Bill Amendment: IL SB1300 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PEN CD-COOK COUNTY-FUNDING

Status: 2019-12-18 - Public Act . . . . . . . . . 101-0610 [SB1300 Detail]

Download: Illinois-2019-SB1300-House_Amendment_003.html

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Rep. Robert Martwick

Filed: 5/30/2019

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AMENDMENT TO SENATE BILL 1300
AMENDMENT NO. ______. Amend Senate Bill 1300 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 1-160, 4-109, 7-159, 14-103.05, 14-110,
14-147.5, 14-147.6, 14-152.1, 15-120, 15-135, 15-136,
15-185.5, 15-185.6, 15-198, 16-190.5, 16-190.6, 16-203,
17-105.1, 17-106, and 17-132 and by adding Sections 1-167,
3-111.5, and 17-134.2 as follows:
(40 ILCS 5/1-160)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,

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15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161 for
that Article, unless that person elects under subsection (b) of
Section 1-161 to instead receive the benefits provided under
this Section and the applicable provisions of that Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161 for
that Article, unless that person elects under subsection (b) of

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Section 1-161 to instead receive the benefits provided under
this Section and the applicable provisions of that Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits under
Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
enforcement employees), "final rate of earnings".

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(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall

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be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 12 of this Code that is subject to this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
12 of this Code that is subject to this Section) and has at
least 10 years of service credit and is otherwise eligible
under the requirements of the applicable Article may elect to
receive the lower retirement annuity provided in subsection (d)
of this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section 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

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is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 12 of this Code
that is subject to this Section) with at least 10 years of
service credit shall be reduced by one-half of 1% for each full
month that the member's age is under age 67 (beginning January
1, 2015, age 65 with respect to service under Article 12 of
this Code that is subject to this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible 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 the effective date of this amendatory Act
of the 100th General Assembly shall make an irrevocable
election either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member or
participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for service
under Article 8) or subsection (a-5) of Section 11-170 of
this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

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(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person subject
to this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection who
fails for any reason to make the required election within the
time specified in this subsection shall be deemed to have made
the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 12 of this
Code that is subject to this Section and beginning on the
effective date of this amendatory Act of the 100th General
Assembly, age 65 with respect to service under Article 8 or
Article 11 for eligible persons who: (i) are subject to
subsection (c-5) of this Section; 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

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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.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
100th General Assembly are applicable without regard to whether
the employee was in active service on or after the effective
date of this amendatory Act of the 100th General Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any

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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 arson investigator,
a Commerce Commission police officer, 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.
(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

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contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
1-4-19.)
(40 ILCS 5/1-167 new)
Sec. 1-167. Accelerated pension benefit payment options
report. On or before December 1, 2019, each board of trustees
of a retirement system created under Article 14, 15, or 16
shall create a report concerning accelerated pension benefit
payment options and submit the report to the Governor and the
General Assembly. Each retirement system shall survey its Tier

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1 members to determine whether such members have interest in
existing accelerated pension benefit payment options or
different accelerated pension benefit payment options. The
report shall include data related to member participation in
existing accelerated pension benefit payment options and shall
include data related to the results of member surveys on
accelerated pension benefit payment options. The report shall
also include an examination of existing accelerated pension
benefit payments offered in other states in the public sector.
(40 ILCS 5/3-111.5 new)
Sec. 3-111.5. Membership date; previous IMRF service with
the same municipality. A police officer who previously
participated in the Illinois Municipal Retirement Fund (IMRF)
for service as a member of the police department of a
municipality and was transferred to that municipality's police
pension fund upon its creation under this Article shall, for
the purposes of determining the applicable tier of benefits
under this Article, be deemed to have become a police officer
and member of that municipality's police pension fund on the
date that he or she first participated in IMRF as a member of
the police department of that municipality, notwithstanding
whether that start date was before January 1, 2011.
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.

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(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the monthly
salary attached to the rank held by him or her in the fire
service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:

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For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;
For 17 years of service, 37.4% of salary;
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011.
A firefighter age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average

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salary" means the average monthly salary obtained by dividing
the total salary of the firefighter 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 of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary 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.
(d) A firefighter who previously participated in the
Illinois Municipal Retirement Fund (IMRF) for service as a
member of the fire department of a municipality and was
transferred to that municipality's firefighters' pension fund
upon its creation under this Article shall, for the purposes of
determining the applicable tier of benefits under this Article,
be deemed to have become a firefighter and member of that
municipality's firefighters' pension fund on the date that he
or she first participated in IMRF as a member of the fire
department of that municipality, notwithstanding whether that

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start date was before January 1, 2011.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
Sec. 7-159. Surviving spouse annuity - refund of survivor
credits.
(a) Any employee annuitant who (1) upon the date a
retirement annuity begins is not then married, or (2) is
married to a person who would not qualify for surviving spouse
annuity if the person died on such date, is entitled to a
refund of the survivor credits including interest accumulated
on the date the annuity begins, excluding survivor credits and
interest thereon credited during periods of disability, and no
spouse shall have a right to any surviving spouse annuity from
this Fund. If the employee annuitant reenters service and upon
subsequent retirement has a spouse who would qualify for a
surviving spouse annuity, the employee annuitant may pay the
fund the amount of the refund plus interest at the effective
rate at the date of payment. The payment shall qualify the
spouse for a surviving spouse annuity and the amount paid shall
be considered as survivor contributions.
(b) Instead of a refund under subsection (a), the retiring
employee may elect to convert the amount of the refund into an
annuity, payable separately from the retirement annuity. If the
annuitant dies before the guaranteed amount has been
distributed, the remainder shall be paid in a lump sum to the

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designated beneficiary of the annuitant. The Board shall adopt
any rules necessary for the implementation of this subsection.
(c) An annuitant who retired prior to June 1, 2011 and
received a refund of survivor credits under subsection (a), and
who thereafter became, and remains, either:
(1) a party to a civil union or a party to a legal
relationship that is recognized as a civil union or
marriage under the Illinois Religious Freedom Protection
and Civil Union Act on or after June 1, 2011; or
(2) a party to a marriage under the Illinois Marriage
and Dissolution of Marriage Act on or after February 26,
2014; or
(3) a party to a marriage, civil union or other legal
relationship that, at the time it was formed, was not
legally recognized in Illinois but was subsequently
recognized as a civil union or marriage under the Illinois
Religious Freedom Protection and Civil Union Act on or
after June 1, 2011, a marriage under the Illinois Marriage
and Dissolution of Marriage Act on or after February 26,
2014, or both;
may, within a period of one year beginning 5 months after the
effective date of this amendatory Act of the 99th General
Assembly, make an election to re-establish rights to a
surviving spouse annuity under Sections 7-154 through 7-158
(notwithstanding the eligibility requirements of paragraph
(a)(1) of Section 7-154), by paying to the Fund: (1) the total

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amount of the refund received for survivor credits; and (2)
interest thereon at the actuarially assumed rate of return from
the date of the refund to the date of payment. Such election
must be made prior to the date of death of the annuitant.
The Fund may allow the annuitant to repay this refund over
a period of not more than 24 months. To the extent permitted by
the Internal Revenue Code of 1986, as amended, for federal and
State tax purposes, if a member pays in monthly installments by
reducing the monthly benefit by the amount of the otherwise
applicable contribution, the monthly amount by which the
annuitant's benefit is reduced shall not be treated as a
contribution by the annuitant but rather as a reduction of the
annuitant's monthly benefit.
If an annuitant makes an election under this subsection (c)
and the contributions required are not paid in full, an
otherwise qualifying spouse shall be given the option to make
an additional lump sum payment of the remaining contributions
and qualify for a surviving spouse annuity. Otherwise, an
additional refund representing contributions made hereunder
shall be paid at the annuitant's death and there shall be no
surviving spouse annuity paid.
(d) Any surviving spouse of an annuitant who (1) retired
prior to June 1, 2011, (2) was not married on the date the
retirement annuity began, (3) received a refund of survivor
credits under subsection (a), and (4) died prior to the
implementation of Public Act 99-682 on December 29, 2016 may,

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within a period of one year beginning 5 months after the
effective date of this amendatory Act of the 101st General
Assembly, make an election to re-establish rights to a
surviving spouse annuity under Sections 7-154 through 7-158
(notwithstanding the eligibility requirements of paragraph (a)
of subsection (1) of Section 7-154), by paying to the Fund: (i)
the total amount of the refund received for survivor credits;
and (ii) interest thereon at the actuarially assumed rate of
return from the date of the refund to the date of payment. The
surviving spouse must also provide documentation proving he or
she was married to the annuitant or a party to a civil union
with the annuitant at the time of death and has not
subsequently remarried. This proof must include a marriage
certificate or a certificate for a civil union and any other
supporting documents deemed necessary by the Fund.
(Source: P.A. 99-682, eff. 7-29-16.)
(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 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

10100SB1300ham003 - 20 - LRB101 07899 RPS 61442 a
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
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

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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 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

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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;
(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

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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
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;

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(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 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;

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(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
Department of 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.
(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

10100SB1300ham003 - 26 - LRB101 07899 RPS 61442 a
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 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

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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. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
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

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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
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

10100SB1300ham003 - 29 - LRB101 07899 RPS 61442 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 Department of 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.

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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:
(1) The term "State policeman" includes any title or
position in the Department of State Police that is held by
an individual employed under the 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

10100SB1300ham003 - 31 - LRB101 07899 RPS 61442 a
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 this
amendatory Act of 1983 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, or any
other Division or organizational entity in the Department
of 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 Department of State Police that is
held by an individual employed under the 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

10100SB1300ham003 - 32 - LRB101 07899 RPS 61442 a
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 insanity. With respect to past

10100SB1300ham003 - 34 - LRB101 07899 RPS 61442 a
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 or after July 1, 2005, the
term means an employee of the Department of Corrections or

10100SB1300ham003 - 35 - LRB101 07899 RPS 61442 a
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 Department of State
Police" means a person employed by the Department of 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 of
the Attorney General, without regard to social security

10100SB1300ham003 - 36 - LRB101 07899 RPS 61442 a
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
Security Act by reason of Sections 218(d)(5)(A),

10100SB1300ham003 - 37 - LRB101 07899 RPS 61442 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
of equipment operator/laborer H-4, equipment

10100SB1300ham003 - 38 - LRB101 07899 RPS 61442 a
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.
(d) A security employee of the Department of Corrections or
the Department of Juvenile Justice, a security employee of the

10100SB1300ham003 - 39 - LRB101 07899 RPS 61442 a
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
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

10100SB1300ham003 - 40 - LRB101 07899 RPS 61442 a
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
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

10100SB1300ham003 - 41 - LRB101 07899 RPS 61442 a
(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 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

10100SB1300ham003 - 42 - LRB101 07899 RPS 61442 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

10100SB1300ham003 - 43 - LRB101 07899 RPS 61442 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

10100SB1300ham003 - 44 - LRB101 07899 RPS 61442 a
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

10100SB1300ham003 - 45 - LRB101 07899 RPS 61442 a
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.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j), (k),
and (l), and (l-5) 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

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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 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

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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
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 the effective date of this amendatory Act of the

10100SB1300ham003 - 48 - LRB101 07899 RPS 61442 a
101st General Assembly, 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 this
amendatory Act of the 94th General Assembly apply only to: (1)
security employees of the Department of Juvenile Justice
employed by the Department of Corrections before the effective
date of this amendatory Act of the 94th General Assembly and
transferred to the Department of Juvenile Justice by this
amendatory Act of the 94th General Assembly; and (2) persons
employed by the Department of Juvenile Justice on or after the
effective date of this amendatory Act of the 94th General
Assembly 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

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required to have adequate knowledge in the skill for which they
are providing the vocational training.
(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, or arson
investigator 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 101st
General Assembly as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, or arson investigator 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 101st General Assembly, accompanied
by payment of an amount to be determined by the Board equal to

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(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. 100-19, eff. 1-1-18; 100-611, eff. 7-20-18.)
(40 ILCS 5/14-147.5)
Sec. 14-147.5. 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 14-147.6.
"Pension benefit" means the benefits under this Article, or
Article 1 as it relates to those benefits, including any
anticipated annual increases, that an eligible person is
entitled to upon attainment of the applicable retirement age.

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"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 100th 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 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, 2024 2021, 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

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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:
(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

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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 State Pension Obligation Acceleration Bond
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.
(Source: P.A. 100-587, eff. 6-4-18.)
(40 ILCS 5/14-147.6)
Sec. 14-147.6. 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

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the automatic annual increases to a Tier 1 member's retirement
annuity and survivor's annuity using the formula applicable to
the Tier 1 member and the present value of the automatic annual
increases to the Tier 1 member'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 member;
(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 14-147.5.
(b) As soon as practical after the effective date of this
amendatory Act of the 100th General Assembly and until June 30,
2024 2021, 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

10100SB1300ham003 - 55 - LRB101 07899 RPS 61442 a
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.
(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

10100SB1300ham003 - 56 - LRB101 07899 RPS 61442 a
(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.
(d-5) 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 to the System, and the System shall transfer the amount
into a 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.
(Source: P.A. 100-587, eff. 6-4-18.)

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(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, or this amendatory Act of the 101st General Assembly
or this amendatory Act of the 100th 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

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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

10100SB1300ham003 - 59 - LRB101 07899 RPS 61442 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. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-611, eff. 7-20-18; revised 7-25-18.)
(40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
Sec. 15-120. Beneficiary; survivor annuitant under
portable benefit package. "Beneficiary": The person or persons
designated by the participant or annuitant in the last written
designation on file with the board; or if no person so
designated survives, or if no designation is on file, the
estate of the participant or annuitant. Acceptance by the
participant of a refund of accumulated contributions or an
accelerated pension benefit payment under Section 15-185.5
shall result in cancellation of all beneficiary designations
previously filed. A spouse whose marriage was dissolved shall
be disqualified as beneficiary unless the spouse was designated
as beneficiary after the effective date of the dissolution of
marriage.
After a joint and survivor annuity commences under the
portable benefit package, the survivor annuitant of a joint and
survivor annuity is not disqualified, and may not be removed,
as the survivor annuitant by a dissolution of the survivor's
marriage with the participant or annuitant.

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(Source: P.A. 91-887, eff. 7-6-00.)
(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;
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) A Tier 2 member is entitled to a retirement annuity

10100SB1300ham003 - 61 - LRB101 07899 RPS 61442 a
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) 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. 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
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 age 70 1/2, the annuity payment period shall begin on

10100SB1300ham003 - 62 - LRB101 07899 RPS 61442 a
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. 100-556, eff. 12-8-17.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-136. Retirement 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,
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

10100SB1300ham003 - 63 - LRB101 07899 RPS 61442 a
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
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).

10100SB1300ham003 - 64 - LRB101 07899 RPS 61442 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
(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

10100SB1300ham003 - 65 - LRB101 07899 RPS 61442 a
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
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) (a-5) 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

10100SB1300ham003 - 66 - LRB101 07899 RPS 61442 a
(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
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

10100SB1300ham003 - 67 - LRB101 07899 RPS 61442 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
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

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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
effective January 26, 1988, and is applicable without regard to
whether status as an employee terminated before that date.
(d-5) 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

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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.
(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
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

10100SB1300ham003 - 70 - LRB101 07899 RPS 61442 a
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 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

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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. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
98-92, eff. 7-16-13.)
(40 ILCS 5/15-185.5)
Sec. 15-185.5. 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;
(4) has not made the election under Section 15-185.6;
and

10100SB1300ham003 - 72 - LRB101 07899 RPS 61442 a
(5) is not a participant in the self-managed plan under
Section 15-158.2.
"Implementation date" means the earliest date upon which
the Board authorizes eligible persons to begin irrevocably
electing the accelerated pension benefit payment option under
this Section. The Board shall endeavor to make such
participation available as soon as possible after the effective
date of this amendatory Act of the 100th General Assembly and
shall establish an implementation date by Board resolution.
"Pension benefit" means the benefits under this Article, or
Article 1 as it relates to those benefits, including any
anticipated annual increases, that an eligible person is
entitled to upon attainment of the applicable retirement age.
"Pension benefit" also includes applicable survivors benefits,
disability benefits, or disability retirement annuity
benefits.
(b) Beginning on the implementation date, the System 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 System shall calculate,
using actuarial tables and other assumptions adopted by the
Board, the present value of pension benefits for each eligible
person upon his or her request in writing to the System. The
System shall not perform more than one calculation per eligible
member in a State fiscal year. The offer shall specify the

10100SB1300ham003 - 73 - LRB101 07899 RPS 61442 a
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. The System shall make a good faith
effort to contact every eligible person to notify him or her of
the election.
Beginning on the implementation date and until June 30,
2024 2021, 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) Upon payment of an accelerated pension benefit payment
under this Section, the person forfeits all accrued rights and
credits in the System and no other benefit shall be paid under
this Article based on those forfeited rights and credits,
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 participation
under this Article, any benefits under the System earned as a
result of that return to participation shall be based solely on

10100SB1300ham003 - 74 - LRB101 07899 RPS 61442 a
the person's credits and creditable service arising from the
return to participation. Upon return to participation, the
person shall be considered a new employee subject to all the
qualifying conditions for participation and eligibility for
benefits applicable to new employees.
(d-5) The accelerated pension benefit payment may not be
repaid to the System, and the forfeited rights and credits 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 deposited into a tax qualified retirement plan or account
identified by the eligible person at the time of the election.
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) The System shall submit vouchers to the State
Comptroller for the payment of accelerated pension benefit
payments under this Section. The State Comptroller shall pay
the amounts of the vouchers from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall
deposit the amounts into the applicable tax qualified plans or
accounts.

10100SB1300ham003 - 75 - LRB101 07899 RPS 61442 a
(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 System to cease to be a qualified plan
under the Internal Revenue Code of 1986.
(Source: P.A. 100-587, eff. 6-4-18.)
(40 ILCS 5/15-185.6)
Sec. 15-185.6. Accelerated pension benefit payment for a
reduction in an annual increase to a retirement annuity and an
annuity benefit payable as a result of death.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of: (i) the present
value of the automatic annual increases to a Tier 1 member's
retirement annuity, including any increases to any annuity
benefit payable as a result of his or her death, using the
formula applicable to the Tier 1 member; and (ii) the present
value of the automatic annual increases to the Tier 1 member's
retirement annuity, including any increases to any annuity
benefit payable as a result of his or her death, using the
formula provided under subsection (b-5).
"Eligible person" means a person who:
(1) is a Tier 1 member;
(2) has submitted an application for a retirement
annuity under this Article;

10100SB1300ham003 - 76 - LRB101 07899 RPS 61442 a
(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;
(5) has not made the election under Section 15-185.5;
and
(6) is not a participant in the self-managed plan under
Section 15-158.2.
"Implementation date" means the earliest date upon which
the Board authorizes eligible persons to begin irrevocably
electing the accelerated pension benefit payment option under
this Section. The Board shall endeavor to make such
participation available as soon as possible after the effective
date of this amendatory Act of the 100th General Assembly and
shall establish an implementation date by Board resolution.
(b) Beginning on the implementation date and until June 30,
2024 2021, the System shall implement an accelerated pension
benefit payment option for eligible persons. The System shall
calculate, using actuarial tables and other assumptions
adopted by the Board, an accelerated pension benefit payment
amount for an eligible person upon his or her request in
writing to the System and shall offer that eligible person the
opportunity to irrevocably elect to have his or her automatic
annual increases in retirement annuity and any annuity benefit
payable as a result of his or her death calculated in
accordance with the formula provided in subsection (b-5) in

10100SB1300ham003 - 77 - LRB101 07899 RPS 61442 a
exchange for the accelerated pension benefit payment. The
System shall not perform more than one calculation under this
Section per eligible person in a State fiscal year. The
election under this subsection must be made before any
retirement annuity is paid to the eligible person, and the
eligible survivor, spouse, or contingent annuitant, as
applicable, must consent to the election under this subsection.
(b-5) Notwithstanding any other provision of law, the
retirement annuity of a person who made the election under
subsection (b) shall be increased annually beginning 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, and any annuity benefit payable as a result of his or
her death shall be increased annually beginning on: (1) the
January 1 occurring on or after the commencement of the annuity
if the deceased Tier 1 member died while receiving a retirement
annuity; or (2) the January 1 occurring after the first
anniversary of the commencement of the benefit. Each annual
increase shall be calculated at 1.5% of the originally granted
retirement annuity or annuity benefit payable as a result of
the Tier 1 member's death.
(c) If an annuitant who has received an accelerated pension
benefit payment returns to participation under this Article,
the calculation of any future automatic annual increase in
retirement annuity under subsection (c) of Section 15-139 shall
be calculated in accordance with the formula provided in

10100SB1300ham003 - 78 - LRB101 07899 RPS 61442 a
subsection (b-5).
(c-5) 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 deposited into a tax qualified retirement plan or account
identified by the eligible person at the time of election. 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) The System shall submit vouchers to the State
Comptroller for the payment of accelerated pension benefit
payments under this Section. The State Comptroller shall pay
the amounts of the vouchers from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall
deposit the amounts into the applicable tax qualified plans or
accounts.
(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 System to cease to be a qualified plan
under the Internal Revenue Code of 1986.

10100SB1300ham003 - 79 - LRB101 07899 RPS 61442 a
(Source: P.A. 100-587, eff. 6-4-18.)
(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 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 Article 1 or this Article by
Public Act 100-23, Public Act 100-587, Public Act 100-769, or
this amendatory Act of the 101st General Assembly or this
amendatory Act of the 100th 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

10100SB1300ham003 - 80 - LRB101 07899 RPS 61442 a
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
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and

10100SB1300ham003 - 81 - LRB101 07899 RPS 61442 a
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. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-769, eff. 8-10-18; revised 9-26-18.)
(40 ILCS 5/16-190.5)
Sec. 16-190.5. 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 16-190.6.
"Pension benefit" means the benefits under this Article, or
Article 1 as it relates to those benefits, 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.

10100SB1300ham003 - 82 - LRB101 07899 RPS 61442 a
(b) As soon as practical after June 4, 2018 (the effective
date of Public Act 100-587) this amendatory Act of the 100the
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 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. The System shall make a good faith effort to contact
every eligible person to notify him or her of the election.
Until June 30, 2024 2021, 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

10100SB1300ham003 - 83 - LRB101 07899 RPS 61442 a
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:
(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.

10100SB1300ham003 - 84 - LRB101 07899 RPS 61442 a
(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 State Pension Obligation Acceleration Bond
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 amendatory Act of the 100th
General Assembly 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.
(Source: P.A. 100-587, eff. 6-4-18.)
(40 ILCS 5/16-190.6)
Sec. 16-190.6. 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 member's retirement
annuity and survivor's annuity using the formula applicable to

10100SB1300ham003 - 85 - LRB101 07899 RPS 61442 a
the Tier 1 member and the present value of the automatic annual
increases to the Tier 1 member's retirement annuity using the
formula provided under subsection (b-5) and the survivor's
annuity 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 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 16-190.5.
(b) As soon as practical after the effective date of this
amendatory Act of the 100th General Assembly and until June 30,
2024 2021, 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)

10100SB1300ham003 - 86 - LRB101 07899 RPS 61442 a
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.
(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 in subsection (b-5);
and
(2) the accelerated pension benefit payment may not be

10100SB1300ham003 - 87 - LRB101 07899 RPS 61442 a
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.
(d-5) 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 State Pension Obligation Acceleration Bond
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.
(Source: P.A. 100-587, eff. 6-4-18.)

10100SB1300ham003 - 88 - LRB101 07899 RPS 61442 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, or this amendatory Act of the
101st General Assembly or by this amendatory Act of the 100th
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

10100SB1300ham003 - 89 - LRB101 07899 RPS 61442 a
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
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and

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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. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-743, eff. 8-10-18; 100-769, eff. 8-10-18; revised
10-15-18.)
(40 ILCS 5/17-105.1)
Sec. 17-105.1. Employer. "Employer": The Board of
Education, and a charter school as defined under the provisions
of Section 27A-5 of the School Code, and a contract school
operating pursuant to an agreement with the Board of Education.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers, any educational

10100SB1300ham003 - 91 - LRB101 07899 RPS 61442 a
staff employed in a contract school operating pursuant to an
agreement with the Board of Education who is employed in a
position requiring certification or licensure under the School
Code (excluding all managerial, supervisory, and confidential
employees) and is required to or elects to participate pursuant
to Section 17-134.2, any educational, administrative,
professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is
certified under the law governing the certification of
teachers, and employees of the Board, but excluding persons
contributing concurrently to any other public employee pension
system in Illinois for the same employment or receiving
retirement pensions under another Article of this Code for that
same employment, persons employed on an hourly basis (provided
that an Employer may not reclassify a non-hourly employee as an
hourly employee for the purpose of evading or avoiding its
obligations under this Article), and persons receiving
pensions from the Fund who are employed temporarily by an
Employer and not on an annual basis.
All teachers or staff regardless of their position shall
presumptively be participants in the Fund, unless the Employer
establishes to the satisfaction of the Board that an individual
certified teacher or staff member is not working as a teacher
or administrator directly or indirectly with the Charter
School. Any certified teacher or staff employed by a corporate
or non-profit entity engaged in the administration of a charter

10100SB1300ham003 - 92 - LRB101 07899 RPS 61442 a
school shall presumptively be a participant in the Fund, unless
the organization establishes to the satisfaction of the Board
that an individual certified teacher or staff member is not
working as a teacher or administrator directly or indirectly
with the Charter School.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the effective
date of this amendatory Act of the 91st General Assembly, and
whose right to participate in the Fund is established or
confirmed by this amendatory Act, such prior participation in
the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby
validated.
The changes made to this Section and Section 17-149 by this
amendatory Act of the 92nd General Assembly apply without
regard to whether the person was in service on or after the
effective date of this amendatory Act, notwithstanding
Sections 1-103.1 and 17-157.
(Source: P.A. 98-427, eff. 8-16-13.)
(40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
Sec. 17-132. Payments and certification of salary
deductions.
(a) An Employer shall cause the Fund to receive all
members' payroll records and pension contributions within 30
calendar days after each predesignated payday. For purposes of

10100SB1300ham003 - 93 - LRB101 07899 RPS 61442 a
this Section, the predesignated payday shall be determined in
accordance with each Employer's payroll schedule for
contributions to the Fund.
(b) An Employer that fails to timely certify and submit
payroll records to the Fund is subject to a statutory penalty
in the amount of $100 per day for each day that a required
certification and submission is late.
Amounts not received by the 30th calendar day after the
predesignated payday shall be deemed delinquent and subject to
a penalty consisting of interest, which shall accrue on a
monthly basis at the Fund's then effective actuarial rate of
return, and liquidated damages in the amount of $100 per day,
not to exceed 20% of the principal contributions due, which
shall be mandatory except for good cause shown and in the
discretion of the Board.
An Employer in possession of member contributions deducted
from payroll checks is holding Fund assets, and thus becomes a
fiduciary over those assets.
(c) The payroll records shall report (1) all pensionable
salary earned in that pay period, exclusive of salaries for
overtime, special services, or any employment on an optional
basis, such as in summer school; (2) adjustments to pensionable
salary, exclusive of salaries for overtime, special services,
or any employment on an optional basis, such as in summer
school, made in a pay period for any prior pay periods; (3)
pension contributions attributable to pensionable salary

10100SB1300ham003 - 94 - LRB101 07899 RPS 61442 a
earned in the reported pay period or the adjusted pay period as
required by subsection (b) of Section 17-131; and (4) any
salary paid by an Employer if that salary is compensation for
validated service and is exclusive of salary for overtime,
special services, or any employment on an optional basis, such
as in summer school. Payroll records required by item (4) of
this paragraph shall identify the number of days of service
rendered by the member and whether each day of service
represents a partial or whole day of service.
(d) The appropriate officers of the Employer shall certify
and submit the payroll records no later than 30 calendar days
after each predesignated payday. The certification shall
constitute a confirmation of the accuracy of such deductions
according to the provisions of this Article.
Each Charter School and contract school shall designate an
administrator as a "Pension Officer". The Pension Officer shall
be responsible for certifying all payroll information,
including contributions due and certified sick days payable
pursuant to Section 17-134, and assuring resolution of reported
payroll and contribution deficiencies.
(e) The Board has the authority to conduct payroll audits
of a charter school or contract school to determine the
existence of any delinquencies in contributions to the Fund,
and such charter school or contract school shall be required to
provide such books and records and contribution information as
the Board or its authorized representative may require. The

10100SB1300ham003 - 95 - LRB101 07899 RPS 61442 a
Board is also authorized to collect delinquent contributions
from charter schools and contract schools and develop
procedures for the collection of such delinquencies.
Collection procedures may include legal proceedings in the
courts of the State of Illinois. Expenses, including reasonable
attorneys' fees, incurred in the collection of delinquent
contributions may be assessed by the Board against the charter
school or contract school.
(Source: P.A. 98-427, eff. 8-16-13; 99-176, eff. 7-29-15.)
(40 ILCS 5/17-134.2 new)
Sec. 17-134.2. Employee of a contract school. Any
educational staff of a contract school operating pursuant to an
agreement with the Board of Education who is employed in a
position requiring certification or licensure under the School
Code on or after the effective date of this amendatory Act of
the 101st General Assembly (excluding all managerial,
supervisory, and confidential employees) shall participate as
a member, unless the person began employment with the contract
school before the effective date of this amendatory Act of the
101st General Assembly.
Any educational staff employed in a contract school
operating pursuant to an agreement with the Board of Education
who began employment in a position requiring certification or
licensure under the School Code before the effective date of
this amendatory Act of the 101st General Assembly (excluding

10100SB1300ham003 - 96 - LRB101 07899 RPS 61442 a
all managerial, supervisory, and confidential employees) may
irrevocably elect, in a manner prescribed by the Board, to
participate as a member for service accrued after the effective
date of the election with the contract school or with another
contract school. In no event shall a person accrue service for
employment with a contract school that occurred before the
effective date of the election to participate as a member.
Section 10. The Illinois Vehicle Code is amended by
changing Section 2-115 as follows:
(625 ILCS 5/2-115) (from Ch. 95 1/2, par. 2-115)
Sec. 2-115. Investigators.
(a) The Secretary of State, for the purpose of more
effectively carrying out the provisions of the laws in relation
to motor vehicles, shall have power to appoint such number of
investigators as he may deem necessary. It shall be the duty of
such investigators to investigate and enforce violations of the
provisions of this Act administered by the Secretary of State
and provisions of Chapters 11, 12, 13, 14, and 15 and to
investigate and report any violation by any person who operates
as a motor carrier of property as defined in Section 18-100 of
this Act and does not hold a valid certificate or permit. Such
investigators shall have and may exercise throughout the State
all of the powers of peace officers.
No person may be retained in service as an investigator

10100SB1300ham003 - 97 - LRB101 07899 RPS 61442 a
under this Section after he or she has reached 60 years of age,
except for a person employed in the title of Capitol Police
Investigator and who began employment on or after January 1,
2011, in which case, that person may not be retained in service
after that person has reached 65 years of age.
The Secretary of State must authorize to each investigator
employed under this Section and to any other employee of the
Office of the Secretary of State exercising the powers of a
peace officer a distinct badge that, on its face, (i) clearly
states that the badge is authorized by the Office of the
Secretary of State and (ii) contains a unique identifying
number. No other badge shall be authorized by the Office of the
Secretary of State.
(b) The Secretary may expend such sums as he deems
necessary from Contractual Services appropriations for the
Department of Police for the purchase of evidence, for the
employment of persons to obtain evidence, and for the payment
for any goods or services related to obtaining evidence. Such
sums shall be advanced to investigators authorized by the
Secretary to expend funds, on vouchers signed by the Secretary.
In addition, the Secretary of State is authorized to maintain
one or more commercial checking accounts with any State banking
corporation or corporations organized under or subject to the
Illinois Banking Act for the deposit and withdrawal of moneys
to be used solely for the purchase of evidence and for the
employment of persons to obtain evidence, or for the payment

10100SB1300ham003 - 98 - LRB101 07899 RPS 61442 a
for any goods or services related to obtaining evidence;
provided that no check may be written on nor any withdrawal
made from any such account except on the written signatures of
2 persons designated by the Secretary to write such checks and
make such withdrawals, and provided further that the balance of
moneys on deposit in any such account shall not exceed $5,000
at any time, nor shall any one check written on or single
withdrawal made from any such account exceed $5,000.
All fines or moneys collected or received by the Department
of Police under any State or federal forfeiture statute;
including, but not limited to moneys forfeited under Section 12
of the Cannabis Control Act, moneys forfeited under Section 85
of the Methamphetamine Control and Community Protection Act,
and moneys distributed under Section 413 of the Illinois
Controlled Substances Act, shall be deposited into the
Secretary of State Evidence Fund.
In all convictions for offenses in violation of this Act,
the Court may order restitution to the Secretary of any or all
sums expended for the purchase of evidence, for the employment
of persons to obtain evidence, and for the payment for any
goods or services related to obtaining evidence. All such
restitution received by the Secretary shall be deposited into
the Secretary of State Evidence Fund. Moneys deposited into the
fund shall, subject to appropriation, be used by the Secretary
of State for the purposes provided for under the provisions of
this Section.

10100SB1300ham003 - 99 - LRB101 07899 RPS 61442 a
(Source: P.A. 99-896, eff. 1-1-17; 100-201, eff. 8-18-17.)
Section 90. The State Mandates Act is amended by adding
Section 8.43 as follows:
(30 ILCS 805/8.43 new)
Sec. 8.43. 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 101st General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.".