DROP member should have
access to the DROP account balance due to hardship or
necessity as determined by the applicable pension fund or
retirement system.
(j) A DROP member shall be considered in active service
for purposes of eligibility for death and disability benefits
and access to any health care benefits provided for by the
employer and shall retain all rights of employment as
established under the DROP member's collective bargaining
agreement.
The DROP member shall not accrue additional service credit
in the pension fund or retirement system while participating
in the DROP, regardless of any service accruals, future pay
increases, active cost of living adjustments, or promotions.
Additionally, the DROP member shall not be eligible to
purchase any optional service credit or to repay any refunds.
Eligibility for a surviving spouse benefit shall be
determined at the time of the DROP election.
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election and such amounts
shall be payable at the time of election.
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid

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to the DROP member's estate.
When determining if a member is owed a refund of
contributions due to the member's death prior to collecting an
amount equal to or greater than the member's contributions,
the proceeds of the DROP account shall be considered part of
the total payment made to the member or the member's estate.
(k) It is intended that the DROP shall not jeopardize the
tax qualified status of the pension fund or retirement system.
The pension fund or retirement system shall have the authority
to adopt rules necessary or appropriate for the DROP to
maintain compliance with applicable federal laws and
regulations. Notwithstanding any other provision of this Code,
all benefits provided under the DROP shall be subject to the
requirements and limits of the Internal Revenue Code of 1986,
as amended.
(l) Each applicable pension fund or retirement system
shall be the administrator of the DROP plan created in this
Section. The administration shall be subject to any applicable
laws, and the pension fund or retirement system shall
administer the program in the best interest of the DROP
members in a way that a prudent person in a similar
circumstance would.
(40 ILCS 5/3-118 new)
Sec. 3-118. Deferred retirement option plan.
(a) As used in this Section:

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"Deferred retirement option plan" or "DROP" means a plan
created under this Section that provides an alternative method
of benefit accrual in the fund.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than January 1,
2029.
"DROP period" means the period during which a DROP member
participates in the DROP.
"Eligible member" means a police officer who, at the time
of electing to participate in the DROP:
(1) is otherwise eligible to retire under this Article
with a benefit under Section 3-111;
(2) has never received a retirement annuity from the
fund;
(3) is in active service under this Article; and
(4) is not subject to mandatory retirement under the
law and will not become subject to mandatory retirement
under the law during participation in the DROP.
(b) The DROP shall be made available to eligible members
no later than January 1, 2026.
(c) Eligible members must make their election to
participate in the DROP in writing with the fund in a form
acceptable to the fund. The fund must process the election and
begin crediting an account on behalf of the member as soon as
is practicable after the election has been received by the
fund.

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At the time of or prior to electing to participate in the
DROP, a member must, unless otherwise provided by law, make
all other elections required to be made at or before the date
of retirement, including, but not limited to, purchase of
optional service, conversion of any annuity benefit into an
up-front or lump sum payment, or any other election identified
by the retirement system or pension fund.
(d) An eligible member may participate in the DROP for a
period not to exceed 5 years from the date of the eligible
member's election to participate.
(e) During the DROP period, the fund shall credit, to a
notional account on behalf of the DROP member, an amount equal
to the monthly amount of retirement annuity the DROP member
would otherwise be eligible to receive if the DROP member had
retired on the date of the election under this Section, minus
any amounts required to be deducted under State or federal
law, including, but not limited to, payments required under a
Qualified Illinois Domestic Relations Order under Section
1-119. A DROP member who is entitled to a benefit from a
participating system under the Retirement Systems Reciprocal
Act shall be eligible to have the benefit the DROP member would
have otherwise been eligible to receive if the DROP member
retired on the date of the election under this Section
deposited with the fund in the DROP member's DROP account and
administered in a manner consistent with the requirements of
this Section. Any automatic annual increases that would have

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otherwise been applied to the DROP member's retirement annuity
if the DROP member had elected to retire instead of
participate in the DROP shall accrue to the DROP member's
monthly payment credited to the account prior to the
expiration of the DROP and shall otherwise apply to the DROP
member's annuity upon expiration of the DROP. The account
shall be held on behalf of the DROP member.
(f) DROP members shall make contributions to the fund
during their participation in the DROP in an amount equal to
the employee contributions that would otherwise be required if
the DROP member were an active participant of the fund. Those
amounts shall be credited to the DROP account.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the fund. The amounts credited to the
DROP account shall not accrue interest.
(h) Upon the expiration or termination of the DROP
member's participation in the DROP, the account balance shall
be paid to the DROP member as a lump sum. The fund shall
provide options for the transfer of the account consistent
with its fiduciary duty and any applicable State or federal
law. The expiration or termination of a DROP member's
participation in the DROP may not occur after January 1, 2034.
(i) The DROP election is irrevocable, and the DROP member
may not access the account prior to termination or expiration
of the DROP member's participation in the DROP. The DROP
member must terminate employment with the employer upon

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expiration of his or her participation in the DROP. The DROP
member's participation in the DROP shall terminate prior to
the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the fund; or
(3) upon the death of the DROP member.
Upon termination or expiration of the DROP period, the
DROP member's retirement annuity from the fund shall commence.
After termination or expiration of a member's participation in
the DROP, the member may not participate in employment in any
way that would require the member to become an active
contributing member of the fund.
(j) The DROP member shall be considered in active service
for purposes of eligibility for death and disability benefits
and shall retain all rights of employment as established under
the DROP member's collective bargaining agreement, if
applicable.
While participating in the DROP, the DROP member shall not
accrue additional service credit, including any service
accruals, in the fund, and earnings paid to the DROP member
while participating in the DROP shall not be included in the
calculation of final average salary, regardless of future pay
increases, active cost of living adjustments, or promotions.

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Additionally, the DROP member shall not be eligible to
purchase service credit under this Article.
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election, and such amounts
shall be payable at the time of election.
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid
to the DROP member's estate.
When determining if a police officer is owed a refund of
contributions due to the police officer's death prior to
collecting an amount equal to or greater than the member's
contributions, the proceeds of the DROP account shall be
considered part of the total payment made to the police
officer or the police officer's estate.
(k) It is intended that the DROP shall not jeopardize the
tax qualified status of the fund. The board of trustees of the
fund shall have the authority to adopt rules necessary or
appropriate for the DROP to maintain compliance with
applicable federal laws and regulations. Notwithstanding any
other provision of this Article, all benefits provided under
the DROP shall be subject to the requirements and limits of the
Internal Revenue Code of 1986, as amended.
(l) The costs of administering the DROP account shall be
the exclusive responsibility of the DROP member. The fund

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shall pay any reasonable administrative cost of the account
and shall reduce the balance of the DROP account in an amount
determined by the fund to meet all costs of the DROP account.
(m) The Board may transfer the administrative
responsibility of the DROP program to the State Treasurer
under Section 1-168 after an affirmative vote of the Board.
(40 ILCS 5/4-136 new)
Sec. 4-136. Deferred retirement option plan.
(a) As used in this Section:
"Deferred retirement option plan" or "DROP" means the plan
created under this Section that provides an alternative method
of benefit accrual in the fund.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than January 1,
2029.
"DROP period" means the period during which a DROP member
participates in the DROP.
"Eligible member" means a firefighter who, at the time of
electing to participate in the DROP:
(1) is otherwise eligible to retire under this Article
with a benefit under Section 4-109;
(2) has never received a retirement annuity from the
fund;
(3) is in active service under this Article; and
(4) is not subject to mandatory retirement under the

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law and will not become subject to mandatory retirement
under the law during participation in the DROP.
(b) The DROP shall be made available to eligible members
no later than January 1, 2026.
(c) Eligible members must make their election to
participate in the DROP in writing with the fund in a form
acceptable to the fund. The fund must process the election and
begin crediting an account on behalf of the member as soon as
is practicable after the election has been received by the
fund.
At the time of or prior to electing to participate in the
DROP, a member must, unless otherwise provided by law, make
all other elections required to be made at or before the date
of retirement, including, but not limited to, purchase of
optional service, conversion of any annuity benefit into an
up-front or lump sum payment, or any other election identified
by the retirement system or pension fund.
(d) An eligible member may participate in the DROP for a
period not to exceed 5 years from the date of the eligible
member's election to participate in the DROP.
(e) During the DROP period, the fund shall credit, to a
notional account on behalf of the DROP member, an amount equal
to the monthly amount of retirement annuity the DROP member
would otherwise be eligible to receive if the DROP member had
retired on the date of the election under this Section, minus
any amounts required to be deducted under State or federal

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law, including, but not limited to, payments required under a
Qualified Illinois Domestic Relations Order under Section
1-119. A DROP member who is entitled to a benefit from a
participating system under the Retirement Systems Reciprocal
Act shall be eligible to have the benefit the DROP member would
have otherwise been eligible to receive if the DROP member
retired on the date of the election under this Section
deposited with the fund in the DROP member's DROP account and
administered in a manner consistent with the requirements of
this Section. Any automatic annual increases that would have
otherwise been applied to the DROP member's retirement annuity
if the DROP member had elected to retire instead of
participate in the DROP shall accrue to the DROP member's
monthly payment credited to the account prior to the
expiration of the DROP and shall otherwise apply to the DROP
member's annuity upon expiration of the DROP. The account
shall be held on behalf of the DROP member.
(f) DROP members shall make contributions to the fund
during their participation in the DROP in an amount equal to
the employee contributions that would otherwise be required if
the DROP member were an active participant of the fund. Those
amounts shall be credited to the DROP account.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the fund. The amounts credited to the
DROP account shall not accrue interest.
(h) Upon the expiration or termination of the DROP

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member's participation in the DROP, the account balance shall
be paid to the DROP member as a lump sum. The fund shall
provide options for the transfer of the account consistent
with its fiduciary duty and any applicable State or federal
law. The expiration or termination of a DROP member's
participation in the DROP may not occur after January 1, 2034.
(i) The DROP election is irrevocable, and the DROP member
may not access the account prior to termination or expiration
of the DROP member's participation in the DROP. The DROP
member must terminate employment with the employer upon
expiration of his or her participation in the DROP. The DROP
member's participation in the DROP shall terminate prior to
the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the fund; or
(3) upon the death of the DROP member.
Upon termination or expiration of the DROP period, the
DROP member's retirement annuity from the fund shall commence.
After termination or expiration of a member's participation in
the DROP, the member may not participate in employment in any
way that would require the member to become an active
contributing member of the fund.
(j) The DROP member shall be considered in active service

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for purposes of eligibility for death and disability benefits
and shall retain all rights of employment as established under
the DROP member's collective bargaining agreement, if
applicable.
While participating in the DROP, the DROP member shall not
accrue additional service credit, including any service
accruals, in the fund, and earnings paid to the DROP member
while participating in the DROP shall not be included in the
calculation of final average salary, regardless of future pay
increases, active cost of living adjustments, or promotions.
Additionally, the DROP member shall not be eligible to
purchase service credit under this Article.
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election, and such amounts
shall be payable at the time of election.
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid
to the DROP member's estate.
When determining if a firefighter is owed a refund of
contributions due to the firefighter's death prior to
collecting an amount equal to or greater than the
firefighter's contributions, the proceeds of the DROP account
shall be considered part of the total payment made to the
firefighter or the firefighter's estate.

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(k) It is intended that the DROP shall not jeopardize the
tax qualified status of the fund. The board of trustees of the
fund shall have the authority to adopt rules necessary or
appropriate for the DROP to maintain compliance with
applicable federal laws and regulations. Notwithstanding any
other provision of this Article, all benefits provided under
the DROP shall be subject to the requirements and limits of the
Internal Revenue Code of 1986, as amended.
(l) The costs of administering the DROP account shall be
the exclusive responsibility of the DROP member. The fund
shall pay any reasonable administrative cost of the account
and shall reduce the balance of the DROP account in an amount
determined by the fund to meet all costs of the DROP account.
(m) The Board may transfer the administrative
responsibility of the DROP program to the State Treasurer
under Section 1-168 after an affirmative vote of the Board.
(40 ILCS 5/7-142.2 new)
Sec. 7-142.2. Deferred retirement option plan.
(a) As used in this Section:
"Deferred retirement option plan" or "DROP" means the plan
created under this Section that provides an alternative method
of benefit accrual in the Fund.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than January 1,
2029.

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"DROP period" means the period during which a DROP member
participates in the DROP.
"Eligible member" means a participating employee of the
Fund who, at the time of electing to participate in the DROP:
(1) is otherwise eligible to retire under this Article
with a benefit under Section 7-142.1;
(2) has never received a retirement annuity from the
Fund;
(3) is in active service as a sheriff's law
enforcement employee; and
(4) has terminated participation with respect to any
employer other than the employer for which the member is a
sheriff's law enforcement employee.
(b) The DROP shall be made available to eligible members
no later than January 1, 2026.
(c) Eligible members must make their election to
participate in the DROP in writing with the Fund in a form
acceptable to the Fund. The Fund must process the election and
begin crediting an account on behalf of the member as soon as
is practicable after the election has been received by the
Fund.
Unless otherwise provided for by law, any election that a
member may elect at or before the time of retirement must be
made at or before the time of electing to participate in the
DROP, including, but not limited to, purchase of optional
service, election of an accelerated pension benefit payment,

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conversion of any annuity benefit into an up-front or lump sum
payment, or any other elections identified by the Fund.
(d) An eligible member may elect to participate in the
DROP for a period not to exceed 5 years from the date of
election.
(e) During the DROP period, the Fund shall credit a
notional account on behalf of the DROP member an amount equal
to the monthly amount of retirement annuity the DROP member
would otherwise be eligible to receive had the DROP member
retired on the date of the election under this Section, minus
any amounts required to be deducted under State or federal
law, including, but not limited to, payments required under a
Qualified Illinois Domestic Relations Order under Section
1-119. A DROP member who is entitled to a benefit from a
participating system under the Retirement Systems Reciprocal
Act shall be eligible to have the benefit the DROP member would
have otherwise been eligible to receive if the DROP member
retired on the date of the election under this Section
deposited with the Fund in the DROP member's DROP account and
administered in a manner consistent with the requirements of
this Section. Any automatic annual increases that would have
otherwise been applied to the DROP member's retirement annuity
had the DROP member elected to retire instead of participate
in the DROP shall accrue to the DROP member's monthly payment
credited to the account prior to the expiration of the DROP and
shall otherwise apply to the DROP member's annuity upon

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expiration of the DROP. The account shall be held on behalf of
the DROP member.
(f) DROP members shall make contributions to the Fund
during their participation in the DROP in an amount equal to
the employee contributions under paragraph (1) of subsection
(a) of Section 7-173 and subsection (a) of Section 7-173.1
that would otherwise be required if the DROP member were an
active participant of the Fund. Those amounts shall be
credited to the general account of the Fund. Earnings paid to
DROP members during their participation in the DROP shall be
included in the calculation of employer contributions as
required in Section 7-172.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the Fund. The amounts credited to the
DROP account shall not accrue interest.
(h) Upon the expiration or termination of the DROP
member's participation in the DROP, the account balance shall
be paid to the DROP member as a lump sum. The Fund shall
provide options for the transfer of the account consistent
with its fiduciary duty and any applicable State or federal
law. The expiration or termination of a DROP member's
participation in the DROP may not occur after January 1, 2034.
(i) The DROP election is irrevocable, and the DROP member
may not access the account prior to termination or expiration
of the DROP member's participation in the DROP. The DROP
member must terminate employment with the employer upon

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expiration of his or her participation in the DROP. The DROP
member's participation in the DROP shall terminate prior to
the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the Fund; or
(3) upon the death of the DROP member.
Upon termination or expiration of the DROP period, the
DROP member must separate from the service of all employers
under this Article for a period of not less than 60 days. Upon
termination of the DROP, the DROP member's retirement annuity
from the Fund shall commence. After termination or expiration
of a member's participation in the DROP, the member may not
participate in employment in any way that would require the
member to become an active contributing member of the Fund.
(j) The DROP member shall be considered in active service
for purposes of eligibility for death and disability benefits
and shall retain all rights of employment as established under
the DROP member's collective bargaining agreement, if
applicable.
While participating in the DROP, the DROP member shall not
accrue additional service credit, including any service
accruals, in the Fund and earnings paid to the DROP member
while participating in the DROP shall not be included in the

10300HB4873ham001 - 191 - LRB103 35886 RPS 69833 a
calculation of final rate of earnings, regardless of future
pay increases, active cost of living adjustments, or
promotions. Additionally, the DROP member shall not be
eligible to make additional contributions under paragraph (2)
of subsection (a) of Section 7-173. During the DROP period,
the DROP member shall not be eligible for a distribution of any
amounts accrued from previous contributions made under
paragraph (2) of subsection (a) of Section 7-173.
Eligibility for a surviving spouse benefit under Section
7-154 shall be determined at the time of the DROP election.
The pickup of employee contribution requirements in
Section 7-173.2 shall be applicable to amounts paid by the
DROP member under subsection (f).
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election, and such amounts
shall be payable at the time of election.
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid
to the DROP member's estate.
When determining if a participating employee is owed a
refund of contributions due to the participating employee's
death prior to collecting an amount equal to or greater than
the participating employee's contributions, the proceeds of
the DROP account shall be considered part of the total payment

10300HB4873ham001 - 192 - LRB103 35886 RPS 69833 a
made to the participating employee or the participating
employee's estate.
(k) It is intended that the DROP shall not jeopardize the
tax-qualified status of the Fund. The Board shall have the
authority to adopt rules necessary or appropriate for the DROP
to maintain compliance with applicable federal laws and
regulations. Notwithstanding any other provision of this
Article, all benefits provided under the DROP shall be subject
to the requirements and limitations of the Internal Revenue
Code of 1986, as amended.
(l) The Board may transfer the administrative
responsibility of the DROP program to the State Treasurer
under Section 1-168 after an affirmative vote of the Board.
Article 5.
Section 5-5. The General Obligation Bond Act is amended by
changing Sections 7.2 and 7.6 as follows:
(30 ILCS 330/7.2)
Sec. 7.2. State pension funding.
(a) The amount of $10,000,000,000 is authorized to be used
for the purpose of making contributions to the designated
retirement systems. For the purposes of this Section,
"designated retirement systems" means the State Employees'
Retirement System of Illinois; the Teachers' Retirement System

10300HB4873ham001 - 193 - LRB103 35886 RPS 69833 a
of the State of Illinois; the State Universities Retirement
System; the Judges Retirement System of Illinois; and the
General Assembly Retirement System.
The amount of $3,466,000,000 of Bonds authorized by Public
Act 96-43 is authorized to be used for the purpose of making a
portion of the State's Fiscal Year 2010 required contributions
to the designated retirement systems.
The amount of $4,096,348,300 of Bonds authorized by this
amendatory Act of the 96th General Assembly is authorized to
be used for the purpose of making a portion of the State's
Fiscal Year 2011 required contributions to the designated
retirement systems.
(b) The Pension Contribution Fund is created as a special
fund in the State treasury Treasury.
The proceeds of the additional $10,000,000,000 of Bonds
authorized by Public Act 93-2, less the amounts authorized in
the Bond Sale Order to be deposited directly into the
capitalized interest account of the General Obligation Bond
Retirement and Interest Fund or otherwise directly paid out
for bond sale expenses under Section 8, shall be deposited
into the Pension Contribution Fund and used as provided in
this Section.
The proceeds of the additional $3,466,000,000 of Bonds
authorized by Public Act 96-43, less the amounts directly paid
out for bond sale expenses under Section 8, shall be deposited
into the Pension Contribution Fund, and the Comptroller and

10300HB4873ham001 - 194 - LRB103 35886 RPS 69833 a
the Treasurer shall, as soon as practical, (i) first, transfer
from the Pension Contribution Fund to the General Revenue Fund
or Common School Fund an amount equal to the amount of
payments, if any, made to the designated retirement systems
from the General Revenue Fund or Common School Fund in State
fiscal year 2010 and (ii) second, make transfers from the
Pension Contribution Fund to the designated retirement systems
pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
of the Illinois Pension Code.
The proceeds of the additional $4,096,348,300 of Bonds
authorized by this amendatory Act of the 96th General
Assembly, less the amounts directly paid out for bond sale
expenses under Section 8, shall be deposited into the Pension
Contribution Fund, and the Comptroller and the Treasurer
shall, as soon as practical, (i) first, transfer from the
Pension Contribution Fund to the General Revenue Fund or
Common School Fund an amount equal to the amount of payments,
if any, made to the designated retirement systems from the
General Revenue Fund or Common School Fund in State fiscal
year 2011 and (ii) second, make transfers from the Pension
Contribution Fund to the designated retirement systems
pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
of the Illinois Pension Code.
(c) Of the amount of Bond proceeds from the bond sale
authorized by Public Act 93-2 first deposited into the Pension
Contribution Fund, there shall be reserved for transfers under

10300HB4873ham001 - 195 - LRB103 35886 RPS 69833 a
this subsection the sum of $300,000,000, representing the
required State contributions to the designated retirement
systems for the last quarter of State fiscal year 2003, plus
the sum of $1,860,000,000, representing the required State
contributions to the designated retirement systems for State
fiscal year 2004.
Upon the deposit of sufficient moneys from the bond sale
authorized by Public Act 93-2 into the Pension Contribution
Fund, the Comptroller and Treasurer shall immediately transfer
the sum of $300,000,000 from the Pension Contribution Fund to
the General Revenue Fund.
Whenever any payment of required State contributions for
State fiscal year 2004 is made to one of the designated
retirement systems, the Comptroller and Treasurer shall, as
soon as practicable, transfer from the Pension Contribution
Fund to the General Revenue Fund an amount equal to the amount
of that payment to the designated retirement system. Beginning
on the effective date of this amendatory Act of the 93rd
General Assembly, the transfers from the Pension Contribution
Fund to the General Revenue Fund shall be suspended until June
30, 2004, and the remaining balance in the Pension
Contribution Fund shall be transferred directly to the
designated retirement systems as provided in Section 6z-61 of
the State Finance Act. On and after July 1, 2004, in the event
that any amount is on deposit in the Pension Contribution Fund
from time to time, the Comptroller and Treasurer shall

10300HB4873ham001 - 196 - LRB103 35886 RPS 69833 a
continue to make such transfers based on fiscal year 2005
payments until the entire amount on deposit has been
transferred.
(d) All amounts deposited into the Pension Contribution
Fund, other than the amounts reserved for the transfers under
subsection (c) from the bond sale authorized by Public Act
93-2, other than amounts deposited into the Pension
Contribution Fund from the bond sale authorized by Public Act
96-43 and other than amounts deposited into the Pension
Contribution Fund from the bond sale authorized by this
amendatory Act of the 96th General Assembly, shall be
appropriated to the designated retirement systems to reduce
their actuarial reserve deficiencies. The amount of the
appropriation to each designated retirement system shall
constitute a portion of the total appropriation under this
subsection that is the same as that retirement system's
portion of the total actuarial reserve deficiency of the
systems, as most recently determined by the Governor's Office
of Management and Budget under Section 8.12 of the State
Finance Act.
With respect to proceeds from the bond sale authorized by
Public Act 93-2 only, within 15 days after any Bond proceeds in
excess of the amounts initially reserved under subsection (c)
are deposited into the Pension Contribution Fund, the
Governor's Office of Management and Budget shall (i) allocate
those proceeds among the designated retirement systems in

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proportion to their respective actuarial reserve deficiencies,
as most recently determined under Section 8.12 of the State
Finance Act, and (ii) certify those allocations to the
designated retirement systems and the Comptroller.
Upon receiving certification of an allocation under this
subsection, a designated retirement system shall submit to the
Comptroller a voucher for the amount of its allocation. The
voucher shall be paid out of the amount appropriated to that
designated retirement system from the Pension Contribution
Fund pursuant to this subsection.
(e) Each fiscal year after all the bonds authorized by
Public Act 93-2 are retired, the Comptroller shall order and
the State Treasurer shall transfer the sum of $500,000,000
from the General Revenue Fund to the Pension Unfunded
Liability Reduction Fund, which shall be used to make
additional contributions to eligible pension funds in
accordance with Section 8s of the State Finance Act.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
(30 ILCS 330/7.6)
Sec. 7.6. Income Tax Proceed Bonds.
(a) As used in this Act, "Income Tax Proceed Bonds" means
Bonds (i) authorized by Public Act 100-23 or any other Public
Act of the 100th or 101st General Assembly authorizing the
issuance of Income Tax Proceed Bonds and (ii) used for the
payment of unpaid obligations of the State as incurred from

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time to time and as authorized by the General Assembly.
(b) Income Tax Proceed Bonds in the amount of
$6,000,000,000 are hereby authorized to be used for the
purpose of paying vouchers incurred by the State prior to July
1, 2017. Additional Income Tax Proceed Bonds in the amount of
$1,200,000,000 are hereby authorized to be used for the
purpose of paying vouchers incurred by the State and accruing
interest payable by the State prior to the date on which the
Income Tax Proceed Bonds are issued.
(c) The Income Tax Bond Fund is hereby created as a special
fund in the State treasury. All moneys from the proceeds of the
sale of the Income Tax Proceed Bonds, less the amounts
authorized in the Bond Sale Order to be directly paid out for
bond sale expenses under Section 8, shall be deposited into
the Income Tax Bond Fund. All moneys in the Income Tax Bond
Fund shall be used for the purpose of paying vouchers incurred
by the State prior to July 1, 2017 or for paying vouchers
incurred by the State more than 90 days prior to the date on
which the Income Tax Proceed Bonds are issued. For the purpose
of paying such vouchers, the Comptroller has the authority to
transfer moneys from the Income Tax Bond Fund to general funds
and the Health Insurance Reserve Fund. "General funds" has the
meaning provided in Section 50-40 of the State Budget Law.
(d) Each fiscal year after all the bonds authorized under
this Section are retired, the Comptroller shall order and the
State Treasurer shall transfer the sum of $500,000,000 from

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the General Revenue Fund to the Pension Unfunded Liability
Reduction Fund, which shall be used to make additional
contributions to eligible pension funds in accordance with
Section 8s of the State Finance Act.
(Source: P.A. 103-7, eff. 7-1-23.)
Section 5-10. The State Finance Act is amended by adding
Section 8s as follows:
(30 ILCS 105/8s new)
Sec. 8s. Pension Unfunded Liability Reduction Fund.
(a) In this Section, "eligible pension fund" means a
pension fund or retirement system established under Article 2,
14, 15, 16, 17, or 18 of the Illinois Pension Code that has a
total actuarial liability in excess of its total actuarial
assets.
(b) The Pension Unfunded Liability Reduction Fund is
created as a special fund in the State treasury. Moneys in the
Fund may be used only to make annual additional contributions
to eligible pension funds.
(c) Moneys in the Fund shall be disbursed every fiscal
year to each eligible pension fund based on the pro rata share
of the State's required annual contribution to that eligible
pension fund for that fiscal year relative to the State's
total required annual contribution to all eligible pension
funds for that fiscal year.

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Article 7.
Section 7-5. The Illinois Pension Code is amended by
changing Sections 2-101, 2-105, 2-107, 2-117, 8-120,
14-103.05, 14-104, 14-104.14, 14-105.4, 18-101, 18-108,
18-109, 18-110, and 18-120 as follows:
(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
Sec. 2-101. Creation of system. A retirement system is
created to provide retirement annuities, survivor's annuities
and other benefits for certain members of the General
Assembly, certain elected state officials, and their
beneficiaries.
The system shall be known as the "General Assembly
Retirement System". All its funds and property shall be a
trust separate from all other entities, maintained for the
purpose of securing payment of annuities and benefits under
this Article.
Participation in the retirement system created under this
Article is restricted to persons who became participants
before January 13, 2027. Beginning on that date, the System
shall not accept any new participants.
(Source: P.A. 83-1440.)
(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)

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Sec. 2-105. Member. "Member": Members of the General
Assembly of this State, including persons who enter military
service while a member of the General Assembly, and any person
serving as Governor, Lieutenant Governor, Secretary of State,
Treasurer, Comptroller, or Attorney General for the period of
service in such office.
Any person who has served for 10 or more years as Clerk or
Assistant Clerk of the House of Representatives, Secretary or
Assistant Secretary of the Senate, or any combination thereof,
may elect to become a member of this system while thenceforth
engaged in such service by filing a written election with the
board. Any person so electing shall be deemed an active member
of the General Assembly for the purpose of validating and
transferring any service credits earned under any of the funds
and systems established under Articles 3 through 18 of this
Code.
Notwithstanding any other provision of this Article, a
person shall not be deemed a member for the purposes of this
Article unless he or she became a participant of the System
before January 13, 2027.
(Source: P.A. 85-1008.)
(40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
Sec. 2-107. Participant. "Participant": Any member who
elects to participate; and any former member who elects to
continue participation under Section 2-117.1, for the duration

10300HB4873ham001 - 202 - LRB103 35886 RPS 69833 a
of such continued participation. Notwithstanding any other
provision of this Article, a person shall not be deemed a
participant for the purposes of this Article unless he or she
became a participant of the System before January 13, 2027.
(Source: P.A. 86-1488.)
(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
Sec. 2-117. Participants; election not to participate or
to terminate participation Participants - Election not to
participate.
(a) Every person who was a member on November 1, 1947, or
in military service on such date, is subject to the provisions
of this system beginning upon such date, unless prior to such
date he or she filed with the board a written notice of
election not to participate.
Every person who becomes a member after November 1, 1947,
and who is then not a participant becomes a participant
beginning upon the date of becoming a member unless, within 24
months from that date, he or she has filed with the board a
written notice of election not to participate.
(b) A member who has filed notice of an election not to
participate (and a former member who has not yet begun to
receive a retirement annuity under this Article) may become a
participant with respect to the period for which the member
elected not to participate upon filing with the board, before
April 1, 1993, a written rescission of the election not to

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participate. Upon contributing an amount equal to the
contributions he or she would have made as a participant from
November 1, 1947, or the date of becoming a member, whichever
is later, to the date of becoming a participant, with interest
at the rate of 4% per annum until the contributions are paid,
the participant shall receive credit for service as a member
prior to the date of the rescission, both before and after
November 1, 1947. The required contributions shall be made
before commencement of the retirement annuity; otherwise no
credit for service prior to the date of participation shall be
granted.
(c) Notwithstanding any other provision of this Article,
an active participant may irrevocably elect, in writing and in
a form and manner prescribed by the board, to terminate
participation in the System and instead participate in the
retirement system established under Article 14. Upon making
the election under this subsection (c), all credits and
creditable service shall be transferred to the retirement
system under Article 14 in accordance with Section 14-105.4
and all participation in this System is terminated.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee.
(a) Any person employed by a Department who receives
salary for personal services rendered to the Department on a

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warrant issued pursuant to a payroll voucher certified by a
Department and drawn by the State Comptroller upon the State
Treasurer, including an elected official described in
subparagraph (d) of Section 14-104, shall become an employee
for purpose of membership in the Retirement System on the
first day of such employment.
A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of employment and shall begin making contributions as of the
first day of employment.
A person entering service on or after January 1, 1984
shall, upon completion of 6 months of continuous service which
is not interrupted by a break of more than 2 months, become a
member as a condition of employment. Contributions shall begin
the first of the month after completion of the qualifying
period.
A person employed by the Chicago Metropolitan Agency for
Planning on the effective date of this amendatory Act of the
95th General Assembly who was a member of this System as an
employee of the Chicago Area Transportation Study and makes an
election under Section 14-104.13 to participate in this System
for his or her employment with the Chicago Metropolitan Agency
for Planning.
The qualifying period of 6 months of service is not
applicable to: (1) a person who has been granted credit for
service in a position covered by the State Universities

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Retirement System, the Teachers' Retirement System of the
State of Illinois, the General Assembly Retirement System, or
the Judges Retirement System of Illinois unless that service
has been forfeited under the laws of those systems; (2) a
person entering service on or after July 1, 1991 in a
noncovered position; (3) a person to whom Section 14-108.2a or
14-108.2b applies; or (4) a person to whom subsection (a-5) of
this Section applies.
(a-5) A person entering service on or after December 1,
2010 shall become a member as a condition of employment and
shall begin making contributions as of the first day of
employment. A person serving in the qualifying period on
December 1, 2010 will become a member on December 1, 2010 and
shall begin making contributions as of December 1, 2010.
(b) The term "employee" does not include the following:
(1) members of the State Legislature, and persons
electing to become members of the General Assembly
Retirement System pursuant to Section 2-105;
(2) incumbents of offices normally filled by vote of
the people;
(3) except as otherwise provided in this Section, any
person appointed by the Governor with the advice and
consent of the Senate unless that person elects to
participate in this system;
(3.1) any person serving as a commissioner of an
ethics commission created under the State Officials and

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Employees Ethics Act unless that person elects to
participate in this system with respect to that service as
a commissioner;
(3.2) any person serving as a part-time employee in
any of the following positions: Legislative Inspector
General, Special Legislative Inspector General, employee
of the Office of the Legislative Inspector General,
Executive Director of the Legislative Ethics Commission,
or staff of the Legislative Ethics Commission, regardless
of whether he or she is in active service on or after July
8, 2004 (the effective date of Public Act 93-685), unless
that person elects to participate in this System with
respect to that service; in this item (3.2), a "part-time
employee" is a person who is not required to work at least
35 hours per week;
(3.3) any person who has made an election under
Section 1-123 and who is serving either as legal counsel
in the Office of the Governor or as Chief Deputy Attorney
General;
(4) except as provided in Section 14-108.2 or
14-108.2c, any person who is covered or eligible to be
covered by the Teachers' Retirement System of the State of
Illinois, the State Universities Retirement System, or the
Judges Retirement System of Illinois;
(5) an employee of a municipality or any other
political subdivision of the State;

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(6) any person who becomes an employee after June 30,
1979 as a public service employment program participant
under the Federal Comprehensive Employment and Training
Act and whose wages or fringe benefits are paid in whole or
in part by funds provided under such Act;
(7) enrollees of the Illinois Young Adult Conservation
Corps program, administered by the Department of Natural
Resources, authorized grantee pursuant to Title VIII of
the "Comprehensive Employment and Training Act of 1973",
29 USC 993, as now or hereafter amended;
(8) enrollees and temporary staff of programs
administered by the Department of Natural Resources under
the Youth Conservation Corps Act of 1970;
(9) any person who is a member of any professional
licensing or disciplinary board created under an Act
administered by the Department of Professional Regulation
or a successor agency or created or re-created after the
effective date of this amendatory Act of 1997, and who
receives per diem compensation rather than a salary,
notwithstanding that such per diem compensation is paid by
warrant issued pursuant to a payroll voucher; such persons
have never been included in the membership of this System,
and this amendatory Act of 1987 (P.A. 84-1472) is not
intended to effect any change in the status of such
persons;
(10) any person who is a member of the Illinois Health

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Care Cost Containment Council, and receives per diem
compensation rather than a salary, notwithstanding that
such per diem compensation is paid by warrant issued
pursuant to a payroll voucher; such persons have never
been included in the membership of this System, and this
amendatory Act of 1987 is not intended to effect any
change in the status of such persons;
(11) any person who is a member of the Oil and Gas
Board created by Section 1.2 of the Illinois Oil and Gas
Act, and receives per diem compensation rather than a
salary, notwithstanding that such per diem compensation is
paid by warrant issued pursuant to a payroll voucher;
(12) a person employed by the State Board of Higher
Education in a position with the Illinois Century Network
as of June 30, 2004, who remains continuously employed
after that date by the Department of Central Management
Services in a position with the Illinois Century Network
and participates in the Article 15 system with respect to
that employment;
(13) any person who first becomes a member of the
Civil Service Commission on or after January 1, 2012;
(14) any person, other than the Director of Employment
Security, who first becomes a member of the Board of
Review of the Department of Employment Security on or
after January 1, 2012;
(15) any person who first becomes a member of the

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Civil Service Commission on or after January 1, 2012;
(16) any person who first becomes a member of the
Illinois Liquor Control Commission on or after January 1,
2012;
(17) any person who first becomes a member of the
Secretary of State Merit Commission on or after January 1,
2012;
(18) any person who first becomes a member of the
Human Rights Commission on or after January 1, 2012 unless
he or she is eligible to participate in accordance with
subsection (d) of this Section;
(19) any person who first becomes a member of the
State Mining Board on or after January 1, 2012;
(20) any person who first becomes a member of the
Property Tax Appeal Board on or after January 1, 2012;
(21) any person who first becomes a member of the
Illinois Racing Board on or after January 1, 2012;
(22) any person who first becomes a member of the
Illinois State Police Merit Board on or after January 1,
2012;
(23) any person who first becomes a member of the
Illinois State Toll Highway Authority on or after January
1, 2012; or
(24) any person who first becomes a member of the
Illinois State Board of Elections on or after January 1,
2012.

10300HB4873ham001 - 210 - LRB103 35886 RPS 69833 a
(c) An individual who represents or is employed as an
officer or employee of a statewide labor organization that
represents members of this System may participate in the
System and shall be deemed an employee, provided that (1) the
individual has previously earned creditable service under this
Article, (2) the individual files with the System an
irrevocable election to become a participant within 6 months
after the effective date of this amendatory Act of the 94th
General Assembly, and (3) the individual does not receive
credit for that employment under any other provisions of this
Code. An employee under this subsection (c) is responsible for
paying to the System both (i) employee contributions based on
the actual compensation received for service with the labor
organization and (ii) employer contributions based on the
percentage of payroll certified by the board; all or any part
of these contributions may be paid on the employee's behalf or
picked up for tax purposes (if authorized under federal law)
by the labor organization.
A person who is an employee as defined in this subsection
(c) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection (c) for any such prior
employment for which the applicant received credit under any

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other provision of this Code or during which the applicant was
on a leave of absence.
(d) A person appointed as a member of the Human Rights
Commission on or after June 1, 2019 may elect to participate in
the System and shall be deemed an employee. Service and
contributions shall begin on the first payroll period
immediately following the employee's election to participate
in the System.
A person who is an employee as described in this
subsection (d) may establish service credit for employment as
a Human Rights Commissioner that occurred on or after June 1,
2019 and before establishing service under this subsection by
paying to the System for that employment the contributions
specified in paragraph (1) of subsection (a) of Section
14-133, plus regular interest from the date of service to the
date of payment.
(Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in
this Section, the contributions shall be based upon the
employee's compensation and contribution rate in effect on the
date he last became a member of the System; provided that for
all employment prior to January 1, 1969 the contribution rate

10300HB4873ham001 - 212 - LRB103 35886 RPS 69833 a
shall be that in effect for a noncovered employee on the date
he last became a member of the System. Except as otherwise
provided in this Section, contributions permitted under this
Section shall include regular interest from the date an
employee last became a member of the System to the date of
payment.
These contributions must be paid in full before retirement
either in a lump sum or in installment payments in accordance
with such rules as may be adopted by the board.
(a) Any member may make contributions as required in this
Section for any period of service, subsequent to the date of
establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who, after
January 1, 1944 but prior to becoming eligible for membership,
received salary from funds of insurance companies in the
process of rehabilitation, liquidation, conservation or
dissolution, may elect to make contributions as required in
this Section for such service.
(d) Any employee who rendered service in a State office to
which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he

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became a member, may make contributions for such service as
required in this Section. Any member who served by appointment
of the Governor under the Civil Administrative Code of
Illinois and did not participate in this System may make
contributions as required in this Section for such service.
(e) Any person employed by the United States government or
any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership service
credit for the period from January 1, 1944 through November
15, 1946 by making the contributions required in this Section.
A person so employed on January 1, 1944 but whose employment
began after January 1, 1942 may qualify for prior service and
membership service credit under the same conditions.
(f) An employee of the Department of Labor of the State of
Illinois who performed services for and under the supervision
of that Department prior to January 1, 1944 but who was
compensated for those services directly by federal funds and
not by a warrant of the Auditor of Public Accounts paid by the
State Treasurer may establish credit for such employment by
making the contributions required in this Section. An employee
of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that

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Department prior to June 1, 1963, but was compensated for
those services directly by federal funds and not paid by a
warrant of the Auditor of Public Accounts paid by the State
Treasurer, and who did not contribute to any other public
employee retirement system for such service, may establish
credit for such employment by making the contributions
required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time while
in the service of a department, file with the board a
rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the waiver
had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at least
5 continuous years may establish creditable service for such
employment by making the contributions required under this
Section, provided that any credits earned by the employee in
the commission's retirement plan have been terminated.
(i) Any person who rendered full time contractual services
to the General Assembly as a member of a legislative staff may
establish service credit for up to 8 years of such services by
making the contributions required under this Section, provided
that application therefor is made not later than July 1, 1991.
(j) By paying the contributions otherwise required under

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this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, but with all of the interest calculated from the
date the employee last became a member of the System or
November 19, 1991, whichever is later, to the date of payment,
an employee may establish service credit for a period of up to
4 years spent in active military service for which he does not
qualify for credit under Section 14-105, provided that (1) he
was not dishonorably discharged from such military service,
and (2) the amount of service credit established by a member
under this subsection (j), when added to the amount of
military service credit granted to the member under subsection
(b) of Section 14-105, shall not exceed 5 years. The change in
the manner of calculating interest under this subsection (j)
made by this amendatory Act of the 92nd General Assembly
applies to credit purchased by an employee on or after its
effective date and does not entitle any person to a refund of
contributions or interest already paid. In compliance with
Section 14-152.1 of this Act concerning new benefit increases,
any new benefit increase as a result of the changes to this
subsection (j) made by Public Act 95-483 is funded through the
employee contributions provided for in this subsection (j).
Any new benefit increase as a result of the changes made to
this subsection (j) by Public Act 95-483 is exempt from the
provisions of subsection (d) of Section 14-152.1.
(k) An employee who was employed on a full-time basis by

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the Illinois State's Attorneys Association Statewide Appellate
Assistance Service LEAA-ILEC grant project prior to the time
that project became the State's Attorneys Appellate Service
Commission, now the Office of the State's Attorneys Appellate
Prosecutor, an agency of State government, may establish
creditable service for not more than 60 months service for
such employment by making contributions required under this
Section.
(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or
after January 1, 1982 and (2) any credit established by the
member for the period of leave in any other public employee
retirement system has been terminated. A member may establish
service credit under this subsection for more than one period
of authorized leave, and in that case the total period of
service credit established by the member under this subsection
may exceed one year. In determining the contributions required
for establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.
(l-5) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be

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equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member
represented or was employed as an officer or employee of a
statewide labor organization that represents members of this
System. In determining the contributions required for
establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.
(m) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the
contributions required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. To establish credit
under this subsection, the applicant must apply to the System
by March 1, 1998.
(n) Any person who rendered contractual services to a
member of the General Assembly as a worker providing
constituent services to persons in the member's district may
establish creditable service for up to 8 years of those
contractual services by making the contributions required
under this Section. The System shall determine a full-time
salary equivalent for the purpose of calculating the required

10300HB4873ham001 - 218 - LRB103 35886 RPS 69833 a
contribution. To establish credit under this subsection, the
applicant must apply to the System by March 1, 1998.
(o) A member who participated in the Illinois Legislative
Staff Internship Program may establish creditable service for
up to one year of that participation by making the
contribution required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. Credit may not be
established under this subsection for any period for which
service credit is established under any other provision of
this Code.
(p) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for a period
of up to 8 years during which he or she was employed by the
Visually Handicapped Managers of Illinois in a vending program
operated under a contractual agreement with the Department of
Rehabilitation Services or its successor agency.
This subsection (p) applies without regard to whether the
person was in service on or after the effective date of this
amendatory Act of the 94th General Assembly. In the case of a
person who is receiving a retirement annuity on that effective
date, the increase, if any, shall begin to accrue on the first
annuity payment date following receipt by the System of the
contributions required under this subsection (p).

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(q) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest, an
employee who was laid off but returned to any State employment
may establish creditable service for the period of the layoff,
provided that (1) the applicant applies for the creditable
service under this subsection (q) within 6 months after July
27, 2010 (the effective date of Public Act 96-1320), (2) the
applicant does not receive credit for that period under any
other provision of this Code, (3) at the time of the layoff,
the applicant is not in an initial probationary status
consistent with the rules of the Department of Central
Management Services, and (4) the total amount of creditable
service established by the applicant under this subsection (q)
does not exceed 3 years. For service established under this
subsection (q), the required employee contribution shall be
based on the rate of compensation earned by the employee on the
date of returning to employment after the layoff and the
contribution rate then in effect, and the required interest
shall be calculated at the actuarially assumed rate from the
date of returning to employment after the layoff to the date of
payment. Funding for any new benefit increase, as defined in
Section 14-152.1 of this Act, that is created under this
subsection (q) will be provided by the employee contributions
required under this subsection (q).
(r) A member who participated in the University of

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Illinois Government Public Service Internship Program (GPSI)
may establish creditable service for up to 2 years of that
participation by making the contribution required under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest. The
System shall determine a full-time salary equivalent for the
purpose of calculating the required contribution. Credit may
not be established under this subsection for any period for
which service credit is established under any other provision
of this Code.
(s) A member who worked as a nurse under a contractual
agreement for the Department of Public Aid, or its successor
agency, the Department of Human Services, in the Client
Assessment Unit and was subsequently determined to be a State
employee by the United States Internal Revenue Service and the
Illinois Labor Relations Board may establish creditable
service for those contractual services by making the
contributions required under this Section. To establish credit
under this subsection, the applicant must apply to the System
by July 1, 2008.
The Department of Human Services shall pay an employer
contribution based upon an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus
interest.
In compliance with Section 14-152.1 added by Public Act
94-4, the cost of the benefits provided by Public Act 95-583

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are offset by the required employee and employer
contributions.
(t) Any person who rendered contractual services on a
full-time basis to the Illinois Institute of Natural Resources
and the Illinois Department of Energy and Natural Resources
may establish creditable service for up to 4 years of those
contractual services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit plus
interest at the actuarially assumed rate from the first day of
the service for which credit is being established to the date
of payment. To establish credit under this subsection (t), the
applicant must apply to the System within 6 months after July
27, 2010 (the effective date of Public Act 96-1320).
(u) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit, plus interest, a
member may establish creditable service and earnings credit
for periods of furlough beginning on or after July 1, 2008. To
receive this credit, the participant must (i) apply in writing
to the System before December 31, 2011 and (ii) not receive
compensation for the furlough period. For service established
under this subsection, the required employee contribution
shall be based on the rate of compensation earned by the
employee immediately following the date of the first furlough
day in the time period specified in this subsection (u), and

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the required interest shall be calculated at the actuarially
assumed rate from the date of the furlough to the date of
payment.
(v) Any member who rendered full-time contractual services
to an Illinois Veterans Home operated by the Department of
Veterans' Affairs may establish service credit for up to 8
years of such services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus
interest at the actuarially assumed rate. To establish credit
under this subsection, the applicant must apply to the System
no later than 6 months after July 27, 2010 (the effective date
of Public Act 96-1320).
(w) Any employee who served as a member of the General
Assembly and did not contribute to any other public employee
retirement system for such service may establish service
credit for up to 10 years of that service by making the
contributions required under this Section, plus an amount
determined by the Board to be equal to the employer's normal
cost of the benefit, plus interest at the actuarially assumed
rate. To establish credit under this subsection, the applicant
must make the contributions required under this subsection no
later than 10 years after making application to the System.
(x) Any employee who served as a judge, as defined in
Section 18-108, and did not contribute to any other public
employee retirement system for such service may establish

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service credit for up to 10 years of that service by making the
contributions required under this Section, plus an amount
determined by the Board to be equal to the employer's normal
cost of the benefit, plus interest at the actuarially assumed
rate. To establish credit under this subsection, the applicant
must make the contributions required under this subsection no
later than 10 years after making application to the System.
(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
8-12-11.)
(40 ILCS 5/14-104.14 new)
Sec. 14-104.14. Transfer of service from the Judges
Retirement System of Illinois. An active participant in the
Judges Retirement System of Illinois may elect to terminate
participation in the Judges Retirement System of Illinois in
accordance with subsection (b) of Section 18-120. All credits
and creditable service accumulated under Article 18 shall be
transferred to this System upon payment to this System of (1)
the amount by which the employer and employee contributions
that would have been required if he or she had participated in
this System during the period for which credit is being
transferred, plus regular interest, exceeds the amounts
actually transferred under that Section to this System, plus
(2) regular interest thereon from the date of such

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participation to the date of payment.
(40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
Sec. 14-105.4. Transfer of service from the General
Assembly Retirement System.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the
General Assembly Retirement System under Section 2-117.1 may
not participate in this System for the duration of such
continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a
person may transfer credits and creditable service accumulated
under Section 2-117.1 to this System, upon payment to this
System of (1) the amount by which the employer and employee
contributions that would have been required if he had
participated in this System during the period for which credit
under Section 2-117.1 is being transferred, plus regular
interest, exceeds the amounts actually transferred under that
Section to this System, plus (2) regular interest thereon from
the date of such participation to the date of payment.
(c) An active participant in the General Assembly
Retirement System may elect to terminate participation in the
General Assembly Retirement System in accordance with
subsection (c) of Section 2-117. All credits and creditable
service accumulated under Article 2 shall be transferred to
this System upon payment to this System of (1) the amount by

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which the employer and employee contributions that would have
been required if he or she had participated in this System
during the period for which credit is being transferred, plus
regular interest, exceeds the amounts actually transferred
under that Section to this System, plus (2) regular interest
thereon from the date of such participation to the date of
payment.
(Source: P.A. 83-430.)
(40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
Sec. 18-101. Creation of fund. A retirement system is
created to be known as the "Judges Retirement System of
Illinois". It shall be a trust separate and distinct from all
other entities, maintained for the purpose of securing the
payment of annuities and benefits as prescribed herein.
Participation in the retirement system created under this
Article is restricted to persons who became participants of
the System before January 13, 2027. Beginning on that date,
the System shall not accept any new participants.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
Sec. 18-108. Judge. "Judge": Any person who receives
payment for personal services as a judge or associate judge of
a court; and any person, previously a participant, who
receives payment for personal services as the administrative

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director appointed by the Supreme Court.
Notwithstanding any other provision of this Article, a
person shall not be deemed a judge for the purposes of this
Article unless he or she became a participant of the System
before January 13, 2027.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
Sec. 18-109. Eligible judge. "Eligible judge": Any judge
except one who has elected not to participate in this system.
Notwithstanding any other provision of this Article, a
person shall not be deemed an eligible judge for the purposes
of this Article unless he or she became a participant of the
System before January 13, 2027.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
Sec. 18-110. Participant. "Participant": Any judge
participating in this system as specified in Sections 18-120
and 18-121.
Notwithstanding any other provision of this Article, a
person shall not be deemed a participant for the purposes of
this Article unless he or she became a participant of the
System before January 13, 2027.
(Source: P.A. 83-1440.)

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(40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
Sec. 18-120. Employee participation; election not to
participate or terminate participation.
(a) An eligible judge who is not a participant shall
become a participant beginning on the date he or she becomes an
eligible judge, unless the judge files with the board a
written notice of election not to participate within 30 days
of the date of being notified of the option.
A person electing not to participate shall thereafter be
ineligible to become a participant unless the election is
revoked as provided in Section 18-121.
(b) Notwithstanding any other provision of this Article,
an active participant may irrevocably elect, in writing and in
a form and manner prescribed by the board, to terminate
participation in the System and instead participate in the
retirement system established under Article 14. Upon making
the election under this subsection (b), all credits and
creditable service shall be transferred to the retirement
system under Article 14 in accordance with Section 14-104.14
and all participation in this System is terminated.
(Source: P.A. 83-1440.)
Article 9.
Section 9-5. The Illinois Pension Code is amended by
changing Sections 1-160 and 15-135 as follows:

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(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

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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.

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(b) "Final average salary" means, except as otherwise
provided in this subsection, 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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the

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member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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"

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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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of

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reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the

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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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding subsection (c), beginning July 1,
2025, a member or participant under Article 14, 16, or 17
subject to this Section is entitled to a retirement annuity
upon written application if he or she:
(1) has attained age 62, has at least 35 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article;
(2) has attained age 64, has at least 20 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article; or
(3) has attained age 67, has at least 10 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article.
For the purposes of Section 1-103.1 of this Code, the

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changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or

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after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) 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).

10300HB4873ham001 - 237 - LRB103 35886 RPS 69833 a
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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

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either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the

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changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 if the person is 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.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, 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

10300HB4873ham001 - 241 - LRB103 35886 RPS 69833 a
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 55,
regardless of whether the attainment of age 55 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

10300HB4873ham001 - 242 - LRB103 35886 RPS 69833 a
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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
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

10300HB4873ham001 - 243 - LRB103 35886 RPS 69833 a
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 244 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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

10300HB4873ham001 - 245 - LRB103 35886 RPS 69833 a
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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the

10300HB4873ham001 - 246 - LRB103 35886 RPS 69833 a
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 247 - LRB103 35886 RPS 69833 a
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause

10300HB4873ham001 - 248 - LRB103 35886 RPS 69833 a
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a

10300HB4873ham001 - 249 - LRB103 35886 RPS 69833 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 and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding subsection (c), beginning July 1,
2025, a member or participant under Article 14, 16, or 17
subject to this Section is entitled to a retirement annuity
upon written application if he or she:
(1) has attained age 62, has at least 35 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article;
(2) has attained age 64, has at least 20 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article; or
(3) has attained age 67, has at least 10 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to

10300HB4873ham001 - 250 - LRB103 35886 RPS 69833 a
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

10300HB4873ham001 - 251 - LRB103 35886 RPS 69833 a
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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or

10300HB4873ham001 - 252 - LRB103 35886 RPS 69833 a
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to

10300HB4873ham001 - 253 - LRB103 35886 RPS 69833 a
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

10300HB4873ham001 - 254 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 255 - LRB103 35886 RPS 69833 a
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

10300HB4873ham001 - 256 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 257 - LRB103 35886 RPS 69833 a
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 258 - LRB103 35886 RPS 69833 a
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)

10300HB4873ham001 - 259 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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) (Blank).
(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".

10300HB4873ham001 - 260 - LRB103 35886 RPS 69833 a
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 261 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under

10300HB4873ham001 - 262 - LRB103 35886 RPS 69833 a
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

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after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding subsection (c), beginning July 1,
2025, a member or participant under Article 14, 16, or 17
subject to this Section is entitled to a retirement annuity
upon written application if he or she:
(1) has attained age 62, has at least 35 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article;
(2) has attained age 64, has at least 20 years of
service credit, and is otherwise eligible under the
requirements of the applicable Article; or
(3) has attained age 67, has at least 10 years of

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service credit, and is otherwise eligible under the
requirements of the applicable Article.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for

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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 July 6, 2017 (the effective
date of Public Act 100-23) 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

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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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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

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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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in

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active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

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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

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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. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A
participant who retires in one of the following specified
years with the specified amount of service is entitled to a
retirement annuity at any age under the retirement program
applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;

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32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(a-5) Beginning July 1, 2025, a Tier 2 member is entitled
to a retirement annuity upon written application if he or she:
(1) has attained age 62, has at least 35 years of
service credit, and is otherwise eligible under the
requirements of this Article;
(2) has attained age 64, has at least 20 years of
service credit, and is otherwise eligible under the
requirements of this Article; or
(3) has attained age 67, has at least 10 years of
service credit, and is otherwise eligible under the
requirements of this Article.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the

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103rd 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 103rd General
Assembly.
Before July 1, 2025, a A Tier 2 member is entitled to a
retirement annuity upon written application if he or she has
attained age 67 and has at least 10 years of service credit and
is otherwise eligible under the requirements of this Article.
A Tier 2 member who has attained age 62 and has at least 10
years of service credit and is otherwise eligible under the
requirements of this Article may elect to receive the lower
retirement annuity provided in subsection (b-5) of Section
15-136 of this Article.
(a-10) Before July 1, 2025, a A Tier 2 member who has at
least 20 years of service in this system as a police officer or
firefighter is entitled to a retirement annuity upon written
application on or after the attainment of age 60 if Rule 4 of
Section 15-136 is applicable to the participant. Beginning
July 1, 2025, a Tier 2 member who has at least 20 years of
service in this system as a police officer or firefighter is
entitled to a retirement annuity upon written application on
or after the attainment of age 55 if Rule 4 of Section 15-136
is applicable to the participant. The changes made to this
subsection by this amendatory Act of the 101st General
Assembly apply retroactively to January 1, 2011.
(b) The annuity payment period shall begin on the date

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specified by the participant or the recipient of a disability
retirement annuity submitting a written application. For a
participant, the date on which the annuity payment period
begins shall not be prior to termination of employment or more
than one year before the application is received by the board;
however, if the participant is not an employee of an employer
participating in this System or in a participating system as
defined in Article 20 of this Code on April 1 of the calendar
year next following the calendar year in which the participant
attains the age specified under Section 401(a)(9) of the
Internal Revenue Code of 1986, as amended, the annuity payment
period shall begin on that date regardless of whether an
application has been filed. For a recipient of a disability
retirement annuity, the date on which the annuity payment
period begins shall not be prior to the discontinuation of the
disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under
Section 15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
Article 10.
Section 10-5. The Illinois Pension Code is amended by
changing Sections 1-160, 15-108.2, 15-155, and 16-158.3 as
follows:

10300HB4873ham001 - 275 - LRB103 35886 RPS 69833 a
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

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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, except as otherwise

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provided in this subsection, 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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the

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following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

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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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal

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services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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

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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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or

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Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

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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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain

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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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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.

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For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

10300HB4873ham001 - 286 - LRB103 35886 RPS 69833 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 if the person is 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.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,

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conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, 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 55,
regardless of whether the attainment of age 55 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.

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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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)

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(Text of Section from P.A. 102-813)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 290 - LRB103 35886 RPS 69833 a
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, except as otherwise

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provided in this subsection, 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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the

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following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

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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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal

10300HB4873ham001 - 294 - LRB103 35886 RPS 69833 a
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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

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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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or

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Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

10300HB4873ham001 - 297 - LRB103 35886 RPS 69833 a
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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain

10300HB4873ham001 - 298 - LRB103 35886 RPS 69833 a
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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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.

10300HB4873ham001 - 299 - LRB103 35886 RPS 69833 a
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

10300HB4873ham001 - 300 - LRB103 35886 RPS 69833 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 conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

10300HB4873ham001 - 301 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 302 - LRB103 35886 RPS 69833 a
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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
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,
7, 15, or 18 of this Code, notwithstanding any other provision

10300HB4873ham001 - 303 - LRB103 35886 RPS 69833 a
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 304 - LRB103 35886 RPS 69833 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, except as otherwise
provided in this subsection, 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

10300HB4873ham001 - 305 - LRB103 35886 RPS 69833 a
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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8

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years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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.
(b-10) Beginning on January 1, 2024, for all purposes

10300HB4873ham001 - 307 - LRB103 35886 RPS 69833 a
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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.

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(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 and is otherwise eligible under the

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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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:

10300HB4873ham001 - 310 - LRB103 35886 RPS 69833 a
(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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election

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either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who

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first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of

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Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

10300HB4873ham001 - 315 - LRB103 35886 RPS 69833 a
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

10300HB4873ham001 - 316 - LRB103 35886 RPS 69833 a
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. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/15-108.2)
Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
who first becomes a participant under this Article on or after
January 1, 2011 and before the implementation date, as defined
under subsection (a) of Section 1-161, determined by the
Board, other than a person in the self-managed plan
established under Section 15-158.2 or a person who makes the
election under subsection (c) of Section 1-161, unless the
person is otherwise a Tier 1 member. The changes made to this
Section by this amendatory Act of the 98th General Assembly
are a correction of existing law and are intended to be
retroactive to the effective date of Public Act 96-889,
notwithstanding the provisions of Section 1-103.1 of this
Code.
(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)

10300HB4873ham001 - 317 - LRB103 35886 RPS 69833 a
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (a-1).
(a-1) For State fiscal years 2012 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System

10300HB4873ham001 - 318 - LRB103 35886 RPS 69833 a
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is

10300HB4873ham001 - 319 - LRB103 35886 RPS 69833 a
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $252,064,100.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $702,514,000 and shall be made from the State Pensions Fund
and proceeds of bonds sold in fiscal year 2010 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the
System's share of total bond proceeds, (ii) any amounts
received from the General Revenue Fund in fiscal year 2010,
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011

10300HB4873ham001 - 320 - LRB103 35886 RPS 69833 a
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 15-165 and shall be made from the
State Pensions Fund and proceeds of bonds sold in fiscal year
2011 pursuant to Section 7.2 of the General Obligation Bond
Act, less (i) the pro rata share of bond sale expenses
determined by the System's share of total bond proceeds, (ii)
any amounts received from the General Revenue Fund in fiscal
year 2011, and (iii) any reduction in bond proceeds due to the
issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the

10300HB4873ham001 - 321 - LRB103 35886 RPS 69833 a
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
15-165, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(a-2) (Blank). Beginning in fiscal year 2018, each
employer under this Article shall pay to the System a required

10300HB4873ham001 - 322 - LRB103 35886 RPS 69833 a
contribution determined as a percentage of projected payroll
and sufficient to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
15-155.2, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System

10300HB4873ham001 - 323 - LRB103 35886 RPS 69833 a
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (a-2)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
As used in this subsection, "academic year" means the
12-month period beginning September 1.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income
funds, or service enterprise funds are not required to pay
such contributions on behalf of those employees. The local
auxiliary funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall

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each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of
the actuary, and shall be expressed as a percentage of salary
for each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or
other funds, in accordance with actuarial procedures approved
by the Board. State of Illinois contributions for employers
receiving State appropriations for personal services shall be
payable from appropriations made to the employers or to the
System. The contributions for Class I community colleges
covering earnings other than those paid from trust and federal
funds, shall be payable solely from appropriations to the
Illinois Community College Board or the System for employer
contributions.
(d) Beginning in State fiscal year 1996, the required
State contributions to the System shall be appropriated

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directly to the System and shall be payable through vouchers
issued in accordance with subsection (c) of Section 15-165,
except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System
because of the credits earned for service rendered by the
participants during the fiscal year and expenses of
administering the System, but shall not include the principal
of or any redemption premium or interest on any bonds issued by
the Board or any expenses incurred or deposits required in
connection therewith.
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the
System, the present value of the increase in benefits
resulting from the portion of the increase in earnings that is
in excess of 6%. This present value shall be computed by the

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System on the basis of the actuarial assumptions and tables
used in the most recent actuarial valuation of the System that
is available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection (g), the System shall calculate
the amount of the payment and bill the employer for that
amount. The bill shall specify the calculations used to
determine the amount due. If the employer disputes the amount
of the bill, it may, within 30 days after receipt of the bill,
apply to the System in writing for a recalculation. The
application must specify in detail the grounds of the dispute
and, if the employer asserts that the calculation is subject
to subsection (h), (h-5), or (i) of this Section, must include
an affidavit setting forth and attesting to all facts within
the employer's knowledge that are pertinent to the
applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(g) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded

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annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
When assessing payment for any amount due under this
subsection (g), the System shall include earnings, to the
extent not established by a participant under Section
15-113.11 or 15-113.12, that would have been paid to the
participant had the participant not taken (i) periods of
voluntary or involuntary furlough occurring on or after July
1, 2015 and on or before June 30, 2017 or (ii) periods of
voluntary pay reduction in lieu of furlough occurring on or
after July 1, 2015 and on or before June 30, 2017. Determining
earnings that would have been paid to a participant had the
participant not taken periods of voluntary or involuntary
furlough or periods of voluntary pay reduction shall be the
responsibility of the employer, and shall be reported in a
manner prescribed by the System.
This subsection (g) does not apply to (1) Tier 2 hybrid
plan members and (2) Tier 2 defined benefit members who first
participate under this Article on or after the implementation
date of the Optional Hybrid Plan.
(g-1) (Blank).
(h) This subsection (h) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July

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31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting
from overload work, including a contract for summer teaching,
or overtime when the employer has certified to the System, and
the System has approved the certification, that: (i) in the
case of overloads (A) the overload work is for the sole purpose
of academic instruction in excess of the standard number of
instruction hours for a full-time employee occurring during
the academic year that the overload is paid and (B) the
earnings increases are equal to or less than the rate of pay
for academic instruction computed using the participant's
current salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting

10300HB4873ham001 - 329 - LRB103 35886 RPS 69833 a
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in
academic rank for a tenured or tenure-track faculty position,
or (iii) a promotion that the Illinois Community College Board
has recommended in accordance with subsection (k) of this
Section. These earnings increases shall be excluded only if
the promotion is to a position that has existed and been filled
by a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(h-5) When assessing payment for any amount due under
subsection (g), the System shall exclude any earnings increase
paid in an academic year beginning on or after July 1, 2020
resulting from overload work performed in an academic year
subsequent to an academic year in which the employer was
unable to offer or allow to be conducted overload work due to
an emergency declaration limiting such activities.
(i) When assessing payment for any amount due under
subsection (g), the System shall exclude any salary increase
described in subsection (h) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Except as provided in subsection (h-5), any payments made or

10300HB4873ham001 - 330 - LRB103 35886 RPS 69833 a
salary increases given after June 30, 2014 shall be used in
assessing payment for any amount due under subsection (g) of
this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(j-5) For State fiscal years beginning on or after July 1,
2017, if the amount of a participant's earnings for any State
fiscal year exceeds the amount of the salary set by law for the
Governor that is in effect on July 1 of that fiscal year, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an

10300HB4873ham001 - 331 - LRB103 35886 RPS 69833 a
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
earnings in excess of the amount of the salary set by law for
the Governor. This amount shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is
available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculation used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
issuance of the bill. If the employer contributions are not
paid within 90 days after issuance of the bill, then interest
will be charged at a rate equal to the System's annual

10300HB4873ham001 - 332 - LRB103 35886 RPS 69833 a
actuarially assumed rate of return on investment compounded
annually from the 91st day after issuance of the bill. All
payments must be received within 3 years after issuance of the
bill. If the employer fails to make complete payment,
including applicable interest, within 3 years, then the System
may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the
Comptroller shall thereupon deduct the certified delinquent
amount from State funds payable to the employer and pay them
instead to the System.
This subsection (j-5) does not apply to a participant's
earnings to the extent an employer pays the employer normal
cost of such earnings.
The changes made to this subsection (j-5) by Public Act
100-624 are intended to apply retroactively to July 6, 2017
(the effective date of Public Act 100-23).
(k) The Illinois Community College Board shall adopt rules
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for
State universities by the State Universities Civil Service
System. The Illinois Community College Board shall file a copy
of its findings with the System. The System shall consider the
findings of the Illinois Community College Board when making

10300HB4873ham001 - 333 - LRB103 35886 RPS 69833 a
determinations under this Section. The System shall not
exclude any earnings increases resulting from a promotion when
the promotion was not submitted by a community college.
Nothing in this subsection (k) shall require any community
college to submit any information to the Community College
Board.
(l) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(m) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
5-13-22.)

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(40 ILCS 5/16-158.3)
Sec. 16-158.3. Individual employer accounts.
(a) The System shall create and maintain an individual
account for each employer for the purposes of determining
employer contributions under subsection (b-4) of Section
16-158. Each employer's account shall be notionally charged
with the liabilities attributable to that employer and
credited with the assets attributable to that employer.
(b) Beginning with fiscal year 2018, the System shall
assign notional liabilities to each employer's account, equal
to the amount of the employer contributions required to be
made by the employer pursuant to items (i) and (ii) of
subsection (b-4) of Section 16-158, plus any unfunded
actuarial accrued liability associated with the defined
benefits attributable to the employer's employees who first
became members on or after the implementation date and the
employer's employees who made the election under subsection
(c-5) of Section 1-161.
(c) Beginning with fiscal year 2018, the System shall
assign notional assets to each employer's account equal to the
amounts of employer contributions made pursuant to items (i)
and (ii) of subsection (b-4) of Section 16-158.
(Source: P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/1-161 rep.)
(40 ILCS 5/1-162 rep.)

10300HB4873ham001 - 335 - LRB103 35886 RPS 69833 a
(40 ILCS 5/15-155.2 rep.)
Section 10-10. The Illinois Pension Code is amended by
repealing Sections 1-161, 1-162, and 15-155.2.
Article 11.
Section 11-5. The Illinois Pension Code is amended by
changing Sections 1-160 and 14-110 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,

10300HB4873ham001 - 336 - LRB103 35886 RPS 69833 a
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 337 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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) (Blank).
(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".

10300HB4873ham001 - 338 - LRB103 35886 RPS 69833 a
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 339 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the

10300HB4873ham001 - 340 - LRB103 35886 RPS 69833 a
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise

10300HB4873ham001 - 341 - LRB103 35886 RPS 69833 a
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

10300HB4873ham001 - 342 - LRB103 35886 RPS 69833 a
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

10300HB4873ham001 - 343 - LRB103 35886 RPS 69833 a
(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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection

10300HB4873ham001 - 344 - LRB103 35886 RPS 69833 a
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start

10300HB4873ham001 - 345 - LRB103 35886 RPS 69833 a
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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

10300HB4873ham001 - 346 - LRB103 35886 RPS 69833 a
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 if the person is 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

10300HB4873ham001 - 347 - LRB103 35886 RPS 69833 a
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.
(g-1) The benefits in Section 14-110 apply if the person
is a security employee of the Department of Corrections or the
Department of Juvenile Justice, a security employee of the
Department of Human Services, or an investigator for the
Department of the Lottery, 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 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in

10300HB4873ham001 - 348 - LRB103 35886 RPS 69833 a
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 55,
regardless of whether the attainment of age 55 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

10300HB4873ham001 - 349 - LRB103 35886 RPS 69833 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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,

10300HB4873ham001 - 350 - LRB103 35886 RPS 69833 a
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 351 - LRB103 35886 RPS 69833 a
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, except as otherwise
provided in this subsection, 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

10300HB4873ham001 - 352 - LRB103 35886 RPS 69833 a
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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or

10300HB4873ham001 - 353 - LRB103 35886 RPS 69833 a
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 354 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise

10300HB4873ham001 - 355 - LRB103 35886 RPS 69833 a
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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 on or after July 6, 2017 (the effective

10300HB4873ham001 - 356 - LRB103 35886 RPS 69833 a
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 65.

10300HB4873ham001 - 357 - LRB103 35886 RPS 69833 a
(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 July 6, 2017 (the effective
date of Public Act 100-23) 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

10300HB4873ham001 - 358 - LRB103 35886 RPS 69833 a
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. 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).

10300HB4873ham001 - 359 - LRB103 35886 RPS 69833 a
(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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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 Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date

10300HB4873ham001 - 360 - LRB103 35886 RPS 69833 a
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

10300HB4873ham001 - 361 - LRB103 35886 RPS 69833 a
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 conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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.
(g-1) The benefits in Section 14-110 apply if the person

10300HB4873ham001 - 362 - LRB103 35886 RPS 69833 a
is a security employee of the Department of Corrections or the
Department of Juvenile Justice, a security employee of the
Department of Human Services, or an investigator for the
Department of the Lottery, 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 55,
regardless of whether the attainment of age 55 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.

10300HB4873ham001 - 363 - LRB103 35886 RPS 69833 a
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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)

10300HB4873ham001 - 364 - LRB103 35886 RPS 69833 a
(Text of Section from P.A. 102-956)
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,
7, 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 or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or 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

10300HB4873ham001 - 365 - LRB103 35886 RPS 69833 a
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, except as otherwise

10300HB4873ham001 - 366 - LRB103 35886 RPS 69833 a
provided in this subsection, 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) (Blank).
(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".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the

10300HB4873ham001 - 367 - LRB103 35886 RPS 69833 a
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(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

10300HB4873ham001 - 368 - LRB103 35886 RPS 69833 a
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.
(b-10) Beginning on January 1, 2024, 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 under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal

10300HB4873ham001 - 369 - LRB103 35886 RPS 69833 a
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of 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 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of 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

10300HB4873ham001 - 370 - LRB103 35886 RPS 69833 a
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 on or after July 6, 2017 (the effective
date of Public Act 100-23), 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 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 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of 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 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or

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Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective
date of Public Act 100-23) 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

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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).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain

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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 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), 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; or
(ii) 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.

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For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(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

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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 conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, 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

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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.
(g-1) The benefits in Section 14-110 apply if the person
is a security employee of the Department of Corrections or the
Department of Juvenile Justice, a security employee of the
Department of Human Services, or an investigator for the
Department of the Lottery, 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 55,
regardless of whether the attainment of age 55 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

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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

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this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
(Text of Section from P.A. 102-813 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20

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years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;

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(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in

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this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the

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Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for

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the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render

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the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of

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insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on

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or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office

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of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social

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Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position

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of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) The term "investigator for the Department of the

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Lottery" means any person employed by the Department of
the Lottery and who is vested with such investigative
duties which render him or her ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
investigator for the Department of the Lottery who
qualifies under this Section shall earn eligible
creditable service and be required to make contributions
at the rate specified in paragraph (3) of subsection (a)
of Section 14-133 for all periods of service as an
investigator for the Department of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible

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creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed

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in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in

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item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.

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(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded

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annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months

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after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have

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been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police

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duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public

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Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a security
employee of the Department of Human Services who is subject to
subsection (g-1) of Section 1-160 may elect to convert up to 12
years of service credit established before the effective date
of this amendatory Act of the 103rd General Assembly as a
security employee of the Department of Human Services to
eligible creditable service by filing a written election with
the Board no later than 2 years after the effective date of
this amendatory Act of the 103rd General Assembly, accompanied
by payment of an amount, to be determined by the Board, equal
to (i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a covered employee serving
in a position in which eligible creditable service, as defined
in this Section, may be earned, plus (ii) interest thereon at
the effective rate for each year, compounded annually, from
the date of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o) of this Section shall not exceed 12
years.
(j) Subject to the limitation in subsection (i), an

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investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being

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established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible

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creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the

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Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to

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eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,

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investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-856 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still

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in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service

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performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;

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(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:

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(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,

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enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions

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of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person

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employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security

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employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement

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powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys

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Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the

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Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the

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Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) The term "investigator for the Department of the
Lottery" means any person employed by the Department of
the Lottery and who is vested with such investigative
duties which render him or her ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
investigator for the Department of the Lottery who
qualifies under this Section shall earn eligible
creditable service and be required to make contributions
at the rate specified in paragraph (3) of subsection (a)
of Section 14-133 for all periods of service as an
investigator for the Department of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of

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Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward

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establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.

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For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish

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eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for

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the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State

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policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for

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up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and

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employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of

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State, or arson investigator may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, a court
services officer under Article 9, or a firefighter under
Article 4 by filing a written election with the Board within 6
months after the effective date of this amendatory Act of the
102nd General Assembly and paying to the System an amount to be
determined by the Board equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Sections 4-108.8, 7-139.8, and 9-121.10
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the

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rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of
State, or arson investigator may elect to convert service
credit earned under this Article to eligible creditable
service, as defined by this Section, by filing a written
election with the Board within 6 months after the effective
date of this amendatory Act of the 102nd General Assembly and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee
contributions originally paid for that service and the amounts
that would have been contributed had such contributions been
made at the rates applicable to investigators for the
Department of Revenue, investigators for the Illinois Gaming
Board, investigators for the Secretary of State, or arson
investigators, plus (ii) the difference between the employer's
normal cost of the credit prior to the conversion authorized
by this amendatory Act of the 102nd General Assembly and the
employer's normal cost of the credit converted in accordance

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with this amendatory Act of the 102nd General Assembly, plus
(iii) interest thereon at the actuarially assumed rate for
each year, compounded annually, from the date of service to
the date of payment.
Subject to the limitation in subsection (i), a security
employee of the Department of Human Services who is subject to
subsection (g-1) of Section 1-160 may elect to convert up to 12
years of service credit established before the effective date
of this amendatory Act of the 103rd General Assembly as a
security employee of the Department of Human Services to
eligible creditable service by filing a written election with
the Board no later than 2 years after the effective date of
this amendatory Act of the 103rd General Assembly, accompanied
by payment of an amount, to be determined by the Board, equal
to (i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a covered employee serving
in a position in which eligible creditable service, as defined
in this Section, may be earned, plus (ii) interest thereon at
the effective rate for each year, compounded annually, from
the date of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o) of this Section shall not exceed 12
years.

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(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal

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to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this

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Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile

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Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting

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lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of

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Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-956 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of

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either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.

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These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney

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General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.

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(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,

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investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The

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term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police

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officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under

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this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic

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Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the

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authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:

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(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the

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Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) The term "investigator for the Department of the
Lottery" means any person employed by the Department of
the Lottery and who is vested with such investigative
duties which render him or her ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
investigator for the Department of the Lottery who
qualifies under this Section shall earn eligible
creditable service and be required to make contributions
at the rate specified in paragraph (3) of subsection (a)
of Section 14-133 for all periods of service as an
investigator for the Department of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health

10300HB4873ham001 - 447 - LRB103 35886 RPS 69833 a
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring

10300HB4873ham001 - 448 - LRB103 35886 RPS 69833 a
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of

10300HB4873ham001 - 449 - LRB103 35886 RPS 69833 a
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State

10300HB4873ham001 - 450 - LRB103 35886 RPS 69833 a
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State

10300HB4873ham001 - 451 - LRB103 35886 RPS 69833 a
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such

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contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of

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State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board

10300HB4873ham001 - 454 - LRB103 35886 RPS 69833 a
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert

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service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a security
employee of the Department of Human Services who is subject to
subsection (g-1) of Section 1-160 may elect to convert up to 12
years of service credit established before the effective date
of this amendatory Act of the 103rd General Assembly as a
security employee of the Department of Human Services to
eligible creditable service by filing a written election with
the Board no later than 2 years after the effective date of
this amendatory Act of the 103rd General Assembly, accompanied
by payment of an amount, to be determined by the Board, equal
to (i) the difference between the amount of the employee

10300HB4873ham001 - 456 - LRB103 35886 RPS 69833 a
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a covered employee serving
in a position in which eligible creditable service, as defined
in this Section, may be earned, plus (ii) interest thereon at
the effective rate for each year, compounded annually, from
the date of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), (o), and (p) of this Section shall not exceed
12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.

10300HB4873ham001 - 457 - LRB103 35886 RPS 69833 a
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman

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under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,

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plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the

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Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section

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14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded

10300HB4873ham001 - 462 - LRB103 35886 RPS 69833 a
annually, from the date of service to the date of payment.
(p) Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General subject to
subsection (g) of Section 1-160 may elect to convert up to 8
years of service credit established before the effective date
of this amendatory Act of the 102nd General Assembly as an
investigator for the Office of the Attorney General under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after the
effective date of this amendatory Act of the 102nd General
Assembly, accompanied by payment of an amount to be determined
by the Board equal to (i) the difference between the amount of
the employee contributions actually paid for that service and
the amount of the employee contributions that would have been
paid had the employee contributions been made as a noncovered
employee serving in a position in which eligible creditable
service, as defined in this Section, may be earned, plus (ii)
interest thereon at the effective rate for each year,
compounded annually, from the date of service to the date of
payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
Article 12.
Section 12-5. The Illinois Pension Code is amended by

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adding Sections 3-144.3 and 4-138.15 as follows:
(40 ILCS 5/3-144.3 new)
Sec. 3-144.3. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/4-138.15 new)
Sec. 4-138.15. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.

10300HB4873ham001 - 464 - LRB103 35886 RPS 69833 a
Article 90.
Section 90-5. The Illinois Pension Code is amended by
changing Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169
as follows:
(40 ILCS 5/2-162)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual

10300HB4873ham001 - 465 - LRB103 35886 RPS 69833 a
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied

10300HB4873ham001 - 466 - LRB103 35886 RPS 69833 a
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, or this
amendatory Act of the 103rd General Assembly this amendatory
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or

10300HB4873ham001 - 467 - LRB103 35886 RPS 69833 a
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified

10300HB4873ham001 - 468 - LRB103 35886 RPS 69833 a
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the

10300HB4873ham001 - 469 - LRB103 35886 RPS 69833 a
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
100-23, Public Act 100-587, Public Act 100-769, Public Act
101-10, Public Act 101-610, Public Act 102-16, Public Act
103-80, Public Act 103-548, or this amendatory Act of the
103rd General Assembly or this amendatory Act of the 103rd
General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public

10300HB4873ham001 - 470 - LRB103 35886 RPS 69833 a
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
103-548, eff. 8-11-23; revised 8-31-23.)

10300HB4873ham001 - 471 - LRB103 35886 RPS 69833 a
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
95-910, Public Act 100-23, Public Act 100-587, Public Act
100-743, Public Act 100-769, Public Act 101-10, Public Act
101-49, Public Act 102-16, or Public Act 102-871, or this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this

10300HB4873ham001 - 472 - LRB103 35886 RPS 69833 a
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any

10300HB4873ham001 - 473 - LRB103 35886 RPS 69833 a
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
6-30-23.)
(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must

10300HB4873ham001 - 474 - LRB103 35886 RPS 69833 a
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating

10300HB4873ham001 - 475 - LRB103 35886 RPS 69833 a
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.)
Section 90-90. The State Mandates Act is amended by adding
Section 8.48 as follows:
(30 ILCS 805/8.48 new)
Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Article 99.