Bill Text: IL HB3524 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the General Assembly, State Employee, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) maintain their current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act and to provide that no action of the employer taken to implement that prohibition shall give rise to an unfair labor practice under those Acts; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3524 Detail]

Download: Illinois-2019-HB3524-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3524

Introduced , by Rep. Jim Durkin

SYNOPSIS AS INTRODUCED:
See Index

Amends the General Assembly, State Employee, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) maintain their current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act and to provide that no action of the employer taken to implement that prohibition shall give rise to an unfair labor practice under those Acts; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately.
LRB101 07948 RPS 53003 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB3524LRB101 07948 RPS 53003 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Public Labor Relations Act is
5amended by changing Sections 10 and 15 and by adding Section
67.6 as follows:
7 (5 ILCS 315/7.6 new)
8 Sec. 7.6. No collective bargaining or interest arbitration
9regarding certain changes to the Illinois Pension Code.
10 (a) Notwithstanding any other provision of this Act,
11employers shall not be required to bargain over matters
12affected by the changes, the impact of the changes, and the
13implementation of the changes to Article 14, 15, 16, or 17 of
14the Illinois Pension Code made by the addition of Section
1514-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
16Pension Code, which are deemed to be prohibited subjects of
17bargaining. Notwithstanding any provision of this Act, the
18changes, impact of the changes, or implementation of the
19changes to Article 14, 15, 16, or 17 of the Illinois Pension
20Code made by the addition of Section 14-106.5, 15-132.9,
2116-122.9, or 17-115.5 of the Illinois Pension Code shall not be
22subject to interest arbitration or any award issued pursuant to
23interest arbitration. The provisions of this Section shall not

HB3524- 2 -LRB101 07948 RPS 53003 b
1apply to an employment contract or collective bargaining
2agreement that is in effect on the effective date of this
3amendatory Act of the 101st General Assembly. However, any such
4contract or agreement that is modified, amended, renewed, or
5superseded after the effective date of this amendatory Act of
6the 101st General Assembly shall be subject to the provisions
7of this Section. Each employer with active employees
8participating in a retirement system or pension fund
9established under Article 14, 15, 16, or 17 of the Illinois
10Pension Code shall comply with and be subject to the provisions
11of this amendatory Act of the 101st General Assembly. The
12provisions of this Section shall not apply to the ability of
13any employer and employee representative to bargain
14collectively with regard to the pick up of employee
15contributions pursuant to Section 14-133.1, 15-157.1,
1616-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
17 (b) Subject to and except for the matters set forth in
18subsection (a) of this Section that are deemed prohibited
19subjects of bargaining, nothing in this Section shall be
20construed as otherwise limiting any of the obligations and
21requirements applicable to employers under any of the
22provisions of this Act, including, but not limited to, the
23requirement to bargain collectively with regard to policy
24matters directly affecting wages, hours, and terms and
25conditions of employment as well as the impact thereon upon
26request by employee representatives. Subject to and except for

HB3524- 3 -LRB101 07948 RPS 53003 b
1the matters set forth in subsection (a) of this Section that
2are deemed prohibited subjects of bargaining, nothing in this
3Section shall be construed as otherwise limiting any of the
4rights of employees or employee representatives under the
5provisions of this Act.
6 (c) In case of any conflict between this Section and any
7other provisions of this Act or any other law, the provisions
8of this Section shall control.
9 (5 ILCS 315/10) (from Ch. 48, par. 1610)
10 Sec. 10. Unfair labor practices.
11 (a) It shall be an unfair labor practice for an employer or
12its agents:
13 (1) to interfere with, restrain or coerce public
14 employees in the exercise of the rights guaranteed in this
15 Act or to dominate or interfere with the formation,
16 existence or administration of any labor organization or
17 contribute financial or other support to it; provided, an
18 employer shall not be prohibited from permitting employees
19 to confer with him during working hours without loss of
20 time or pay;
21 (2) to discriminate in regard to hire or tenure of
22 employment or any term or condition of employment in order
23 to encourage or discourage membership in or other support
24 for any labor organization. Nothing in this Act or any
25 other law precludes a public employer from making an

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1 agreement with a labor organization to require as a
2 condition of employment the payment of a fair share under
3 paragraph (e) of Section 6;
4 (3) to discharge or otherwise discriminate against a
5 public employee because he has signed or filed an
6 affidavit, petition or charge or provided any information
7 or testimony under this Act;
8 (4) subject to and except as provided in Section 7.6,
9 to refuse to bargain collectively in good faith with a
10 labor organization which is the exclusive representative
11 of public employees in an appropriate unit, including, but
12 not limited to, the discussing of grievances with the
13 exclusive representative; however, no actions of the
14 employer taken to implement or otherwise comply with the
15 provisions of subsection (a) of Section 7.6 shall
16 constitute or give rise to an unfair labor practice under
17 this Act;
18 (5) to violate any of the rules and regulations
19 established by the Board with jurisdiction over them
20 relating to the conduct of representation elections or the
21 conduct affecting the representation elections;
22 (6) to expend or cause the expenditure of public funds
23 to any external agent, individual, firm, agency,
24 partnership or association in any attempt to influence the
25 outcome of representational elections held pursuant to
26 Section 9 of this Act; provided, that nothing in this

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1 subsection shall be construed to limit an employer's right
2 to internally communicate with its employees as provided in
3 subsection (c) of this Section, to be represented on any
4 matter pertaining to unit determinations, unfair labor
5 practice charges or pre-election conferences in any formal
6 or informal proceeding before the Board, or to seek or
7 obtain advice from legal counsel. Nothing in this paragraph
8 shall be construed to prohibit an employer from expending
9 or causing the expenditure of public funds on, or seeking
10 or obtaining services or advice from, any organization,
11 group, or association established by and including public
12 or educational employers, whether covered by this Act, the
13 Illinois Educational Labor Relations Act or the public
14 employment labor relations law of any other state or the
15 federal government, provided that such services or advice
16 are generally available to the membership of the
17 organization, group or association, and are not offered
18 solely in an attempt to influence the outcome of a
19 particular representational election; or
20 (7) to refuse to reduce a collective bargaining
21 agreement to writing or to refuse to sign such agreement.
22 (b) It shall be an unfair labor practice for a labor
23organization or its agents:
24 (1) to restrain or coerce public employees in the
25 exercise of the rights guaranteed in this Act, provided,
26 (i) that this paragraph shall not impair the right of a

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1 labor organization to prescribe its own rules with respect
2 to the acquisition or retention of membership therein or
3 the determination of fair share payments and (ii) that a
4 labor organization or its agents shall commit an unfair
5 labor practice under this paragraph in duty of fair
6 representation cases only by intentional misconduct in
7 representing employees under this Act;
8 (2) to restrain or coerce a public employer in the
9 selection of his representatives for the purposes of
10 collective bargaining or the settlement of grievances; or
11 (3) to cause, or attempt to cause, an employer to
12 discriminate against an employee in violation of
13 subsection (a)(2);
14 (4) to refuse to bargain collectively in good faith
15 with a public employer, if it has been designated in
16 accordance with the provisions of this Act as the exclusive
17 representative of public employees in an appropriate unit;
18 (5) to violate any of the rules and regulations
19 established by the boards with jurisdiction over them
20 relating to the conduct of representation elections or the
21 conduct affecting the representation elections;
22 (6) to discriminate against any employee because he has
23 signed or filed an affidavit, petition or charge or
24 provided any information or testimony under this Act;
25 (7) to picket or cause to be picketed, or threaten to
26 picket or cause to be picketed, any public employer where

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1 an object thereof is forcing or requiring an employer to
2 recognize or bargain with a labor organization of the
3 representative of its employees, or forcing or requiring
4 the employees of an employer to accept or select such labor
5 organization as their collective bargaining
6 representative, unless such labor organization is
7 currently certified as the representative of such
8 employees:
9 (A) where the employer has lawfully recognized in
10 accordance with this Act any labor organization and a
11 question concerning representation may not
12 appropriately be raised under Section 9 of this Act;
13 (B) where within the preceding 12 months a valid
14 election under Section 9 of this Act has been
15 conducted; or
16 (C) where such picketing has been conducted
17 without a petition under Section 9 being filed within a
18 reasonable period of time not to exceed 30 days from
19 the commencement of such picketing; provided that when
20 such a petition has been filed the Board shall
21 forthwith, without regard to the provisions of
22 subsection (a) of Section 9 or the absence of a showing
23 of a substantial interest on the part of the labor
24 organization, direct an election in such unit as the
25 Board finds to be appropriate and shall certify the
26 results thereof; provided further, that nothing in

HB3524- 8 -LRB101 07948 RPS 53003 b
1 this subparagraph shall be construed to prohibit any
2 picketing or other publicity for the purpose of
3 truthfully advising the public that an employer does
4 not employ members of, or have a contract with, a labor
5 organization unless an effect of such picketing is to
6 induce any individual employed by any other person in
7 the course of his employment, not to pick up, deliver,
8 or transport any goods or not to perform any services;
9 or
10 (8) to refuse to reduce a collective bargaining
11 agreement to writing or to refuse to sign such agreement.
12 (c) The expressing of any views, argument, or opinion or
13the dissemination thereof, whether in written, printed,
14graphic, or visual form, shall not constitute or be evidence of
15an unfair labor practice under any of the provisions of this
16Act, if such expression contains no threat of reprisal or force
17or promise of benefit.
18(Source: P.A. 86-412; 87-736.)
19 (5 ILCS 315/15) (from Ch. 48, par. 1615)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22 Sec. 15. Act Takes Precedence.
23 (a) In case of any conflict between the provisions of this
24Act and any other law (other than Section 5 of the State
25Employees Group Insurance Act of 1971 and other than the

HB3524- 9 -LRB101 07948 RPS 53003 b
1changes made to the Illinois Pension Code by this amendatory
2Act of the 96th General Assembly), executive order or
3administrative regulation relating to wages, hours and
4conditions of employment and employment relations, the
5provisions of this Act or any collective bargaining agreement
6negotiated thereunder shall prevail and control. Nothing in
7this Act shall be construed to replace or diminish the rights
8of employees established by Sections 28 and 28a of the
9Metropolitan Transit Authority Act, Sections 2.15 through 2.19
10of the Regional Transportation Authority Act. The provisions of
11this Act are subject to Section 5 of the State Employees Group
12Insurance Act of 1971. Nothing in this Act shall be construed
13to replace the necessity of complaints against a sworn peace
14officer, as defined in Section 2(a) of the Uniform Peace
15Officer Disciplinary Act, from having a complaint supported by
16a sworn affidavit.
17 (b) Except as provided in subsection (a) above, any
18collective bargaining contract between a public employer and a
19labor organization executed pursuant to this Act shall
20supersede any contrary statutes, charters, ordinances, rules
21or regulations relating to wages, hours and conditions of
22employment and employment relations adopted by the public
23employer or its agents. Any collective bargaining agreement
24entered into prior to the effective date of this Act shall
25remain in full force during its duration.
26 (c) It is the public policy of this State, pursuant to

HB3524- 10 -LRB101 07948 RPS 53003 b
1paragraphs (h) and (i) of Section 6 of Article VII of the
2Illinois Constitution, that the provisions of this Act are the
3exclusive exercise by the State of powers and functions which
4might otherwise be exercised by home rule units. Such powers
5and functions may not be exercised concurrently, either
6directly or indirectly, by any unit of local government,
7including any home rule unit, except as otherwise authorized by
8this Act.
9 (d) Notwithstanding any other provision of law, no
10collective bargaining agreement entered into, renewed, or
11extended after the effective date of this amendatory Act of the
12101st General Assembly or any arbitration award issued under
13such collective bargaining agreement may violate or conflict
14with the changes made by this amendatory Act of the 101st
15General Assembly.
16(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
17 Section 10. The Attorney General Act is amended by adding
18Section 5 as follows:
19 (15 ILCS 205/5 new)
20 Sec. 5. Future increases in income. The Office of the
21Attorney General must not pay, offer, or agree to pay any
22future increase in income, as that term is defined in Section
2314-103.43 of the Illinois Pension Code, to any person in a
24manner that violates Section 14-106.5 of the Illinois Pension

HB3524- 11 -LRB101 07948 RPS 53003 b
1Code.
2 Section 15. The Secretary of State Merit Employment Code is
3amended by adding Section 13a as follows:
4 (15 ILCS 310/13a new)
5 Sec. 13a. Future increases in income. The Office of the
6Secretary of State must not pay, offer, or agree to pay any
7future increase in income, as that term is defined in Section
814-103.43 of the Illinois Pension Code, to any person in a
9manner that violates Section 14-106.5 of the Illinois Pension
10Code.
11 Section 20. The Comptroller Merit Employment Code is
12amended by adding Section 13a as follows:
13 (15 ILCS 410/13a new)
14 Sec. 13a. Future increases in income. The Office of the
15Comptroller must not pay, offer, or agree to pay any future
16increase in income, as that term is defined in Section
1714-103.43 of the Illinois Pension Code, to any person in a
18manner that violates Section 14-106.5 of the Illinois Pension
19Code.
20 Section 25. The State Treasurer Employment Code is amended
21by adding Section 12a as follows:

HB3524- 12 -LRB101 07948 RPS 53003 b
1 (15 ILCS 510/12a new)
2 Sec. 12a. Future increases in income. The Office of the
3State Treasurer must not pay, offer, or agree to pay any future
4increase in income, as that term is defined in Section
514-103.43 of the Illinois Pension Code, to any person in a
6manner that violates Section 14-106.5 of the Illinois Pension
7Code.
8 Section 30. The Civil Administrative Code of Illinois is
9amended by adding Section 5-647 as follows:
10 (20 ILCS 5/5-647 new)
11 Sec. 5-647. Future increases in income. A Department must
12not pay, offer, or agree to pay any future increase in income,
13as that term is defined in Section 14-103.43, 15-112.1, or
1416-121.1 of the Illinois Pension Code, to any person in a
15manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of
16the Illinois Pension Code.
17 Section 35. The Illinois Pension Code is amended by
18changing Sections 2-108, 2-119.1, 2-124, 2-126, 2-134, 2-162,
1914-103.10, 14-114, 14-131, 14-133, 14-135.08, 14-152.1,
2015-108.1, 15-111, 15-136, 15-155, 15-157, 15-165, 15-198,
2116-121, 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116,
2217-129, and 17-130 and by adding 2-105.3, 2-107.9, 2-107.10,

HB3524- 13 -LRB101 07948 RPS 53003 b
12-110.3, 14-103.42, 14-103.43, 14-103.44, 14-106.5, 15-112.1,
215-112.2, 15-132.9, 16-107.1, 16-121.1, 16-121.2, 16-122.9,
317-106.05, 17-113.4, 17-113.5, 17-113.6, 17-115.5, and
417-119.2 as follows:
5 (40 ILCS 5/2-105.3 new)
6 Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
7participant who first became a participant before January 1,
82011.
9 (40 ILCS 5/2-107.9 new)
10 Sec. 2-107.9. Future increase in income. "Future increase
11in income" means an increase to a Tier 1 employee's base pay
12that is offered to the Tier 1 employee for service under this
13Article after June 30, 2020 that qualifies as "salary", as
14defined in Section 2-108, or would qualify as "salary" but for
15the fact that it was offered to and accepted by the Tier 1
16employee under the condition set forth in subsection (c) of
17Section 2-110.3.
18 (40 ILCS 5/2-107.10 new)
19 Sec. 2-107.10. Base pay. As used in Section 2-107.9 of
20this Code, "base pay" means the Tier 1 employee's annualized
21rate of salary as of June 30, 2020. For a person returning to
22active service as a Tier 1 employee after June 30, 2020,
23however, "base pay" means the employee's annualized rate of

HB3524- 14 -LRB101 07948 RPS 53003 b
1salary as of the employee's last date of service prior to July
21, 2020. The System shall calculate the base pay of each Tier 1
3employee pursuant to this Section.
4 (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
5 (Text of Section WITHOUT the changes made by P.A. 98-599,
6which has been held unconstitutional)
7 Sec. 2-108. Salary. "Salary":
8 (1) For members of the General Assembly, the total
9compensation paid to the member by the State for one year of
10service, including the additional amounts, if any, paid to the
11member as an officer pursuant to Section 1 of "An Act in
12relation to the compensation and emoluments of the members of
13the General Assembly", approved December 6, 1907, as now or
14hereafter amended.
15 (2) For the State executive officers specified in Section
162-105, the total compensation paid to the member for one year
17of service.
18 (3) For members of the System who are participants under
19Section 2-117.1, or who are serving as Clerk or Assistant Clerk
20of the House of Representatives or Secretary or Assistant
21Secretary of the Senate, the total compensation paid to the
22member for one year of service, but not to exceed the salary of
23the highest salaried officer of the General Assembly.
24 However, in the event that federal law results in any
25participant receiving imputed income based on the value of

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1group term life insurance provided by the State, such imputed
2income shall not be included in salary for the purposes of this
3Article.
4 Notwithstanding any other provision of this Section,
5"salary" does not include any future increase in income that is
6offered for service to a Tier 1 employee under this Article
7pursuant to the condition set forth in subsection (c) of
8Section 2-110.3 and accepted under that condition by a Tier 1
9employee who has made the election under paragraph (2) of
10subsection (a) of Section 2-110.3.
11 Notwithstanding any other provision of this Section,
12"salary" does not include any consideration payment made to a
13Tier 1 employee.
14(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
15 (40 ILCS 5/2-110.3 new)
16 Sec. 2-110.3. Election by Tier 1 employees.
17 (a) Each active Tier 1 employee shall make an irrevocable
18election either:
19 (1) to agree to delay his or her eligibility for
20 automatic annual increases in retirement annuity as
21 provided in subsection (a-1) of Section 2-119.1 and to have
22 the amount of the automatic annual increases in his or her
23 retirement annuity and survivor's annuity that are
24 otherwise provided for in this Article calculated,
25 instead, as provided in subsection (a-1) of Section

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1 2-119.1; or
2 (2) to not agree to paragraph (1) of this subsection.
3 The election required under this subsection (a) shall be
4made by each active Tier 1 employee no earlier than January 1,
52020 and no later than March 31, 2020, except that a person who
6returns to active service as a Tier 1 employee under this
7Article on or after January 1, 2020 and has not yet made an
8election under this Section must make the election under this
9subsection (a) within 60 days after returning to active service
10as a Tier 1 employee.
11 If a Tier 1 employee fails for any reason to make a
12required election under this subsection within the time
13specified, then the employee shall be deemed to have made the
14election under paragraph (2) of this subsection.
15 (a-5) If this Section is enjoined or stayed by an Illinois
16court or a court of competent jurisdiction pending the entry of
17a final and unappealable decision, and this Section is
18determined to be constitutional or otherwise valid by a final
19unappealable decision of an Illinois court or a court of
20competent jurisdiction, then the election procedure set forth
21in subsection (a) of this Section shall commence on the 180th
22calendar day after the date of the issuance of the final
23unappealable decision and shall conclude at the end of the
24270th calendar day after that date.
25 (a-10) All elections under subsection (a) that are made or
26deemed to be made before July 1, 2020 shall take effect on July

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11, 2020. Elections that are made or deemed to be made on or
2after July 1, 2020 shall take effect on the first day of the
3month following the month in which the election is made or
4deemed to be made.
5 (b) As adequate and legal consideration provided under this
6amendatory Act of the 101st General Assembly for making an
7election under paragraph (1) of subsection (a) of this Section,
8the State of Illinois shall be expressly and irrevocably
9prohibited from offering any future increases in income to a
10Tier 1 employee who has made an election under paragraph (1) of
11subsection (a) of this Section on the condition of not
12constituting salary under Section 2-108.
13 As adequate and legal consideration provided under this
14amendatory Act of the 101st General Assembly for making an
15election under paragraph (1) of subsection (a) of this Section,
16each Tier 1 employee who has made an election under paragraph
17(1) of subsection (a) of this Section shall receive a
18consideration payment equal to 10% of the contributions made by
19or on behalf of the employee under Section 2-126 before the
20effective date of that election. The State Comptroller shall
21pay the consideration payment to the Tier 1 employee out of
22funds appropriated for that purpose under Section 1.10 of the
23State Pension Funds Continuing Appropriation Act. The System
24shall calculate the amount of each consideration payment and,
25by July 1, 2020, shall certify to the State Comptroller the
26amount of the consideration payment, together with the name,

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1address, and any other available payment information of the
2Tier 1 employee as found in the records of the System. The
3System shall make additional calculations and certifications
4of consideration payments to the State Comptroller as the
5System deems necessary.
6 (c) A Tier 1 employee who makes the election under
7paragraph (2) of subsection (a) of this Section shall not be
8subject to paragraph (1) of subsection (a) of this Section.
9However, each future increase in income offered for service as
10a member under this Article to a Tier 1 employee who has made
11the election under paragraph (2) of subsection (a) of this
12Section shall be offered expressly and irrevocably on the
13condition of not constituting salary under Section 2-108 and
14that the Tier 1 employee's acceptance of the offered future
15increase in income shall constitute his or her agreement to
16that condition.
17 (d) The System shall make a good faith effort to contact
18each Tier 1 employee subject to this Section. The System shall
19mail information describing the required election to each Tier
201 employee by United States Postal Service mail to his or her
21last known address on file with the System. If the Tier 1
22employee is not responsive to other means of contact, it is
23sufficient for the System to publish the details of any
24required elections on its website or to publish those details
25in a regularly published newsletter or other existing public
26forum.

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1 Tier 1 employees who are subject to this Section shall be
2provided with an election packet containing information
3regarding their options, as well as the forms necessary to make
4the required election. Upon request, the System shall offer
5Tier 1 employees an opportunity to receive information from the
6System before making the required election. The information may
7be provided through video materials, group presentations,
8individual consultation with a member or authorized
9representative of the System in person or by telephone or other
10electronic means, or any combination of those methods. The
11System shall not provide advice or counseling with respect to
12which election a Tier 1 employee should make or specific to the
13legal or tax circumstances of or consequences to the Tier 1
14employee.
15 The System shall inform Tier 1 employees in the election
16packet required under this subsection that the Tier 1 employee
17may also wish to obtain information and counsel relating to the
18election required under this Section from any other available
19source, including, but not limited to, labor organizations and
20private counsel.
21 In no event shall the System, its staff, or the Board be
22held liable for any information given to a member regarding the
23elections under this Section. The System shall coordinate with
24the Illinois Department of Central Management Services and each
25other retirement system administering an election in
26accordance with this amendatory Act of the 101st General

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1Assembly to provide information concerning the impact of the
2election set forth in this Section.
3 (e) Notwithstanding any other provision of law, each future
4increase in income offered by the State of Illinois for service
5as a member must be offered expressly and irrevocably on the
6condition of not constituting "salary" under Section 2-108 to
7any Tier 1 employee who has made an election under paragraph
8(2) of subsection (a) of this Section. The offer shall also
9provide that the Tier 1 employee's acceptance of the offered
10future increase in income shall constitute his or her agreement
11to the condition set forth in this subsection.
12 For purposes of legislative intent, the condition set forth
13in this subsection shall be construed in a manner that ensures
14that the condition is not violated or circumvented through any
15contrivance of any kind.
16 (f) A member's election under this Section is not a
17prohibited election under subdivision (j)(1) of Section 1-119
18of this Code.
19 (g) No provision of this Section shall be interpreted in a
20way that would cause the System to cease to be a qualified plan
21under Section 401(a) of the Internal Revenue Code of 1986. The
22provisions of this Section shall be subject to and implemented
23in a manner that complies with Section 11 of Article IV of the
24Illinois Constitution.
25 (h) If an election created by this amendatory Act in any
26other Article of this Code or any change deriving from that

HB3524- 21 -LRB101 07948 RPS 53003 b
1election is determined to be unconstitutional or otherwise
2invalid by a final unappealable decision of an Illinois court
3or a court of competent jurisdiction, the invalidity of that
4provision shall not in any way affect the validity of this
5Section or the changes deriving from the election required
6under this Section.
7 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
8 (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10 Sec. 2-119.1. Automatic increase in retirement annuity.
11 (a) Except as provided in subsection (a-1), a A participant
12who retires after June 30, 1967, and who has not received an
13initial increase under this Section before the effective date
14of this amendatory Act of 1991, shall, in January or July next
15following the first anniversary of retirement, whichever
16occurs first, and in the same month of each year thereafter,
17but in no event prior to age 60, have the amount of the
18originally granted retirement annuity increased as follows:
19for each year through 1971, 1 1/2%; for each year from 1972
20through 1979, 2%; and for 1980 and each year thereafter, 3%.
21Annuitants who have received an initial increase under this
22subsection prior to the effective date of this amendatory Act
23of 1991 shall continue to receive their annual increases in the
24same month as the initial increase.
25 (a-1) Notwithstanding any other provision of this Article,

HB3524- 22 -LRB101 07948 RPS 53003 b
1for a Tier 1 employee who made the election under paragraph (1)
2of subsection (a) of Section 2-110.3:
3 (1) The initial increase in retirement annuity under
4 this Section shall occur on the January 1 occurring either
5 on or after the attainment of age 67 or the fifth
6 anniversary of the annuity start date, whichever is
7 earlier.
8 (2) The amount of each automatic annual increase in
9 retirement annuity or survivor's annuity occurring on or
10 after the effective date of that election shall be
11 calculated as a percentage of the originally granted
12 retirement annuity or survivor's annuity, equal to 3% or
13 one-half the annual unadjusted percentage increase (but
14 not less than zero) in the consumer price index-u for the
15 12 months ending with the September preceding each November
16 1, whichever is less. If the annual unadjusted percentage
17 change in the consumer price index-u for the 12 months
18 ending with the September preceding each November 1 is zero
19 or there is a decrease, then the annuity shall not be
20 increased.
21 For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

HB3524- 23 -LRB101 07948 RPS 53003 b
1be determined by the Public Pension Division of the Department
2of Insurance and made available to the board of the retirement
3system by November 1 of each year.
4 (b) Beginning January 1, 1990, for eligible participants
5who remain in service after attaining 20 years of creditable
6service, the 3% increases provided under subsection (a) shall
7begin to accrue on the January 1 next following the date upon
8which the participant (1) attains age 55, or (2) attains 20
9years of creditable service, whichever occurs later, and shall
10continue to accrue while the participant remains in service;
11such increases shall become payable on January 1 or July 1,
12whichever occurs first, next following the first anniversary of
13retirement. For any person who has service credit in the System
14for the entire period from January 15, 1969 through December
1531, 1992, regardless of the date of termination of service, the
16reference to age 55 in clause (1) of this subsection (b) shall
17be deemed to mean age 50.
18 This subsection (b) does not apply to any person who first
19becomes a member of the System after August 8, 2003 (the
20effective date of Public Act 93-494) this amendatory Act of the
2193rd General Assembly.
22 (b-5) Notwithstanding any other provision of this Article,
23a participant who first becomes a participant on or after
24January 1, 2011 (the effective date of Public Act 96-889)
25shall, in January or July next following the first anniversary
26of retirement, whichever occurs first, and in the same month of

HB3524- 24 -LRB101 07948 RPS 53003 b
1each year thereafter, but in no event prior to age 67, have the
2amount of the retirement annuity then being paid increased by
33% or the annual unadjusted percentage increase in the Consumer
4Price Index for All Urban Consumers as determined by the Public
5Pension Division of the Department of Insurance under
6subsection (a) of Section 2-108.1, whichever is less.
7 (c) The foregoing provisions relating to automatic
8increases are not applicable to a participant who retires
9before having made contributions (at the rate prescribed in
10Section 2-126) for automatic increases for less than the
11equivalent of one full year. However, in order to be eligible
12for the automatic increases, such a participant may make
13arrangements to pay to the system the amount required to bring
14the total contributions for the automatic increase to the
15equivalent of one year's contributions based upon his or her
16last salary.
17 (d) A participant who terminated service prior to July 1,
181967, with at least 14 years of service is entitled to an
19increase in retirement annuity beginning January, 1976, and to
20additional increases in January of each year thereafter.
21 The initial increase shall be 1 1/2% of the originally
22granted retirement annuity multiplied by the number of full
23years that the annuitant was in receipt of such annuity prior
24to January 1, 1972, plus 2% of the originally granted
25retirement annuity for each year after that date. The
26subsequent annual increases shall be at the rate of 2% of the

HB3524- 25 -LRB101 07948 RPS 53003 b
1originally granted retirement annuity for each year through
21979 and at the rate of 3% for 1980 and thereafter.
3 (e) Beginning January 1, 1990, and except as provided in
4subsection (a-1), all automatic annual increases payable under
5this Section shall be calculated as a percentage of the total
6annuity payable at the time of the increase, including previous
7increases granted under this Article.
8(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
9 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
10 Sec. 2-124. Contributions by State.
11 (a) The State shall make contributions to the System by
12appropriations of amounts which, together with the
13contributions of participants, interest earned on investments,
14and other income will meet the cost of maintaining and
15administering the System on a 90% funded basis in accordance
16with actuarial recommendations.
17 (b) The Board shall determine the amount of State
18contributions required for each fiscal year on the basis of the
19actuarial tables and other assumptions adopted by the Board and
20the prescribed rate of interest, using the formula in
21subsection (c).
22 (c) For State fiscal years 2012 through 2045 (except as
23otherwise provided for fiscal year 2021), the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be

HB3524- 26 -LRB101 07948 RPS 53003 b
1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8 For State fiscal year 2021:
9 (1) The initial calculation and certification shall be
10 based on the amount determined above.
11 (2) For purposes of the recertification due on or
12 before May 1, 2020, the recalculation of the required State
13 contribution for fiscal year 2021 shall take into account
14 the effect on the System's liabilities of the elections
15 made under Section 2-110.3.
16 (3) For purposes of the recertification due on or
17 before October 1, 2020, the total required State
18 contribution for fiscal year 2021 shall be reduced by the
19 amount of the consideration payments made to Tier 1
20 employees who made the election under paragraph (1) of
21 subsection (a) of Section 2-110.3.
22 If Section 2-110.3 is determined to be unconstitutional or
23otherwise invalid by a final unappealable decision of an
24Illinois court or a court of competent jurisdiction, then the
25changes made to this Section by this amendatory Act of the
26101st General Assembly shall not take effect and are repealed

HB3524- 27 -LRB101 07948 RPS 53003 b
1by operation of law.
2 A change in an actuarial or investment assumption that
3increases or decreases the required State contribution and
4first applies in State fiscal year 2018 or thereafter shall be
5implemented in equal annual amounts over a 5-year period
6beginning in the State fiscal year in which the actuarial
7change first applies to the required State contribution.
8 A change in an actuarial or investment assumption that
9increases or decreases the required State contribution and
10first applied to the State contribution in fiscal year 2014,
112015, 2016, or 2017 shall be implemented:
12 (i) as already applied in State fiscal years before
13 2018; and
14 (ii) in the portion of the 5-year period beginning in
15 the State fiscal year in which the actuarial change first
16 applied that occurs in State fiscal year 2018 or
17 thereafter, by calculating the change in equal annual
18 amounts over that 5-year period and then implementing it at
19 the resulting annual rate in each of the remaining fiscal
20 years in that 5-year period.
21 For State fiscal years 1996 through 2005, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24so that by State fiscal year 2011, the State is contributing at
25the rate required under this Section.
26 Notwithstanding any other provision of this Article, the

HB3524- 28 -LRB101 07948 RPS 53003 b
1total required State contribution for State fiscal year 2006 is
2$4,157,000.
3 Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2007 is
5$5,220,300.
6 For each of State fiscal years 2008 through 2009, the State
7contribution to the System, as a percentage of the applicable
8employee payroll, shall be increased in equal annual increments
9from the required State contribution for State fiscal year
102007, so that by State fiscal year 2011, the State is
11contributing at the rate otherwise required under this Section.
12 Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2010 is
14$10,454,000 and shall be made from the proceeds of bonds sold
15in fiscal year 2010 pursuant to Section 7.2 of the General
16Obligation Bond Act, less (i) the pro rata share of bond sale
17expenses determined by the System's share of total bond
18proceeds, (ii) any amounts received from the General Revenue
19Fund in fiscal year 2010, and (iii) any reduction in bond
20proceeds due to the issuance of discounted bonds, if
21applicable.
22 Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2011 is
24the amount recertified by the System on or before April 1, 2011
25pursuant to Section 2-134 and shall be made from the proceeds
26of bonds sold in fiscal year 2011 pursuant to Section 7.2 of

HB3524- 29 -LRB101 07948 RPS 53003 b
1the General Obligation Bond Act, less (i) the pro rata share of
2bond sale expenses determined by the System's share of total
3bond proceeds, (ii) any amounts received from the General
4Revenue Fund in fiscal year 2011, and (iii) any reduction in
5bond proceeds due to the issuance of discounted bonds, if
6applicable.
7 Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11 Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23 Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under Section 2-134, shall not

HB3524- 30 -LRB101 07948 RPS 53003 b
1exceed an amount equal to (i) the amount of the required State
2contribution that would have been calculated under this Section
3for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22 (d) For purposes of determining the required State
23contribution to the System, the value of the System's assets
24shall be equal to the actuarial value of the System's assets,
25which shall be calculated as follows:
26 As of June 30, 2008, the actuarial value of the System's

HB3524- 31 -LRB101 07948 RPS 53003 b
1assets shall be equal to the market value of the assets as of
2that date. In determining the actuarial value of the System's
3assets for fiscal years after June 30, 2008, any actuarial
4gains or losses from investment return incurred in a fiscal
5year shall be recognized in equal annual amounts over the
65-year period following that fiscal year.
7 (e) For purposes of determining the required State
8contribution to the system for a particular year, the actuarial
9value of assets shall be assumed to earn a rate of return equal
10to the system's actuarially assumed rate of return.
11(Source: P.A. 100-23, eff. 7-6-17.)
12 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
13 (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15 Sec. 2-126. Contributions by participants.
16 (a) Each participant shall contribute toward the cost of
17his or her retirement annuity a percentage of each payment of
18salary received by him or her for service as a member as
19follows: for service between October 31, 1947 and January 1,
201959, 5%; for service between January 1, 1959 and June 30,
211969, 6%; for service between July 1, 1969 and January 10,
221973, 6 1/2%; for service after January 10, 1973, 7%; for
23service after December 31, 1981, 8 1/2%.
24 (b) Beginning August 2, 1949, each male participant, and
25from July 1, 1971, each female participant shall contribute

HB3524- 32 -LRB101 07948 RPS 53003 b
1towards the cost of the survivor's annuity 2% of salary.
2 A participant who has no eligible survivor's annuity
3beneficiary may elect to cease making contributions for
4survivor's annuity under this subsection. A survivor's annuity
5shall not be payable upon the death of a person who has made
6this election, unless prior to that death the election has been
7revoked and the amount of the contributions that would have
8been paid under this subsection in the absence of the election
9is paid to the System, together with interest at the rate of 4%
10per year from the date the contributions would have been made
11to the date of payment.
12 (c) Beginning July 1, 1967, each participant shall
13contribute 1% of salary towards the cost of automatic increase
14in annuity provided in Section 2-119.1. These contributions
15shall be made concurrently with contributions for retirement
16annuity purposes.
17 (d) In addition, each participant serving as an officer of
18the General Assembly shall contribute, for the same purposes
19and at the same rates as are required of a regular participant,
20on each additional payment received as an officer. If the
21participant serves as an officer for at least 2 but less than 4
22years, he or she shall contribute an amount equal to the amount
23that would have been contributed had the participant served as
24an officer for 4 years. Persons who serve as officers in the
2587th General Assembly but cannot receive the additional payment
26to officers because of the ban on increases in salary during

HB3524- 33 -LRB101 07948 RPS 53003 b
1their terms may nonetheless make contributions based on those
2additional payments for the purpose of having the additional
3payments included in their highest salary for annuity purposes;
4however, persons electing to make these additional
5contributions must also pay an amount representing the
6corresponding employer contributions, as calculated by the
7System.
8 (e) Notwithstanding any other provision of this Article,
9the required contribution of a participant who first becomes a
10participant on or after January 1, 2011 shall not exceed the
11contribution that would be due under this Article if that
12participant's highest salary for annuity purposes were
13$106,800, plus any increases in that amount under Section
142-108.1.
15 (f) Beginning July 1, 2020 or the effective date of the
16Tier 1 employee's election under paragraph (1) of subsection
17(a) of Section 2-110.3, whichever is later, in lieu of the
18contributions otherwise required under this Section, each Tier
191 employee who made the election under paragraph (1) of
20subsection (a) of Section 2-110.3 shall contribute 8.5% of each
21payment of salary toward the cost of his or her retirement
22annuity and 1.85% of each payment of salary toward the cost of
23the survivor's annuity.
24 (g) Notwithstanding subsection (f) of this Section,
25beginning July 1, 2020 or the effective date of the Tier 1
26employee's election under paragraph (1) of subsection (a) of

HB3524- 34 -LRB101 07948 RPS 53003 b
1Section 2-110.3, whichever is later, in lieu of the
2contributions otherwise required under this Section, each Tier
31 employee who made the election under paragraph (1) of
4subsection (a) of Section 2-110.3 and has elected to cease
5making contributions for survivor's annuity under subsection
6(b) of this Section, shall contribute 8.55% of each payment of
7salary toward the cost of his or her retirement annuity.
8(Source: P.A. 96-1490, eff. 1-1-11.)
9 (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
10 Sec. 2-134. To certify required State contributions and
11submit vouchers.
12 (a) The Board shall certify to the Governor on or before
13December 15 of each year until December 15, 2011 the amount of
14the required State contribution to the System for the next
15fiscal year and shall specifically identify the System's
16projected State normal cost for that fiscal year. The
17certification shall include a copy of the actuarial
18recommendations upon which it is based and shall specifically
19identify the System's projected State normal cost for that
20fiscal year.
21 On or before November 1 of each year, beginning November 1,
222012, the Board shall submit to the State Actuary, the
23Governor, and the General Assembly a proposed certification of
24the amount of the required State contribution to the System for
25the next fiscal year, along with all of the actuarial

HB3524- 35 -LRB101 07948 RPS 53003 b
1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or before
8January 15, 2013 and every January 15 thereafter, the Board
9shall certify to the Governor and the General Assembly the
10amount of the required State contribution for the next fiscal
11year. The Board's certification must note any deviations from
12the State Actuary's recommended changes, the reason or reasons
13for not following the State Actuary's recommended changes, and
14the fiscal impact of not following the State Actuary's
15recommended changes on the required State contribution.
16 On or before May 1, 2004, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2005, taking
19into account the amounts appropriated to and received by the
20System under subsection (d) of Section 7.2 of the General
21Obligation Bond Act.
22 On or before July 1, 2005, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2006, taking
25into account the changes in required State contributions made
26by this amendatory Act of the 94th General Assembly.

HB3524- 36 -LRB101 07948 RPS 53003 b
1 On or before April 1, 2011, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2011, applying
4the changes made by Public Act 96-889 to the System's assets
5and liabilities as of June 30, 2009 as though Public Act 96-889
6was approved on that date.
7 By November 1, 2017, the Board shall recalculate and
8recertify to the State Actuary, the Governor, and the General
9Assembly the amount of the State contribution to the System for
10State fiscal year 2018, taking into account the changes in
11required State contributions made by this amendatory Act of the
12100th General Assembly. The State Actuary shall review the
13assumptions and valuations underlying the Board's revised
14certification and issue a preliminary report concerning the
15proposed recertification and identifying, if necessary,
16recommended changes in actuarial assumptions that the Board
17must consider before finalizing its certification of the
18required State contributions. The Board's final certification
19must note any deviations from the State Actuary's recommended
20changes, the reason or reasons for not following the State
21Actuary's recommended changes, and the fiscal impact of not
22following the State Actuary's recommended changes on the
23required State contribution.
24 On or before May 1, 2020, the Board shall recalculate and
25recertify to the Governor and the General Assembly the amount
26of the required State contribution to the System for State

HB3524- 37 -LRB101 07948 RPS 53003 b
1fiscal year 2021, taking into account the effect on the
2System's liabilities of the elections made under Section
32-110.3.
4 On or before October 1, 2020, the Board shall recalculate
5and recertify to the Governor and the General Assembly the
6amount of the required State contribution to the System for
7State fiscal year 2021, taking into account the reduction
8specified under item (3) of subsection (c) of Section 2-124.
9 (b) Beginning in State fiscal year 1996, on or as soon as
10possible after the 15th day of each month the Board shall
11submit vouchers for payment of State contributions to the
12System, in a total monthly amount of one-twelfth of the
13required annual State contribution certified under subsection
14(a). From the effective date of this amendatory Act of the 93rd
15General Assembly through June 30, 2004, the Board shall not
16submit vouchers for the remainder of fiscal year 2004 in excess
17of the fiscal year 2004 certified contribution amount
18determined under this Section after taking into consideration
19the transfer to the System under subsection (d) of Section
206z-61 of the State Finance Act. These vouchers shall be paid by
21the State Comptroller and Treasurer by warrants drawn on the
22funds appropriated to the System for that fiscal year. If in
23any month the amount remaining unexpended from all other
24appropriations to the System for the applicable fiscal year
25(including the appropriations to the System under Section 8.12
26of the State Finance Act and Section 1 of the State Pension

HB3524- 38 -LRB101 07948 RPS 53003 b
1Funds Continuing Appropriation Act) is less than the amount
2lawfully vouchered under this Section, the difference shall be
3paid from the General Revenue Fund under the continuing
4appropriation authority provided in Section 1.1 of the State
5Pension Funds Continuing Appropriation Act.
6 (c) The full amount of any annual appropriation for the
7System for State fiscal year 1995 shall be transferred and made
8available to the System at the beginning of that fiscal year at
9the request of the Board. Any excess funds remaining at the end
10of any fiscal year from appropriations shall be retained by the
11System as a general reserve to meet the System's accrued
12liabilities.
13(Source: P.A. 100-23, eff. 7-6-17.)
14 (40 ILCS 5/2-162)
15 (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17 Sec. 2-162. Application and expiration of new benefit
18increases.
19 (a) As used in this Section, "new benefit increase" means
20an increase in the amount of any benefit provided under this
21Article, or an expansion of the conditions of eligibility for
22any benefit under this Article, that results from an amendment
23to this Code that takes effect after the effective date of this
24amendatory Act of the 94th General Assembly. "New benefit
25increase", however, does not include any benefit increase

HB3524- 39 -LRB101 07948 RPS 53003 b
1resulting from the changes made to this Article by this
2amendatory Act of the 101st General Assembly.
3 (b) Notwithstanding any other provision of this Code or any
4subsequent amendment to this Code, every new benefit increase
5is subject to this Section and shall be deemed to be granted
6only in conformance with and contingent upon compliance with
7the provisions of this Section.
8 (c) The Public Act enacting a new benefit increase must
9identify and provide for payment to the System of additional
10funding at least sufficient to fund the resulting annual
11increase in cost to the System as it accrues.
12 Every new benefit increase is contingent upon the General
13Assembly providing the additional funding required under this
14subsection. The Commission on Government Forecasting and
15Accountability shall analyze whether adequate additional
16funding has been provided for the new benefit increase and
17shall report its analysis to the Public Pension Division of the
18Department of Insurance Financial and Professional Regulation.
19A new benefit increase created by a Public Act that does not
20include the additional funding required under this subsection
21is null and void. If the Public Pension Division determines
22that the additional funding provided for a new benefit increase
23under this subsection is or has become inadequate, it may so
24certify to the Governor and the State Comptroller and, in the
25absence of corrective action by the General Assembly, the new
26benefit increase shall expire at the end of the fiscal year in

HB3524- 40 -LRB101 07948 RPS 53003 b
1which the certification is made.
2 (d) Every new benefit increase shall expire 5 years after
3its effective date or on such earlier date as may be specified
4in the language enacting the new benefit increase or provided
5under subsection (c). This does not prevent the General
6Assembly from extending or re-creating a new benefit increase
7by law.
8 (e) Except as otherwise provided in the language creating
9the new benefit increase, a new benefit increase that expires
10under this Section continues to apply to persons who applied
11and qualified for the affected benefit while the new benefit
12increase was in effect and to the affected beneficiaries and
13alternate payees of such persons, but does not apply to any
14other person, including without limitation a person who
15continues in service after the expiration date and did not
16apply and qualify for the affected benefit while the new
17benefit increase was in effect.
18(Source: P.A. 94-4, eff. 6-1-05.)
19 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22 Sec. 14-103.10. Compensation.
23 (a) For periods of service prior to January 1, 1978, the
24full rate of salary or wages payable to an employee for
25personal services performed if he worked the full normal

HB3524- 41 -LRB101 07948 RPS 53003 b
1working period for his position, subject to the following
2maximum amounts: (1) prior to July 1, 1951, $400 per month or
3$4,800 per year; (2) between July 1, 1951 and June 30, 1957
4inclusive, $625 per month or $7,500 per year; (3) beginning
5July 1, 1957, no limitation.
6 In the case of service of an employee in a position
7involving part-time employment, compensation shall be
8determined according to the employees' earnings record.
9 (b) For periods of service on and after January 1, 1978,
10all remuneration for personal services performed defined as
11"wages" under the Social Security Enabling Act, including that
12part of such remuneration which is in excess of any maximum
13limitation provided in such Act, and including any benefits
14received by an employee under a sick pay plan in effect before
15January 1, 1981, but excluding lump sum salary payments:
16 (1) for vacation,
17 (2) for accumulated unused sick leave,
18 (3) upon discharge or dismissal,
19 (4) for approved holidays.
20 (c) For periods of service on or after December 16, 1978,
21compensation also includes any benefits, other than lump sum
22salary payments made at termination of employment, which an
23employee receives or is eligible to receive under a sick pay
24plan authorized by law.
25 (d) For periods of service after September 30, 1985,
26compensation also includes any remuneration for personal

HB3524- 42 -LRB101 07948 RPS 53003 b
1services not included as "wages" under the Social Security
2Enabling Act, which is deducted for purposes of participation
3in a program established pursuant to Section 125 of the
4Internal Revenue Code or its successor laws.
5 (e) For members for which Section 1-160 applies for periods
6of service on and after January 1, 2011, all remuneration for
7personal services performed defined as "wages" under the Social
8Security Enabling Act, excluding remuneration that is in excess
9of the annual earnings, salary, or wages of a member or
10participant, as provided in subsection (b-5) of Section 1-160,
11but including any benefits received by an employee under a sick
12pay plan in effect before January 1, 1981. Compensation shall
13exclude lump sum salary payments:
14 (1) for vacation;
15 (2) for accumulated unused sick leave;
16 (3) upon discharge or dismissal; and
17 (4) for approved holidays.
18 (f) Notwithstanding the other provisions of this Section,
19for service on or after July 1, 2013, "compensation" does not
20include any stipend payable to an employee for service on a
21board or commission.
22 (g) Notwithstanding any other provision of this Section,
23"compensation" does not include any future increase in income
24that is offered for service by a department to a Tier 1
25employee under this Article pursuant to the condition set forth
26in subsection (c) of Section 14-106.5 and accepted under that

HB3524- 43 -LRB101 07948 RPS 53003 b
1condition by a Tier 1 employee who has made the election under
2paragraph (2) of subsection (a) of Section 14-106.5.
3 (h) Notwithstanding any other provision of this Section,
4"compensation" does not include any consideration payment made
5to a Tier 1 employee.
6(Source: P.A. 98-449, eff. 8-16-13.)
7 (40 ILCS 5/14-103.42 new)
8 Sec. 14-103.42. Tier 1 employee. "Tier 1 employee": An
9employee under this Article who first became a member or
10participant before January 1, 2011 under any reciprocal
11retirement system or pension fund established under this Code
12other than a retirement system or pension fund established
13under Article 2, 3, 4, 5, 6, or 18 of this Code.
14 (40 ILCS 5/14-103.43 new)
15 Sec. 14-103.43. Future increase in income. "Future
16increase in income" means an increase to a Tier 1 employee's
17base pay that is offered by a department to the Tier 1 employee
18for service under this Article after June 30, 2021 that
19qualifies as "compensation", as defined in Section 14-103.10,
20or would qualify as "compensation" but for the fact that it was
21offered to and accepted by the Tier 1 employee under the
22condition set forth in subsection (c) of Section 14-106.5. The
23term "future increase in income" includes an increase to a Tier
241 employee's base pay that is paid to the Tier 1 employee

HB3524- 44 -LRB101 07948 RPS 53003 b
1pursuant to an extension, amendment, or renewal of any
2employment contract or collective bargaining agreement after
3the effective date of this Section.
4 (40 ILCS 5/14-103.44 new)
5 Sec. 14-103.44. Base pay. As used in Section 14-103.43 of
6this Code, "base pay" means the greater of either (i) the Tier
71 employee's annualized rate of compensation as of June 30,
82021, or (ii) the Tier 1 employee's annualized rate of
9compensation immediately preceding the expiration, renewal, or
10amendment of an employment contract or collective bargaining
11agreement in effect on the effective date of this Section. For
12a person returning to active service as a Tier 1 employee after
13June 30, 2021, however, "base pay" means the employee's
14annualized rate of compensation as of the employee's last date
15of service prior to July 1, 2021. The System shall calculate
16the base pay of each Tier 1 employee pursuant to this Section.
17 (40 ILCS 5/14-106.5 new)
18 Sec. 14-106.5. Election by Tier 1 employees.
19 (a) Each active Tier 1 employee shall make an irrevocable
20election either:
21 (1) to agree to delay his or her eligibility for
22 automatic annual increases in retirement annuity as
23 provided in subsection (a-1) of Section 14-114 and to have
24 the amount of the automatic annual increases in his or her

HB3524- 45 -LRB101 07948 RPS 53003 b
1 retirement annuity and survivors or widow's annuity that
2 are otherwise provided for in this Article calculated,
3 instead, as provided in subsection (a-1) of Section 14-114;
4 or
5 (2) to not agree to paragraph (1) of this subsection.
6 The election required under this subsection (a) shall be
7made by each active Tier 1 employee no earlier than January 1,
82021 and no later than March 31, 2021, except that:
9 (i) a person who becomes a Tier 1 employee under this
10 Article on or after January 1, 2021 must make the election
11 under this subsection (a) within 60 days after becoming a
12 Tier 1 employee; and
13 (ii) a person who returns to active service as a Tier 1
14 employee under this Article on or after January 1, 2021 and
15 has not yet made an election under this Section must make
16 the election under this subsection (a) within 60 days after
17 returning to active service as a Tier 1 employee.
18 If a Tier 1 employee fails for any reason to make a
19required election under this subsection within the time
20specified, then the employee shall be deemed to have made the
21election under paragraph (2) of this subsection.
22 (a-5) If this Section is enjoined or stayed by an Illinois
23court or a court of competent jurisdiction pending the entry of
24a final and unappealable decision, and this Section is
25determined to be constitutional or otherwise valid by a final
26unappealable decision of an Illinois court or a court of

HB3524- 46 -LRB101 07948 RPS 53003 b
1competent jurisdiction, then the election procedure set forth
2in subsection (a) of this Section shall commence on the 180th
3calendar day after the date of the issuance of the final
4unappealable decision and shall conclude at the end of the
5270th calendar day after that date.
6 (a-10) All elections under subsection (a) that are made or
7deemed to be made before July 1, 2021 shall take effect on July
81, 2021. Elections that are made or deemed to be made on or
9after July 1, 2021 shall take effect on the first day of the
10month following the month in which the election is made or
11deemed to be made.
12 (b) As adequate and legal consideration provided under this
13amendatory Act of the 101st General Assembly for making an
14election under paragraph (1) of subsection (a) of this Section,
15the department shall be expressly and irrevocably prohibited
16from offering any future increases in income to a Tier 1
17employee who has made an election under paragraph (1) of
18subsection (a) of this Section on the condition of not
19constituting compensation under Section 14-103.10.
20 As adequate and legal consideration provided under this
21amendatory Act of the 101st General Assembly for making an
22election under paragraph (1) of subsection (a) of this Section,
23each Tier 1 employee who has made an election under paragraph
24(1) of subsection (a) of this Section shall receive a
25consideration payment equal to 10% of the contributions made by
26or on behalf of the employee before the effective date of that

HB3524- 47 -LRB101 07948 RPS 53003 b
1election. The State Comptroller shall pay the consideration
2payment to the Tier 1 employee out of funds appropriated for
3that purpose under Section 1.10 of the State Pension Funds
4Continuing Appropriation Act. The System shall calculate the
5amount of each consideration payment and, by July 1, 2021,
6shall certify to the State Comptroller the amount of the
7consideration payment, together with the name, address, and any
8other available payment information of the Tier 1 employee as
9found in the records of the System. The System shall make
10additional calculations and certifications of consideration
11payments to the State Comptroller as it deems necessary.
12 (c) A Tier 1 employee who makes the election under
13paragraph (2) of subsection (a) of this Section shall not be
14subject to paragraph (1) of subsection (a) of this Section.
15However, each future increase in income offered by a department
16under this Article to a Tier 1 employee who has made the
17election under paragraph (2) of subsection (a) of this Section
18shall be offered by the department expressly and irrevocably on
19the condition of not constituting compensation under Section
2014-103.10 and that the Tier 1 employee's acceptance of the
21offered future increase in income shall constitute his or her
22agreement to that condition.
23 (d) The System shall make a good faith effort to contact
24each Tier 1 employee subject to this Section. The System shall
25mail information describing the required election to each Tier
261 employee by United States Postal Service mail to his or her

HB3524- 48 -LRB101 07948 RPS 53003 b
1last known address on file with the System. If the Tier 1
2employee is not responsive to other means of contact, it is
3sufficient for the System to publish the details of any
4required elections on its website or to publish those details
5in a regularly published newsletter or other existing public
6forum.
7 Tier 1 employees who are subject to this Section shall be
8provided with an election packet containing information
9regarding their options, as well as the forms necessary to make
10the required election. Upon request, the System shall offer
11Tier 1 employees an opportunity to receive information from the
12System before making the required election. The information may
13consist of video materials, group presentations, individual
14consultation with a member or authorized representative of the
15System in person or by telephone or other electronic means, or
16any combination of those methods. The System shall not provide
17advice or counseling with respect to which election a Tier 1
18employee should make or specific to the legal or tax
19circumstances of or consequences to the Tier 1 employee.
20 The System shall inform Tier 1 employees in the election
21packet required under this subsection that the Tier 1 employee
22may also wish to obtain information and counsel relating to the
23election required under this Section from any other available
24source, including, but not limited to, labor organizations and
25private counsel.
26 In no event shall the System, its staff, or the Board be

HB3524- 49 -LRB101 07948 RPS 53003 b
1held liable for any information given to a member regarding the
2elections under this Section. The System shall coordinate with
3the Illinois Department of Central Management Services and each
4other retirement system administering an election in
5accordance with this amendatory Act of the 101st General
6Assembly to provide information concerning the impact of the
7election set forth in this Section.
8 (e) Notwithstanding any other provision of law, a
9department under this Article is required to offer each future
10increase in income expressly and irrevocably on the condition
11of not constituting "compensation" under Section 14-103.10 to
12any Tier 1 employee who has made an election under paragraph
13(2) of subsection (a) of this Section. The offer shall also
14provide that the Tier 1 employee's acceptance of the offered
15future increase in income shall constitute his or her agreement
16to the condition set forth in this subsection.
17 For purposes of legislative intent, the condition set forth
18in this subsection shall be construed in a manner that ensures
19that the condition is not violated or circumvented through any
20contrivance of any kind.
21 (f) A member's election under this Section is not a
22prohibited election under subdivision (j)(1) of Section 1-119
23of this Code.
24 (g) No provision of this Section shall be interpreted in a
25way that would cause the System to cease to be a qualified plan
26under Section 401(a) of the Internal Revenue Code of 1986. The

HB3524- 50 -LRB101 07948 RPS 53003 b
1provisions of this Section shall be subject to and implemented
2in a manner that complies with Section 21 of Article V of the
3Illinois Constitution.
4 (h) If an election created by this amendatory Act in any
5other Article of this Code or any change deriving from that
6election is determined to be unconstitutional or otherwise
7invalid by a final unappealable decision of an Illinois court
8or a court of competent jurisdiction, the invalidity of that
9provision shall not in any way affect the validity of this
10Section or the changes deriving from the election required
11under this Section.
12 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
13 (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15 Sec. 14-114. Automatic increase in retirement annuity.
16 (a) Subject to the provisions of subsections (a-1), any Any
17person receiving a retirement annuity under this Article who
18retires having attained age 60, or who retires before age 60
19having at least 35 years of creditable service, or who retires
20on or after January 1, 2001 at an age which, when added to the
21number of years of his or her creditable service, equals at
22least 85, shall, on January 1 next following the first full
23year of retirement, have the amount of the then fixed and
24payable monthly retirement annuity increased 3%. Any person
25receiving a retirement annuity under this Article who retires

HB3524- 51 -LRB101 07948 RPS 53003 b
1before attainment of age 60 and with less than (i) 35 years of
2creditable service if retirement is before January 1, 2001, or
3(ii) the number of years of creditable service which, when
4added to the member's age, would equal 85, if retirement is on
5or after January 1, 2001, shall have the amount of the fixed
6and payable retirement annuity increased by 3% on the January 1
7occurring on or next following (1) attainment of age 60, or (2)
8the first anniversary of retirement, whichever occurs later.
9However, for persons who receive the alternative retirement
10annuity under Section 14-110, references in this subsection (a)
11to attainment of age 60 shall be deemed to refer to attainment
12of age 55. For a person receiving early retirement incentives
13under Section 14-108.3 whose retirement annuity began after
14January 1, 1992 pursuant to an extension granted under
15subsection (e) of that Section, the first anniversary of
16retirement shall be deemed to be January 1, 1993. For a person
17who retires on or after June 28, 2001 and on or before October
181, 2001, and whose retirement annuity is calculated, in whole
19or in part, under Section 14-110 or subsection (g) or (h) of
20Section 14-108, the first anniversary of retirement shall be
21deemed to be January 1, 2002.
22 On each January 1 following the date of the initial
23increase under this subsection, the employee's monthly
24retirement annuity shall be increased by an additional 3%.
25 Beginning January 1, 1990, and except as provided in
26subsection (a-1), all automatic annual increases payable under

HB3524- 52 -LRB101 07948 RPS 53003 b
1this Section shall be calculated as a percentage of the total
2annuity payable at the time of the increase, including previous
3increases granted under this Article.
4 (a-1) Notwithstanding any other provision of this Article,
5for a Tier 1 employee who made the election under paragraph (1)
6of subsection (a) of Section 14-106.5:
7 (1) The initial increase in retirement annuity under
8 this Section shall occur on the January 1 occurring either
9 on or after the attainment of age 67 or the fifth
10 anniversary of the annuity start date, whichever is
11 earlier.
12 (2) The amount of each automatic annual increase in
13 retirement annuity or survivors or widow's annuity
14 occurring on or after the effective date of that election
15 shall be calculated as a percentage of the originally
16 granted retirement annuity or survivors or widow's
17 annuity, equal to 3% or one-half the annual unadjusted
18 percentage increase (but not less than zero) in the
19 consumer price index-u for the 12 months ending with the
20 September preceding each November 1, whichever is less. If
21 the annual unadjusted percentage change in the consumer
22 price index-u for the 12 months ending with the September
23 preceding each November 1 is zero or there is a decrease,
24 then the annuity shall not be increased.
25 For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

HB3524- 53 -LRB101 07948 RPS 53003 b
1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100. The new amount resulting from each annual adjustment shall
5be determined by the Public Pension Division of the Department
6of Insurance and made available to the board of the retirement
7system by November 1 of each year.
8 (b) The provisions of subsection (a) of this Section shall
9be applicable to an employee only if the employee makes the
10additional contributions required after December 31, 1969 for
11the purpose of the automatic increases for not less than the
12equivalent of one full year. If an employee becomes an
13annuitant before his additional contributions equal one full
14year's contributions based on his salary at the date of
15retirement, the employee may pay the necessary balance of the
16contributions to the system, without interest, and be eligible
17for the increasing annuity authorized by this Section.
18 (c) The provisions of subsection (a) of this Section shall
19not be applicable to any annuitant who is on retirement on
20December 31, 1969, and thereafter returns to State service,
21unless the member has established at least one year of
22additional creditable service following reentry into service.
23 (d) In addition to other increases which may be provided by
24this Section, on January 1, 1981 any annuitant who was
25receiving a retirement annuity on or before January 1, 1971
26shall have his retirement annuity then being paid increased $1

HB3524- 54 -LRB101 07948 RPS 53003 b
1per month for each year of creditable service. On January 1,
21982, any annuitant who began receiving a retirement annuity on
3or before January 1, 1977, shall have his retirement annuity
4then being paid increased $1 per month for each year of
5creditable service.
6 On January 1, 1987, any annuitant who began receiving a
7retirement annuity on or before January 1, 1977, shall have the
8monthly retirement annuity increased by an amount equal to 8¢
9per year of creditable service times the number of years that
10have elapsed since the annuity began.
11 (e) Every person who receives the alternative retirement
12annuity under Section 14-110 and who is eligible to receive the
133% increase under subsection (a) on January 1, 1986, shall also
14receive on that date a one-time increase in retirement annuity
15equal to the difference between (1) his actual retirement
16annuity on that date, including any increases received under
17subsection (a), and (2) the amount of retirement annuity he
18would have received on that date if the amendments to
19subsection (a) made by Public Act 84-162 had been in effect
20since the date of his retirement.
21(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2292-651, eff. 7-11-02.)
23 (40 ILCS 5/14-131)
24 Sec. 14-131. Contributions by State.
25 (a) The State shall make contributions to the System by

HB3524- 55 -LRB101 07948 RPS 53003 b
1appropriations of amounts which, together with other employer
2contributions from trust, federal, and other funds, employee
3contributions, investment income, and other income, will be
4sufficient to meet the cost of maintaining and administering
5the System on a 90% funded basis in accordance with actuarial
6recommendations.
7 For the purposes of this Section and Section 14-135.08,
8references to State contributions refer only to employer
9contributions and do not include employee contributions that
10are picked up or otherwise paid by the State or a department on
11behalf of the employee.
12 (b) The Board shall determine the total amount of State
13contributions required for each fiscal year on the basis of the
14actuarial tables and other assumptions adopted by the Board,
15using the formula in subsection (e).
16 The Board shall also determine a State contribution rate
17for each fiscal year, expressed as a percentage of payroll,
18based on the total required State contribution for that fiscal
19year (less the amount received by the System from
20appropriations under Section 8.12 of the State Finance Act and
21Section 1 of the State Pension Funds Continuing Appropriation
22Act, if any, for the fiscal year ending on the June 30
23immediately preceding the applicable November 15 certification
24deadline), the estimated payroll (including all forms of
25compensation) for personal services rendered by eligible
26employees, and the recommendations of the actuary.

HB3524- 56 -LRB101 07948 RPS 53003 b
1 For the purposes of this Section and Section 14.1 of the
2State Finance Act, the term "eligible employees" includes
3employees who participate in the System, persons who may elect
4to participate in the System but have not so elected, persons
5who are serving a qualifying period that is required for
6participation, and annuitants employed by a department as
7described in subdivision (a)(1) or (a)(2) of Section 14-111.
8 (c) Contributions shall be made by the several departments
9for each pay period by warrants drawn by the State Comptroller
10against their respective funds or appropriations based upon
11vouchers stating the amount to be so contributed. These amounts
12shall be based on the full rate certified by the Board under
13Section 14-135.08 for that fiscal year. From March 5, 2004 (the
14effective date of Public Act 93-665) through the payment of the
15final payroll from fiscal year 2004 appropriations, the several
16departments shall not make contributions for the remainder of
17fiscal year 2004 but shall instead make payments as required
18under subsection (a-1) of Section 14.1 of the State Finance
19Act. The several departments shall resume those contributions
20at the commencement of fiscal year 2005.
21 (c-1) Notwithstanding subsection (c) of this Section, for
22fiscal years 2010, 2012, 2013, 2014, 2015, 2016, 2017, 2018,
23and 2019 only, contributions by the several departments are not
24required to be made for General Revenue Funds payrolls
25processed by the Comptroller. Payrolls paid by the several
26departments from all other State funds must continue to be

HB3524- 57 -LRB101 07948 RPS 53003 b
1processed pursuant to subsection (c) of this Section.
2 (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015,
32016, 2017, 2018, and 2019 only, on or as soon as possible
4after the 15th day of each month, the Board shall submit
5vouchers for payment of State contributions to the System, in a
6total monthly amount of one-twelfth of the fiscal year General
7Revenue Fund contribution as certified by the System pursuant
8to Section 14-135.08 of the Illinois Pension Code.
9 (d) If an employee is paid from trust funds or federal
10funds, the department or other employer shall pay employer
11contributions from those funds to the System at the certified
12rate, unless the terms of the trust or the federal-State
13agreement preclude the use of the funds for that purpose, in
14which case the required employer contributions shall be paid by
15the State. From March 5, 2004 (the effective date of Public Act
1693-665) through the payment of the final payroll from fiscal
17year 2004 appropriations, the department or other employer
18shall not pay contributions for the remainder of fiscal year
192004 but shall instead make payments as required under
20subsection (a-1) of Section 14.1 of the State Finance Act. The
21department or other employer shall resume payment of
22contributions at the commencement of fiscal year 2005.
23 (e) For State fiscal years 2012 through 2045 (except as
24otherwise provided for fiscal year 2022), the minimum
25contribution to the System to be made by the State for each
26fiscal year shall be an amount determined by the System to be

HB3524- 58 -LRB101 07948 RPS 53003 b
1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8 For State fiscal year 2022:
9 (1) The initial calculation and certification shall be
10 based on the amount determined above.
11 (2) For purposes of the recertification due on or
12 before May 1, 2021, the recalculation of the required State
13 contribution for fiscal year 2022 shall take into account
14 the effect on the System's liabilities of the elections
15 made under Section 14-106.5.
16 (3) For purposes of the recertification due on or
17 before October 1, 2021, the total required State
18 contribution for fiscal year 2022 shall be reduced by the
19 amount of the consideration payments made to Tier 1
20 employees who made the election under paragraph (1) of
21 subsection (a) of Section 14-106.5.
22 A change in an actuarial or investment assumption that
23increases or decreases the required State contribution and
24first applies in State fiscal year 2018 or thereafter shall be
25implemented in equal annual amounts over a 5-year period
26beginning in the State fiscal year in which the actuarial

HB3524- 59 -LRB101 07948 RPS 53003 b
1change first applies to the required State contribution.
2 A change in an actuarial or investment assumption that
3increases or decreases the required State contribution and
4first applied to the State contribution in fiscal year 2014,
52015, 2016, or 2017 shall be implemented:
6 (i) as already applied in State fiscal years before
7 2018; and
8 (ii) in the portion of the 5-year period beginning in
9 the State fiscal year in which the actuarial change first
10 applied that occurs in State fiscal year 2018 or
11 thereafter, by calculating the change in equal annual
12 amounts over that 5-year period and then implementing it at
13 the resulting annual rate in each of the remaining fiscal
14 years in that 5-year period.
15 For State fiscal years 1996 through 2005, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18so that by State fiscal year 2011, the State is contributing at
19the rate required under this Section; except that (i) for State
20fiscal year 1998, for all purposes of this Code and any other
21law of this State, the certified percentage of the applicable
22employee payroll shall be 5.052% for employees earning eligible
23creditable service under Section 14-110 and 6.500% for all
24other employees, notwithstanding any contrary certification
25made under Section 14-135.08 before July 7, 1997 (the effective
26date of Public Act 90-65), and (ii) in the following specified

HB3524- 60 -LRB101 07948 RPS 53003 b
1State fiscal years, the State contribution to the System shall
2not be less than the following indicated percentages of the
3applicable employee payroll, even if the indicated percentage
4will produce a State contribution in excess of the amount
5otherwise required under this subsection and subsection (a):
69.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
72002; 10.6% in FY 2003; and 10.8% in FY 2004.
8 Notwithstanding any other provision of this Article, the
9total required State contribution to the System for State
10fiscal year 2006 is $203,783,900.
11 Notwithstanding any other provision of this Article, the
12total required State contribution to the System for State
13fiscal year 2007 is $344,164,400.
14 For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20 Notwithstanding any other provision of this Article, the
21total required State General Revenue Fund contribution for
22State fiscal year 2010 is $723,703,100 and shall be made from
23the proceeds of bonds sold in fiscal year 2010 pursuant to
24Section 7.2 of the General Obligation Bond Act, less (i) the
25pro rata share of bond sale expenses determined by the System's
26share of total bond proceeds, (ii) any amounts received from

HB3524- 61 -LRB101 07948 RPS 53003 b
1the General Revenue Fund in fiscal year 2010, and (iii) any
2reduction in bond proceeds due to the issuance of discounted
3bonds, if applicable.
4 Notwithstanding any other provision of this Article, the
5total required State General Revenue Fund contribution for
6State fiscal year 2011 is the amount recertified by the System
7on or before April 1, 2011 pursuant to Section 14-135.08 and
8shall be made from the proceeds of bonds sold in fiscal year
92011 pursuant to Section 7.2 of the General Obligation Bond
10Act, less (i) the pro rata share of bond sale expenses
11determined by the System's share of total bond proceeds, (ii)
12any amounts received from the General Revenue Fund in fiscal
13year 2011, and (iii) any reduction in bond proceeds due to the
14issuance of discounted bonds, if applicable.
15 Beginning in State fiscal year 2046, the minimum State
16contribution for each fiscal year shall be the amount needed to
17maintain the total assets of the System at 90% of the total
18actuarial liabilities of the System.
19 Amounts received by the System pursuant to Section 25 of
20the Budget Stabilization Act or Section 8.12 of the State
21Finance Act in any fiscal year do not reduce and do not
22constitute payment of any portion of the minimum State
23contribution required under this Article in that fiscal year.
24Such amounts shall not reduce, and shall not be included in the
25calculation of, the required State contributions under this
26Article in any future year until the System has reached a

HB3524- 62 -LRB101 07948 RPS 53003 b
1funding ratio of at least 90%. A reference in this Article to
2the "required State contribution" or any substantially similar
3term does not include or apply to any amounts payable to the
4System under Section 25 of the Budget Stabilization Act.
5 Notwithstanding any other provision of this Section, the
6required State contribution for State fiscal year 2005 and for
7fiscal year 2008 and each fiscal year thereafter, as calculated
8under this Section and certified under Section 14-135.08, shall
9not exceed an amount equal to (i) the amount of the required
10State contribution that would have been calculated under this
11Section for that fiscal year if the System had not received any
12payments under subsection (d) of Section 7.2 of the General
13Obligation Bond Act, minus (ii) the portion of the State's
14total debt service payments for that fiscal year on the bonds
15issued in fiscal year 2003 for the purposes of that Section
167.2, as determined and certified by the Comptroller, that is
17the same as the System's portion of the total moneys
18distributed under subsection (d) of Section 7.2 of the General
19Obligation Bond Act. In determining this maximum for State
20fiscal years 2008 through 2010, however, the amount referred to
21in item (i) shall be increased, as a percentage of the
22applicable employee payroll, in equal increments calculated
23from the sum of the required State contribution for State
24fiscal year 2007 plus the applicable portion of the State's
25total debt service payments for fiscal year 2007 on the bonds
26issued in fiscal year 2003 for the purposes of Section 7.2 of

HB3524- 63 -LRB101 07948 RPS 53003 b
1the General Obligation Bond Act, so that, by State fiscal year
22011, the State is contributing at the rate otherwise required
3under this Section.
4 (f) After the submission of all payments for eligible
5employees from personal services line items in fiscal year 2004
6have been made, the Comptroller shall provide to the System a
7certification of the sum of all fiscal year 2004 expenditures
8for personal services that would have been covered by payments
9to the System under this Section if the provisions of Public
10Act 93-665 had not been enacted. Upon receipt of the
11certification, the System shall determine the amount due to the
12System based on the full rate certified by the Board under
13Section 14-135.08 for fiscal year 2004 in order to meet the
14State's obligation under this Section. The System shall compare
15this amount due to the amount received by the System in fiscal
16year 2004 through payments under this Section and under Section
176z-61 of the State Finance Act. If the amount due is more than
18the amount received, the difference shall be termed the "Fiscal
19Year 2004 Shortfall" for purposes of this Section, and the
20Fiscal Year 2004 Shortfall shall be satisfied under Section 1.2
21of the State Pension Funds Continuing Appropriation Act. If the
22amount due is less than the amount received, the difference
23shall be termed the "Fiscal Year 2004 Overpayment" for purposes
24of this Section, and the Fiscal Year 2004 Overpayment shall be
25repaid by the System to the Pension Contribution Fund as soon
26as practicable after the certification.

HB3524- 64 -LRB101 07948 RPS 53003 b
1 (g) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5 As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12 (h) For purposes of determining the required State
13contribution to the System for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the System's actuarially assumed rate of return.
16 (i) After the submission of all payments for eligible
17employees from personal services line items paid from the
18General Revenue Fund in fiscal year 2010 have been made, the
19Comptroller shall provide to the System a certification of the
20sum of all fiscal year 2010 expenditures for personal services
21that would have been covered by payments to the System under
22this Section if the provisions of Public Act 96-45 had not been
23enacted. Upon receipt of the certification, the System shall
24determine the amount due to the System based on the full rate
25certified by the Board under Section 14-135.08 for fiscal year
262010 in order to meet the State's obligation under this

HB3524- 65 -LRB101 07948 RPS 53003 b
1Section. The System shall compare this amount due to the amount
2received by the System in fiscal year 2010 through payments
3under this Section. If the amount due is more than the amount
4received, the difference shall be termed the "Fiscal Year 2010
5Shortfall" for purposes of this Section, and the Fiscal Year
62010 Shortfall shall be satisfied under Section 1.2 of the
7State Pension Funds Continuing Appropriation Act. If the amount
8due is less than the amount received, the difference shall be
9termed the "Fiscal Year 2010 Overpayment" for purposes of this
10Section, and the Fiscal Year 2010 Overpayment shall be repaid
11by the System to the General Revenue Fund as soon as
12practicable after the certification.
13 (j) After the submission of all payments for eligible
14employees from personal services line items paid from the
15General Revenue Fund in fiscal year 2011 have been made, the
16Comptroller shall provide to the System a certification of the
17sum of all fiscal year 2011 expenditures for personal services
18that would have been covered by payments to the System under
19this Section if the provisions of Public Act 96-1497 had not
20been enacted. Upon receipt of the certification, the System
21shall determine the amount due to the System based on the full
22rate certified by the Board under Section 14-135.08 for fiscal
23year 2011 in order to meet the State's obligation under this
24Section. The System shall compare this amount due to the amount
25received by the System in fiscal year 2011 through payments
26under this Section. If the amount due is more than the amount

HB3524- 66 -LRB101 07948 RPS 53003 b
1received, the difference shall be termed the "Fiscal Year 2011
2Shortfall" for purposes of this Section, and the Fiscal Year
32011 Shortfall shall be satisfied under Section 1.2 of the
4State Pension Funds Continuing Appropriation Act. If the amount
5due is less than the amount received, the difference shall be
6termed the "Fiscal Year 2011 Overpayment" for purposes of this
7Section, and the Fiscal Year 2011 Overpayment shall be repaid
8by the System to the General Revenue Fund as soon as
9practicable after the certification.
10 (k) For fiscal years 2012 through 2019 only, after the
11submission of all payments for eligible employees from personal
12services line items paid from the General Revenue Fund in the
13fiscal year have been made, the Comptroller shall provide to
14the System a certification of the sum of all expenditures in
15the fiscal year for personal services. Upon receipt of the
16certification, the System shall determine the amount due to the
17System based on the full rate certified by the Board under
18Section 14-135.08 for the fiscal year in order to meet the
19State's obligation under this Section. The System shall compare
20this amount due to the amount received by the System for the
21fiscal year. If the amount due is more than the amount
22received, the difference shall be termed the "Prior Fiscal Year
23Shortfall" for purposes of this Section, and the Prior Fiscal
24Year Shortfall shall be satisfied under Section 1.2 of the
25State Pension Funds Continuing Appropriation Act. If the amount
26due is less than the amount received, the difference shall be

HB3524- 67 -LRB101 07948 RPS 53003 b
1termed the "Prior Fiscal Year Overpayment" for purposes of this
2Section, and the Prior Fiscal Year Overpayment shall be repaid
3by the System to the General Revenue Fund as soon as
4practicable after the certification.
5(Source: P.A. 99-8, eff. 7-9-15; 99-523, eff. 6-30-16; 100-23,
6eff. 7-6-17; 100-587, eff. 6-4-18.)
7 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
8 (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10 Sec. 14-133. Contributions on behalf of members.
11 (a) Except as provided in subsection (a-5), each Each
12participating employee shall make contributions to the System,
13based on the employee's compensation, as follows:
14 (1) Covered employees, except as indicated below, 3.5%
15 for retirement annuity, and 0.5% for a widow or survivors
16 annuity;
17 (2) Noncovered employees, except as indicated below,
18 7% for retirement annuity and 1% for a widow or survivors
19 annuity;
20 (3) Noncovered employees serving in a position in which
21 "eligible creditable service" as defined in Section 14-110
22 may be earned, 1% for a widow or survivors annuity plus the
23 following amount for retirement annuity: 8.5% through
24 December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
25 in 2004 and thereafter;

HB3524- 68 -LRB101 07948 RPS 53003 b
1 (4) Covered employees serving in a position in which
2 "eligible creditable service" as defined in Section 14-110
3 may be earned, 0.5% for a widow or survivors annuity plus
4 the following amount for retirement annuity: 5% through
5 December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
6 and thereafter;
7 (5) Each security employee of the Department of
8 Corrections or of the Department of Human Services who is a
9 covered employee, 0.5% for a widow or survivors annuity
10 plus the following amount for retirement annuity: 5%
11 through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
12 in 2004 and thereafter;
13 (6) Each security employee of the Department of
14 Corrections or of the Department of Human Services who is
15 not a covered employee, 1% for a widow or survivors annuity
16 plus the following amount for retirement annuity: 8.5%
17 through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
18 11.5% in 2004 and thereafter.
19 (a-5) Beginning July 1, 2021 or the effective date of the
20Tier 1 employee's election under paragraph (1) of subsection
21(a) of Section 14-106.5, whichever is later, in lieu of the
22contributions otherwise required under subsection (a), each
23Tier 1 employee who made the election under paragraph (1) of
24subsection (a) of Section 14-106.5 who is a participating
25employee shall make contributions to the System, based on his
26or her compensation, as follows:

HB3524- 69 -LRB101 07948 RPS 53003 b
1 (1) Covered employees, except as indicated below,
2 3.15% for retirement annuity, and 0.45% for a widow or
3 survivors annuity;
4 (2) Noncovered employees, except as indicated below,
5 6.3% for retirement annuity and 0.9% for a widow or
6 survivors annuity;
7 (3) Noncovered employees serving in a position in which
8 "eligible creditable service" as defined in Section 14-110
9 may be earned, 10.35% for retirement annuity and 0.9% for a
10 widow or survivors annuity;
11 (4) Covered employees serving in a position in which
12 "eligible creditable service" as defined in Section 14-110
13 may be earned, 7.2% for retirement annuity and 0.45% for a
14 widow or survivors annuity;
15 (5) Each security employee of the Department of
16 Corrections or of the Department of Human Services who is a
17 covered employee, 10.8% for retirement annuity and 0.45%
18 for a widow or survivors annuity;
19 (6) Each security employee of the Department of
20 Corrections or of the Department of Human Services who is
21 not a covered employee, 10.35% for retirement annuity and
22 0.9% for a widow or survivors annuity.
23 (b) Contributions shall be in the form of a deduction from
24compensation and shall be made notwithstanding that the
25compensation paid in cash to the employee shall be reduced
26thereby below the minimum prescribed by law or regulation. Each

HB3524- 70 -LRB101 07948 RPS 53003 b
1member is deemed to consent and agree to the deductions from
2compensation provided for in this Article, and shall receipt in
3full for salary or compensation.
4(Source: P.A. 92-14, eff. 6-28-01.)
5 (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
6 Sec. 14-135.08. To certify required State contributions.
7 (a) To certify to the Governor and to each department, on
8or before November 15 of each year until November 15, 2011, the
9required rate for State contributions to the System for the
10next State fiscal year, as determined under subsection (b) of
11Section 14-131. The certification to the Governor under this
12subsection (a) shall include a copy of the actuarial
13recommendations upon which the rate is based and shall
14specifically identify the System's projected State normal cost
15for that fiscal year.
16 (a-5) On or before November 1 of each year, beginning
17November 1, 2012, the Board shall submit to the State Actuary,
18the Governor, and the General Assembly a proposed certification
19of the amount of the required State contribution to the System
20for the next fiscal year, along with all of the actuarial
21assumptions, calculations, and data upon which that proposed
22certification is based. On or before January 1 of each year
23beginning January 1, 2013, the State Actuary shall issue a
24preliminary report concerning the proposed certification and
25identifying, if necessary, recommended changes in actuarial

HB3524- 71 -LRB101 07948 RPS 53003 b
1assumptions that the Board must consider before finalizing its
2certification of the required State contributions. On or before
3January 15, 2013 and each January 15 thereafter, the Board
4shall certify to the Governor and the General Assembly the
5amount of the required State contribution for the next fiscal
6year. The Board's certification must note any deviations from
7the State Actuary's recommended changes, the reason or reasons
8for not following the State Actuary's recommended changes, and
9the fiscal impact of not following the State Actuary's
10recommended changes on the required State contribution.
11 (b) The certifications under subsections (a) and (a-5)
12shall include an additional amount necessary to pay all
13principal of and interest on those general obligation bonds due
14the next fiscal year authorized by Section 7.2(a) of the
15General Obligation Bond Act and issued to provide the proceeds
16deposited by the State with the System in July 2003,
17representing deposits other than amounts reserved under
18Section 7.2(c) of the General Obligation Bond Act. For State
19fiscal year 2005, the Board shall make a supplemental
20certification of the additional amount necessary to pay all
21principal of and interest on those general obligation bonds due
22in State fiscal years 2004 and 2005 authorized by Section
237.2(a) of the General Obligation Bond Act and issued to provide
24the proceeds deposited by the State with the System in July
252003, representing deposits other than amounts reserved under
26Section 7.2(c) of the General Obligation Bond Act, as soon as

HB3524- 72 -LRB101 07948 RPS 53003 b
1practical after the effective date of this amendatory Act of
2the 93rd General Assembly.
3 On or before May 1, 2004, the Board shall recalculate and
4recertify to the Governor and to each department the amount of
5the required State contribution to the System and the required
6rates for State contributions to the System for State fiscal
7year 2005, taking into account the amounts appropriated to and
8received by the System under subsection (d) of Section 7.2 of
9the General Obligation Bond Act.
10 On or before July 1, 2005, the Board shall recalculate and
11recertify to the Governor and to each department the amount of
12the required State contribution to the System and the required
13rates for State contributions to the System for State fiscal
14year 2006, taking into account the changes in required State
15contributions made by this amendatory Act of the 94th General
16Assembly.
17 On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor and to each department the amount of
19the required State contribution to the System for State fiscal
20year 2011, applying the changes made by Public Act 96-889 to
21the System's assets and liabilities as of June 30, 2009 as
22though Public Act 96-889 was approved on that date.
23 By November 1, 2017, the Board shall recalculate and
24recertify to the State Actuary, the Governor, and the General
25Assembly the amount of the State contribution to the System for
26State fiscal year 2018, taking into account the changes in

HB3524- 73 -LRB101 07948 RPS 53003 b
1required State contributions made by this amendatory Act of the
2100th General Assembly. The State Actuary shall review the
3assumptions and valuations underlying the Board's revised
4certification and issue a preliminary report concerning the
5proposed recertification and identifying, if necessary,
6recommended changes in actuarial assumptions that the Board
7must consider before finalizing its certification of the
8required State contributions. The Board's final certification
9must note any deviations from the State Actuary's recommended
10changes, the reason or reasons for not following the State
11Actuary's recommended changes, and the fiscal impact of not
12following the State Actuary's recommended changes on the
13required State contribution.
14 On or after June 15, 2019, but no later than June 30, 2019,
15the Board shall recalculate and recertify to the Governor and
16the General Assembly the amount of the State contribution to
17the System for State fiscal year 2019, taking into account the
18changes in required State contributions made by this amendatory
19Act of the 100th General Assembly. The recalculation shall be
20made using assumptions adopted by the Board for the original
21fiscal year 2019 certification. The monthly voucher for the
2212th month of fiscal year 2019 shall be paid by the Comptroller
23after the recertification required pursuant to this paragraph
24is submitted to the Governor, Comptroller, and General
25Assembly. The recertification submitted to the General
26Assembly shall be filed with the Clerk of the House of

HB3524- 74 -LRB101 07948 RPS 53003 b
1Representatives and the Secretary of the Senate in electronic
2form only, in the manner that the Clerk and the Secretary shall
3direct.
4 On or before May 1, 2021, the Board shall recalculate and
5recertify to the Governor and the General Assembly the amount
6of the required State contribution to the System for State
7fiscal year 2022, taking into account the effect on the
8System's liabilities of the elections made under Section
914-106.5.
10 On or before October 1, 2021, the Board shall recalculate
11and recertify to the Governor and the General Assembly the
12amount of the required State contribution to the System for
13State fiscal year 2022, taking into account the reduction
14specified under item (3) of subsection (e) of Section 14-131.
15(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
16 (40 ILCS 5/14-152.1)
17 Sec. 14-152.1. Application and expiration of new benefit
18increases.
19 (a) As used in this Section, "new benefit increase" means
20an increase in the amount of any benefit provided under this
21Article, or an expansion of the conditions of eligibility for
22any benefit under this Article, that results from an amendment
23to this Code that takes effect after June 1, 2005 (the
24effective date of Public Act 94-4). "New benefit increase",
25however, does not include any benefit increase resulting from

HB3524- 75 -LRB101 07948 RPS 53003 b
1the changes made to Article 1 or this Article by Public Act
296-37, Public Act 100-23, Public Act 100-587, Public Act
3100-611, or this amendatory Act of the 101st General Assembly
4or this amendatory Act of the 100th General Assembly.
5 (b) Notwithstanding any other provision of this Code or any
6subsequent amendment to this Code, every new benefit increase
7is subject to this Section and shall be deemed to be granted
8only in conformance with and contingent upon compliance with
9the provisions of this Section.
10 (c) The Public Act enacting a new benefit increase must
11identify and provide for payment to the System of additional
12funding at least sufficient to fund the resulting annual
13increase in cost to the System as it accrues.
14 Every new benefit increase is contingent upon the General
15Assembly providing the additional funding required under this
16subsection. The Commission on Government Forecasting and
17Accountability shall analyze whether adequate additional
18funding has been provided for the new benefit increase and
19shall report its analysis to the Public Pension Division of the
20Department of Insurance. A new benefit increase created by a
21Public Act that does not include the additional funding
22required under this subsection is null and void. If the Public
23Pension Division determines that the additional funding
24provided for a new benefit increase under this subsection is or
25has become inadequate, it may so certify to the Governor and
26the State Comptroller and, in the absence of corrective action

HB3524- 76 -LRB101 07948 RPS 53003 b
1by the General Assembly, the new benefit increase shall expire
2at the end of the fiscal year in which the certification is
3made.
4 (d) Every new benefit increase shall expire 5 years after
5its effective date or on such earlier date as may be specified
6in the language enacting the new benefit increase or provided
7under subsection (c). This does not prevent the General
8Assembly from extending or re-creating a new benefit increase
9by law.
10 (e) Except as otherwise provided in the language creating
11the new benefit increase, a new benefit increase that expires
12under this Section continues to apply to persons who applied
13and qualified for the affected benefit while the new benefit
14increase was in effect and to the affected beneficiaries and
15alternate payees of such persons, but does not apply to any
16other person, including without limitation a person who
17continues in service after the expiration date and did not
18apply and qualify for the affected benefit while the new
19benefit increase was in effect.
20(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
21100-611, eff. 7-20-18; revised 7-25-18.)
22 (40 ILCS 5/15-108.1)
23 Sec. 15-108.1. Tier 1 member; Tier 1 employee.
24 "Tier 1 member": A participant or an annuitant of a
25retirement annuity under this Article, other than a participant

HB3524- 77 -LRB101 07948 RPS 53003 b
1in the self-managed plan under Section 15-158.2, who first
2became a participant or member before January 1, 2011 under any
3reciprocal retirement system or pension fund established under
4this Code, other than a retirement system or pension fund
5established under Articles 2, 3, 4, 5, 6, or 18 of this Code.
6"Tier 1 member" includes a person who first became a
7participant under this System before January 1, 2011 and who
8accepts a refund and is subsequently reemployed by an employer
9on or after January 1, 2011.
10 "Tier 1 employee": A Tier 1 member who is a participating
11employee, unless he or she is a disability benefit recipient
12under Section 15-150. However, for the purposes of the election
13under Section 15-132.9, "Tier 1 employee" does not include an
14individual who has made an irrevocable election on or before
15June 1, 2019 to retire from service pursuant to the terms of an
16employment contract or a collective bargaining agreement in
17effect on June 1, 2019, excluding any extension, amendment, or
18renewal of that agreement on or after that date, and has
19notified the System of that election.
20(Source: P.A. 98-92, eff. 7-16-13.)
21 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
22 Sec. 15-111. Earnings.
23 (a) "Earnings": Subject to Section 15-111.5, an amount paid
24for personal services equal to the sum of the basic
25compensation plus extra compensation for summer teaching,

HB3524- 78 -LRB101 07948 RPS 53003 b
1overtime or other extra service. For periods for which an
2employee receives service credit under subsection (c) of
3Section 15-113.1 or Section 15-113.2, earnings are equal to the
4basic compensation on which contributions are paid by the
5employee during such periods. Compensation for employment
6which is irregular, intermittent and temporary shall not be
7considered earnings, unless the participant is also receiving
8earnings from the employer as an employee under Section 15-107.
9 With respect to transition pay paid by the University of
10Illinois to a person who was a participating employee employed
11in the fire department of the University of Illinois's
12Champaign-Urbana campus immediately prior to the elimination
13of that fire department:
14 (1) "Earnings" includes transition pay paid to the
15 employee on or after the effective date of this amendatory
16 Act of the 91st General Assembly.
17 (2) "Earnings" includes transition pay paid to the
18 employee before the effective date of this amendatory Act
19 of the 91st General Assembly only if (i) employee
20 contributions under Section 15-157 have been withheld from
21 that transition pay or (ii) the employee pays to the System
22 before January 1, 2001 an amount representing employee
23 contributions under Section 15-157 on that transition pay.
24 Employee contributions under item (ii) may be paid in a
25 lump sum, by withholding from additional transition pay
26 accruing before January 1, 2001, or in any other manner

HB3524- 79 -LRB101 07948 RPS 53003 b
1 approved by the System. Upon payment of the employee
2 contributions on transition pay, the corresponding
3 employer contributions become an obligation of the State.
4 (a-5) Notwithstanding any other provision of this Section,
5"earnings" does not include any future increase in income that
6is offered for service by an employer to a Tier 1 employee
7under this Article pursuant to the condition set forth in
8subsection (c) of Section 15-132.9 and accepted under that
9condition by a Tier 1 employee who has made the election under
10paragraph (2) of subsection (a) of Section 15-132.9.
11 (a-10) Notwithstanding any other provision of this
12Section, "earnings" does not include any consideration payment
13made to a Tier 1 employee.
14 (b) For a Tier 2 member, the annual earnings shall not
15exceed $106,800; however, that amount shall annually
16thereafter be increased by the lesser of (i) 3% of that amount,
17including all previous adjustments, or (ii) one half the annual
18unadjusted percentage increase (but not less than zero) in the
19consumer price index-u for the 12 months ending with the
20September preceding each November 1, including all previous
21adjustments.
22 For the purposes of this Section, "consumer price index u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

HB3524- 80 -LRB101 07948 RPS 53003 b
1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the boards of the retirement
4systems and pension funds by November 1 of each year.
5 (c) With each submission of payroll information in the
6manner prescribed by the System, the employer shall certify
7that the payroll information is correct and complies with all
8applicable State and federal laws.
9(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
10 (40 ILCS 5/15-112.1 new)
11 Sec. 15-112.1. Future increase in income. "Future increase
12in income" means an increase to a Tier 1 employee's base pay
13that is offered by an employer to the Tier 1 employee for
14service under this Article after June 30, 2020 that qualifies
15as "earnings", as defined in Section 15-111, or would qualify
16as "earnings" but for the fact that it was offered to and
17accepted by the Tier 1 employee under the condition set forth
18in subsection (c) of Section 15-132.9. The term "future
19increase in income" includes an increase to a Tier 1 employee's
20base pay that is paid to the Tier 1 employee pursuant to an
21extension, amendment, or renewal of any such employment
22contract or collective bargaining agreement after the
23effective date of this Section.
24 (40 ILCS 5/15-112.2 new)

HB3524- 81 -LRB101 07948 RPS 53003 b
1 Sec. 15-112.2. Base pay. As used in Section 15-112.1 of
2this Code, "base pay" means the greater of either (i) the Tier
31 employee's annualized rate of earnings as of June 30, 2020,
4or (ii) the Tier 1 employee's annualized rate of earnings
5immediately preceding the expiration, renewal, or amendment of
6an employment contract or collective bargaining agreement in
7effect on the effective date of this Section. For a person
8returning to participating employee status as a Tier 1 employee
9after June 30, 2020, however, "base pay" means the employee's
10annualized rate of earnings as of the employee's last date of
11service prior to July 1, 2020. The System shall calculate the
12base pay of each Tier 1 employee pursuant to this Section.
13 (40 ILCS 5/15-132.9 new)
14 Sec. 15-132.9. Election by Tier 1 employees.
15 (a) Each Tier 1 employee shall make an irrevocable election
16either:
17 (1) to agree to delay his or her eligibility for
18 automatic annual increases in retirement annuity as
19 provided in subsection (d-1) of Section 15-136 and to have
20 the amount of the automatic annual increases in his or her
21 retirement annuity and survivor annuity that are otherwise
22 provided for in this Article calculated, instead, as
23 provided in subsection (d-1) of Section 15-136; or
24 (2) to not agree to the provisions of paragraph (1) of
25 this subsection.

HB3524- 82 -LRB101 07948 RPS 53003 b
1 The election required under this subsection (a) shall be
2made by each Tier 1 employee no earlier than January 1, 2020
3and no later than March 31, 2020, except that:
4 (i) a person who becomes a Tier 1 employee under this
5 Article on or after January 1, 2020 must make the election
6 under this subsection (a) within 60 days after becoming a
7 Tier 1 employee;
8 (ii) a person who returns to participating employee
9 status as a Tier 1 employee under this Article on or after
10 January 1, 2020 and has not yet made an election under this
11 Section must make the election under this subsection (a)
12 within 60 days after returning to participating employee
13 status as a Tier 1 employee; and
14 (iii) a person who returns to participating employee
15 status as a Tier 1 employee under this Article but who has
16 not made an election under Section 15-134.5 must make the
17 election under this subsection (a) at the same time as the
18 election under Section 15-134.5 and within the timeframes
19 required by that Section.
20 If a Tier 1 employee fails for any reason to make a
21required election under this subsection within the time
22specified, then the employee shall be deemed to have made the
23election under paragraph (2) of this subsection.
24 (a-5) If this Section is enjoined or stayed by an Illinois
25court or a court of competent jurisdiction pending the entry of
26a final and unappealable decision, and this Section is

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1determined to be constitutional or otherwise valid by a final
2unappealable decision of an Illinois court or a court of
3competent jurisdiction, then the election procedure set forth
4in subsection (a) of this Section shall commence on the 180th
5calendar day after the date of the issuance of the final
6unappealable decision and shall conclude at the end of the
7270th calendar day after that date.
8 (a-10) All elections under subsection (a) that are made or
9deemed to be made before July 1, 2020 shall take effect on July
101, 2020. Elections that are made or deemed to be made on or
11after July 1, 2020 shall take effect on the first day of the
12month following the month in which the election is made or
13deemed to be made.
14 (b) As adequate and legal consideration provided under this
15amendatory Act of the 101st General Assembly for making an
16election under paragraph (1) of subsection (a) of this Section,
17the employer shall be expressly and irrevocably prohibited from
18offering any future increases in income to a Tier 1 employee
19who has made an election under paragraph (1) of subsection (a)
20of this Section on the condition of not constituting earnings
21under Section 15-111.
22 As adequate and legal consideration provided under this
23amendatory Act of the 101st General Assembly for making an
24election under paragraph (1) of subsection (a) of this Section,
25each Tier 1 employee who has made an election under paragraph
26(1) of subsection (a) of this Section shall receive a

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1consideration payment equal to 10% of the contributions made by
2or on behalf of the employee under Section 15-157 before the
3effective date of that election. The State Comptroller shall
4pay the consideration payment to the Tier 1 employee out of
5funds appropriated for that purpose under Section 1.10 of the
6State Pension Funds Continuing Appropriation Act. The System
7shall calculate the amount of each consideration payment and,
8by July 1, 2020, shall certify to the State Comptroller the
9amount of the consideration payment, together with the name,
10address, and any other available payment information of the
11Tier 1 employee as found in the records of the System. The
12System shall make additional calculations and certifications
13of consideration payments to the State Comptroller as the
14System deems necessary.
15 (c) A Tier 1 employee who makes the election under
16paragraph (2) of subsection (a) of this Section shall not be
17subject to paragraph (1) of subsection (a) of this Section.
18However, each future increase in income offered by an employer
19under this Article to a Tier 1 employee who has made the
20election under paragraph (2) of subsection (a) of this Section
21shall be offered by the employer expressly and irrevocably on
22the condition of not constituting earnings under Section 15-111
23and that the Tier 1 employee's acceptance of the offered future
24increase in income shall constitute his or her agreement to
25that condition.
26 (d) The System shall make a good faith effort to contact

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1each Tier 1 employee subject to this Section. The System shall
2mail information describing the required election to each Tier
31 employee by United States Postal Service mail to his or her
4last known address on file with the System. If the Tier 1
5employee is not responsive to other means of contact, it is
6sufficient for the System to publish the details of any
7required elections on its website or to publish those details
8in a regularly published newsletter or other existing public
9forum.
10 Tier 1 employees who are subject to this Section shall be
11provided with an election packet containing information
12regarding their options, as well as the forms necessary to make
13the required election. Upon request, the System shall offer
14Tier 1 employees an opportunity to receive information from the
15System before making the required election. The information may
16consist of video materials, benefit estimators, group
17presentations, individual consultation with a member or
18authorized representative of the System in person or by
19telephone or other electronic means, or any combination of
20these methods. The System shall not provide advice or
21counseling with respect to which election a Tier 1 employee
22should make or specific to the legal or tax circumstances of or
23consequences to the Tier 1 employee.
24 The System shall inform Tier 1 employees in the election
25packet required under this subsection that the Tier 1 employee
26may also wish to obtain information and counsel relating to the

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1election required under this Section from any other available
2source, including, but not limited to, labor organizations and
3private counsel.
4 In no event shall the System, its staff, or the Board be
5held liable for any information given to a member regarding the
6elections under this Section. The System shall coordinate with
7the Illinois Department of Central Management Services and each
8other retirement system administering an election in
9accordance with this amendatory Act of the 101st General
10Assembly to provide information concerning the impact of the
11election set forth in this Section.
12 (e) Notwithstanding any other provision of law, an employer
13under this Article is required to offer each future increase in
14income expressly and irrevocably on the condition of not
15constituting "earnings" under Section 15-111 to any Tier 1
16employee who has made an election under paragraph (2) of
17subsection (a) of this Section. The offer shall also provide
18that the Tier 1 employee's acceptance of the offered future
19increase in income shall constitute his or her agreement to the
20condition set forth in this subsection.
21 For purposes of legislative intent, the condition set forth
22in this subsection shall be construed in a manner that ensures
23that the condition is not violated or circumvented through any
24contrivance of any kind.
25 (f) A member's election under this Section is not a
26prohibited election under subdivision (j)(1) of Section 1-119

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1of this Code.
2 (g) No provision of this Section shall be interpreted in a
3way that would cause the System to cease to be a qualified plan
4under Section 401(a) of the Internal Revenue Code of 1986.
5 (h) If an election created by this amendatory Act in any
6other Article of this Code or any change deriving from that
7election is determined to be unconstitutional or otherwise
8invalid by a final unappealable decision of an Illinois court
9or a court of competent jurisdiction, the invalidity of that
10provision shall not in any way affect the validity of this
11Section or the changes deriving from the election required
12under this Section.
13 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16 Sec. 15-136. Retirement annuities - Amount. The provisions
17of this Section 15-136 apply only to those participants who are
18participating in the traditional benefit package or the
19portable benefit package and do not apply to participants who
20are participating in the self-managed plan.
21 (a) The amount of a participant's retirement annuity,
22expressed in the form of a single-life annuity, shall be
23determined by whichever of the following rules is applicable
24and provides the largest annuity:
25 Rule 1: The retirement annuity shall be 1.67% of final rate

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1of earnings for each of the first 10 years of service, 1.90%
2for each of the next 10 years of service, 2.10% for each year
3of service in excess of 20 but not exceeding 30, and 2.30% for
4each year in excess of 30; or for persons who retire on or
5after January 1, 1998, 2.2% of the final rate of earnings for
6each year of service.
7 Rule 2: The retirement annuity shall be the sum of the
8following, determined from amounts credited to the participant
9in accordance with the actuarial tables and the effective rate
10of interest in effect at the time the retirement annuity
11begins:
12 (i) the normal annuity which can be provided on an
13 actuarially equivalent basis, by the accumulated normal
14 contributions as of the date the annuity begins;
15 (ii) an annuity from employer contributions of an
16 amount equal to that which can be provided on an
17 actuarially equivalent basis from the accumulated normal
18 contributions made by the participant under Section
19 15-113.6 and Section 15-113.7 plus 1.4 times all other
20 accumulated normal contributions made by the participant;
21 and
22 (iii) the annuity that can be provided on an
23 actuarially equivalent basis from the entire contribution
24 made by the participant under Section 15-113.3.
25 With respect to a police officer or firefighter who retires
26on or after August 14, 1998, the accumulated normal

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1contributions taken into account under clauses (i) and (ii) of
2this Rule 2 shall include the additional normal contributions
3made by the police officer or firefighter under Section
415-157(a).
5 The amount of a retirement annuity calculated under this
6Rule 2 shall be computed solely on the basis of the
7participant's accumulated normal contributions, as specified
8in this Rule and defined in Section 15-116. Neither an employee
9or employer contribution for early retirement under Section
1015-136.2 nor any other employer contribution shall be used in
11the calculation of the amount of a retirement annuity under
12this Rule 2.
13 This amendatory Act of the 91st General Assembly is a
14clarification of existing law and applies to every participant
15and annuitant without regard to whether status as an employee
16terminates before the effective date of this amendatory Act.
17 This Rule 2 does not apply to a person who first becomes an
18employee under this Article on or after July 1, 2005.
19 Rule 3: The retirement annuity of a participant who is
20employed at least one-half time during the period on which his
21or her final rate of earnings is based, shall be equal to the
22participant's years of service not to exceed 30, multiplied by
23(1) $96 if the participant's final rate of earnings is less
24than $3,500, (2) $108 if the final rate of earnings is at least
25$3,500 but less than $4,500, (3) $120 if the final rate of
26earnings is at least $4,500 but less than $5,500, (4) $132 if

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1the final rate of earnings is at least $5,500 but less than
2$6,500, (5) $144 if the final rate of earnings is at least
3$6,500 but less than $7,500, (6) $156 if the final rate of
4earnings is at least $7,500 but less than $8,500, (7) $168 if
5the final rate of earnings is at least $8,500 but less than
6$9,500, and (8) $180 if the final rate of earnings is $9,500 or
7more, except that the annuity for those persons having made an
8election under Section 15-154(a-1) shall be calculated and
9payable under the portable retirement benefit program pursuant
10to the provisions of Section 15-136.4.
11 Rule 4: A participant who is at least age 50 and has 25 or
12more years of service as a police officer or firefighter, and a
13participant who is age 55 or over and has at least 20 but less
14than 25 years of service as a police officer or firefighter,
15shall be entitled to a retirement annuity of 2 1/4% of the
16final rate of earnings for each of the first 10 years of
17service as a police officer or firefighter, 2 1/2% for each of
18the next 10 years of service as a police officer or
19firefighter, and 2 3/4% for each year of service as a police
20officer or firefighter in excess of 20. The retirement annuity
21for all other service shall be computed under Rule 1. A Tier 2
22member is eligible for a retirement annuity calculated under
23Rule 4 only if that Tier 2 member meets the service
24requirements for that benefit calculation as prescribed under
25this Rule 4 in addition to the applicable age requirement under
26subsection (a-5) of Section 15-135.

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1 For purposes of this Rule 4, a participant's service as a
2firefighter shall also include the following:
3 (i) service that is performed while the person is an
4 employee under subsection (h) of Section 15-107; and
5 (ii) in the case of an individual who was a
6 participating employee employed in the fire department of
7 the University of Illinois's Champaign-Urbana campus
8 immediately prior to the elimination of that fire
9 department and who immediately after the elimination of
10 that fire department transferred to another job with the
11 University of Illinois, service performed as an employee of
12 the University of Illinois in a position other than police
13 officer or firefighter, from the date of that transfer
14 until the employee's next termination of service with the
15 University of Illinois.
16 (b) For a Tier 1 member, the retirement annuity provided
17under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
18month the participant is under age 60 at the time of
19retirement. However, this reduction shall not apply in the
20following cases:
21 (1) For a disabled participant whose disability
22 benefits have been discontinued because he or she has
23 exhausted eligibility for disability benefits under clause
24 (6) of Section 15-152;
25 (2) For a participant who has at least the number of
26 years of service required to retire at any age under

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1 subsection (a) of Section 15-135; or
2 (3) For that portion of a retirement annuity which has
3 been provided on account of service of the participant
4 during periods when he or she performed the duties of a
5 police officer or firefighter, if these duties were
6 performed for at least 5 years immediately preceding the
7 date the retirement annuity is to begin.
8 (b-5) The retirement annuity of a Tier 2 member who is
9retiring after attaining age 62 with at least 10 years of
10service credit shall be reduced by 1/2 of 1% for each full
11month that the member's age is under age 67.
12 (c) The maximum retirement annuity provided under Rules 1,
132, 4, and 5 shall be the lesser of (1) the annual limit of
14benefits as specified in Section 415 of the Internal Revenue
15Code of 1986, as such Section may be amended from time to time
16and as such benefit limits shall be adjusted by the
17Commissioner of Internal Revenue, and (2) 80% of final rate of
18earnings.
19 (d) Subject to the provisions of subsection (d-1), a A Tier
201 member whose status as an employee terminates after August
2114, 1969 shall receive automatic increases in his or her
22retirement annuity as follows:
23 Effective January 1 immediately following the date the
24retirement annuity begins, the annuitant shall receive an
25increase in his or her monthly retirement annuity of 0.125% of
26the monthly retirement annuity provided under Rule 1, Rule 2,

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1Rule 3, or Rule 4 contained in this Section, multiplied by the
2number of full months which elapsed from the date the
3retirement annuity payments began to January 1, 1972, plus
40.1667% of such annuity, multiplied by the number of full
5months which elapsed from January 1, 1972, or the date the
6retirement annuity payments began, whichever is later, to
7January 1, 1978, plus 0.25% of such annuity multiplied by the
8number of full months which elapsed from January 1, 1978, or
9the date the retirement annuity payments began, whichever is
10later, to the effective date of the increase.
11 The annuitant shall receive an increase in his or her
12monthly retirement annuity on each January 1 thereafter during
13the annuitant's life of 3% of the monthly annuity provided
14under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
15Section. The change made under this subsection by P.A. 81-970
16is effective January 1, 1980 and applies to each annuitant
17whose status as an employee terminates before or after that
18date.
19 Beginning January 1, 1990, and except as provided in
20subsection (d-1), all automatic annual increases payable under
21this Section shall be calculated as a percentage of the total
22annuity payable at the time of the increase, including all
23increases previously granted under this Article.
24 The change made in this subsection by P.A. 85-1008 is
25effective January 26, 1988, and is applicable without regard to
26whether status as an employee terminated before that date.

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1 (d-1) Notwithstanding any other provision of this Article,
2for a Tier 1 employee who made the election under paragraph (1)
3of subsection (a) of Section 15-132.9:
4 (1) The initial increase in retirement annuity under
5 this Section shall occur on the January 1 occurring either
6 on or after the attainment of age 67 or the fifth
7 anniversary of the annuity start date, whichever is
8 earlier.
9 (2) The amount of each automatic annual increase in
10 retirement annuity or survivor annuity occurring on or
11 after the effective date of that election shall be
12 calculated as a percentage of the originally granted
13 retirement annuity or survivor annuity, equal to 3% or
14 one-half the annual unadjusted percentage increase (but
15 not less than zero) in the consumer price index-u for the
16 12 months ending with the September preceding each November
17 1, whichever is less. If the annual unadjusted percentage
18 change in the consumer price index-u for the 12 months
19 ending with the September preceding each November 1 is zero
20 or there is a decrease, then the annuity shall not be
21 increased.
22 For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

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1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the board of the retirement
4system by November 1 of each year.
5 (d-5) A retirement annuity of a Tier 2 member shall receive
6annual increases on the January 1 occurring either on or after
7the attainment of age 67 or the first anniversary of the
8annuity start date, whichever is later. Each annual increase
9shall be calculated at 3% or one half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, whichever is less, of the originally
13granted retirement annuity. If the annual unadjusted
14percentage change in the consumer price index-u for the 12
15months ending with the September preceding each November 1 is
16zero or there is a decrease, then the annuity shall not be
17increased.
18 (e) If, on January 1, 1987, or the date the retirement
19annuity payment period begins, whichever is later, the sum of
20the retirement annuity provided under Rule 1 or Rule 2 of this
21Section and the automatic annual increases provided under the
22preceding subsection or Section 15-136.1, amounts to less than
23the retirement annuity which would be provided by Rule 3, the
24retirement annuity shall be increased as of January 1, 1987, or
25the date the retirement annuity payment period begins,
26whichever is later, to the amount which would be provided by

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1Rule 3 of this Section. Such increased amount shall be
2considered as the retirement annuity in determining benefits
3provided under other Sections of this Article. This paragraph
4applies without regard to whether status as an employee
5terminated before the effective date of this amendatory Act of
61987, provided that the annuitant was employed at least
7one-half time during the period on which the final rate of
8earnings was based.
9 (f) A participant is entitled to such additional annuity as
10may be provided on an actuarially equivalent basis, by any
11accumulated additional contributions to his or her credit.
12However, the additional contributions made by the participant
13toward the automatic increases in annuity provided under this
14Section shall not be taken into account in determining the
15amount of such additional annuity.
16 (g) If, (1) by law, a function of a governmental unit, as
17defined by Section 20-107 of this Code, is transferred in whole
18or in part to an employer, and (2) a participant transfers
19employment from such governmental unit to such employer within
206 months after the transfer of the function, and (3) the sum of
21(A) the annuity payable to the participant under Rule 1, 2, or
223 of this Section (B) all proportional annuities payable to the
23participant by all other retirement systems covered by Article
2420, and (C) the initial primary insurance amount to which the
25participant is entitled under the Social Security Act, is less
26than the retirement annuity which would have been payable if

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1all of the participant's pension credits validated under
2Section 20-109 had been validated under this system, a
3supplemental annuity equal to the difference in such amounts
4shall be payable to the participant.
5 (h) On January 1, 1981, an annuitant who was receiving a
6retirement annuity on or before January 1, 1971 shall have his
7or her retirement annuity then being paid increased $1 per
8month for each year of creditable service. On January 1, 1982,
9an annuitant whose retirement annuity began on or before
10January 1, 1977, shall have his or her retirement annuity then
11being paid increased $1 per month for each year of creditable
12service.
13 (i) On January 1, 1987, any annuitant whose retirement
14annuity began on or before January 1, 1977, shall have the
15monthly retirement annuity increased by an amount equal to 8¢
16per year of creditable service times the number of years that
17have elapsed since the annuity began.
18(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1998-92, eff. 7-16-13.)
20 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
21 Sec. 15-155. Employer contributions.
22 (a) The State of Illinois shall make contributions by
23appropriations of amounts which, together with the other
24employer contributions from trust, federal, and other funds,
25employee contributions, income from investments, and other

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1income of this System, will be sufficient to meet the cost of
2maintaining and administering the System on a 90% funded basis
3in accordance with actuarial recommendations.
4 The Board shall determine the amount of State contributions
5required for each fiscal year on the basis of the actuarial
6tables and other assumptions adopted by the Board and the
7recommendations of the actuary, using the formula in subsection
8(a-1).
9 (a-1) For State fiscal years 2012 through 2045 (except as
10otherwise provided for fiscal year 2021), the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20 For State fiscal year 2021:
21 (1) The initial calculation and certification shall be
22 based on the amount determined above.
23 (2) For purposes of the recertification due on or
24 before May 1, 2020, the recalculation of the required State
25 contribution for fiscal year 2021 shall take into account
26 the effect on the System's liabilities of the elections

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1 made under Section 15-132.9.
2 (3) For purposes of the recertification due on or
3 before October 1, 2020, the total required State
4 contribution for fiscal year 2021 shall be reduced by the
5 amount of the consideration payments made to Tier 1
6 employees who made the election under paragraph (1) of
7 subsection (a) of Section 15-132.9.
8 For each of State fiscal years 2018, 2019, and 2020, the
9State shall make an additional contribution to the System equal
10to 2% of the total payroll of each employee who is deemed to
11have elected the benefits under Section 1-161 or who has made
12the election under subsection (c) of Section 1-161.
13 A change in an actuarial or investment assumption that
14increases or decreases the required State contribution and
15first applies in State fiscal year 2018 or thereafter shall be
16implemented in equal annual amounts over a 5-year period
17beginning in the State fiscal year in which the actuarial
18change first applies to the required State contribution.
19 A change in an actuarial or investment assumption that
20increases or decreases the required State contribution and
21first applied to the State contribution in fiscal year 2014,
222015, 2016, or 2017 shall be implemented:
23 (i) as already applied in State fiscal years before
24 2018; and
25 (ii) in the portion of the 5-year period beginning in
26 the State fiscal year in which the actuarial change first

HB3524- 100 -LRB101 07948 RPS 53003 b
1 applied that occurs in State fiscal year 2018 or
2 thereafter, by calculating the change in equal annual
3 amounts over that 5-year period and then implementing it at
4 the resulting annual rate in each of the remaining fiscal
5 years in that 5-year period.
6 For State fiscal years 1996 through 2005, the State
7contribution to the System, as a percentage of the applicable
8employee payroll, shall be increased in equal annual increments
9so that by State fiscal year 2011, the State is contributing at
10the rate required under this Section.
11 Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2006 is
13$166,641,900.
14 Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2007 is
16$252,064,100.
17 For each of State fiscal years 2008 through 2009, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20from the required State contribution for State fiscal year
212007, so that by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23 Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2010 is
25$702,514,000 and shall be made from the State Pensions Fund and
26proceeds of bonds sold in fiscal year 2010 pursuant to Section

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17.2 of the General Obligation Bond Act, less (i) the pro rata
2share of bond sale expenses determined by the System's share of
3total bond proceeds, (ii) any amounts received from the General
4Revenue Fund in fiscal year 2010, (iii) any reduction in bond
5proceeds due to the issuance of discounted bonds, if
6applicable.
7 Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2011 is
9the amount recertified by the System on or before April 1, 2011
10pursuant to Section 15-165 and shall be made from the State
11Pensions Fund and proceeds of bonds sold in fiscal year 2011
12pursuant to Section 7.2 of the General Obligation Bond Act,
13less (i) the pro rata share of bond sale expenses determined by
14the System's share of total bond proceeds, (ii) any amounts
15received from the General Revenue Fund in fiscal year 2011, and
16(iii) any reduction in bond proceeds due to the issuance of
17discounted bonds, if applicable.
18 Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22 Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

HB3524- 102 -LRB101 07948 RPS 53003 b
1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 90%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8 Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under Section 15-165, shall
12not exceed an amount equal to (i) the amount of the required
13State contribution that would have been calculated under this
14Section for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

HB3524- 103 -LRB101 07948 RPS 53003 b
1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7 (a-2) Beginning in fiscal year 2018, each employer under
8this Article shall pay to the System a required contribution
9determined as a percentage of projected payroll and sufficient
10to produce an annual amount equal to:
11 (i) for each of fiscal years 2018, 2019, and 2020, the
12 defined benefit normal cost of the defined benefit plan,
13 less the employee contribution, for each employee of that
14 employer who has elected or who is deemed to have elected
15 the benefits under Section 1-161 or who has made the
16 election under subsection (c) of Section 1-161; for fiscal
17 year 2021 and each fiscal year thereafter, the defined
18 benefit normal cost of the defined benefit plan, less the
19 employee contribution, plus 2%, for each employee of that
20 employer who has elected or who is deemed to have elected
21 the benefits under Section 1-161 or who has made the
22 election under subsection (c) of Section 1-161; plus
23 (ii) the amount required for that fiscal year to
24 amortize any unfunded actuarial accrued liability
25 associated with the present value of liabilities
26 attributable to the employer's account under Section

HB3524- 104 -LRB101 07948 RPS 53003 b
1 15-155.2, determined as a level percentage of payroll over
2 a 30-year rolling amortization period.
3 In determining contributions required under item (i) of
4this subsection, the System shall determine an aggregate rate
5for all employers, expressed as a percentage of projected
6payroll.
7 In determining the contributions required under item (ii)
8of this subsection, the amount shall be computed by the System
9on the basis of the actuarial assumptions and tables used in
10the most recent actuarial valuation of the System that is
11available at the time of the computation.
12 The contributions required under this subsection (a-2)
13shall be paid by an employer concurrently with that employer's
14payroll payment period. The State, as the actual employer of an
15employee, shall make the required contributions under this
16subsection.
17 As used in this subsection, "academic year" means the
1812-month period beginning September 1.
19 (b) If an employee is paid from trust or federal funds, the
20employer shall pay to the Board contributions from those funds
21which are sufficient to cover the accruing normal costs on
22behalf of the employee. However, universities having employees
23who are compensated out of local auxiliary funds, income funds,
24or service enterprise funds are not required to pay such
25contributions on behalf of those employees. The local auxiliary
26funds, income funds, and service enterprise funds of

HB3524- 105 -LRB101 07948 RPS 53003 b
1universities shall not be considered trust funds for the
2purpose of this Article, but funds of alumni associations,
3foundations, and athletic associations which are affiliated
4with the universities included as employers under this Article
5and other employers which do not receive State appropriations
6are considered to be trust funds for the purpose of this
7Article.
8 (b-1) The City of Urbana and the City of Champaign shall
9each make employer contributions to this System for their
10respective firefighter employees who participate in this
11System pursuant to subsection (h) of Section 15-107. The rate
12of contributions to be made by those municipalities shall be
13determined annually by the Board on the basis of the actuarial
14assumptions adopted by the Board and the recommendations of the
15actuary, and shall be expressed as a percentage of salary for
16each such employee. The Board shall certify the rate to the
17affected municipalities as soon as may be practical. The
18employer contributions required under this subsection shall be
19remitted by the municipality to the System at the same time and
20in the same manner as employee contributions.
21 (c) Through State fiscal year 1995: The total employer
22contribution shall be apportioned among the various funds of
23the State and other employers, whether trust, federal, or other
24funds, in accordance with actuarial procedures approved by the
25Board. State of Illinois contributions for employers receiving
26State appropriations for personal services shall be payable

HB3524- 106 -LRB101 07948 RPS 53003 b
1from appropriations made to the employers or to the System. The
2contributions for Class I community colleges covering earnings
3other than those paid from trust and federal funds, shall be
4payable solely from appropriations to the Illinois Community
5College Board or the System for employer contributions.
6 (d) Beginning in State fiscal year 1996, the required State
7contributions to the System shall be appropriated directly to
8the System and shall be payable through vouchers issued in
9accordance with subsection (c) of Section 15-165, except as
10provided in subsection (g).
11 (e) The State Comptroller shall draw warrants payable to
12the System upon proper certification by the System or by the
13employer in accordance with the appropriation laws and this
14Code.
15 (f) Normal costs under this Section means liability for
16pensions and other benefits which accrues to the System because
17of the credits earned for service rendered by the participants
18during the fiscal year and expenses of administering the
19System, but shall not include the principal of or any
20redemption premium or interest on any bonds issued by the Board
21or any expenses incurred or deposits required in connection
22therewith.
23 (g) For academic years beginning on or after June 1, 2005
24and before July 1, 2018 and for earnings paid to a participant
25under a contract or collective bargaining agreement entered
26into, amended, or renewed before June 4, 2018 (the effective

HB3524- 107 -LRB101 07948 RPS 53003 b
1date of Public Act 100-587) this amendatory Act of the 100th
2General Assembly, if the amount of a participant's earnings for
3any academic year used to determine the final rate of earnings,
4determined on a full-time equivalent basis, exceeds the amount
5of his or her earnings with the same employer for the previous
6academic year, determined on a full-time equivalent basis, by
7more than 6%, the participant's employer shall pay to the
8System, in addition to all other payments required under this
9Section and in accordance with guidelines established by the
10System, the present value of the increase in benefits resulting
11from the portion of the increase in earnings that is in excess
12of 6%. This present value shall be computed by the System on
13the basis of the actuarial assumptions and tables used in the
14most recent actuarial valuation of the System that is available
15at the time of the computation. The System may require the
16employer to provide any pertinent information or
17documentation.
18 Whenever it determines that a payment is or may be required
19under this subsection (g), the System shall calculate the
20amount of the payment and bill the employer for that amount.
21The bill shall specify the calculations used to determine the
22amount due. If the employer disputes the amount of the bill, it
23may, within 30 days after receipt of the bill, apply to the
24System in writing for a recalculation. The application must
25specify in detail the grounds of the dispute and, if the
26employer asserts that the calculation is subject to subsection

HB3524- 108 -LRB101 07948 RPS 53003 b
1(h) or (i) of this Section or that subsection (g-1) applies,
2must include an affidavit setting forth and attesting to all
3facts within the employer's knowledge that are pertinent to the
4applicability of that subsection. Upon receiving a timely
5application for recalculation, the System shall review the
6application and, if appropriate, recalculate the amount due.
7 The employer contributions required under this subsection
8(g) may be paid in the form of a lump sum within 90 days after
9receipt of the bill. If the employer contributions are not paid
10within 90 days after receipt of the bill, then interest will be
11charged at a rate equal to the System's annual actuarially
12assumed rate of return on investment compounded annually from
13the 91st day after receipt of the bill. Payments must be
14concluded within 3 years after the employer's receipt of the
15bill.
16 When assessing payment for any amount due under this
17subsection (g), the System shall include earnings, to the
18extent not established by a participant under Section 15-113.11
19or 15-113.12, that would have been paid to the participant had
20the participant not taken (i) periods of voluntary or
21involuntary furlough occurring on or after July 1, 2015 and on
22or before June 30, 2017 or (ii) periods of voluntary pay
23reduction in lieu of furlough occurring on or after July 1,
242015 and on or before June 30, 2017. Determining earnings that
25would have been paid to a participant had the participant not
26taken periods of voluntary or involuntary furlough or periods

HB3524- 109 -LRB101 07948 RPS 53003 b
1of voluntary pay reduction shall be the responsibility of the
2employer, and shall be reported in a manner prescribed by the
3System.
4 This subsection (g) does not apply to (1) Tier 2 hybrid
5plan members and (2) Tier 2 defined benefit members who first
6participate under this Article on or after the implementation
7date of the Optional Hybrid Plan.
8 (g-1) For academic years beginning on or after July 1, 2018
9and for earnings paid to a participant under a contract or
10collective bargaining agreement entered into, amended, or
11renewed on or after June 4, 2018 (the effective date of Public
12Act 100-587) this amendatory Act of the 100th General Assembly,
13if the amount of a participant's earnings for any academic year
14used to determine the final rate of earnings, determined on a
15full-time equivalent basis, exceeds the amount of his or her
16earnings with the same employer for the previous academic year,
17determined on a full-time equivalent basis, by more than 3%,
18then the participant's employer shall pay to the System, in
19addition to all other payments required under this Section and
20in accordance with guidelines established by the System, the
21present value of the increase in benefits resulting from the
22portion of the increase in earnings that is in excess of 3%.
23This present value shall be computed by the System on the basis
24of the actuarial assumptions and tables used in the most recent
25actuarial valuation of the System that is available at the time
26of the computation. The System may require the employer to

HB3524- 110 -LRB101 07948 RPS 53003 b
1provide any pertinent information or documentation.
2 Whenever it determines that a payment is or may be required
3under this subsection (g-1), the System shall calculate the
4amount of the payment and bill the employer for that amount.
5The bill shall specify the calculations used to determine the
6amount due. If the employer disputes the amount of the bill, it
7may, within 30 days after receipt of the bill, apply to the
8System in writing for a recalculation. The application must
9specify in detail the grounds of the dispute and, if the
10employer asserts that subsection (g) of this Section applies,
11must include an affidavit setting forth and attesting to all
12facts within the employer's knowledge that are pertinent to the
13applicability of subsection (g). Upon receiving a timely
14application for recalculation, the System shall review the
15application and, if appropriate, recalculate the amount due.
16 The employer contributions required under this subsection
17(g-1) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest shall
20be charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25 This subsection (g-1) does not apply to (1) Tier 2 hybrid
26plan members and (2) Tier 2 defined benefit members who first

HB3524- 111 -LRB101 07948 RPS 53003 b
1participate under this Article on or after the implementation
2date of the Optional Hybrid Plan.
3 (h) This subsection (h) applies only to payments made or
4salary increases given on or after June 1, 2005 but before July
51, 2011. The changes made by Public Act 94-1057 shall not
6require the System to refund any payments received before July
731, 2006 (the effective date of Public Act 94-1057).
8 When assessing payment for any amount due under subsection
9(g), the System shall exclude earnings increases paid to
10participants under contracts or collective bargaining
11agreements entered into, amended, or renewed before June 1,
122005.
13 When assessing payment for any amount due under subsection
14(g), the System shall exclude earnings increases paid to a
15participant at a time when the participant is 10 or more years
16from retirement eligibility under Section 15-135.
17 When assessing payment for any amount due under subsection
18(g), the System shall exclude earnings increases resulting from
19overload work, including a contract for summer teaching, or
20overtime when the employer has certified to the System, and the
21System has approved the certification, that: (i) in the case of
22overloads (A) the overload work is for the sole purpose of
23academic instruction in excess of the standard number of
24instruction hours for a full-time employee occurring during the
25academic year that the overload is paid and (B) the earnings
26increases are equal to or less than the rate of pay for

HB3524- 112 -LRB101 07948 RPS 53003 b
1academic instruction computed using the participant's current
2salary rate and work schedule; and (ii) in the case of
3overtime, the overtime was necessary for the educational
4mission.
5 When assessing payment for any amount due under subsection
6(g), the System shall exclude any earnings increase resulting
7from (i) a promotion for which the employee moves from one
8classification to a higher classification under the State
9Universities Civil Service System, (ii) a promotion in academic
10rank for a tenured or tenure-track faculty position, or (iii) a
11promotion that the Illinois Community College Board has
12recommended in accordance with subsection (k) of this Section.
13These earnings increases shall be excluded only if the
14promotion is to a position that has existed and been filled by
15a member for no less than one complete academic year and the
16earnings increase as a result of the promotion is an increase
17that results in an amount no greater than the average salary
18paid for other similar positions.
19 (i) When assessing payment for any amount due under
20subsection (g), the System shall exclude any salary increase
21described in subsection (h) of this Section given on or after
22July 1, 2011 but before July 1, 2014 under a contract or
23collective bargaining agreement entered into, amended, or
24renewed on or after June 1, 2005 but before July 1, 2011.
25Notwithstanding any other provision of this Section, any
26payments made or salary increases given after June 30, 2014

HB3524- 113 -LRB101 07948 RPS 53003 b
1shall be used in assessing payment for any amount due under
2subsection (g) of this Section.
3 (j) The System shall prepare a report and file copies of
4the report with the Governor and the General Assembly by
5January 1, 2007 that contains all of the following information:
6 (1) The number of recalculations required by the
7 changes made to this Section by Public Act 94-1057 for each
8 employer.
9 (2) The dollar amount by which each employer's
10 contribution to the System was changed due to
11 recalculations required by Public Act 94-1057.
12 (3) The total amount the System received from each
13 employer as a result of the changes made to this Section by
14 Public Act 94-4.
15 (4) The increase in the required State contribution
16 resulting from the changes made to this Section by Public
17 Act 94-1057.
18 (j-5) For State fiscal years beginning on or after July 1,
192017, if the amount of a participant's earnings for any State
20fiscal year exceeds the amount of the salary set by law for the
21Governor that is in effect on July 1 of that fiscal year, the
22participant's employer shall pay to the System, in addition to
23all other payments required under this Section and in
24accordance with guidelines established by the System, an amount
25determined by the System to be equal to the employer normal
26cost, as established by the System and expressed as a total

HB3524- 114 -LRB101 07948 RPS 53003 b
1percentage of payroll, multiplied by the amount of earnings in
2excess of the amount of the salary set by law for the Governor.
3This amount shall be computed by the System on the basis of the
4actuarial assumptions and tables used in the most recent
5actuarial valuation of the System that is available at the time
6of the computation. The System may require the employer to
7provide any pertinent information or documentation.
8 Whenever it determines that a payment is or may be required
9under this subsection, the System shall calculate the amount of
10the payment and bill the employer for that amount. The bill
11shall specify the calculation used to determine the amount due.
12If the employer disputes the amount of the bill, it may, within
1330 days after receipt of the bill, apply to the System in
14writing for a recalculation. The application must specify in
15detail the grounds of the dispute. Upon receiving a timely
16application for recalculation, the System shall review the
17application and, if appropriate, recalculate the amount due.
18 The employer contributions required under this subsection
19may be paid in the form of a lump sum within 90 days after
20issuance of the bill. If the employer contributions are not
21paid within 90 days after issuance of the bill, then interest
22will be charged at a rate equal to the System's annual
23actuarially assumed rate of return on investment compounded
24annually from the 91st day after issuance of the bill. All
25payments must be received within 3 years after issuance of the
26bill. If the employer fails to make complete payment, including

HB3524- 115 -LRB101 07948 RPS 53003 b
1applicable interest, within 3 years, then the System may, after
2giving notice to the employer, certify the delinquent amount to
3the State Comptroller, and the Comptroller shall thereupon
4deduct the certified delinquent amount from State funds payable
5to the employer and pay them instead to the System.
6 This subsection (j-5) does not apply to a participant's
7earnings to the extent an employer pays the employer normal
8cost of such earnings.
9 The changes made to this subsection (j-5) by Public Act
10100-624 this amendatory Act of the 100th General Assembly are
11intended to apply retroactively to July 6, 2017 (the effective
12date of Public Act 100-23).
13 (k) The Illinois Community College Board shall adopt rules
14for recommending lists of promotional positions submitted to
15the Board by community colleges and for reviewing the
16promotional lists on an annual basis. When recommending
17promotional lists, the Board shall consider the similarity of
18the positions submitted to those positions recognized for State
19universities by the State Universities Civil Service System.
20The Illinois Community College Board shall file a copy of its
21findings with the System. The System shall consider the
22findings of the Illinois Community College Board when making
23determinations under this Section. The System shall not exclude
24any earnings increases resulting from a promotion when the
25promotion was not submitted by a community college. Nothing in
26this subsection (k) shall require any community college to

HB3524- 116 -LRB101 07948 RPS 53003 b
1submit any information to the Community College Board.
2 (l) For purposes of determining the required State
3contribution to the System, the value of the System's assets
4shall be equal to the actuarial value of the System's assets,
5which shall be calculated as follows:
6 As of June 30, 2008, the actuarial value of the System's
7assets shall be equal to the market value of the assets as of
8that date. In determining the actuarial value of the System's
9assets for fiscal years after June 30, 2008, any actuarial
10gains or losses from investment return incurred in a fiscal
11year shall be recognized in equal annual amounts over the
125-year period following that fiscal year.
13 (m) For purposes of determining the required State
14contribution to the system for a particular year, the actuarial
15value of assets shall be assumed to earn a rate of return equal
16to the system's actuarially assumed rate of return.
17 (n) If Section 15-132.9 is determined to be
18unconstitutional or otherwise invalid by a final unappealable
19decision of an Illinois court or a court of competent
20jurisdiction, then the changes made to this Section by this
21amendatory Act of the 101st General Assembly shall not take
22effect and are repealed by operation of law.
23(Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17;
24100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
25 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)

HB3524- 117 -LRB101 07948 RPS 53003 b
1 Sec. 15-157. Employee Contributions.
2 (a) Each participating employee shall make contributions
3towards the retirement benefits payable under the retirement
4program applicable to the employee from each payment of
5earnings applicable to employment under this system on and
6after the date of becoming a participant as follows: Prior to
7September 1, 1949, 3 1/2% of earnings; from September 1, 1949
8to August 31, 1955, 5%; from September 1, 1955 to August 31,
91969, 6%; from September 1, 1969, 6 1/2%. These contributions
10are to be considered as normal contributions for purposes of
11this Article.
12 Each participant who is a police officer or firefighter
13shall make normal contributions of 8% of each payment of
14earnings applicable to employment as a police officer or
15firefighter under this system on or after September 1, 1981,
16unless he or she files with the board within 60 days after the
17effective date of this amendatory Act of 1991 or 60 days after
18the board receives notice that he or she is employed as a
19police officer or firefighter, whichever is later, a written
20notice waiving the retirement formula provided by Rule 4 of
21Section 15-136. This waiver shall be irrevocable. If a
22participant had met the conditions set forth in Section
2315-132.1 prior to the effective date of this amendatory Act of
241991 but failed to make the additional normal contributions
25required by this paragraph, he or she may elect to pay the
26additional contributions plus compound interest at the

HB3524- 118 -LRB101 07948 RPS 53003 b
1effective rate. If such payment is received by the board, the
2service shall be considered as police officer service in
3calculating the retirement annuity under Rule 4 of Section
415-136. While performing service described in clause (i) or
5(ii) of Rule 4 of Section 15-136, a participating employee
6shall be deemed to be employed as a firefighter for the purpose
7of determining the rate of employee contributions under this
8Section.
9 (b) Starting September 1, 1969, each participating
10employee shall make additional contributions of 1/2 of 1% of
11earnings to finance a portion of the cost of the annual
12increases in retirement annuity provided under Section 15-136,
13except that with respect to participants in the self-managed
14plan this additional contribution shall be used to finance the
15benefits obtained under that retirement program. Beginning
16July 1, 2020 or the effective date of the Tier 1 employee's
17election under paragraph (1) of subsection (a) of Section
1815-132.9, whichever is later, each Tier 1 employee who made the
19election under paragraph (1) of subsection (a) of Section
2015-132.9 is no longer required to make contributions under this
21subsection.
22 (c) Except as provided in subsection (c-5), in In addition
23to the amounts described in subsections (a) and (b) of this
24Section, each participating employee shall make contributions
25of 1% of earnings applicable under this system on and after
26August 1, 1959. The contributions made under this subsection

HB3524- 119 -LRB101 07948 RPS 53003 b
1(c) shall be considered as survivor's insurance contributions
2for purposes of this Article if the employee is covered under
3the traditional benefit package, and such contributions shall
4be considered as additional contributions for purposes of this
5Article if the employee is participating in the self-managed
6plan or has elected to participate in the portable benefit
7package and has completed the applicable one-year waiting
8period. Contributions in excess of $80 during any fiscal year
9beginning before August 31, 1969 and in excess of $120 during
10any fiscal year thereafter until September 1, 1971 shall be
11considered as additional contributions for purposes of this
12Article.
13 (c-5) Beginning July 1, 2020 or the effective date of the
14Tier 1 employee's election under paragraph (1) of subsection
15(a) of Section 15-132.9, whichever is later, in lieu of the
16contributions otherwise required under subsection (c), each
17Tier 1 employee who made the election under paragraph (1) of
18subsection (a) of Section 15-132.9 shall make contributions of
190.7% of earnings applicable under this System and each Tier 1
20employee who is a police officer or firefighter who makes
21normal contributions of 8% of each payment of earnings
22applicable to employment as a police officer or firefighter
23under this System and who made the election under paragraph (1)
24of subsection (a) of Section 15-132.9 shall make contributions
25of 0.55% of earnings applicable under this System. The
26contributions made under this subsection (c-5) shall be

HB3524- 120 -LRB101 07948 RPS 53003 b
1considered as survivor's insurance contributions for purposes
2of this Article and such contributions shall be considered as
3additional contributions for purposes of this Article if the
4employee has elected to participate in the portable benefit
5package and has completed the applicable one-year waiting
6period.
7 (d) If the board by board rule so permits and subject to
8such conditions and limitations as may be specified in its
9rules, a participant may make other additional contributions of
10such percentage of earnings or amounts as the participant shall
11elect in a written notice thereof received by the board.
12 (e) That fraction of a participant's total accumulated
13normal contributions, the numerator of which is equal to the
14number of years of service in excess of that which is required
15to qualify for the maximum retirement annuity, and the
16denominator of which is equal to the total service of the
17participant, shall be considered as accumulated additional
18contributions. The determination of the applicable maximum
19annuity and the adjustment in contributions required by this
20provision shall be made as of the date of the participant's
21retirement.
22 (f) Notwithstanding the foregoing, a participating
23employee shall not be required to make contributions under this
24Section after the date upon which continuance of such
25contributions would otherwise cause his or her retirement
26annuity to exceed the maximum retirement annuity as specified

HB3524- 121 -LRB101 07948 RPS 53003 b
1in clause (1) of subsection (c) of Section 15-136.
2 (g) A participant may make contributions for the purchase
3of service credit under this Article; however, only a
4participating employee may make optional contributions under
5subsection (b) of Section 15-157.1 of this Article.
6 (h) A Tier 2 member shall not make contributions on
7earnings that exceed the limitation as prescribed under
8subsection (b) of Section 15-111 of this Article.
9(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
10 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
11 Sec. 15-165. To certify amounts and submit vouchers.
12 (a) The Board shall certify to the Governor on or before
13November 15 of each year until November 15, 2011 the
14appropriation required from State funds for the purposes of
15this System for the following fiscal year. The certification
16under this subsection (a) shall include a copy of the actuarial
17recommendations upon which it is based and shall specifically
18identify the System's projected State normal cost for that
19fiscal year and the projected State cost for the self-managed
20plan for that fiscal year.
21 On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General

HB3524- 122 -LRB101 07948 RPS 53003 b
1Obligation Bond Act.
2 On or before July 1, 2005, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2006, taking
5into account the changes in required State contributions made
6by this amendatory Act of the 94th General Assembly.
7 On or before April 1, 2011, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2011, applying
10the changes made by Public Act 96-889 to the System's assets
11and liabilities as of June 30, 2009 as though Public Act 96-889
12was approved on that date.
13 (a-5) On or before November 1 of each year, beginning
14November 1, 2012, the Board shall submit to the State Actuary,
15the Governor, and the General Assembly a proposed certification
16of the amount of the required State contribution to the System
17for the next fiscal year, along with all of the actuarial
18assumptions, calculations, and data upon which that proposed
19certification is based. On or before January 1 of each year,
20beginning January 1, 2013, the State Actuary shall issue a
21preliminary report concerning the proposed certification and
22identifying, if necessary, recommended changes in actuarial
23assumptions that the Board must consider before finalizing its
24certification of the required State contributions. On or before
25January 15, 2013 and each January 15 thereafter, the Board
26shall certify to the Governor and the General Assembly the

HB3524- 123 -LRB101 07948 RPS 53003 b
1amount of the required State contribution for the next fiscal
2year. The Board's certification must note, in a written
3response to the State Actuary, any deviations from the State
4Actuary's recommended changes, the reason or reasons for not
5following the State Actuary's recommended changes, and the
6fiscal impact of not following the State Actuary's recommended
7changes on the required State contribution.
8 (a-10) By November 1, 2017, the Board shall recalculate and
9recertify to the State Actuary, the Governor, and the General
10Assembly the amount of the State contribution to the System for
11State fiscal year 2018, taking into account the changes in
12required State contributions made by this amendatory Act of the
13100th General Assembly. The State Actuary shall review the
14assumptions and valuations underlying the Board's revised
15certification and issue a preliminary report concerning the
16proposed recertification and identifying, if necessary,
17recommended changes in actuarial assumptions that the Board
18must consider before finalizing its certification of the
19required State contributions. The Board's final certification
20must note any deviations from the State Actuary's recommended
21changes, the reason or reasons for not following the State
22Actuary's recommended changes, and the fiscal impact of not
23following the State Actuary's recommended changes on the
24required State contribution.
25 (a-15) On or before May 1, 2020, the Board shall
26recalculate and recertify to the Governor and the General

HB3524- 124 -LRB101 07948 RPS 53003 b
1Assembly the amount of the required State contribution to the
2System for State fiscal year 2021, taking into account the
3effect on the System's liabilities of the elections made under
4Section 15-132.9.
5 On or before October 1, 2020, the Board shall recalculate
6and recertify to the Governor and the General Assembly the
7amount of the required State contribution to the System for
8State fiscal year 2021, taking into account the reduction
9specified under item (3) of subsection (a-1) of Section 15-155.
10 (a-15) On or after June 15, 2019, but no later than June
1130, 2019, the Board shall recalculate and recertify to the
12Governor and the General Assembly the amount of the State
13contribution to the System for State fiscal year 2019, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 100th General Assembly. The
16recalculation shall be made using assumptions adopted by the
17Board for the original fiscal year 2019 certification. The
18monthly voucher for the 12th month of fiscal year 2019 shall be
19paid by the Comptroller after the recertification required
20pursuant to this subsection is submitted to the Governor,
21Comptroller, and General Assembly. The recertification
22submitted to the General Assembly shall be filed with the Clerk
23of the House of Representatives and the Secretary of the Senate
24in electronic form only, in the manner that the Clerk and the
25Secretary shall direct.
26 (b) The Board shall certify to the State Comptroller or

HB3524- 125 -LRB101 07948 RPS 53003 b
1employer, as the case may be, from time to time, by its
2chairperson and secretary, with its seal attached, the amounts
3payable to the System from the various funds.
4 (c) Beginning in State fiscal year 1996, on or as soon as
5possible after the 15th day of each month the Board shall
6submit vouchers for payment of State contributions to the
7System, in a total monthly amount of one-twelfth of the
8required annual State contribution certified under subsection
9(a). From the effective date of this amendatory Act of the 93rd
10General Assembly through June 30, 2004, the Board shall not
11submit vouchers for the remainder of fiscal year 2004 in excess
12of the fiscal year 2004 certified contribution amount
13determined under this Section after taking into consideration
14the transfer to the System under subsection (b) of Section
156z-61 of the State Finance Act. These vouchers shall be paid by
16the State Comptroller and Treasurer by warrants drawn on the
17funds appropriated to the System for that fiscal year.
18 If in any month the amount remaining unexpended from all
19other appropriations to the System for the applicable fiscal
20year (including the appropriations to the System under Section
218.12 of the State Finance Act and Section 1 of the State
22Pension Funds Continuing Appropriation Act) is less than the
23amount lawfully vouchered under this Section, the difference
24shall be paid from the General Revenue Fund under the
25continuing appropriation authority provided in Section 1.1 of
26the State Pension Funds Continuing Appropriation Act.

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1 (d) So long as the payments received are the full amount
2lawfully vouchered under this Section, payments received by the
3System under this Section shall be applied first toward the
4employer contribution to the self-managed plan established
5under Section 15-158.2. Payments shall be applied second toward
6the employer's portion of the normal costs of the System, as
7defined in subsection (f) of Section 15-155. The balance shall
8be applied toward the unfunded actuarial liabilities of the
9System.
10 (e) In the event that the System does not receive, as a
11result of legislative enactment or otherwise, payments
12sufficient to fully fund the employer contribution to the
13self-managed plan established under Section 15-158.2 and to
14fully fund that portion of the employer's portion of the normal
15costs of the System, as calculated in accordance with Section
1615-155(a-1), then any payments received shall be applied
17proportionately to the optional retirement program established
18under Section 15-158.2 and to the employer's portion of the
19normal costs of the System, as calculated in accordance with
20Section 15-155(a-1).
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
22 (40 ILCS 5/15-198)
23 Sec. 15-198. Application and expiration of new benefit
24increases.
25 (a) As used in this Section, "new benefit increase" means

HB3524- 127 -LRB101 07948 RPS 53003 b
1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after the effective date of this
5amendatory Act of the 94th General Assembly. "New benefit
6increase", however, does not include any benefit increase
7resulting from the changes made to Article 1 or this Article by
8Public Act 100-23, Public Act 100-587, Public Act 100-769, or
9this amendatory Act of the 101st General Assembly or this
10amendatory Act of the 100th General Assembly.
11 (b) Notwithstanding any other provision of this Code or any
12subsequent amendment to this Code, every new benefit increase
13is subject to this Section and shall be deemed to be granted
14only in conformance with and contingent upon compliance with
15the provisions of this Section.
16 (c) The Public Act enacting a new benefit increase must
17identify and provide for payment to the System of additional
18funding at least sufficient to fund the resulting annual
19increase in cost to the System as it accrues.
20 Every new benefit increase is contingent upon the General
21Assembly providing the additional funding required under this
22subsection. The Commission on Government Forecasting and
23Accountability shall analyze whether adequate additional
24funding has been provided for the new benefit increase and
25shall report its analysis to the Public Pension Division of the
26Department of Insurance. A new benefit increase created by a

HB3524- 128 -LRB101 07948 RPS 53003 b
1Public Act that does not include the additional funding
2required under this subsection is null and void. If the Public
3Pension Division determines that the additional funding
4provided for a new benefit increase under this subsection is or
5has become inadequate, it may so certify to the Governor and
6the State Comptroller and, in the absence of corrective action
7by the General Assembly, the new benefit increase shall expire
8at the end of the fiscal year in which the certification is
9made.
10 (d) Every new benefit increase shall expire 5 years after
11its effective date or on such earlier date as may be specified
12in the language enacting the new benefit increase or provided
13under subsection (c). This does not prevent the General
14Assembly from extending or re-creating a new benefit increase
15by law.
16 (e) Except as otherwise provided in the language creating
17the new benefit increase, a new benefit increase that expires
18under this Section continues to apply to persons who applied
19and qualified for the affected benefit while the new benefit
20increase was in effect and to the affected beneficiaries and
21alternate payees of such persons, but does not apply to any
22other person, including without limitation a person who
23continues in service after the expiration date and did not
24apply and qualify for the affected benefit while the new
25benefit increase was in effect.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

HB3524- 129 -LRB101 07948 RPS 53003 b
1100-769, eff. 8-10-18; revised 9-26-18.)
2 (40 ILCS 5/16-107.1 new)
3 Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
4teacher under this Article who first became a member or
5participant before January 1, 2011 under any reciprocal
6retirement system or pension fund established under this Code
7other than a retirement system or pension fund established
8under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
9the purposes of the election under Section 16-122.9, "Tier 1
10employee" does not include a teacher under this Article who
11would qualify as a Tier 1 employee but who has made an
12irrevocable election on or before June 1, 2019 to retire from
13service pursuant to the terms of an employment contract or a
14collective bargaining agreement in effect on June 1, 2019,
15excluding any extension, amendment, or renewal of that
16agreement after that date, and has notified the System of that
17election.
18 (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
19 (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21 Sec. 16-121. Salary. "Salary": The actual compensation
22received by a teacher during any school year and recognized by
23the system in accordance with rules of the board. For purposes
24of this Section, "school year" includes the regular school term

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1plus any additional period for which a teacher is compensated
2and such compensation is recognized by the rules of the board.
3 Notwithstanding any other provision of this Section,
4"salary" does not include any future increase in income that is
5offered by an employer for service as a Tier 1 employee under
6this Article pursuant to the condition set forth in subsection
7(c) of Section 16-122.9 and accepted under that condition by a
8Tier 1 employee who has made the election under paragraph (2)
9of subsection (a) of Section 16-122.9.
10 Notwithstanding any other provision of this Section,
11"salary" does not include any consideration payment made to a
12Tier 1 employee.
13(Source: P.A. 84-1028.)
14 (40 ILCS 5/16-121.1 new)
15 Sec. 16-121.1. Future increase in income. "Future increase
16in income" means an increase to a Tier 1 employee's base pay
17that is offered by an employer to the Tier 1 employee for
18service under this Article after June 30, 2020 that qualifies
19as "salary", as defined in Section 16-121, or would qualify as
20"salary" but for the fact that it was offered to and accepted
21by the Tier 1 employee under the condition set forth in
22subsection (c) of Section 16-122.9. The term "future increase
23in income" includes an increase to a Tier 1 employee's base pay
24that is paid to the Tier 1 employee pursuant to an extension,
25amendment, or renewal of any such employment contract or

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1collective bargaining agreement after the effective date of
2this Section.
3 (40 ILCS 5/16-121.2 new)
4 Sec. 16-121.2. Base pay. As used in Section 16-121.1 of
5this Code, "base pay" means the greater of either (i) the Tier
61 employee's annualized rate of salary as of June 30, 2020, or
7(ii) the Tier 1 employee's annualized rate of salary
8immediately preceding the expiration, renewal, or amendment of
9an employment contract or collective bargaining agreement in
10effect on the effective date of this Section. For a person
11returning to active service as a Tier 1 employee after June 30,
122020, however, "base pay" means the employee's annualized rate
13of salary as of the employee's last date of service prior to
14July 1, 2020. The System shall calculate the base pay of each
15Tier 1 employee pursuant to this Section.
16 (40 ILCS 5/16-122.9 new)
17 Sec. 16-122.9. Election by Tier 1 employees.
18 (a) Each active Tier 1 employee shall make an irrevocable
19election either:
20 (1) to agree to delay his or her eligibility for
21 automatic annual increases in retirement annuity as
22 provided in subsection (a-1) of Section 16-133.1 or
23 subsection (b-1) of Section 16-136.1, whichever is
24 applicable, and to have the amount of the automatic annual

HB3524- 132 -LRB101 07948 RPS 53003 b
1 increases in his or her retirement annuity and survivor
2 benefit that are otherwise provided for in this Article
3 calculated, instead, as provided in subsection (a-1) of
4 Section 16-133.1 or subsection (b-1) of Section 16-136.1,
5 whichever is applicable; or
6 (2) to not agree to paragraph (1) of this subsection.
7 The election required under this subsection (a) shall be
8made by each active Tier 1 employee no earlier than January 1,
92020 and no later than March 31, 2020, except that:
10 (i) a person who becomes a Tier 1 employee under this
11 Article on or after February 1, 2020 must make the election
12 under this subsection (a) within 60 days after becoming a
13 Tier 1 employee; and
14 (ii) a person who returns to active service as a Tier 1
15 employee under this Article on or after February 1, 2020
16 and has not yet made an election under this Section must
17 make the election under this subsection (a) within 60 days
18 after returning to active service as a Tier 1 employee.
19 If a Tier 1 employee fails for any reason to make a
20required election under this subsection within the time
21specified, then the employee shall be deemed to have made the
22election under paragraph (2) of this subsection.
23 (a-5) If this Section is enjoined or stayed by an Illinois
24court or a court of competent jurisdiction pending the entry of
25a final and unappealable decision, and this Section is
26determined to be constitutional or otherwise valid by a final

HB3524- 133 -LRB101 07948 RPS 53003 b
1unappealable decision of an Illinois court or a court of
2competent jurisdiction, then the election procedure set forth
3in subsection (a) of this Section shall commence on the 180th
4calendar day after the date of the issuance of the final
5unappealable decision and shall conclude at the end of the
6270th calendar day after that date.
7 (a-10) All elections under subsection (a) that are made or
8deemed to be made before July 1, 2020 shall take effect on July
91, 2020. Elections that are made or deemed to be made on or
10after July 1, 2020 shall take effect on the first day of the
11month following the month in which the election is made or
12deemed to be made.
13 (b) As adequate and legal consideration provided under this
14amendatory Act of the 101st General Assembly for making an
15election under paragraph (1) of subsection (a) of this Section,
16an employer shall be expressly and irrevocably prohibited from
17offering any future increases in income to a Tier 1 employee
18who has made an election under paragraph (1) of subsection (a)
19of this Section on the condition of not constituting salary
20under Section 16-121.
21 As adequate and legal consideration provided under this
22amendatory Act of the 101st General Assembly for making an
23election under paragraph (1) of subsection (a) of this Section,
24each Tier 1 employee who has made an election under paragraph
25(1) of subsection (a) of this Section shall receive a
26consideration payment equal to 10% of the contributions made by

HB3524- 134 -LRB101 07948 RPS 53003 b
1or on behalf of the employee under paragraphs (1), (2), and (3)
2of subsection (a) of Section 16-152 before the effective date
3of that election. The State Comptroller shall pay the
4consideration payment to the Tier 1 employee out of funds
5appropriated for that purpose under Section 1.10 of the State
6Pension Funds Continuing Appropriation Act. The System shall
7calculate the amount of each consideration payment and, by July
81, 2020, shall certify to the State Comptroller the amount of
9the consideration payment, together with the name, address, and
10any other available payment information of the Tier 1 employee
11as found in the records of the System. The System shall make
12additional calculations and certifications of consideration
13payments to the State Comptroller as the System deems
14necessary.
15 (c) A Tier 1 employee who makes the election under
16paragraph (2) of subsection (a) of this Section shall not be
17subject to paragraph (1) of subsection (a) of this Section.
18However, each future increase in income offered by an employer
19under this Article to a Tier 1 employee who has made the
20election under paragraph (2) of subsection (a) of this Section
21shall be offered by the employer expressly and irrevocably on
22the condition of not constituting salary under Section 16-121
23and that the Tier 1 employee's acceptance of the offered future
24increase in income shall constitute his or her agreement to
25that condition.
26 (d) The System shall make a good faith effort to contact

HB3524- 135 -LRB101 07948 RPS 53003 b
1each Tier 1 employee subject to this Section. The System shall
2mail information describing the required election to each Tier
31 employee by United States Postal Service mail to his or her
4last known address on file with the System. If the Tier 1
5employee is not responsive to other means of contact, it is
6sufficient for the System to publish the details of any
7required elections on its website or to publish those details
8in a regularly published newsletter or other existing public
9forum.
10 Tier 1 employees who are subject to this Section shall be
11provided with an election packet containing information
12regarding their options, as well as the forms necessary to make
13the required election. Upon request, the System shall offer
14Tier 1 employees an opportunity to receive information from the
15System before making the required election. The information may
16consist of video materials, group presentations, individual
17consultation with a member or authorized representative of the
18System in person or by telephone or other electronic means, or
19any combination of those methods. The System shall not provide
20advice or counseling with respect to which election a Tier 1
21employee should make or specific to the legal or tax
22circumstances of or consequences to the Tier 1 employee.
23 The System shall inform Tier 1 employees in the election
24packet required under this subsection that the Tier 1 employee
25may also wish to obtain information and counsel relating to the
26election required under this Section from any other available

HB3524- 136 -LRB101 07948 RPS 53003 b
1source, including, but not limited to, labor organizations and
2private counsel.
3 In no event shall the System, its staff, or the Board be
4held liable for any information given to a member regarding the
5elections under this Section. The System shall coordinate with
6the Illinois Department of Central Management Services and each
7other retirement system administering an election in
8accordance with this amendatory Act of the 101st General
9Assembly to provide information concerning the impact of the
10election set forth in this Section.
11 (e) Notwithstanding any other provision of law, an employer
12under this Article is required to offer each future increase in
13income expressly and irrevocably on the condition of not
14constituting "salary" under Section 16-121 to any Tier 1
15employee who has made an election under paragraph (2) of
16subsection (a) of this Section. The offer shall also provide
17that the Tier 1 employee's acceptance of the offered future
18increase in income shall constitute his or her agreement to the
19condition set forth in this subsection.
20 For purposes of legislative intent, the condition set forth
21in this subsection shall be construed in a manner that ensures
22that the condition is not violated or circumvented through any
23contrivance of any kind.
24 (f) A member's election under this Section is not a
25prohibited election under subdivision (j)(1) of Section 1-119
26of this Code.

HB3524- 137 -LRB101 07948 RPS 53003 b
1 (g) No provision of this Section shall be interpreted in a
2way that would cause the System to cease to be a qualified plan
3under Section 401(a) of the Internal Revenue Code of 1986.
4 (h) If an election created by this amendatory Act in any
5other Article of this Code or any change deriving from that
6election is determined to be unconstitutional or otherwise
7invalid by a final unappealable decision of an Illinois court
8or a court of competent jurisdiction, the invalidity of that
9provision shall not in any way affect the validity of this
10Section or the changes deriving from the election required
11under this Section.
12 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
13 (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15 Sec. 16-133.1. Automatic annual increase in annuity.
16 (a) Each member with creditable service and retiring on or
17after August 26, 1969 is entitled to the automatic annual
18increases in annuity provided under this Section while
19receiving a retirement annuity or disability retirement
20annuity from the system.
21 Except as otherwise provided in subsection (a-1), an An
22annuitant shall first be entitled to an initial increase under
23this Section on the January 1 next following the first
24anniversary of retirement, or January 1 of the year next
25following attainment of age 61, whichever is later. At such

HB3524- 138 -LRB101 07948 RPS 53003 b
1time, the system shall pay an initial increase determined as
2follows:
3 (1) 1.5% of the originally granted retirement annuity
4 or disability retirement annuity multiplied by the number
5 of years elapsed, if any, from the date of retirement until
6 January 1, 1972, plus
7 (2) 2% of the originally granted annuity multiplied by
8 the number of years elapsed, if any, from the date of
9 retirement or January 1, 1972, whichever is later, until
10 January 1, 1978, plus
11 (3) 3% of the originally granted annuity multiplied by
12 the number of years elapsed from the date of retirement or
13 January 1, 1978, whichever is later, until the effective
14 date of the initial increase.
15However, the initial annual increase calculated under this
16Section for the recipient of a disability retirement annuity
17granted under Section 16-149.2 shall be reduced by an amount
18equal to the total of all increases in that annuity received
19under Section 16-149.5 (but not exceeding 100% of the amount of
20the initial increase otherwise provided under this Section).
21 Except as otherwise provided in subsection (a-1),
22following Following the initial increase, automatic annual
23increases in annuity shall be payable on each January 1
24thereafter during the lifetime of the annuitant, determined as
25a percentage of the originally granted retirement annuity or
26disability retirement annuity for increases granted prior to

HB3524- 139 -LRB101 07948 RPS 53003 b
1January 1, 1990, and calculated as a percentage of the total
2amount of annuity, including previous increases under this
3Section, for increases granted on or after January 1, 1990, as
4follows: 1.5% for periods prior to January 1, 1972, 2% for
5periods after December 31, 1971 and prior to January 1, 1978,
6and 3% for periods after December 31, 1977.
7 (a-1) Notwithstanding any other provision of this Article,
8for a Tier 1 employee who made the election under paragraph (1)
9of subsection (a) of Section 16-122.9:
10 (1) The initial increase in retirement annuity under
11 this Section shall occur on the January 1 occurring either
12 on or after the attainment of age 67 or the fifth
13 anniversary of the annuity start date, whichever is
14 earlier.
15 (2) The amount of each automatic annual increase in
16 retirement annuity and survivor benefit occurring on or
17 after the effective date of that election shall be
18 calculated as a percentage of the originally granted
19 retirement annuity or survivor benefit, equal to 3% or
20 one-half the annual unadjusted percentage increase (but
21 not less than zero) in the consumer price index-u for the
22 12 months ending with the September preceding each November
23 1, whichever is less. If the annual unadjusted percentage
24 change in the consumer price index-u for the 12 months
25 ending with the September preceding each November 1 is zero
26 or there is a decrease, then the annuity shall not be

HB3524- 140 -LRB101 07948 RPS 53003 b
1 increased.
2 For the purposes of this Section, "consumer price index-u"
3means the index published by the Bureau of Labor Statistics of
4the United States Department of Labor that measures the average
5change in prices of goods and services purchased by all urban
6consumers, United States city average, all items, 1982-84 =
7100. The new amount resulting from each annual adjustment shall
8be determined by the Public Pension Division of the Department
9of Insurance and made available to the board of the retirement
10system by November 1 of each year.
11 (b) The automatic annual increases in annuity provided
12under this Section shall not be applicable unless a member has
13made contributions toward such increases for a period
14equivalent to one full year of creditable service. If a member
15contributes for service performed after August 26, 1969 but the
16member becomes an annuitant before such contributions amount to
17one full year's contributions based on the salary at the date
18of retirement, he or she may pay the necessary balance of the
19contributions to the system and be eligible for the automatic
20annual increases in annuity provided under this Section.
21 (c) Each member shall make contributions toward the cost of
22the automatic annual increases in annuity as provided under
23Section 16-152.
24 (d) An annuitant receiving a retirement annuity or
25disability retirement annuity on July 1, 1969, who subsequently
26re-enters service as a teacher is eligible for the automatic

HB3524- 141 -LRB101 07948 RPS 53003 b
1annual increases in annuity provided under this Section if he
2or she renders at least one year of creditable service
3following the latest re-entry.
4 (e) In addition to the automatic annual increases in
5annuity provided under this Section, an annuitant who meets the
6service requirements of this Section and whose retirement
7annuity or disability retirement annuity began on or before
8January 1, 1971 shall receive, on January 1, 1981, an increase
9in the annuity then being paid of one dollar per month for each
10year of creditable service. On January 1, 1982, an annuitant
11whose retirement annuity or disability retirement annuity
12began on or before January 1, 1977 shall receive an increase in
13the annuity then being paid of one dollar per month for each
14year of creditable service.
15 On January 1, 1987, any annuitant whose retirement annuity
16began on or before January 1, 1977, shall receive an increase
17in the monthly retirement annuity equal to 8¢ per year of
18creditable service times the number of years that have elapsed
19since the annuity began.
20(Source: P.A. 91-927, eff. 12-14-00.)
21 (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
22 (Text of Section WITHOUT the changes made by P.A. 98-599,
23which has been held unconstitutional)
24 Sec. 16-136.1. Annual increase for certain annuitants.
25 (a) Any annuitant receiving a retirement annuity on June

HB3524- 142 -LRB101 07948 RPS 53003 b
130, 1969 and any member retiring after June 30, 1969 shall be
2eligible for the annual increases provided under this Section
3provided the annuitant is ineligible for the automatic annual
4increase in annuity provided under Section 16-133.1, and
5provided further that (1) retirement occurred at age 55 or over
6and was based on 5 or more years of creditable service or (2)
7if retirement occurred prior to age 55, the retirement annuity
8was based on 20 or more years of creditable service.
9 (b) Except as otherwise provided in subsection (b-1), an An
10annuitant entitled to increases under this Section shall be
11entitled to the initial increase as of the later of: (1)
12January 1 following attainment of age 65, (2) January 1
13following the first anniversary of retirement, or (3) the first
14day of the month following receipt of the required qualifying
15contribution from the annuitant. The initial monthly increase
16shall be computed on the basis of the period elapsed between
17the later of the date of last retirement or attainment of age
1850 and the date of qualification for the initial increase, at
19the rate of 1 1/2% of the original monthly retirement annuity
20per year for periods prior to September 1, 1971, and at the
21rate of 2% per year for periods between September 1, 1971 and
22September 1, 1978, and at the rate of 3% per year for periods
23thereafter.
24 Except as otherwise provided in subsection (b-1), if
25applicable, an An annuitant who has received an initial
26increase under this Section, shall be entitled, on each January

HB3524- 143 -LRB101 07948 RPS 53003 b
11 following the granting of the initial increase, to an
2increase of 3% of the original monthly retirement annuity for
3increases granted prior to January 1, 1990, and equal to 3% of
4the total annuity, including previous increases under this
5Section, for increases granted on or after January 1, 1990. The
6original monthly retirement annuity for computations under
7this subsection (b) shall be considered to be $83.34 for any
8annuitant entitled to benefits under Section 16-134. The
9minimum original disability retirement annuity for
10computations under this subsection (b) shall be considered to
11be $33.34 per month for any annuitant retired on account of
12disability.
13 (b-1) Notwithstanding any other provision of this Article,
14for a Tier 1 employee who made the election under paragraph (1)
15of subsection (a) of Section 16-122.9:
16 (1) The initial increase in retirement annuity under
17 this Section shall occur on the January 1 occurring either
18 on or after the attainment of age 67 or the fifth
19 anniversary of the annuity start date, whichever is
20 earlier.
21 (2) The amount of each automatic annual increase in
22 retirement annuity or survivor benefit occurring on or
23 after the effective date of that election shall be
24 calculated as a percentage of the originally granted
25 retirement annuity or survivor benefit, equal to 3% or
26 one-half the annual unadjusted percentage increase (but

HB3524- 144 -LRB101 07948 RPS 53003 b
1 not less than zero) in the consumer price index-u for the
2 12 months ending with the September preceding each November
3 1, whichever is less. If the annual unadjusted percentage
4 change in the consumer price index-u for the 12 months
5 ending with the September preceding each November 1 is zero
6 or there is a decrease, then the annuity shall not be
7 increased.
8 For the purposes of this Section, "consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the average
11change in prices of goods and services purchased by all urban
12consumers, United States city average, all items, 1982-84 =
13100. The new amount resulting from each annual adjustment shall
14be determined by the Public Pension Division of the Department
15of Insurance and made available to the board of the retirement
16system by November 1 of each year.
17 (c) An annuitant who otherwise qualifies for annual
18increases under this Section must make a one-time payment of 1%
19of the monthly final average salary for each full year of the
20creditable service forming the basis of the retirement annuity
21or, if the retirement annuity was not computed using final
22average salary, 1% of the original monthly retirement annuity
23for each full year of service forming the basis of the
24retirement annuity.
25 (d) In addition to other increases which may be provided by
26this Section, regardless of creditable service, annuitants not

HB3524- 145 -LRB101 07948 RPS 53003 b
1meeting the service requirements of Section 16-133.1 and whose
2retirement annuity began on or before January 1, 1971 shall
3receive, on January 1, 1981, an increase in the retirement
4annuity then being paid of one dollar per month for each year
5of creditable service forming the basis of the retirement
6allowance. On January 1, 1982, annuitants whose retirement
7annuity began on or before January 1, 1977, shall receive an
8increase in the retirement annuity then being paid of one
9dollar per month for each year of creditable service.
10 On January 1, 1987, any annuitant whose retirement annuity
11began on or before January 1, 1977, shall receive an increase
12in the monthly retirement annuity equal to 8¢ per year of
13creditable service times the number of years that have elapsed
14since the annuity began.
15(Source: P.A. 86-273.)
16 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
17 (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19 Sec. 16-152. Contributions by members.
20 (a) Except as otherwise provided in subsection (a-5), each
21Each member shall make contributions for membership service to
22this System as follows:
23 (1) Effective July 1, 1998, contributions of 7.50% of
24 salary towards the cost of the retirement annuity. Such
25 contributions shall be deemed "normal contributions".

HB3524- 146 -LRB101 07948 RPS 53003 b
1 (2) Effective July 1, 1969, contributions of 1/2 of 1%
2 of salary toward the cost of the automatic annual increase
3 in retirement annuity provided under Section 16-133.1.
4 (3) Effective July 24, 1959, contributions of 1% of
5 salary towards the cost of survivor benefits. Such
6 contributions shall not be credited to the individual
7 account of the member and shall not be subject to refund
8 except as provided under Section 16-143.2.
9 (4) Effective July 1, 2005, contributions of 0.40% of
10 salary toward the cost of the early retirement without
11 discount option provided under Section 16-133.2. This
12 contribution shall cease upon termination of the early
13 retirement without discount option as provided in Section
14 16-133.2.
15 (a-5) Beginning July 1, 2020 or the effective date of the
16Tier 1 employee's election under paragraph (1) of subsection
17(a) of Section 16-122.9, whichever is later, in lieu of the
18contributions otherwise required under subsection (a), each
19Tier 1 employee who made the election under paragraph (1) of
20subsection (a) of Section 16-122.9 shall make contributions as
21follows:
22 (1) Contributions of 7.50% of salary towards the cost
23 of the retirement annuity. Such contributions shall be
24 deemed "normal contributions".
25 (2) Contributions of 0.60% towards the cost of survivor
26 benefits. Such contributions shall not be credited to the

HB3524- 147 -LRB101 07948 RPS 53003 b
1 individual account of the member and shall not be subject
2 to refund except as provided in Section 16-143.2.
3 (3) Contributions of 0.40% of salary toward the cost of
4 the early retirement without discount option provided
5 under Section 16-133.2. This contribution shall cease upon
6 termination of the early retirement without discount
7 option as provided in Section 16-133.2.
8 (b) The minimum required contribution for any year of
9full-time teaching service shall be $192.
10 (c) Contributions shall not be required of any annuitant
11receiving a retirement annuity who is given employment as
12permitted under Section 16-118 or 16-150.1.
13 (d) A person who (i) was a member before July 1, 1998, (ii)
14retires with more than 34 years of creditable service, and
15(iii) does not elect to qualify for the augmented rate under
16Section 16-129.1 shall be entitled, at the time of retirement,
17to receive a partial refund of contributions made under this
18Section for service occurring after the later of June 30, 1998
19or attainment of 34 years of creditable service, in an amount
20equal to 1.00% of the salary upon which those contributions
21were based.
22 (e) A member's contributions toward the cost of early
23retirement without discount made under item (a)(4) of this
24Section shall not be refunded if the member has elected early
25retirement without discount under Section 16-133.2 and has
26begun to receive a retirement annuity under this Article

HB3524- 148 -LRB101 07948 RPS 53003 b
1calculated in accordance with that election. Otherwise, a
2member's contributions toward the cost of early retirement
3without discount made under item (a)(4) of this Section shall
4be refunded according to whichever one of the following
5circumstances occurs first:
6 (1) The contributions shall be refunded to the member,
7 without interest, within 120 days after the member's
8 retirement annuity commences, if the member does not elect
9 early retirement without discount under Section 16-133.2.
10 (2) The contributions shall be included, without
11 interest, in any refund claimed by the member under Section
12 16-151.
13 (3) The contributions shall be refunded to the member's
14 designated beneficiary (or if there is no beneficiary, to
15 the member's estate), without interest, if the member dies
16 without having begun to receive a retirement annuity under
17 this Article.
18 (4) The contributions shall be refunded to the member,
19 without interest, if the early retirement without discount
20 option provided under subsection (d) of Section 16-133.2 is
21 terminated. In that event, the System shall provide to the
22 member, within 120 days after the option is terminated, an
23 application for a refund of those contributions.
24(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642,
25eff. 7-28-16.)

HB3524- 149 -LRB101 07948 RPS 53003 b
1 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
2 Sec. 16-158. Contributions by State and other employing
3units.
4 (a) The State shall make contributions to the System by
5means of appropriations from the Common School Fund and other
6State funds of amounts which, together with other employer
7contributions, employee contributions, investment income, and
8other income, will be sufficient to meet the cost of
9maintaining and administering the System on a 90% funded basis
10in accordance with actuarial recommendations.
11 The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(b-3).
16 (a-1) Annually, on or before November 15 until November 15,
172011, the Board shall certify to the Governor the amount of the
18required State contribution for the coming fiscal year. The
19certification under this subsection (a-1) shall include a copy
20of the actuarial recommendations upon which it is based and
21shall specifically identify the System's projected State
22normal cost for that fiscal year.
23 On or before May 1, 2004, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2005, taking
26into account the amounts appropriated to and received by the

HB3524- 150 -LRB101 07948 RPS 53003 b
1System under subsection (d) of Section 7.2 of the General
2Obligation Bond Act.
3 On or before July 1, 2005, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2006, taking
6into account the changes in required State contributions made
7by Public Act 94-4.
8 On or before April 1, 2011, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2011, applying
11the changes made by Public Act 96-889 to the System's assets
12and liabilities as of June 30, 2009 as though Public Act 96-889
13was approved on that date.
14 (a-5) On or before November 1 of each year, beginning
15November 1, 2012, the Board shall submit to the State Actuary,
16the Governor, and the General Assembly a proposed certification
17of the amount of the required State contribution to the System
18for the next fiscal year, along with all of the actuarial
19assumptions, calculations, and data upon which that proposed
20certification is based. On or before January 1 of each year,
21beginning January 1, 2013, the State Actuary shall issue a
22preliminary report concerning the proposed certification and
23identifying, if necessary, recommended changes in actuarial
24assumptions that the Board must consider before finalizing its
25certification of the required State contributions. On or before
26January 15, 2013 and each January 15 thereafter, the Board

HB3524- 151 -LRB101 07948 RPS 53003 b
1shall certify to the Governor and the General Assembly the
2amount of the required State contribution for the next fiscal
3year. The Board's certification must note any deviations from
4the State Actuary's recommended changes, the reason or reasons
5for not following the State Actuary's recommended changes, and
6the fiscal impact of not following the State Actuary's
7recommended changes on the required State contribution.
8 (a-10) By November 1, 2017, the Board shall recalculate and
9recertify to the State Actuary, the Governor, and the General
10Assembly the amount of the State contribution to the System for
11State fiscal year 2018, taking into account the changes in
12required State contributions made by Public Act 100-23. The
13State Actuary shall review the assumptions and valuations
14underlying the Board's revised certification and issue a
15preliminary report concerning the proposed recertification and
16identifying, if necessary, recommended changes in actuarial
17assumptions that the Board must consider before finalizing its
18certification of the required State contributions. The Board's
19final certification must note any deviations from the State
20Actuary's recommended changes, the reason or reasons for not
21following the State Actuary's recommended changes, and the
22fiscal impact of not following the State Actuary's recommended
23changes on the required State contribution.
24 (a-15) On or after June 15, 2019, but no later than June
2530, 2019, the Board shall recalculate and recertify to the
26Governor and the General Assembly the amount of the State

HB3524- 152 -LRB101 07948 RPS 53003 b
1contribution to the System for State fiscal year 2019, taking
2into account the changes in required State contributions made
3by Public Act 100-587 this amendatory Act of the 100th General
4Assembly. The recalculation shall be made using assumptions
5adopted by the Board for the original fiscal year 2019
6certification. The monthly voucher for the 12th month of fiscal
7year 2019 shall be paid by the Comptroller after the
8recertification required pursuant to this subsection is
9submitted to the Governor, Comptroller, and General Assembly.
10The recertification submitted to the General Assembly shall be
11filed with the Clerk of the House of Representatives and the
12Secretary of the Senate in electronic form only, in the manner
13that the Clerk and the Secretary shall direct.
14 (a-20) On or before May 1, 2020, the Board shall
15recalculate and recertify to the Governor and the General
16Assembly the amount of the required State contribution to the
17System for State fiscal year 2021, taking into account the
18effect on the System's liabilities of the elections made under
19Section 16-122.9.
20 On or before October 1, 2020, the Board shall recalculate
21and recertify to the Governor and the General Assembly the
22amount of the required State contribution to the System for
23State fiscal year 2021, taking into account the reduction
24specified under item (3) of subsection (b-3) of this Section.
25 (b) Through State fiscal year 1995, the State contributions
26shall be paid to the System in accordance with Section 18-7 of

HB3524- 153 -LRB101 07948 RPS 53003 b
1the School Code.
2 (b-1) Beginning in State fiscal year 1996, on the 15th day
3of each month, or as soon thereafter as may be practicable, the
4Board shall submit vouchers for payment of State contributions
5to the System, in a total monthly amount of one-twelfth of the
6required annual State contribution certified under subsection
7(a-1). From March 5, 2004 (the effective date of Public Act
893-665) through June 30, 2004, the Board shall not submit
9vouchers for the remainder of fiscal year 2004 in excess of the
10fiscal year 2004 certified contribution amount determined
11under this Section after taking into consideration the transfer
12to the System under subsection (a) of Section 6z-61 of the
13State Finance Act. These vouchers shall be paid by the State
14Comptroller and Treasurer by warrants drawn on the funds
15appropriated to the System for that fiscal year.
16 If in any month the amount remaining unexpended from all
17other appropriations to the System for the applicable fiscal
18year (including the appropriations to the System under Section
198.12 of the State Finance Act and Section 1 of the State
20Pension Funds Continuing Appropriation Act) is less than the
21amount lawfully vouchered under this subsection, the
22difference shall be paid from the Common School Fund under the
23continuing appropriation authority provided in Section 1.1 of
24the State Pension Funds Continuing Appropriation Act.
25 (b-2) Allocations from the Common School Fund apportioned
26to school districts not coming under this System shall not be

HB3524- 154 -LRB101 07948 RPS 53003 b
1diminished or affected by the provisions of this Article.
2 (b-3) For State fiscal years 2012 through 2045 (except as
3otherwise provided for fiscal year 2021), the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 90% of
7the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13 For State fiscal year 2021:
14 (1) The initial calculation and certification shall be
15 based on the amount determined above.
16 (2) For purposes of the recertification due on or
17 before May 1, 2020, the recalculation of the required State
18 contribution for fiscal year 2021 shall take into account
19 the effect on the System's liabilities of the elections
20 made under Section 16-122.9.
21 (3) For purposes of the recertification due on or
22 before October 1, 2020, the total required State
23 contribution for fiscal year 2021 shall be reduced by the
24 amount of the consideration payments made to Tier 1
25 employees who made the election under paragraph (1) of
26 subsection (a) of Section 16-122.9.

HB3524- 155 -LRB101 07948 RPS 53003 b
1 For each of State fiscal years 2018, 2019, and 2020, the
2State shall make an additional contribution to the System equal
3to 2% of the total payroll of each employee who is deemed to
4have elected the benefits under Section 1-161 or who has made
5the election under subsection (c) of Section 1-161.
6 A change in an actuarial or investment assumption that
7increases or decreases the required State contribution and
8first applies in State fiscal year 2018 or thereafter shall be
9implemented in equal annual amounts over a 5-year period
10beginning in the State fiscal year in which the actuarial
11change first applies to the required State contribution.
12 A change in an actuarial or investment assumption that
13increases or decreases the required State contribution and
14first applied to the State contribution in fiscal year 2014,
152015, 2016, or 2017 shall be implemented:
16 (i) as already applied in State fiscal years before
17 2018; and
18 (ii) in the portion of the 5-year period beginning in
19 the State fiscal year in which the actuarial change first
20 applied that occurs in State fiscal year 2018 or
21 thereafter, by calculating the change in equal annual
22 amounts over that 5-year period and then implementing it at
23 the resulting annual rate in each of the remaining fiscal
24 years in that 5-year period.
25 For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

HB3524- 156 -LRB101 07948 RPS 53003 b
1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section; except that in the
4following specified State fiscal years, the State contribution
5to the System shall not be less than the following indicated
6percentages of the applicable employee payroll, even if the
7indicated percentage will produce a State contribution in
8excess of the amount otherwise required under this subsection
9and subsection (a), and notwithstanding any contrary
10certification made under subsection (a-1) before May 27, 1998
11(the effective date of Public Act 90-582): 10.02% in FY 1999;
1210.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
13in FY 2003; and 13.56% in FY 2004.
14 Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2006 is
16$534,627,700.
17 Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2007 is
19$738,014,500.
20 For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26 Notwithstanding any other provision of this Article, the

HB3524- 157 -LRB101 07948 RPS 53003 b
1total required State contribution for State fiscal year 2010 is
2$2,089,268,000 and shall be made from the proceeds of bonds
3sold in fiscal year 2010 pursuant to Section 7.2 of the General
4Obligation Bond Act, less (i) the pro rata share of bond sale
5expenses determined by the System's share of total bond
6proceeds, (ii) any amounts received from the Common School Fund
7in fiscal year 2010, and (iii) any reduction in bond proceeds
8due to the issuance of discounted bonds, if applicable.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2011 is
11the amount recertified by the System on or before April 1, 2011
12pursuant to subsection (a-1) of this Section and shall be made
13from the proceeds of bonds sold in fiscal year 2011 pursuant to
14Section 7.2 of the General Obligation Bond Act, less (i) the
15pro rata share of bond sale expenses determined by the System's
16share of total bond proceeds, (ii) any amounts received from
17the Common School Fund in fiscal year 2011, and (iii) any
18reduction in bond proceeds due to the issuance of discounted
19bonds, if applicable. This amount shall include, in addition to
20the amount certified by the System, an amount necessary to meet
21employer contributions required by the State as an employer
22under paragraph (e) of this Section, which may also be used by
23the System for contributions required by paragraph (a) of
24Section 16-127.
25 Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed to

HB3524- 158 -LRB101 07948 RPS 53003 b
1maintain the total assets of the System at 90% of the total
2actuarial liabilities of the System.
3 Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 90%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15 Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter, as calculated
18under this Section and certified under subsection (a-1), shall
19not exceed an amount equal to (i) the amount of the required
20State contribution that would have been calculated under this
21Section for that fiscal year if the System had not received any
22payments under subsection (d) of Section 7.2 of the General
23Obligation Bond Act, minus (ii) the portion of the State's
24total debt service payments for that fiscal year on the bonds
25issued in fiscal year 2003 for the purposes of that Section
267.2, as determined and certified by the Comptroller, that is

HB3524- 159 -LRB101 07948 RPS 53003 b
1the same as the System's portion of the total moneys
2distributed under subsection (d) of Section 7.2 of the General
3Obligation Bond Act. In determining this maximum for State
4fiscal years 2008 through 2010, however, the amount referred to
5in item (i) shall be increased, as a percentage of the
6applicable employee payroll, in equal increments calculated
7from the sum of the required State contribution for State
8fiscal year 2007 plus the applicable portion of the State's
9total debt service payments for fiscal year 2007 on the bonds
10issued in fiscal year 2003 for the purposes of Section 7.2 of
11the General Obligation Bond Act, so that, by State fiscal year
122011, the State is contributing at the rate otherwise required
13under this Section.
14 (b-4) Beginning in fiscal year 2018, each employer under
15this Article shall pay to the System a required contribution
16determined as a percentage of projected payroll and sufficient
17to produce an annual amount equal to:
18 (i) for each of fiscal years 2018, 2019, and 2020, the
19 defined benefit normal cost of the defined benefit plan,
20 less the employee contribution, for each employee of that
21 employer who has elected or who is deemed to have elected
22 the benefits under Section 1-161 or who has made the
23 election under subsection (b) of Section 1-161; for fiscal
24 year 2021 and each fiscal year thereafter, the defined
25 benefit normal cost of the defined benefit plan, less the
26 employee contribution, plus 2%, for each employee of that

HB3524- 160 -LRB101 07948 RPS 53003 b
1 employer who has elected or who is deemed to have elected
2 the benefits under Section 1-161 or who has made the
3 election under subsection (b) of Section 1-161; plus
4 (ii) the amount required for that fiscal year to
5 amortize any unfunded actuarial accrued liability
6 associated with the present value of liabilities
7 attributable to the employer's account under Section
8 16-158.3, determined as a level percentage of payroll over
9 a 30-year rolling amortization period.
10 In determining contributions required under item (i) of
11this subsection, the System shall determine an aggregate rate
12for all employers, expressed as a percentage of projected
13payroll.
14 In determining the contributions required under item (ii)
15of this subsection, the amount shall be computed by the System
16on the basis of the actuarial assumptions and tables used in
17the most recent actuarial valuation of the System that is
18available at the time of the computation.
19 The contributions required under this subsection (b-4)
20shall be paid by an employer concurrently with that employer's
21payroll payment period. The State, as the actual employer of an
22employee, shall make the required contributions under this
23subsection.
24 (c) Payment of the required State contributions and of all
25pensions, retirement annuities, death benefits, refunds, and
26other benefits granted under or assumed by this System, and all

HB3524- 161 -LRB101 07948 RPS 53003 b
1expenses in connection with the administration and operation
2thereof, are obligations of the State.
3 If members are paid from special trust or federal funds
4which are administered by the employing unit, whether school
5district or other unit, the employing unit shall pay to the
6System from such funds the full accruing retirement costs based
7upon that service, which, beginning July 1, 2017, shall be at a
8rate, expressed as a percentage of salary, equal to the total
9employer's normal cost, expressed as a percentage of payroll,
10as determined by the System. Employer contributions, based on
11salary paid to members from federal funds, may be forwarded by
12the distributing agency of the State of Illinois to the System
13prior to allocation, in an amount determined in accordance with
14guidelines established by such agency and the System. Any
15contribution for fiscal year 2015 collected as a result of the
16change made by Public Act 98-674 shall be considered a State
17contribution under subsection (b-3) of this Section.
18 (d) Effective July 1, 1986, any employer of a teacher as
19defined in paragraph (8) of Section 16-106 shall pay the
20employer's normal cost of benefits based upon the teacher's
21service, in addition to employee contributions, as determined
22by the System. Such employer contributions shall be forwarded
23monthly in accordance with guidelines established by the
24System.
25 However, with respect to benefits granted under Section
2616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

HB3524- 162 -LRB101 07948 RPS 53003 b
1of Section 16-106, the employer's contribution shall be 12%
2(rather than 20%) of the member's highest annual salary rate
3for each year of creditable service granted, and the employer
4shall also pay the required employee contribution on behalf of
5the teacher. For the purposes of Sections 16-133.4 and
616-133.5, a teacher as defined in paragraph (8) of Section
716-106 who is serving in that capacity while on leave of
8absence from another employer under this Article shall not be
9considered an employee of the employer from which the teacher
10is on leave.
11 (e) Beginning July 1, 1998, every employer of a teacher
12shall pay to the System an employer contribution computed as
13follows:
14 (1) Beginning July 1, 1998 through June 30, 1999, the
15 employer contribution shall be equal to 0.3% of each
16 teacher's salary.
17 (2) Beginning July 1, 1999 and thereafter, the employer
18 contribution shall be equal to 0.58% of each teacher's
19 salary.
20The school district or other employing unit may pay these
21employer contributions out of any source of funding available
22for that purpose and shall forward the contributions to the
23System on the schedule established for the payment of member
24contributions.
25 These employer contributions are intended to offset a
26portion of the cost to the System of the increases in

HB3524- 163 -LRB101 07948 RPS 53003 b
1retirement benefits resulting from Public Act 90-582.
2 Each employer of teachers is entitled to a credit against
3the contributions required under this subsection (e) with
4respect to salaries paid to teachers for the period January 1,
52002 through June 30, 2003, equal to the amount paid by that
6employer under subsection (a-5) of Section 6.6 of the State
7Employees Group Insurance Act of 1971 with respect to salaries
8paid to teachers for that period.
9 The additional 1% employee contribution required under
10Section 16-152 by Public Act 90-582 is the responsibility of
11the teacher and not the teacher's employer, unless the employer
12agrees, through collective bargaining or otherwise, to make the
13contribution on behalf of the teacher.
14 If an employer is required by a contract in effect on May
151, 1998 between the employer and an employee organization to
16pay, on behalf of all its full-time employees covered by this
17Article, all mandatory employee contributions required under
18this Article, then the employer shall be excused from paying
19the employer contribution required under this subsection (e)
20for the balance of the term of that contract. The employer and
21the employee organization shall jointly certify to the System
22the existence of the contractual requirement, in such form as
23the System may prescribe. This exclusion shall cease upon the
24termination, extension, or renewal of the contract at any time
25after May 1, 1998.
26 (f) For school years beginning on or after June 1, 2005 and

HB3524- 164 -LRB101 07948 RPS 53003 b
1before July 1, 2018 and for salary paid to a teacher under a
2contract or collective bargaining agreement entered into,
3amended, or renewed before June 4, 2018 (the effective date of
4Public Act 100-587) this amendatory Act of the 100th General
5Assembly, if the amount of a teacher's salary for any school
6year used to determine final average salary exceeds the
7member's annual full-time salary rate with the same employer
8for the previous school year by more than 6%, the teacher's
9employer shall pay to the System, in addition to all other
10payments required under this Section and in accordance with
11guidelines established by the System, the present value of the
12increase in benefits resulting from the portion of the increase
13in salary that is in excess of 6%. This present value shall be
14computed by the System on the basis of the actuarial
15assumptions and tables used in the most recent actuarial
16valuation of the System that is available at the time of the
17computation. If a teacher's salary for the 2005-2006 school
18year is used to determine final average salary under this
19subsection (f), then the changes made to this subsection (f) by
20Public Act 94-1057 shall apply in calculating whether the
21increase in his or her salary is in excess of 6%. For the
22purposes of this Section, change in employment under Section
2310-21.12 of the School Code on or after June 1, 2005 shall
24constitute a change in employer. The System may require the
25employer to provide any pertinent information or
26documentation. The changes made to this subsection (f) by

HB3524- 165 -LRB101 07948 RPS 53003 b
1Public Act 94-1111 apply without regard to whether the teacher
2was in service on or after its effective date.
3 Whenever it determines that a payment is or may be required
4under this subsection, the System shall calculate the amount of
5the payment and bill the employer for that amount. The bill
6shall specify the calculations used to determine the amount
7due. If the employer disputes the amount of the bill, it may,
8within 30 days after receipt of the bill, apply to the System
9in writing for a recalculation. The application must specify in
10detail the grounds of the dispute and, if the employer asserts
11that the calculation is subject to subsection (g) or (h) of
12this Section or that subsection (f-1) of this Section applies,
13must include an affidavit setting forth and attesting to all
14facts within the employer's knowledge that are pertinent to the
15applicability of that subsection. Upon receiving a timely
16application for recalculation, the System shall review the
17application and, if appropriate, recalculate the amount due.
18 The employer contributions required under this subsection
19(f) may be paid in the form of a lump sum within 90 days after
20receipt of the bill. If the employer contributions are not paid
21within 90 days after receipt of the bill, then interest will be
22charged at a rate equal to the System's annual actuarially
23assumed rate of return on investment compounded annually from
24the 91st day after receipt of the bill. Payments must be
25concluded within 3 years after the employer's receipt of the
26bill.

HB3524- 166 -LRB101 07948 RPS 53003 b
1 (f-1) For school years beginning on or after July 1, 2018
2and for salary paid to a teacher under a contract or collective
3bargaining agreement entered into, amended, or renewed on or
4after June 4, 2018 (the effective date of Public Act 100-587)
5this amendatory Act of the 100th General Assembly, if the
6amount of a teacher's salary for any school year used to
7determine final average salary exceeds the member's annual
8full-time salary rate with the same employer for the previous
9school year by more than 3%, then the teacher's employer shall
10pay to the System, in addition to all other payments required
11under this Section and in accordance with guidelines
12established by the System, the present value of the increase in
13benefits resulting from the portion of the increase in salary
14that is in excess of 3%. This present value shall be computed
15by the System on the basis of the actuarial assumptions and
16tables used in the most recent actuarial valuation of the
17System that is available at the time of the computation. The
18System may require the employer to provide any pertinent
19information or documentation.
20 Whenever it determines that a payment is or may be required
21under this subsection (f-1), the System shall calculate the
22amount of the payment and bill the employer for that amount.
23The bill shall specify the calculations used to determine the
24amount due. If the employer disputes the amount of the bill, it
25shall, within 30 days after receipt of the bill, apply to the
26System in writing for a recalculation. The application must

HB3524- 167 -LRB101 07948 RPS 53003 b
1specify in detail the grounds of the dispute and, if the
2employer asserts that subsection (f) of this Section applies,
3must include an affidavit setting forth and attesting to all
4facts within the employer's knowledge that are pertinent to the
5applicability of subsection (f). Upon receiving a timely
6application for recalculation, the System shall review the
7application and, if appropriate, recalculate the amount due.
8 The employer contributions required under this subsection
9(f-1) may be paid in the form of a lump sum within 90 days after
10receipt of the bill. If the employer contributions are not paid
11within 90 days after receipt of the bill, then interest shall
12be charged at a rate equal to the System's annual actuarially
13assumed rate of return on investment compounded annually from
14the 91st day after receipt of the bill. Payments must be
15concluded within 3 years after the employer's receipt of the
16bill.
17 (g) This subsection (g) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22 When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to teachers
24under contracts or collective bargaining agreements entered
25into, amended, or renewed before June 1, 2005.
26 When assessing payment for any amount due under subsection

HB3524- 168 -LRB101 07948 RPS 53003 b
1(f), the System shall exclude salary increases paid to a
2teacher at a time when the teacher is 10 or more years from
3retirement eligibility under Section 16-132 or 16-133.2.
4 When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases resulting from
6overload work, including summer school, when the school
7district has certified to the System, and the System has
8approved the certification, that (i) the overload work is for
9the sole purpose of classroom instruction in excess of the
10standard number of classes for a full-time teacher in a school
11district during a school year and (ii) the salary increases are
12equal to or less than the rate of pay for classroom instruction
13computed on the teacher's current salary and work schedule.
14 When assessing payment for any amount due under subsection
15(f), the System shall exclude a salary increase resulting from
16a promotion (i) for which the employee is required to hold a
17certificate or supervisory endorsement issued by the State
18Teacher Certification Board that is a different certification
19or supervisory endorsement than is required for the teacher's
20previous position and (ii) to a position that has existed and
21been filled by a member for no less than one complete academic
22year and the salary increase from the promotion is an increase
23that results in an amount no greater than the lesser of the
24average salary paid for other similar positions in the district
25requiring the same certification or the amount stipulated in
26the collective bargaining agreement for a similar position

HB3524- 169 -LRB101 07948 RPS 53003 b
1requiring the same certification.
2 When assessing payment for any amount due under subsection
3(f), the System shall exclude any payment to the teacher from
4the State of Illinois or the State Board of Education over
5which the employer does not have discretion, notwithstanding
6that the payment is included in the computation of final
7average salary.
8 (h) When assessing payment for any amount due under
9subsection (f), the System shall exclude any salary increase
10described in subsection (g) of this Section given on or after
11July 1, 2011 but before July 1, 2014 under a contract or
12collective bargaining agreement entered into, amended, or
13renewed on or after June 1, 2005 but before July 1, 2011.
14Notwithstanding any other provision of this Section, any
15payments made or salary increases given after June 30, 2014
16shall be used in assessing payment for any amount due under
17subsection (f) of this Section.
18 (i) The System shall prepare a report and file copies of
19the report with the Governor and the General Assembly by
20January 1, 2007 that contains all of the following information:
21 (1) The number of recalculations required by the
22 changes made to this Section by Public Act 94-1057 for each
23 employer.
24 (2) The dollar amount by which each employer's
25 contribution to the System was changed due to
26 recalculations required by Public Act 94-1057.

HB3524- 170 -LRB101 07948 RPS 53003 b
1 (3) The total amount the System received from each
2 employer as a result of the changes made to this Section by
3 Public Act 94-4.
4 (4) The increase in the required State contribution
5 resulting from the changes made to this Section by Public
6 Act 94-1057.
7 (i-5) For school years beginning on or after July 1, 2017,
8if the amount of a participant's salary for any school year
9exceeds the amount of the salary set for the Governor, the
10participant's employer shall pay to the System, in addition to
11all other payments required under this Section and in
12accordance with guidelines established by the System, an amount
13determined by the System to be equal to the employer normal
14cost, as established by the System and expressed as a total
15percentage of payroll, multiplied by the amount of salary in
16excess of the amount of the salary set for the Governor. This
17amount shall be computed by the System on the basis of the
18actuarial assumptions and tables used in the most recent
19actuarial valuation of the System that is available at the time
20of the computation. The System may require the employer to
21provide any pertinent information or documentation.
22 Whenever it determines that a payment is or may be required
23under this subsection, the System shall calculate the amount of
24the payment and bill the employer for that amount. The bill
25shall specify the calculations used to determine the amount
26due. If the employer disputes the amount of the bill, it may,

HB3524- 171 -LRB101 07948 RPS 53003 b
1within 30 days after receipt of the bill, apply to the System
2in writing for a recalculation. The application must specify in
3detail the grounds of the dispute. Upon receiving a timely
4application for recalculation, the System shall review the
5application and, if appropriate, recalculate the amount due.
6 The employer contributions required under this subsection
7may be paid in the form of a lump sum within 90 days after
8receipt of the bill. If the employer contributions are not paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
15 (j) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19 As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26 (k) For purposes of determining the required State

HB3524- 172 -LRB101 07948 RPS 53003 b
1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4 (l) If Section 16-122.9 is determined to be
5unconstitutional or otherwise invalid by a final unappealable
6decision of an Illinois court or a court of competent
7jurisdiction, then the changes made to this Section by this
8amendatory Act of the 101st General Assembly shall not take
9effect and are repealed by operation of law.
10(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
11100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
128-14-18; revised 10-4-18.)
13 (40 ILCS 5/16-203)
14 Sec. 16-203. Application and expiration of new benefit
15increases.
16 (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from
23the changes made to Article 1 or this Article by Public Act
2495-910, Public Act 100-23, Public Act 100-587, Public Act
25100-743, Public Act 100-769, or this amendatory Act of the

HB3524- 173 -LRB101 07948 RPS 53003 b
1101st General Assembly or by this amendatory Act of the 100th
2General Assembly.
3 (b) Notwithstanding any other provision of this Code or any
4subsequent amendment to this Code, every new benefit increase
5is subject to this Section and shall be deemed to be granted
6only in conformance with and contingent upon compliance with
7the provisions of this Section.
8 (c) The Public Act enacting a new benefit increase must
9identify and provide for payment to the System of additional
10funding at least sufficient to fund the resulting annual
11increase in cost to the System as it accrues.
12 Every new benefit increase is contingent upon the General
13Assembly providing the additional funding required under this
14subsection. The Commission on Government Forecasting and
15Accountability shall analyze whether adequate additional
16funding has been provided for the new benefit increase and
17shall report its analysis to the Public Pension Division of the
18Department of Insurance. A new benefit increase created by a
19Public Act that does not include the additional funding
20required under this subsection is null and void. If the Public
21Pension Division determines that the additional funding
22provided for a new benefit increase under this subsection is or
23has become inadequate, it may so certify to the Governor and
24the State Comptroller and, in the absence of corrective action
25by the General Assembly, the new benefit increase shall expire
26at the end of the fiscal year in which the certification is

HB3524- 174 -LRB101 07948 RPS 53003 b
1made.
2 (d) Every new benefit increase shall expire 5 years after
3its effective date or on such earlier date as may be specified
4in the language enacting the new benefit increase or provided
5under subsection (c). This does not prevent the General
6Assembly from extending or re-creating a new benefit increase
7by law.
8 (e) Except as otherwise provided in the language creating
9the new benefit increase, a new benefit increase that expires
10under this Section continues to apply to persons who applied
11and qualified for the affected benefit while the new benefit
12increase was in effect and to the affected beneficiaries and
13alternate payees of such persons, but does not apply to any
14other person, including without limitation a person who
15continues in service after the expiration date and did not
16apply and qualify for the affected benefit while the new
17benefit increase was in effect.
18(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
19100-743, eff. 8-10-18; 100-769, eff. 8-10-18; revised
2010-15-18.)
21 (40 ILCS 5/17-106.05 new)
22 Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
23teacher under this Article who first became a member or
24participant before January 1, 2011 under any reciprocal
25retirement system or pension fund established under this Code

HB3524- 175 -LRB101 07948 RPS 53003 b
1other than a retirement system or pension fund established
2under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
3the purposes of the election under Section 17-115.5, "Tier 1
4employee" does not include a teacher under this Article who
5would qualify as a Tier 1 employee but who has made an
6irrevocable election on or before June 1, 2019 to retire from
7service pursuant to the terms of an employment contract or a
8collective bargaining agreement in effect on June 1, 2019,
9excluding any extension, amendment, or renewal of that
10agreement after that date, and has notified the Fund of that
11election.
12 (40 ILCS 5/17-113.4 new)
13 Sec. 17-113.4. Salary. "Salary" means any income in any
14form that qualifies as "average salary" or "annual rate of
15salary" for purposes of paragraph (1) of subsection (c) of
16Section 17-116 and "salary" for payroll deduction purposes
17under Sections 17-130, 17-131, and 17-132.
18 Notwithstanding any other provision of this Section,
19"salary" does not include any future increase in income that is
20offered by an employer for service as a Tier 1 employee under
21this Article pursuant to the condition set forth in subsection
22(c) of Section 17-115.5 and accepted under that condition by a
23Tier 1 employee who has made the election under paragraph (2)
24of subsection (a) of Section 17-115.5.

HB3524- 176 -LRB101 07948 RPS 53003 b
1 (40 ILCS 5/17-113.5 new)
2 Sec. 17-113.5. Future increase in income. "Future increase
3in income" means an increase to a Tier 1 employee's base pay
4that is offered by an employer to the Tier 1 employee for
5service under this Article after June 30, 2020 that qualifies
6as "salary", as defined in Section 17-113.4, or would qualify
7as "salary" but for the fact that it was offered to and
8accepted by the Tier 1 employee under the condition set forth
9in subsection (c) of Section 17-115.5. The term "future
10increase in income" includes an increase to a Tier 1 employee's
11base pay that is paid to the Tier 1 employee pursuant to an
12extension, amendment, or renewal of any employment contract or
13collective bargaining agreement after the effective date of
14this Section.
15 (40 ILCS 5/17-113.6 new)
16 Sec. 17-113.6. Base pay. As used in Section 17-113.5 of
17this Code, "base pay" means the greater of either (i) the Tier
181 employee's annualized rate of salary as of June 30, 2020, or
19(ii) the Tier 1 employee's annualized rate of salary
20immediately preceding the expiration, renewal, or amendment of
21an employment contract or collective bargaining agreement in
22effect on the effective date of this Section. For a person
23returning to active service as a Tier 1 employee after June 30,
242020, however, "base pay" means the employee's annualized rate
25of salary as of the employee's last date of service prior to

HB3524- 177 -LRB101 07948 RPS 53003 b
1July 1, 2020. The Fund shall calculate the base pay of each
2Tier 1 employee pursuant to this Section.
3 (40 ILCS 5/17-115.5 new)
4 Sec. 17-115.5. Election by Tier 1 employees.
5 (a) Each active Tier 1 employee shall make an irrevocable
6election either:
7 (1) to agree to delay his or her eligibility for
8 automatic annual increases in service retirement pension
9 as provided in Section 17-119.2 and to have the amount of
10 the automatic annual increases in his or her service
11 retirement pension and survivor's pension that are
12 otherwise provided for in this Article calculated,
13 instead, as provided in Section 17-119.2; or
14 (2) to not agree to paragraph (1) of this subsection.
15 The election required under this subsection (a) shall be
16made by each active Tier 1 employee no earlier than January 1,
172020 and no later than March 31, 2020, except that:
18 (i) a person who becomes a Tier 1 employee under this
19 Article on or after January 1, 2020 must make the election
20 under this subsection (a) within 60 days after becoming a
21 Tier 1 employee; and
22 (ii) a person who returns to active service as a Tier 1
23 employee under this Article on or after January 1, 2020 and
24 has not yet made an election under this Section must make
25 the election under this subsection (a) within 60 days after

HB3524- 178 -LRB101 07948 RPS 53003 b
1 returning to active service as a Tier 1 employee.
2 If a Tier 1 employee fails for any reason to make a
3required election under this subsection within the time
4specified, then the employee shall be deemed to have made the
5election under paragraph (2) of this subsection.
6 (a-5) If this Section is enjoined or stayed by an Illinois
7court or a court of competent jurisdiction pending the entry of
8a final and unappealable decision, and this Section is
9determined to be constitutional or otherwise valid by a final
10unappealable decision of an Illinois court or a court of
11competent jurisdiction, then the election procedure set forth
12in subsection (a) of this Section shall commence on the 180th
13calendar day after the date of the issuance of the final
14unappealable decision and shall conclude at the end of the
15270th calendar day after that date.
16 (a-10) All elections under subsection (a) that are made or
17deemed to be made before July 1, 2020 shall take effect on July
181, 2020. Elections that are made or deemed to be made on or
19after July 1, 2020 shall take effect on the first day of the
20month following the month in which the election is made or
21deemed to be made.
22 (b) As adequate and legal consideration provided under this
23amendatory Act of the 101st General Assembly for making an
24election under paragraph (1) of subsection (a) of this Section,
25an employer shall be expressly and irrevocably prohibited from
26offering any future increases in income to a Tier 1 employee

HB3524- 179 -LRB101 07948 RPS 53003 b
1who has made an election under paragraph (1) of subsection (a)
2of this Section on the condition of not constituting salary
3under Section 17-113.4.
4 As adequate and legal consideration provided under this
5amendatory Act of the 101st General Assembly for making an
6election under paragraph (1) of subsection (a) of this Section,
7each Tier 1 employee who has made an election under paragraph
8(1) of subsection (a) of this Section shall receive a
9consideration payment equal to 10% of the contributions made by
10or on behalf of the employee under Section 17-130 before the
11effective date of that election. The State Comptroller shall
12pay the consideration payment to the Tier 1 employee out of
13funds appropriated for that purpose under Section 1.10 of the
14State Pension Funds Continuing Appropriation Act. The Fund
15shall calculate the amount of each consideration payment and,
16by July 1, 2020, shall certify to the State Comptroller the
17amount of the consideration payment, together with the name,
18address, and any other available payment information of the
19Tier 1 employee as found in the records of the Fund. The Fund
20shall make additional calculations and certifications of
21consideration payments to the State Comptroller as the Fund
22deems necessary.
23 (c) A Tier 1 employee who makes the election under
24paragraph (2) of subsection (a) of this Section shall not be
25subject to paragraph (1) of subsection (a) of this Section.
26However, each future increase in income offered by an employer

HB3524- 180 -LRB101 07948 RPS 53003 b
1under this Article to a Tier 1 employee who has made the
2election under paragraph (2) of subsection (a) of this Section
3shall be offered by the employer expressly and irrevocably on
4the condition of not constituting salary under Section 17-113.4
5and that the Tier 1 employee's acceptance of the offered future
6increase in income shall constitute his or her agreement to
7that condition.
8 (d) The Fund shall make a good faith effort to contact each
9Tier 1 employee subject to this Section. The Fund shall mail
10information describing the required election to each Tier 1
11employee by United States Postal Service mail to his or her
12last known address on file with the Fund. If the Tier 1
13employee is not responsive to other means of contact, it is
14sufficient for the Fund to publish the details of any required
15elections on its website or to publish those details in a
16regularly published newsletter or other existing public forum.
17 Tier 1 employees who are subject to this Section shall be
18provided with an election packet containing information
19regarding their options, as well as the forms necessary to make
20the required election. Upon request, the Fund shall offer Tier
211 employees an opportunity to receive information from the Fund
22before making the required election. The information may
23consist of video materials, group presentations, individual
24consultation with a member or authorized representative of the
25Fund in person or by telephone or other electronic means, or
26any combination of those methods. The Fund shall not provide

HB3524- 181 -LRB101 07948 RPS 53003 b
1advice or counseling with respect to which election a Tier 1
2employee should make or specific to the legal or tax
3circumstances of or consequences to the Tier 1 employee.
4 The Fund shall inform Tier 1 employees in the election
5packet required under this subsection that the Tier 1 employee
6may also wish to obtain information and counsel relating to the
7election required under this Section from any other available
8source, including, but not limited to, labor organizations and
9private counsel.
10 In no event shall the Fund, its staff, or the Board be held
11liable for any information given to a member regarding the
12elections under this Section. The Fund shall coordinate with
13the Illinois Department of Central Management Services and each
14other retirement system administering an election in
15accordance with this amendatory Act of the 101st General
16Assembly to provide information concerning the impact of the
17election set forth in this Section.
18 (e) Notwithstanding any other provision of law, an employer
19under this Article is required to offer each future increase in
20income expressly and irrevocably on the condition of not
21constituting "salary" under Section 17-113.4 to any Tier 1
22employee who has made an election under paragraph (2) of
23subsection (a) of this Section. The offer shall also provide
24that the Tier 1 employee's acceptance of the offered future
25increase in income shall constitute his or her agreement to the
26condition set forth in this subsection.

HB3524- 182 -LRB101 07948 RPS 53003 b
1 For purposes of legislative intent, the condition set forth
2in this subsection shall be construed in a manner that ensures
3that the condition is not violated or circumvented through any
4contrivance of any kind.
5 (f) A member's election under this Section is not a
6prohibited election under subdivision (j)(1) of Section 1-119
7of this Code.
8 (g) No provision of this Section shall be interpreted in a
9way that would cause the Fund to cease to be a qualified plan
10under Section 401(a) of the Internal Revenue Code of 1986.
11 (h) If an election created by this amendatory Act in any
12other Article of this Code or any change deriving from that
13election is determined to be unconstitutional or otherwise
14invalid by a final unappealable decision of an Illinois court
15or a court of competent jurisdiction, the invalidity of that
16provision shall not in any way affect the validity of this
17Section or the changes deriving from the election required
18under this Section.
19 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
20 Sec. 17-116. Service retirement pension.
21 (a) Each teacher having 20 years of service upon attainment
22of age 55, or who thereafter attains age 55 shall be entitled
23to a service retirement pension upon or after attainment of age
2455; and each teacher in service on or after July 1, 1971, with
255 or more but less than 20 years of service shall be entitled

HB3524- 183 -LRB101 07948 RPS 53003 b
1to receive a service retirement pension upon or after
2attainment of age 62.
3 (b) The service retirement pension for a teacher who
4retires on or after June 25, 1971, at age 60 or over, shall be
5calculated as follows:
6 (1) For creditable service earned before July 1, 1998
7 that has not been augmented under Section 17-119.1: 1.67%
8 for each of the first 10 years of service; 1.90% for each
9 of the next 10 years of service; 2.10% for each year of
10 service in excess of 20 but not exceeding 30; and 2.30% for
11 each year of service in excess of 30, based upon average
12 salary as herein defined.
13 (2) For creditable service earned on or after July 1,
14 1998 by a member who has at least 30 years of creditable
15 service on July 1, 1998 and who does not elect to augment
16 service under Section 17-119.1: 2.3% of average salary for
17 each year of creditable service earned on or after July 1,
18 1998.
19 (3) For all other creditable service: 2.2% of average
20 salary for each year of creditable service.
21 (c) When computing such service retirement pensions, the
22following conditions shall apply:
23 1. Average salary shall consist of the average annual
24 rate of salary for the 4 consecutive years of validated
25 service within the last 10 years of service when such
26 average annual rate was highest. In the determination of

HB3524- 184 -LRB101 07948 RPS 53003 b
1 average salary for retirement allowance purposes, for
2 members who commenced employment after August 31, 1979,
3 that part of the salary for any year shall be excluded
4 which exceeds the annual full-time salary rate for the
5 preceding year by more than 20%. In the case of a member
6 who commenced employment before August 31, 1979 and who
7 receives salary during any year after September 1, 1983
8 which exceeds the annual full time salary rate for the
9 preceding year by more than 20%, an Employer and other
10 employers of eligible contributors as defined in Section
11 17-106 shall pay to the Fund an amount equal to the present
12 value of the additional service retirement pension
13 resulting from such excess salary. The present value of the
14 additional service retirement pension shall be computed by
15 the Board on the basis of actuarial tables adopted by the
16 Board. If a member elects to receive a pension from this
17 Fund provided by Section 20-121, his salary under the State
18 Universities Retirement System and the Teachers'
19 Retirement System of the State of Illinois shall be
20 considered in determining such average salary. Amounts
21 paid after the effective date of this amendatory Act of
22 1991 for unused vacation time earned after that effective
23 date shall not under any circumstances be included in the
24 calculation of average salary or the annual rate of salary
25 for the purposes of this Article.
26 2. Proportionate credit shall be given for validated

HB3524- 185 -LRB101 07948 RPS 53003 b
1 service of less than one year.
2 3. For retirement at age 60 or over the pension shall
3 be payable at the full rate.
4 4. For separation from service below age 60 to a
5 minimum age of 55, the pension shall be discounted at the
6 rate of 1/2 of one per cent for each month that the age of
7 the contributor is less than 60, but a teacher may elect to
8 defer the effective date of pension in order to eliminate
9 or reduce this discount. This discount shall not be
10 applicable to any participant who has at least 34 years of
11 service or a retirement pension of at least 74.6% of
12 average salary on the date the retirement annuity begins.
13 5. No additional pension shall be granted for service
14 exceeding 45 years. Beginning June 26, 1971 no pension
15 shall exceed the greater of $1,500 per month or 75% of
16 average salary as herein defined.
17 6. Service retirement pensions shall begin on the
18 effective date of resignation, retirement, the day
19 following the close of the payroll period for which service
20 credit was validated, or the time the person resigning or
21 retiring attains age 55, or on a date elected by the
22 teacher, whichever shall be latest; provided that, for a
23 person who first becomes a member after the effective date
24 of this amendatory Act of the 99th General Assembly, the
25 benefit shall not commence more than one year prior to the
26 date of the Fund's receipt of an application for the

HB3524- 186 -LRB101 07948 RPS 53003 b
1 benefit.
2 7. A member who is eligible to receive a retirement
3 pension of at least 74.6% of average salary and will attain
4 age 55 on or before December 31 during the year which
5 commences on July 1 shall be deemed to attain age 55 on the
6 preceding June 1.
7 8. A member retiring after the effective date of this
8 amendatory Act of 1998 shall receive a pension equal to 75%
9 of average salary if the member is qualified to receive a
10 retirement pension equal to at least 74.6% of average
11 salary under this Article or as proportional annuities
12 under Article 20 of this Code.
13 (d) Notwithstanding any other provision of this Section,
14annual salary does not include any future increase in income
15that is offered for service to a Tier 1 employee under this
16Article pursuant to the condition set forth in subsection (c)
17of Section 17-115.5 and accepted under that condition by a Tier
181 employee who has made the election under paragraph (2) of
19subsection (a) of Section 17-115.5.
20 Notwithstanding any other provision of this Section,
21annual salary does not include any consideration payment made
22to a Tier 1 employee.
23(Source: P.A. 99-702, eff. 7-29-16.)
24 (40 ILCS 5/17-119.2 new)
25 Sec. 17-119.2. Automatic annual increases in service

HB3524- 187 -LRB101 07948 RPS 53003 b
1retirement pension and survivor's pension for certain Tier 1
2employees. Notwithstanding any other provision of this
3Article, for a Tier 1 employee who made the election under
4paragraph (1) of subsection (a) of Section 17-115.5:
5 (1) The initial increase in service retirement pension
6 shall occur on the January 1 occurring either on or after
7 the attainment of age 67 or the fifth anniversary of the
8 pension start date, whichever is earlier.
9 (2) The amount of each automatic annual increase in
10 service retirement pension or survivor's pension occurring
11 on or after the effective date of that election shall be
12 calculated as a percentage of the originally granted
13 service retirement pension or survivor's pension, equal to
14 3% or one-half the annual unadjusted percentage increase
15 (but not less than zero) in the consumer price index-u for
16 the 12 months ending with the September preceding each
17 November 1, whichever is less. If the annual unadjusted
18 percentage change in the consumer price index-u for the 12
19 months ending with the September preceding each November 1
20 is zero or there is a decrease, then the annuity shall not
21 be increased.
22 For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

HB3524- 188 -LRB101 07948 RPS 53003 b
1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the Board by November 1 of
4each year.
5 (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
6 Sec. 17-129. Employer contributions; deficiency in Fund.
7 (a) If in any fiscal year of the Board of Education ending
8prior to 1997 the total amounts paid to the Fund from the Board
9of Education (other than under this subsection, and other than
10amounts used for making or "picking up" contributions on behalf
11of teachers) and from the State do not equal the total
12contributions made by or on behalf of the teachers for such
13year, or if the total income of the Fund in any such fiscal
14year of the Board of Education from all sources is less than
15the total such expenditures by the Fund for such year, the
16Board of Education shall, in the next succeeding year, in
17addition to any other payment to the Fund set apart and
18appropriate from moneys from its tax levy for educational
19purposes, a sum sufficient to remove such deficiency or
20deficiencies, and promptly pay such sum into the Fund in order
21to restore any of the reserves of the Fund that may have been
22so temporarily applied. Any amounts received by the Fund after
23December 4, 1997 from State appropriations, including under
24Section 17-127, shall be a credit against and shall fully
25satisfy any obligation that may have arisen, or be claimed to

HB3524- 189 -LRB101 07948 RPS 53003 b
1have arisen, under this subsection (a) as a result of any
2deficiency or deficiencies in the fiscal year of the Board of
3Education ending in calendar year 1997.
4 (b) (i) Notwithstanding any other provision of this
5Section, and notwithstanding any prior certification by the
6Board under subsection (c) for fiscal year 2011, the Board of
7Education's total required contribution to the Fund for fiscal
8year 2011 under this Section is $187,000,000.
9 (ii) Notwithstanding any other provision of this Section,
10the Board of Education's total required contribution to the
11Fund for fiscal year 2012 under this Section is $192,000,000.
12 (iii) Notwithstanding any other provision of this Section,
13the Board of Education's total required contribution to the
14Fund for fiscal year 2013 under this Section is $196,000,000.
15 (iv) For fiscal years 2014 through 2059, the minimum
16contribution to the Fund to be made by the Board of Education
17in each fiscal year shall be an amount determined by the Fund
18to be sufficient to bring the total assets of the Fund up to
1990% of the total actuarial liabilities of the Fund by the end
20of fiscal year 2059. In making these determinations, the
21required Board of Education contribution shall be calculated
22each year as a level percentage of the applicable employee
23payrolls over the years remaining to and including fiscal year
242059 and shall be determined under the projected unit credit
25actuarial cost method.
26 (v) Beginning in fiscal year 2060, the minimum Board of

HB3524- 190 -LRB101 07948 RPS 53003 b
1Education contribution for each fiscal year shall be the amount
2needed to maintain the total assets of the Fund at 90% of the
3total actuarial liabilities of the Fund.
4 (vi) Notwithstanding any other provision of this
5subsection (b), for any fiscal year, the contribution to the
6Fund from the Board of Education shall not be required to be in
7excess of the amount calculated as needed to maintain the
8assets (or cause the assets to be) at the 90% level by the end
9of the fiscal year.
10 (vii) Any contribution by the State to or for the benefit
11of the Fund, including, without limitation, as referred to
12under Section 17-127, shall be a credit against any
13contribution required to be made by the Board of Education
14under this subsection (b).
15 (c) The Board shall determine the amount of Board of
16Education contributions required for each fiscal year on the
17basis of the actuarial tables and other assumptions adopted by
18the Board and the recommendations of the actuary, in order to
19meet the minimum contribution requirements of subsections (a)
20and (b). Annually, on or before February 28, the Board shall
21certify to the Board of Education the amount of the required
22Board of Education contribution for the coming fiscal year. The
23certification shall include a copy of the actuarial
24recommendations upon which it is based.
25 (d) On or before May 1, 2020, the Board shall recalculate
26and recertify to the Board of Education the amount of the

HB3524- 191 -LRB101 07948 RPS 53003 b
1required Board of Education contribution to the Fund for fiscal
2year 2021, taking into account the effect on the Fund's
3liabilities of the elections made under Section 17-115.5.
4(Source: P.A. 96-889, eff. 4-14-10.)
5 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
6 Sec. 17-130. Participants' contributions by payroll
7deductions.
8 (a) Except as provided in subsection (a-5), there There
9shall be deducted from the salary of each teacher 7.50% of his
10salary for service or disability retirement pension and 0.5% of
11salary for the annual increase in base pension.
12 In addition, there shall be deducted from the salary of
13each teacher 1% of his salary for survivors' and children's
14pensions.
15 (a-5) Beginning on July 1, 2020 or the effective date of
16the Tier 1 employee's election under paragraph (1) of Section
1717-115.5, whichever is later, in lieu of the contributions
18otherwise required under subsection (a), each Tier 1 employee
19who made the election under paragraph (1) of Section 17-115.5
20shall make contributions of 7.50% of salary for service or
21disability retirement pension and 0.6% of salary for survivors'
22and children's pensions.
23 (b) An Employer and any employer of eligible contributors
24as defined in Section 17-106 is authorized to make the
25necessary deductions from the salaries of its teachers. Such

HB3524- 192 -LRB101 07948 RPS 53003 b
1amounts shall be included as a part of the Fund. An Employer
2and any employer of eligible contributors as defined in Section
317-106 shall formulate such rules and regulations as may be
4necessary to give effect to the provisions of this Section.
5 (c) All persons employed as teachers shall, by such
6employment, accept the provisions of this Article and of
7Sections 34-83 to 34-85, inclusive, of "The School Code",
8approved March 18, 1961, as amended, and thereupon become
9contributors to the Fund in accordance with the terms thereof.
10The provisions of this Article and of those Sections shall
11become a part of the contract of employment.
12 (d) A person who (i) was a member before July 1, 1998, (ii)
13retires with more than 34 years of creditable service, and
14(iii) does not elect to qualify for the augmented rate under
15Section 17-119.1 shall be entitled, at the time of retirement,
16to receive a partial refund of contributions made under this
17Section for service occurring after the later of June 30, 1998
18or attainment of 34 years of creditable service, in an amount
19equal to 1.00% of the salary upon which those contributions
20were based.
21(Source: P.A. 97-8, eff. 6-13-11.)
22 Section 40. The State Pension Funds Continuing
23Appropriation Act is amended by adding Section 1.10 as follows:
24 (40 ILCS 15/1.10 new)

HB3524- 193 -LRB101 07948 RPS 53003 b
1 Sec. 1.10. Appropriation for consideration payment. There
2is hereby appropriated from the General Revenue Fund to the
3State Comptroller, on a continuing basis, all amounts necessary
4for the payment of consideration payments under subsection (b)
5of Sections 2-110.3, 14-106.5, 15-132.9, 16-122.9, and
617-115.5 of the Illinois Pension Code, in the amounts certified
7to the State Comptroller by the respective retirement system or
8pension fund.
9 Section 45. The School Code is amended by changing Sections
1024-1, 24-8, and 34-18.61 as follows:
11 (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
12 Sec. 24-1. Appointment-Salaries-Payment-School
13month-School term.) School boards shall appoint all teachers,
14determine qualifications of employment and fix the amount of
15their salaries subject to any limitation set forth in this Act
16and subject to any applicable restrictions in Section 16-122.9
17of the Illinois Pension Code. They shall pay the wages of
18teachers monthly, subject, however, to the provisions of
19Section 24-21. The school month shall be the same as the
20calendar month but by resolution the school board may adopt for
21its use a month of 20 days, including holidays. The school term
22shall consist of at least the minimum number of pupil
23attendance days required by Section 10-19, any additional legal
24school holidays, days of teachers' institutes, or equivalent

HB3524- 194 -LRB101 07948 RPS 53003 b
1professional educational experiences, and one or two days at
2the beginning of the school term when used as a teachers'
3workshop.
4(Source: P.A. 80-249.)
5 (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
6 Sec. 24-8. Minimum salary. In fixing the salaries of
7teachers, school boards shall pay those who serve on a
8full-time basis not less than a rate for the school year that
9is based upon training completed in a recognized institution of
10higher learning, as follows: for the school year beginning July
111, 1980 and thereafter, less than a bachelor's degree, $9,000;
12120 semester hours or more and a bachelor's degree, $10,000;
13150 semester hours or more and a master's degree, $11,000.
14 Based upon previous public school experience in this State
15or any other state, territory, dependency or possession of the
16United States, or in schools operated by or under the auspices
17of the United States, teachers who serve on a full-time basis
18shall have their salaries increased to at least the following
19amounts above the starting salary for a teacher in such
20district in the same classification: with less than a
21bachelor's degree, $750 after 5 years; with 120 semester hours
22or more and a bachelor's degree, $1,000 after 5 years and
23$1,600 after 8 years; with 150 semester hours or more and a
24master's degree, $1,250 after 5 years, $2,000 after 8 years and
25$2,750 after 13 years. However, any salary increase is subject

HB3524- 195 -LRB101 07948 RPS 53003 b
1to any applicable restrictions in Section 16-122.9 of the
2Illinois Pension Code.
3 For the purpose of this Section a teacher's salary shall
4include any amount paid by the school district on behalf of the
5teacher, as teacher contributions, to the Teachers' Retirement
6System of the State of Illinois.
7 If a school board establishes a schedule for teachers'
8salaries based on education and experience, not inconsistent
9with this Section, all certificated nurses employed by that
10board shall be paid in accordance with the provisions of such
11schedule (subject to any applicable restrictions in Section
1216-122.9 of the Illinois Pension Code).
13 For purposes of this Section, a teacher who submits a
14certificate of completion to the school office prior to the
15first day of the school term shall be considered to have the
16degree stated in such certificate.
17(Source: P.A. 83-913.)
18 (105 ILCS 5/34-18.61 new)
19 Sec. 34-18.61. Future increase in income. The Board of
20Education must not pay, offer, or agree to pay any future
21increase in income, as that term is defined in Section 17-113.5
22of the Illinois Pension Code, to any person in a manner that
23violates Section 17-115.5 of the Illinois Pension Code.
24 Section 50. The State Universities Civil Service Act is

HB3524- 196 -LRB101 07948 RPS 53003 b
1amended by changing Section 36d as follows:
2 (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
3 Sec. 36d. Powers and duties of the Merit Board. The Merit
4Board shall have the power and duty:
5 (1) To approve a classification plan prepared under its
6 direction, assigning to each class positions of
7 substantially similar duties. The Merit Board shall have
8 power to delegate to its Executive Director the duty of
9 assigning each position in the classified service to the
10 appropriate class in the classification plan approved by
11 the Merit Board.
12 (2) To prescribe the duties of each class of positions
13 and the qualifications required by employment in that
14 class.
15 (3) To prescribe the range of compensation for each
16 class or to fix a single rate of compensation for employees
17 in a particular class; and to establish other conditions of
18 employment which an employer and employee representatives
19 have agreed upon as fair and equitable. The Merit Board
20 shall direct the payment of the "prevailing rate of wages"
21 in those classifications in which, on January 1, 1952, any
22 employer is paying such prevailing rate and in such other
23 classes as the Merit Board may thereafter determine.
24 "Prevailing rate of wages" as used herein shall be the
25 wages paid generally in the locality in which the work is

HB3524- 197 -LRB101 07948 RPS 53003 b
1 being performed to employees engaged in work of a similar
2 character. Subject to any applicable restrictions in
3 Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois
4 Pension Code, each Each employer covered by the University
5 System shall be authorized to negotiate with
6 representatives of employees to determine appropriate
7 ranges or rates of compensation or other conditions of
8 employment and may recommend to the Merit Board for
9 establishment the rates or ranges or other conditions of
10 employment which the employer and employee representatives
11 have agreed upon as fair and equitable, but excluding the
12 changes, the impact of changes, and the implementation of
13 the changes set forth in this amendatory Act of the 101st
14 General Assembly. Any rates or ranges established prior to
15 January 1, 1952, and hereafter, shall not be changed except
16 in accordance with the procedures herein provided.
17 (4) To recommend to the institutions and agencies
18 specified in Section 36e standards for hours of work,
19 holidays, sick leave, overtime compensation and vacation
20 for the purpose of improving conditions of employment
21 covered therein and for the purpose of insuring conformity
22 with the prevailing rate principal.
23 (5) To prescribe standards of examination for each
24 class, the examinations to be related to the duties of such
25 class. The Merit Board shall have power to delegate to the
26 Executive Director and his or her staff the preparation,

HB3524- 198 -LRB101 07948 RPS 53003 b
1 conduct and grading of examinations.
2 (6) To authorize the continuous recruitment of
3 personnel and to that end, to delegate to the Executive
4 Director and his or her staff the power and the duty to
5 conduct open and continuous competitive examinations for
6 all classifications of employment.
7 (7) To cause to be established, from the results of
8 examinations, registers for each class of positions in the
9 classified service of the University System of the persons
10 who shall attain the minimum mark fixed by the Merit Board
11 for the examination; and such persons shall take rank upon
12 the registers as candidates in the order of their relative
13 excellence as determined by examination, without reference
14 to priority of time of examination.
15 (8) To provide by its rules for promotions in the
16 classified service.
17 (8.5) To issue subpoenas to secure the attendance and
18 testimony of witnesses and the production of books and
19 papers in the course of any investigation or hearing
20 conducted pursuant to the Act.
21 (9) (Blank).
22 (10) To provide by its rules for employment at regular
23 rates of compensation of persons with physical
24 disabilities in positions in which the disability does not
25 prevent the individual from furnishing satisfactory
26 service.

HB3524- 199 -LRB101 07948 RPS 53003 b
1 (11) To make and publish rules to carry out the purpose
2 of the University System and for examination,
3 appointments, transfers and removals and for maintaining
4 and keeping records of the efficiency of officers and
5 employees and groups of officers and employees in
6 accordance with the provisions of Sections 36b to 36q,
7 inclusive, and said Merit Board may from time to time make
8 changes in such rules.
9 (12) To appoint an Executive Director who shall appoint
10 staff to help as may be necessary efficiently to administer
11 Sections 36b to 36q, inclusive. To authorize the Executive
12 Director to appoint a Designated Employer Representative
13 at the place of employment of each employer specified in
14 Section 36e, and this Designated Employer Representative
15 may be authorized to give examinations and to certify names
16 from the regional registers provided in Section 36k. The
17 enumeration of specific duties and powers that the Merit
18 Board may delegate to the Executive Director in this
19 Section does not preclude the Merit Board from delegating
20 other duties and powers to the Executive Director.
21 (13) To submit to the Governor of this state on or
22 before November 1 of each year prior to the regular session
23 of the General Assembly a report of the University System's
24 business and an estimate of the amount of appropriation
25 from state funds required for the purpose of administering
26 the University System.

HB3524- 200 -LRB101 07948 RPS 53003 b
1 (14) To authorize the creation and use of pilot
2 programs to further the goals of the Act, which may be
3 inconsistent with any rules adopted by the Merit Board,
4 provided that such programs are of limited duration and do
5 not reduce any rights or benefits of employees subject to
6 this Act.
7(Source: P.A. 99-143, eff. 7-27-15; 100-615, eff. 1-1-19.)
8 Section 55. The University of Illinois Act is amended by
9adding Section 105 as follows:
10 (110 ILCS 305/105 new)
11 Sec. 105. Future increases in income. The University of
12Illinois must not pay, offer, or agree to pay any future
13increase in income, as that term is defined in Section
1414-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
15to any person in a manner that violates Section 14-106.5,
1615-132.9, or 16-122.9 of the Illinois Pension Code.
17 Section 65. The Southern Illinois University Management
18Act is amended by adding Section 90 as follows:
19 (110 ILCS 520/90 new)
20 Sec. 90. Future increases in income. Southern Illinois
21University must not pay, offer, or agree to pay any future
22increase in income, as that term is defined in Section

HB3524- 201 -LRB101 07948 RPS 53003 b
114-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
2to any person in a manner that violates Section 14-106.5,
315-132.9, or 16-122.9 of the Illinois Pension Code.
4 Section 70. The Chicago State University Law is amended by
5adding Section 5-200 as follows:
6 (110 ILCS 660/5-200 new)
7 Sec. 5-200. Future increases in income. Chicago State
8University must not pay, offer, or agree to pay any future
9increase in income, as that term is defined in Section
1014-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
11to any person in a manner that violates Section 14-106.5,
1215-132.9, or 16-122.9 of the Illinois Pension Code.
13 Section 75. The Eastern Illinois University Law is amended
14by adding Section 10-200 as follows:
15 (110 ILCS 665/10-200 new)
16 Sec. 10-200. Future increases in income. Eastern Illinois
17University must not pay, offer, or agree to pay any future
18increase in income, as that term is defined in Section
1914-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
20to any person in a manner that violates Section 14-106.5,
2115-132.9, or 16-122.9 of the Illinois Pension Code.

HB3524- 202 -LRB101 07948 RPS 53003 b
1 Section 80. The Governors State University Law is amended
2by adding Section 15-200 as follows:
3 (110 ILCS 670/15-200 new)
4 Sec. 15-200. Future increases in income. Governors State
5University must not pay, offer, or agree to pay any future
6increase in income, as that term is defined in Section
714-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
8to any person in a manner that violates Section 14-106.5,
915-132.9, or 16-122.9 of the Illinois Pension Code.
10 Section 85. The Illinois State University Law is amended by
11adding Section 20-205 as follows:
12 (110 ILCS 675/20-205 new)
13 Sec. 20-205. Future increases in income. Illinois State
14University must not pay, offer, or agree to pay any future
15increase in income, as that term is defined in Section
1614-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
17to any person in a manner that violates Section 14-106.5,
1815-132.9, or 16-122.9 of the Illinois Pension Code.
19 Section 90. The Northeastern Illinois University Law is
20amended by adding Section 25-200 as follows:
21 (110 ILCS 680/25-200 new)

HB3524- 203 -LRB101 07948 RPS 53003 b
1 Sec. 25-200. Future increases in income. Northeastern
2Illinois University must not pay, offer, or agree to pay any
3future increase in income, as that term is defined in Section
414-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
5to any person in a manner that violates Section 14-106.5,
615-132.9, or 16-122.9 of the Illinois Pension Code.
7 Section 95. The Northern Illinois University Law is amended
8by adding Section 30-210 as follows:
9 (110 ILCS 685/30-210 new)
10 Sec. 30-210. Future increases in income. Northern Illinois
11University must not pay, offer, or agree to pay any future
12increase in income, as that term is defined in Section
1314-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,
14to any person in a manner that violates Section 14-106.5,
1515-132.9, or 16-122.9 of the Illinois Pension Code.
16 Section 100. The Western Illinois University Law is amended
17by adding Section 35-205 as follows:
18 (110 ILCS 690/35-205 new)
19 Sec. 35-205. Future increases in income. Western Illinois
20University must not pay, offer, or agree to pay any future
21increase in income, as that term is defined in Section
2214-103.43, 15-112.1, or 16-121.1 of the Illinois Pension Code,

HB3524- 204 -LRB101 07948 RPS 53003 b
1to any person in a manner that violates Section 14-106.5,
215-132.9, or 16-122.9 of the Illinois Pension Code.
3 Section 105. The Public Community College Act is amended by
4changing Sections 3-26 and 3-42 as follows:
5 (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
6 Sec. 3-26. (a) To make appointments and fix the salaries of
7a chief administrative officer, who shall be the executive
8officer of the board, other administrative personnel, and all
9teachers, but subject to any applicable restrictions in Section
1014-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code.
11In making these appointments and fixing the salaries, the board
12may make no discrimination on account of sex, race, creed,
13color or national origin.
14 (b) Upon the written request of an employee, to withhold
15from the compensation of that employee the membership dues of
16such employee payable to any specified labor organization as
17defined in the Illinois Educational Labor Relations Act. Under
18such arrangement, an amount shall be withheld for each regular
19payroll period which is equal to the prorata share of the
20annual membership dues plus any payments or contributions and
21the board shall pay such withholding to the specified labor
22organization within 10 working days from the time of the
23withholding.
24(Source: P.A. 83-1014.)

HB3524- 205 -LRB101 07948 RPS 53003 b
1 (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
2 Sec. 3-42. To employ such personnel as may be needed, to
3establish policies governing their employment and dismissal,
4and to fix the amount of their compensation, subject to any
5applicable restrictions in Section 14-106.5, 15-132.9, or
616-122.9 of the Illinois Pension Code. In the employment,
7establishment of policies and fixing of compensation the board
8may make no discrimination on account of sex, race, creed,
9color or national origin.
10 Residence within any community college district or outside
11any community college district shall not be considered:
12 (a) in determining whether to retain or not retain any
13 employee of a community college employed prior to July 1,
14 1977 or prior to the adoption by the community college
15 board of a resolution making residency within the community
16 college district of some or all employees a condition of
17 employment, whichever is later;
18 (b) in assigning, promoting or transferring any
19 employee of a community college to an office or position
20 employed prior to July 1, 1977 or prior to the adoption by
21 the community college board of a resolution making
22 residency within the community college district of some or
23 all employees a condition of employment, whichever is
24 later; or
25 (c) in determining the salary or other compensation of

HB3524- 206 -LRB101 07948 RPS 53003 b
1 any employee of a community college.
2(Source: P.A. 80-248.)
3 Section 110. The Illinois Educational Labor Relations Act
4is amended by changing Sections 4, 14, and 17 and by adding
5Section 10.6 as follows:
6 (115 ILCS 5/4) (from Ch. 48, par. 1704)
7 Sec. 4. Employer rights. Employers shall not be required to
8bargain over matters of inherent managerial policy, which shall
9include such areas of discretion or policy as the functions of
10the employer, standards of services, its overall budget, the
11organizational structure and selection of new employees and
12direction of employees. Employers, however, shall be required
13to bargain collectively with regard to policy matters directly
14affecting wages (but subject to any applicable restrictions in
15Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the
16Illinois Pension Code), hours and terms and conditions of
17employment as well as the impact thereon upon request by
18employee representatives, but excluding the changes, the
19impact of changes, and the implementation of the changes set
20forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of
21the Illinois Pension Code. To preserve the rights of employers
22and exclusive representatives which have established
23collective bargaining relationships or negotiated collective
24bargaining agreements prior to the effective date of this Act,

HB3524- 207 -LRB101 07948 RPS 53003 b
1employers shall be required to bargain collectively with regard
2to any matter concerning wages (but subject to any applicable
3restrictions in Section 14-106.5, 15-132.9, 16-122.9, or
417-115.5 of the Illinois Pension Code), hours or conditions of
5employment about which they have bargained for and agreed to in
6a collective bargaining agreement prior to the effective date
7of this Act, but excluding the changes, the impact of changes,
8and the implementation of the changes set forth in Section
914-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
10Pension Code.
11(Source: P.A. 83-1014.)
12 (115 ILCS 5/10.6 new)
13 Sec. 10.6. No collective bargaining or interest
14arbitration regarding certain changes to the Illinois Pension
15Code.
16 (a) Notwithstanding any other provision of this Act,
17employers shall not be required to bargain over matters
18affected by the changes, the impact of the changes, and the
19implementation of the changes to Article 14, 15, 16, or 17 of
20the Illinois Pension Code made by the addition of Section
2114-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
22Pension Code, which are deemed to be prohibited subjects of
23bargaining. Notwithstanding any provision of this Act, the
24changes, impact of the changes, or implementation of the
25changes to Article 14, 15, 16, or 17 of the Illinois Pension

HB3524- 208 -LRB101 07948 RPS 53003 b
1Code made by the addition of Section 14-106.5, 15-132.9,
216-122.9, or 17-115.5 of the Illinois Pension Code shall not be
3subject to interest arbitration or any award issued pursuant to
4interest arbitration. The provisions of this Section shall not
5apply to an employment contract or collective bargaining
6agreement that is in effect on the effective date of this
7amendatory Act of the 101st General Assembly. However, any such
8contract or agreement that is modified, amended, renewed, or
9superseded after the effective date of this amendatory Act of
10the 101st General Assembly shall be subject to the provisions
11of this Section. The provisions of this Section shall not apply
12to the ability of any employer and employee representative to
13bargain collectively with regard to the pick up of employee
14contributions pursuant to Section 14-133.1, 15-157.1,
1516-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
16 (b) Nothing in this Section shall be construed as otherwise
17limiting any of the obligations and requirements applicable to
18employers under any of the provisions of this Act, including,
19but not limited to, the requirement to bargain collectively
20with regard to policy matters directly affecting wages, hours,
21and terms and conditions of employment as well as the impact
22thereon upon request by employee representatives, except for
23the matters set forth in subsection (a) of this Section that
24are deemed prohibited subjects of bargaining. Nothing in this
25Section shall be construed as otherwise limiting any of the
26rights of employees or employee representatives under the

HB3524- 209 -LRB101 07948 RPS 53003 b
1provisions of this Act, except for the matters set forth in
2subsection (a) of this Section that are deemed prohibited
3subjects of bargaining.
4 (c) In case of any conflict between this Section and any
5other provisions of this Act or any other law, the provisions
6of this Section shall control.
7 (115 ILCS 5/14) (from Ch. 48, par. 1714)
8 Sec. 14. Unfair labor practices.
9 (a) Educational employers, their agents or representatives
10are prohibited from:
11 (1) Interfering, restraining or coercing employees in
12 the exercise of the rights guaranteed under this Act.
13 (2) Dominating or interfering with the formation,
14 existence or administration of any employee organization.
15 (3) Discriminating in regard to hire or tenure of
16 employment or any term or condition of employment to
17 encourage or discourage membership in any employee
18 organization.
19 (4) Discharging or otherwise discriminating against an
20 employee because he or she has signed or filed an
21 affidavit, authorization card, petition or complaint or
22 given any information or testimony under this Act.
23 (5) Subject to and except as provided in Section 10.6,
24 refusing Refusing to bargain collectively in good faith
25 with an employee representative which is the exclusive

HB3524- 210 -LRB101 07948 RPS 53003 b
1 representative of employees in an appropriate unit,
2 including but not limited to the discussing of grievances
3 with the exclusive representative; provided, however, that
4 if an alleged unfair labor practice involves
5 interpretation or application of the terms of a collective
6 bargaining agreement and said agreement contains a
7 grievance and arbitration procedure, the Board may defer
8 the resolution of such dispute to the grievance and
9 arbitration procedure contained in said agreement.
10 However, no actions of the employer taken to implement or
11 otherwise comply with the provisions of subsection (a) of
12 Section 10.6 shall constitute or give rise to an unfair
13 labor practice under this Act.
14 (6) Refusing to reduce a collective bargaining
15 agreement to writing and signing such agreement.
16 (7) Violating any of the rules and regulations
17 promulgated by the Board regulating the conduct of
18 representation elections.
19 (8) Refusing to comply with the provisions of a binding
20 arbitration award.
21 (9) Expending or causing the expenditure of public
22 funds to any external agent, individual, firm, agency,
23 partnership or association in any attempt to influence the
24 outcome of representational elections held pursuant to
25 paragraph (c) of Section 7 of this Act; provided, that
26 nothing in this subsection shall be construed to limit an

HB3524- 211 -LRB101 07948 RPS 53003 b
1 employer's right to be represented on any matter pertaining
2 to unit determinations, unfair labor practice charges or
3 pre-election conferences in any formal or informal
4 proceeding before the Board, or to seek or obtain advice
5 from legal counsel. Nothing in this paragraph shall be
6 construed to prohibit an employer from expending or causing
7 the expenditure of public funds on, or seeking or obtaining
8 services or advice from, any organization, group or
9 association established by, and including educational or
10 public employers, whether or not covered by this Act, the
11 Illinois Public Labor Relations Act or the public
12 employment labor relations law of any other state or the
13 federal government, provided that such services or advice
14 are generally available to the membership of the
15 organization, group, or association, and are not offered
16 solely in an attempt to influence the outcome of a
17 particular representational election.
18 (b) Employee organizations, their agents or
19representatives or educational employees are prohibited from:
20 (1) Restraining or coercing employees in the exercise
21 of the rights guaranteed under this Act, provided that a
22 labor organization or its agents shall commit an unfair
23 labor practice under this paragraph in duty of fair
24 representation cases only by intentional misconduct in
25 representing employees under this Act.
26 (2) Restraining or coercing an educational employer in

HB3524- 212 -LRB101 07948 RPS 53003 b
1 the selection of his representative for the purposes of
2 collective bargaining or the adjustment of grievances.
3 (3) Refusing to bargain collectively in good faith with
4 an educational employer, if they have been designated in
5 accordance with the provisions of this Act as the exclusive
6 representative of employees in an appropriate unit.
7 (4) Violating any of the rules and regulations
8 promulgated by the Board regulating the conduct of
9 representation elections.
10 (5) Refusing to reduce a collective bargaining
11 agreement to writing and signing such agreement.
12 (6) Refusing to comply with the provisions of a binding
13 arbitration award.
14 (c) The expressing of any views, argument, opinion or the
15dissemination thereof, whether in written, printed, graphic or
16visual form, shall not constitute or be evidence of an unfair
17labor practice under any of the provisions of this Act, if such
18expression contains no threat of reprisal or force or promise
19of benefit.
20 (d) The actions of a Financial Oversight Panel created
21pursuant to Section 1A-8 of the School Code due to a district
22violating a financial plan shall not constitute or be evidence
23of an unfair labor practice under any of the provisions of this
24Act. Such actions include, but are not limited to, reviewing,
25approving, or rejecting a school district budget or a
26collective bargaining agreement.

HB3524- 213 -LRB101 07948 RPS 53003 b
1(Source: P.A. 89-572, eff. 7-30-96.)
2 (115 ILCS 5/17) (from Ch. 48, par. 1717)
3 Sec. 17. Effect on other laws. In case of any conflict
4between the provisions of this Act and any other law (other
5than Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the
6Illinois Pension Code), executive order or administrative
7regulation, the provisions of this Act shall prevail and
8control. The provisions of this Act are subject to any
9applicable restrictions in Section 14-106.5, 15-132.9,
1016-122.9, or 17-115.5 of the Illinois Pension Code, as well as
11the changes, impact of changes, and implementation of changes
12set forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5
13of the Illinois Pension Code. Nothing in this Act shall be
14construed to replace or diminish the rights of employees
15established by Section 36d of "An Act to create the State
16Universities Civil Service System", approved May 11, 1905, as
17amended or modified.
18(Source: P.A. 83-1014.)
19 Section 900. The State Mandates Act is amended by adding
20Section 8.43 as follows:
21 (30 ILCS 805/8.43 new)
22 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the

HB3524- 214 -LRB101 07948 RPS 53003 b
1implementation of any mandate created by this amendatory Act of
2the 101st General Assembly.
3 Section 970. Severability. Except as otherwise provided in
4this Act, the provisions of this Act are severable under
5Section 1.31 of the Statute on Statutes.
6 Section 999. Effective date. This Act takes effect upon
7becoming law.

HB3524- 215 -LRB101 07948 RPS 53003 b
1 INDEX
2 Statutes amended in order of appearance
3 5 ILCS 315/7.6 new
4 5 ILCS 315/10from Ch. 48, par. 1610
5 5 ILCS 315/15from Ch. 48, par. 1615
6 15 ILCS 205/5 new
7 15 ILCS 310/13a new
8 15 ILCS 410/13a new
9 15 ILCS 510/12a new
10 20 ILCS 5/5-647 new
11 40 ILCS 5/2-105.3 new
12 40 ILCS 5/2-107.9 new
13 40 ILCS 5/2-107.10 new
14 40 ILCS 5/2-108from Ch. 108 1/2, par. 2-108
15 40 ILCS 5/2-110.3 new
16 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
17 40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
18 40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
19 40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
20 40 ILCS 5/2-162
21 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
22 40 ILCS 5/14-103.42 new
23 40 ILCS 5/14-103.43 new
24 40 ILCS 5/14-103.44 new
25 40 ILCS 5/14-106.5 new

HB3524- 216 -LRB101 07948 RPS 53003 b
1 40 ILCS 5/14-114from Ch. 108 1/2, par. 14-114
2 40 ILCS 5/14-131
3 40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
4 40 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.08
5 40 ILCS 5/14-152.1
6 40 ILCS 5/15-108.1
7 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8 40 ILCS 5/15-112.1 new
9 40 ILCS 5/15-112.2 new
10 40 ILCS 5/15-132.9 new
11 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
12 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
13 40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
14 40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
15 40 ILCS 5/15-198
16 40 ILCS 5/16-107.1 new
17 40 ILCS 5/16-121from Ch. 108 1/2, par. 16-121
18 40 ILCS 5/16-121.1 new
19 40 ILCS 5/16-121.2 new
20 40 ILCS 5/16-122.9 new
21 40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
22 40 ILCS 5/16-136.1from Ch. 108 1/2, par. 16-136.1
23 40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
24 40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
25 40 ILCS 5/16-203
26 40 ILCS 5/17-106.05 new

HB3524- 217 -LRB101 07948 RPS 53003 b
1 40 ILCS 5/17-113.4 new
2 40 ILCS 5/17-113.5 new
3 40 ILCS 5/17-113.6 new
4 40 ILCS 5/17-115.5 new
5 40 ILCS 5/17-116from Ch. 108 1/2, par. 17-116
6 40 ILCS 5/17-119.2 new
7 40 ILCS 5/17-129from Ch. 108 1/2, par. 17-129
8 40 ILCS 5/17-130from Ch. 108 1/2, par. 17-130
9 40 ILCS 15/1.10 new
10 105 ILCS 5/24-1from Ch. 122, par. 24-1
11 105 ILCS 5/24-8from Ch. 122, par. 24-8
12 105 ILCS 5/34-18.61 new
13 110 ILCS 70/36dfrom Ch. 24 1/2, par. 38b3
14 110 ILCS 305/105 new
15 110 ILCS 520/90 new
16 110 ILCS 660/5-200 new
17 110 ILCS 665/10-200 new
18 110 ILCS 670/15-200 new
19 110 ILCS 675/20-205 new
20 110 ILCS 680/25-200 new
21 110 ILCS 685/30-210 new
22 110 ILCS 690/35-205 new
23 110 ILCS 805/3-26from Ch. 122, par. 103-26
24 110 ILCS 805/3-42from Ch. 122, par. 103-42
25 115 ILCS 5/4from Ch. 48, par. 1704
26 115 ILCS 5/10.6 new

HB3524- 218 -LRB101 07948 RPS 53003 b