Bill Text: IL HB1166 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning the short title of the Code.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1166 Detail]

Download: Illinois-2013-HB1166-Engrossed.html

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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Pension Fund Solvency Act of 2013.
Section 6. The Illinois Pension Code is amended by changing
Sections 2-119, 14-107, 14-108, 14-110, 15-135, 15-136,
16-132, and 16-133 and by adding Sections 2-105.1, 14-103.40,
15-107.1, and 16-106.4 as follows:
(40 ILCS 5/2-105.1 new)
Sec. 2-105.1. Tier I participant. "Tier I participant": A
participant who first became a participant before January 1,
2011.
(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
Sec. 2-119. Retirement annuity - conditions for
eligibility.
(a) A participant whose service as a member is terminated,
regardless of age or cause, is entitled to a retirement annuity
beginning on the date specified by the participant in a written
application subject to the following conditions:
1. The date the annuity begins does not precede the

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date of final termination of service, or is not more than
30 days before the receipt of the application by the board
in the case of annuities based on disability or one year
before the receipt of the application in the case of
annuities based on attained age;
2. The participant meets one of the following
eligibility requirements:
For a participant who first becomes a participant of
this System before January 1, 2011 (the effective date of
Public Act 96-889):
(A) He or she has attained age 55 and has at least
8 years of service credit;
(B) He or she has attained age 62 and terminated
service after July 1, 1971 with at least 4 years of
service credit; or
(C) He or she has completed 8 years of service and
has become permanently disabled and as a consequence,
is unable to perform the duties of his or her office.
For a participant who first becomes a participant of
this System on or after January 1, 2011 (the effective date
of Public Act 96-889), he or she has attained age 67 and
has at least 8 years of service credit.
(a-5) Notwithstanding subsection (a) of this Section, for a
Tier I participant who begins receiving a retirement annuity
under this Section after July 1, 2013:
(1) If the Tier I participant is at least 45 years old

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on the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55 and 62 in
subsection (a) of this Section remain unchanged.
(2) If the Tier I participant is at least 40 but less
than 45 years old on the effective date of this amendatory
Act of the 98th General Assembly, then the references to
age 55 and 62 in subsection (a) of this Section are
increased by one year.
(3) If the Tier I participant is at least 35 but less
than 40 years old on the effective date of this amendatory
Act of the 98th General Assembly, then the references to
age 55 and 62 in subsection (a) of this Section are
increased by 3 years.
(4) If the Tier I participant is less than 35 years old
on the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55 and 62 in
subsection (a) of this Section are increased by 5 years.
Notwithstanding Section 1-103.1, this subsection (a-5)
applies without regard to whether or not the Tier I member is
in active service under this Article on or after the effective
date of this amendatory Act of the 98th General Assembly.
(a-10) (a-5) A participant who first becomes a participant
of this System on or after January 1, 2011 (the effective date
of Public Act 96-889) who has attained age 62 and has at least
8 years of service credit may elect to receive the lower
retirement annuity provided in paragraph (c) of Section

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2-119.01 of this Code.
(b) A participant shall be considered permanently disabled
only if: (1) disability occurs while in service and is of such
a nature as to prevent him or her from reasonably performing
the duties of his or her office at the time; and (2) the board
has received a written certificate by at least 2 licensed
physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/14-103.40 new)
Sec. 14-103.40. Tier I member. "Tier I member": A member of
this System who first became a member or participant before
January 1, 2011 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, or 18 of this Code.
(40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
Sec. 14-107. Retirement annuity - service and age -
conditions.
(a) A member is entitled to a retirement annuity after
having at least 8 years of creditable service.
(b) A member who has at least 35 years of creditable
service may claim his or her retirement annuity at any age. A
member having at least 8 years of creditable service but less

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than 35 may claim his or her retirement annuity upon or after
attainment of age 60 or, beginning January 1, 2001, any lesser
age which, when added to the number of years of his or her
creditable service, equals at least 85. A member upon or after
attainment of age 55 having at least 25 years of creditable
service (30 years if retirement is before January 1, 2001) may
elect to receive the lower retirement annuity provided in
paragraph (c) of Section 14-108 of this Code. For purposes of
the rule of 85, portions of years shall be counted in whole
months.
(c) Notwithstanding subsection (b) of this Section, for a
Tier I member who begins receiving a retirement annuity under
this Article after July 1, 2013:
(1) If the Tier I member is at least 45 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55 and 60 in
subsection (b) of this Section remain unchanged and the
references to 85 in subsection (b) of this Section remain
unchanged.
(2) If the Tier I member is at least 40 but less than
45 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age 55
and 60 in subsection (b) of this Section are increased by
one year and the references to 85 in subsection (b) are
increased to 87.
(3) If the Tier I member is at least 35 but less than

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40 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age 55
and 60 in subsection (b) of this Section are increased by 3
years and the references to 85 in subsection (b) are
increased to 91.
(4) If the Tier I member is less than 35 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55 and 60 in
subsection (b) of this Section are increased by 5 years and
the references to 85 in subsection (b) are increased to 95.
Notwithstanding Section 1-103.1, this subsection (c)
applies without regard to whether or not the Tier I member is
in active service under this Article on or after the effective
date of this amendatory Act of the 98th General Assembly.
(d) The allowance shall begin with the first full calendar
month specified in the member's application therefor, the first
day of which shall not be before the date of withdrawal as
approved by the board. Regardless of the date of withdrawal,
the allowance need not begin within one year of application
therefor.
(Source: P.A. 91-927, eff. 12-14-00.)
(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
Sec. 14-108. Amount of retirement annuity. A member who has
contributed to the System for at least 12 months shall be
entitled to a prior service annuity for each year of certified

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prior service credited to him, except that a member shall
receive 1/3 of the prior service annuity for each year of
service for which contributions have been made and all of such
annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall include
service credited in the Teachers' Retirement System of the
State of Illinois and the State Universities Retirement System
for which contributions have been made by the member to such
systems; provided that at least 1 year of the total period of 3
years prescribed for the allowance of a full measure of prior
service annuity shall consist of membership service in this
system for which credit has been granted.
(a) In the case of a member who retires on or after January
1, 1998 and is a noncovered employee, the retirement annuity
for membership service and prior service shall be 2.2% of final
average compensation for each year of service. Any service
credit established as a covered employee shall be computed as
stated in paragraph (b).
(b) In the case of a member who retires on or after January
1, 1998 and is a covered employee, the retirement annuity for
membership service and prior service shall be computed as
stated in paragraph (a) for all service credit established as a

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noncovered employee; for service credit established as a
covered employee it shall be 1.67% of final average
compensation for each year of service.
(c) For a member retiring after attaining age 55 but before
age 60 with at least 30 but less than 35 years of creditable
service if retirement is before January 1, 2001, or with at
least 25 but less than 30 years of creditable service if
retirement is on or after January 1, 2001, the retirement
annuity shall be reduced by 1/2 of 1% for each month that the
member's age is under age 60 at the time of retirement. For
members to whom subsection (c) of Section 14-107 applies, the
references to age 55 and 60 in this subsection (c) are
increased as provided in subsection (c) of Section 14-107.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered employee
who is a member of the System and in service on January 1,
1969, or in service thereafter in 1969 as a result of
legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties of
3,000,000 or more population, under a plan of coordination with
the Old Age, Survivors and Disability provisions thereof, if
not fully insured for Old Age Insurance payments under the
Federal Old Age, Survivors and Disability Insurance provisions

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at the date of acceptance of a retirement annuity, shall not be
less than the amount for which the member would have been
eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered employee
who is a member of the System and in service on January 1,
1969, or in service thereafter in 1969 as a result of the
legislation designated in the immediately preceding paragraph,
if fully insured for Old Age Insurance payments under the
Federal Social Security Act at the date of acceptance of a
retirement annuity, shall not be less than an amount which when
added to the Primary Insurance Benefit payable to the member
upon attainment of age 65 under such Federal Act, will equal
the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.
(g) In the case of a member who is a noncovered employee,
the retirement annuity for membership service as a security
employee of the Department of Corrections or security employee
of the Department of Human Services shall be: if retirement
occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if
retirement occurs before January 1, 2001, 1.9% of final average
compensation for each of the first 10 years of service, 2.1%
for each of the next 10 years of service, 2.25% for each year
of service in excess of 20 but not exceeding 30, and 2.5% for
each year in excess of 30; except that the annuity may be
calculated under subsection (a) rather than this subsection (g)

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if the resulting annuity is greater.
(h) In the case of a member who is a covered employee, the
retirement annuity for membership service as a security
employee of the Department of Corrections or security employee
of the Department of Human Services shall be: 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 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.
(i) For the purposes of this Section and Section 14-133 of
this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the Department
of Human Services" shall have the meanings ascribed to them in
subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to paragraphs
(g) or (h) shall be applicable only to those security employees
of the Department of Corrections and security employees of the
Department of Human Services who have at least 20 years of
membership service and who are not eligible for the alternative
retirement annuity provided under Section 14-110. However,
persons transferring to this System under Section 14-108.2 or
14-108.2c who have service credit under Article 16 of this Code
may count such service toward establishing their eligibility

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under the 20-year service requirement of this subsection; but
such service may be used only for establishing such
eligibility, and not for the purpose of increasing or
calculating any benefit.
(k) (Blank).
(l) The changes to this Section made by this amendatory Act
of 1997 (changing certain retirement annuity formulas from a
stepped rate to a flat rate) apply to members who retire on or
after January 1, 1998, without regard to whether employment
terminated before the effective date of this amendatory Act of
1997. An annuity shall not be calculated in steps by using the
new flat rate for some steps and the superseded stepped rate
for other steps of the same type of service.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
(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:

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

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(a-5) Notwithstanding subsection (a) of this Section, for a
Tier I member who begins receiving a retirement annuity under
this Section after July 1, 2013:
(1) If the Tier I member is at least 45 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 50 and 55 in
subsection (a) of this Section remain unchanged.
(2) If the Tier I member is at least 40 but less than
45 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age 50
and 55 in subsection (a) of this Section are increased by
one year.
(3) If the Tier I member is at least 35 but less than
40 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age 50
and 55 in subsection (a) of this Section are increased by 3
years.
(4) If the Tier I member is less than 35 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 50 and 55 in
subsection (a) of this Section are increased by 5 years.
Notwithstanding Section 1-103.1, this subsection (a-5)
applies without regard to whether or not the Tier I member is
in active service under this Article on or after the effective
date of this amendatory Act of the 98th General Assembly.
(b) For the purpose of this Section, "eligible creditable

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service" means creditable service resulting from service in one
or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the 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;

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(18) State highway maintenance worker.
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.
(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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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),
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

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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
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,

HB1166 Engrossed - 23 - LRB098 08855 EFG 38985 b
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.
(d) A security employee of the Department of Corrections or
the Department of Juvenile Justice, and a security employee of
the Department of Human Services who is not a mental health
police officer, 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

HB1166 Engrossed - 24 - LRB098 08855 EFG 38985 b
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.
For members to whom subsection (a-5) of this Section
applies, the references to age 50 and 55 in item (vi) of this
subsection are increased as provided in subsection (a-5).
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,

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

HB1166 Engrossed - 26 - LRB098 08855 EFG 38985 b
a written election with the Board, accompanied by payment of an
amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate for
each year, compounded annually, from the date of service to the
date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate for
each year, compounded annually, from the date of service to the
date of payment.
(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

HB1166 Engrossed - 27 - LRB098 08855 EFG 38985 b
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest thereon
at the effective rate for each year, compounded annually, from
the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest thereon
at the effective rate for each year, compounded 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

HB1166 Engrossed - 28 - LRB098 08855 EFG 38985 b
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member of
the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate for
each year, compounded annually, from the date of service to the
date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
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

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

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

HB1166 Engrossed - 31 - LRB098 08855 EFG 38985 b
written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being established,
based upon the applicant's salary on the first day as an
alternative formula employee after the employment for which
credit is being established and the rates then applicable to
alternative formula employees, plus (2) an amount determined by
the Board to be the employer's normal cost of the benefits
accrued for the credit being established, plus (3) regular
interest on the amounts in items (1) and (2) from the first day
as an alternative formula employee after the employment for
which credit is being established to the date of payment.
(l) Subject to the limitation in subsection (i), a security
employee of the Department of Corrections may elect, not later
than July 1, 1998, to establish eligible creditable service for
up to 10 years of his or her service as a policeman 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

HB1166 Engrossed - 32 - LRB098 08855 EFG 38985 b
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 a bachelor's or
advanced degree from an accredited college or university with a
specialization in criminal justice, education, psychology,
social work, or a closely related social science or, in the
case of persons who provide vocational training, who are
required to have adequate knowledge in the skill for which they
are providing the vocational training.
(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

HB1166 Engrossed - 33 - LRB098 08855 EFG 38985 b
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.
(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09;
96-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff.
7-2-10.)
(40 ILCS 5/15-107.1 new)
Sec. 15-107.1. Tier I participant. "Tier I participant": A
participant under this Article, other than a participant in the
self-managed plan under Section 15-158.2, who first became a
member or participant before January 1, 2011 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, or 18 of this Code.
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities - Conditions.
(a) 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;

HB1166 Engrossed - 34 - LRB098 08855 EFG 38985 b
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) Notwithstanding subsection (a) of this Section, for a
Tier I participant who begins receiving a retirement annuity
under this Article after July 1, 2013:
(1) If the Tier I participant is at least 45 years old
on the effective date of this amendatory Act of the 98th
General Assembly, then the reference to retirement with 30
years of service as well as the references to age 50, 55,
and 62 in subsection (a) of this Section remain unchanged.
(2) If the Tier I participant is at least 40 but less
than 45 years old on the effective date of this amendatory
Act of the 98th General Assembly, then the reference to
retirement with 30 years of service as well as the
references to age 50, 55, and 62 in subsection (a) of this
Section shall be increased by one year.

HB1166 Engrossed - 35 - LRB098 08855 EFG 38985 b
(3) If the Tier I participant is at least 35 but less
than 40 years old on the effective date of this amendatory
Act of the 98th General Assembly, then the reference to
retirement with 30 years of service as well as the
references to age 50, 55, and 62 in subsection (a) of this
Section shall be increased by 3 years.
(4) If the Tier I participant is less than 35 years old
on the effective date of this amendatory Act of the 98th
General Assembly, then the reference to retirement with 30
years of service as well as the references to age 50, 55,
and 62 in subsection (a) of this Section shall be increased
by 5 years.
Notwithstanding Section 1-103.1, this subsection (a-5)
applies without regard to whether or not the Tier I participant
is in active service under this Article on or after the
effective date of this amendatory Act of the 98th General
Assembly.
(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, which
date 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

HB1166 Engrossed - 36 - LRB098 08855 EFG 38985 b
attains age 70 1/2, the annuity payment period shall begin on
that date regardless of whether an application has been filed.
(c) An annuity is not payable if the amount provided under
Section 15-136 is less than $10 per month.
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
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
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

HB1166 Engrossed - 37 - LRB098 08855 EFG 38985 b
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).
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

HB1166 Engrossed - 38 - LRB098 08855 EFG 38985 b
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
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

HB1166 Engrossed - 39 - LRB098 08855 EFG 38985 b
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.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee of
the University of Illinois in a position other than police
officer or firefighter, from the date of that transfer
until the employee's next termination of service with the

HB1166 Engrossed - 40 - LRB098 08855 EFG 38985 b
University of Illinois.
Rule 5: The retirement annuity of a participant who elected
early retirement under the provisions of Section 15-136.2 and
who, on or before February 16, 1995, brought administrative
proceedings pursuant to the administrative rules adopted by the
System to challenge the calculation of his or her retirement
annuity shall be the sum of the following, determined from
amounts credited to the participant in accordance with the
actuarial tables and the prescribed 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; and
(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) an annuity which can be provided on an
actuarially equivalent basis from the employee
contribution for early retirement under Section 15-136.2,
and an annuity from employer contributions of an amount
equal to that which can be provided on an actuarially
equivalent basis from the employee contribution for early

HB1166 Engrossed - 41 - LRB098 08855 EFG 38985 b
retirement under Section 15-136.2.
In no event shall a retirement annuity under this Rule 5 be
lower than the amount obtained by adding (1) the monthly amount
obtained by dividing the combined employee and employer
contributions made under Section 15-136.2 by the System's
annuity factor for the age of the participant at the beginning
of the annuity payment period and (2) the amount equal to the
participant's annuity if calculated under Rule 1, reduced under
Section 15-136(b) as if no contributions had been made under
Section 15-136.2.
With respect to a participant who is qualified for a
retirement annuity under this Rule 5 whose retirement annuity
began before the effective date of this amendatory Act of the
91st General Assembly, and for whom an employee contribution
was made under Section 15-136.2, the System shall recalculate
the retirement annuity under this Rule 5 and shall pay any
additional amounts due in the manner provided in Section
15-186.1 for benefits mistakenly set too low.
The amount of a retirement annuity calculated under this
Rule 5 shall be computed solely on the basis of those
contributions specifically set forth in this Rule 5. Except as
provided in clause (iii) of this Rule 5, neither an employee
nor 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 5.

HB1166 Engrossed - 42 - LRB098 08855 EFG 38985 b
The General Assembly has adopted the changes set forth in
Section 25 of this amendatory Act of the 91st General Assembly
in recognition that the decision of the Appellate Court for the
Fourth District in Mattis v. State Universities Retirement
System et al. might be deemed to give some right to the
plaintiff in that case. The changes made by Section 25 of this
amendatory Act of the 91st General Assembly are a legislative
implementation of the decision of the Appellate Court for the
Fourth District in Mattis v. State Universities Retirement
System et al. with respect to that plaintiff.
The changes made by Section 25 of this amendatory Act of
the 91st General Assembly apply without regard to whether the
person is in service as an employee on or after its effective
date.
(b) 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

HB1166 Engrossed - 43 - LRB098 08855 EFG 38985 b
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(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) An annuitant 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, Rule 4, or Rule 5, contained in this Section,
multiplied by the number of full months which elapsed from the
date the retirement annuity payments began to January 1, 1972,
plus 0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the

HB1166 Engrossed - 44 - LRB098 08855 EFG 38985 b
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, Rule 4, or Rule 5 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.
(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,

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

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than the retirement annuity which would have been payable if
all of the participant's pension credits validated under
Section 20-109 had been validated under this system, a
supplemental annuity equal to the difference in such amounts
shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8�
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) For participants to whom subsection (a-5) of Section
15-135 applies, the references to age 50, 55, and 62 in this
Section are increased as provided in subsection (a-5) of
Section 15-135.
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
(40 ILCS 5/16-106.4 new)
Sec. 16-106.4. Tier I member. "Tier I member": A member

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under this Article who first became a member or participant
before January 1, 2011 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, or 18 of this Code.
(40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
Sec. 16-132. Retirement annuity eligibility.
(a) A member who has at least 20 years of creditable
service is entitled to a retirement annuity upon or after
attainment of age 55. A member who has at least 10 but less
than 20 years of creditable service is entitled to a retirement
annuity upon or after attainment of age 60. A member who has at
least 5 but less than 10 years of creditable service is
entitled to a retirement annuity upon or after attainment of
age 62. A member who (i) has earned during the period
immediately preceding the last day of service at least one year
of contributing creditable service as an employee of a
department as defined in Section 14-103.04, (ii) has earned at
least 5 years of contributing creditable service as an employee
of a department as defined in Section 14-103.04, and (iii)
retires on or after January 1, 2001 is entitled to a retirement
annuity upon or after attainment of an age which, when added to
the number of years of his or her total creditable service,
equals at least 85. Portions of years shall be counted as
decimal equivalents.

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A member who is eligible to receive a retirement annuity of
at least 74.6% of final average salary and will attain age 55
on or before December 31 during the year which commences on
July 1 shall be deemed to attain age 55 on the preceding June
1.
(b) Notwithstanding subsection (a) of this Section, for a
Tier I member who begins receiving a retirement annuity under
this Article after July 1, 2013:
(1) If the Tier I member is at least 45 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55, 60, and 62
in subsection (a) of this Section remain unchanged and the
reference to 85 in subsection (a) of this Section remains
unchanged.
(2) If the Tier I member is at least 40 but less than
45 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age
55, 60, and 62 in subsection (a) of this Section are
increased by one year and the reference to 85 in subsection
(a) is increased to 87.
(3) If the Tier I member is at least 35 but less than
40 years old on the effective date of this amendatory Act
of the 98th General Assembly, then the references to age
55, 60, and 62 in subsection (a) of this Section are
increased by 3 years and the reference to 85 in subsection
(a) is increased to 91.

HB1166 Engrossed - 49 - LRB098 08855 EFG 38985 b
(4) If the Tier I member is less than 35 years old on
the effective date of this amendatory Act of the 98th
General Assembly, then the references to age 55, 60, and 62
in subsection (a) of this Section are increased by 5 years
and the reference to 85 in subsection (a) is increased to
95.
Notwithstanding Section 1-103.1, this subsection (b)
applies without regard to whether or not the Tier I member is
in active service under this Article on or after the effective
date of this amendatory Act of the 98th General Assembly.
(c) A member meeting the above eligibility conditions is
entitled to a retirement annuity upon written application to
the board setting forth the date the member wishes the
retirement annuity to commence. However, the effective date of
the retirement annuity shall be no earlier than the day
following the last day of creditable service, regardless of the
date of official termination of employment.
(d) To be eligible for a retirement annuity, a member shall
not be employed as a teacher in the schools included under this
System or under Article 17, except (i) as provided in Section
16-118 or 16-150.1, (ii) if the member is disabled (in which
event, eligibility for salary must cease), or (iii) if the
System is required by federal law to commence payment due to
the member's age; the changes to this sentence made by Public
Act 93-320 this amendatory Act of the 93rd General Assembly
apply without regard to whether the member terminated

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employment before or after its effective date.
(Source: P.A. 93-320, eff. 7-23-03.)
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
Sec. 16-133. Retirement annuity; amount.
(a) The amount of the retirement annuity shall be (i) in
the case of a person who first became a teacher under this
Article before July 1, 2005, the larger of the amounts
determined under paragraphs (A) and (B) below, or (ii) in the
case of a person who first becomes a teacher under this Article
on or after July 1, 2005, the amount determined under the
applicable provisions of paragraph (B):
(A) An amount consisting of the sum of the following:
(1) An amount that can be provided on an
actuarially equivalent basis by the member's
accumulated contributions at the time of retirement;
and
(2) The sum of (i) the amount that can be provided
on an actuarially equivalent basis by the member's
accumulated contributions representing service prior
to July 1, 1947, and (ii) the amount that can be
provided on an actuarially equivalent basis by the
amount obtained by multiplying 1.4 times the member's
accumulated contributions covering service subsequent
to June 30, 1947; and
(3) If there is prior service, 2 times the amount

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that would have been determined under subparagraph (2)
of paragraph (A) above on account of contributions
which would have been made during the period of prior
service creditable to the member had the System been in
operation and had the member made contributions at the
contribution rate in effect prior to July 1, 1947.
This paragraph (A) does not apply to a person who first
becomes a teacher under this Article on or after July 1,
2005.
(B) An amount consisting of the greater of the
following:
(1) For creditable service earned before July 1,
1998 that has not been augmented under Section
16-129.1: 1.67% of final average salary for each of the
first 10 years of creditable service, 1.90% of final
average salary for each year in excess of 10 but not
exceeding 20, 2.10% of final average salary for each
year in excess of 20 but not exceeding 30, and 2.30% of
final average salary for each year in excess of 30; and
For creditable service earned on or after July 1,
1998 by a member who has at least 24 years of
creditable service on July 1, 1998 and who does not
elect to augment service under Section 16-129.1: 2.2%
of final average salary for each year of creditable
service earned on or after July 1, 1998 but before the
member reaches a total of 30 years of creditable

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service and 2.3% of final average salary for each year
of creditable service earned on or after July 1, 1998
and after the member reaches a total of 30 years of
creditable service; and
For all other creditable service: 2.2% of final
average salary for each year of creditable service; or
(2) 1.5% of final average salary for each year of
creditable service plus the sum $7.50 for each of the
first 20 years of creditable service.
The amount of the retirement annuity determined under this
paragraph (B) shall be reduced by 1/2 of 1% for each month
that the member is less than age 60 at the time the
retirement annuity begins. However, this reduction shall
not apply (i) if the member has at least 35 years of
creditable service, or (ii) if the member retires on
account of disability under Section 16-149.2 of this
Article with at least 20 years of creditable service, or
(iii) if the member (1) has earned during the period
immediately preceding the last day of service at least one
year of contributing creditable service as an employee of a
department as defined in Section 14-103.04, (2) has earned
at least 5 years of contributing creditable service as an
employee of a department as defined in Section 14-103.04,
(3) retires on or after January 1, 2001, and (4) retires
having attained an age which, when added to the number of
years of his or her total creditable service, equals at

HB1166 Engrossed - 53 - LRB098 08855 EFG 38985 b
least 85. Portions of years shall be counted as decimal
equivalents. For participants to whom subsection (b) of
Section 16-132 applies, the reference to age 60 in this
paragraph and the reference to 85 in this paragraph are
increased as provided in subsection (b) of Section 16-132.
(b) For purposes of this Section, final average salary
shall be the average salary for the highest 4 consecutive years
within the last 10 years of creditable service as determined
under rules of the board. The minimum final average salary
shall be considered to be $2,400 per year.
In the determination of final average salary for members
other than elected officials and their appointees when such
appointees are allowed by statute, that part of a member's
salary for any year beginning after June 30, 1979 which exceeds
the member's annual full-time salary rate with the same
employer for the preceding year by more than 20% shall be
excluded. The exclusion shall not apply in any year in which
the member's creditable earnings are less than 50% of the
preceding year's mean salary for downstate teachers as
determined by the survey of school district salaries provided
in Section 2-3.103 of the School Code.
(c) In determining the amount of the retirement annuity
under paragraph (B) of this Section, a fractional year shall be
granted proportional credit.
(d) The retirement annuity determined under paragraph (B)
of this Section shall be available only to members who render

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teaching service after July 1, 1947 for which member
contributions are required, and to annuitants who re-enter
under the provisions of Section 16-150.
(e) The maximum retirement annuity provided under
paragraph (B) of this Section shall be 75% of final average
salary.
(f) A member retiring after the effective date of this
amendatory Act of 1998 shall receive a pension equal to 75% of
final average salary if the member is qualified to receive a
retirement annuity equal to at least 74.6% of final average
salary under this Article or as proportional annuities under
Article 20 of this Code.
(Source: P.A. 94-4, eff. 6-1-05.)
Section 90. The State Mandates Act is amended by adding
Section 8.37 as follows:
(30 ILCS 805/8.37 new)
Sec. 8.37. 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 98th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.