Bill Text: IL HB4673 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increases for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, and changing the calculation of final average salary and the retirement age for certain persons. Makes changes concerning eligibility for the alternative retirement annuity under the State Employees Article. Adopts the Retirement Systems Reciprocal Act (Article 20 of the Code) for the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under IMRF for certain persons. Makes changes to the funding formula for the 5 State-funded retirement systems and the downstate police and downstate firefighter pension funds. Makes changes to the retirement age under the Downstate Firefighter Article. Establishes a deferred retirement option plan under the Chicago Police Article and the Downstate Police Article. Makes other changes. Amends the Budget Stabilization Act to make transfers to the Pension Stabilization Fund for fiscal years 2030 through 2049. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the State Treasurer and the State Comptroller shall transfer $250,000,000 to the Pension Unfunded Liability Reduction Fund, which shall be used for making additional contributions to the 5 State-funded retirement systems and the Chicago Teachers' Pension Fund, and $250,000,000 to the Local Government Distributive Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4673 Detail]

Download: Illinois-2025-HB4673-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4673 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increases for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, and changing the calculation of final average salary and the retirement age for certain persons. Makes changes concerning eligibility for the alternative retirement annuity under the State Employees Article. Adopts the Retirement Systems Reciprocal Act (Article 20 of the Code) for the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under IMRF for certain persons. Makes changes to the funding formula for the 5 State-funded retirement systems and the downstate police and downstate firefighter pension funds. Makes changes to the retirement age under the Downstate Firefighter Article. Establishes a deferred retirement option plan under the Chicago Police Article and the Downstate Police Article. Makes other changes. Amends the Budget Stabilization Act to make transfers to the Pension Stabilization Fund for fiscal years 2030 through 2049. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the State Treasurer and the State Comptroller shall transfer $250,000,000 to the Pension Unfunded Liability Reduction Fund, which shall be used for making additional contributions to the 5 State-funded retirement systems and the Chicago Teachers' Pension Fund, and $250,000,000 to the Local Government Distributive Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB104 17481 RPS 30907 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENTMAY APPLY
A BILL FOR
HB4673 LRB104 17481 RPS 30907 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1.
Section 1-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, and 18-125 and by adding
Sections 1-163, 3-153, 4-145, 5-239, 6-231, 7-226, 8-251.5,
10-110, 11-233, 12-196, 13-217, 14-157, 15-203, 16-207,
17-160, and 18-175 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who

HB4673 - 2 - LRB104 17481 RPS 30907 b
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided

HB4673 - 3 - LRB104 17481 RPS 30907 b
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).

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(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.

HB4673 - 5 - LRB104 17481 RPS 30907 b
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section

HB4673 - 6 - LRB104 17481 RPS 30907 b
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under

HB4673 - 7 - LRB104 17481 RPS 30907 b
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to

HB4673 - 8 - LRB104 17481 RPS 30907 b
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee

HB4673 - 9 - LRB104 17481 RPS 30907 b
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or

HB4673 - 10 - LRB104 17481 RPS 30907 b
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to

HB4673 - 11 - LRB104 17481 RPS 30907 b
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or

HB4673 - 12 - LRB104 17481 RPS 30907 b
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a

HB4673 - 13 - LRB104 17481 RPS 30907 b
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant

HB4673 - 14 - LRB104 17481 RPS 30907 b
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before

HB4673 - 15 - LRB104 17481 RPS 30907 b
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, except for
Section 1-163, the provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who

HB4673 - 16 - LRB104 17481 RPS 30907 b
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided

HB4673 - 17 - LRB104 17481 RPS 30907 b
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).

HB4673 - 18 - LRB104 17481 RPS 30907 b
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.

HB4673 - 19 - LRB104 17481 RPS 30907 b
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section

HB4673 - 20 - LRB104 17481 RPS 30907 b
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under

HB4673 - 21 - LRB104 17481 RPS 30907 b
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to

HB4673 - 22 - LRB104 17481 RPS 30907 b
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee

HB4673 - 23 - LRB104 17481 RPS 30907 b
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or

HB4673 - 24 - LRB104 17481 RPS 30907 b
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to

HB4673 - 25 - LRB104 17481 RPS 30907 b
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or

HB4673 - 26 - LRB104 17481 RPS 30907 b
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire

HB4673 - 27 - LRB104 17481 RPS 30907 b
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon

HB4673 - 28 - LRB104 17481 RPS 30907 b
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, except for

HB4673 - 29 - LRB104 17481 RPS 30907 b
Section 1-163, the provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund

HB4673 - 30 - LRB104 17481 RPS 30907 b
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)

HB4673 - 31 - LRB104 17481 RPS 30907 b
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".

HB4673 - 32 - LRB104 17481 RPS 30907 b
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer

HB4673 - 33 - LRB104 17481 RPS 30907 b
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under

HB4673 - 34 - LRB104 17481 RPS 30907 b
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

HB4673 - 35 - LRB104 17481 RPS 30907 b
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB4673 - 36 - LRB104 17481 RPS 30907 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in

HB4673 - 37 - LRB104 17481 RPS 30907 b
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section

HB4673 - 38 - LRB104 17481 RPS 30907 b
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted

HB4673 - 39 - LRB104 17481 RPS 30907 b
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the

HB4673 - 40 - LRB104 17481 RPS 30907 b
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and

HB4673 - 41 - LRB104 17481 RPS 30907 b
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a

HB4673 - 42 - LRB104 17481 RPS 30907 b
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, except for
Section 1-163, the provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/1-163 new)
Sec. 1-163. Limitation on annual earnings, salary, or
wages for pension purposes for certain persons who first

HB4673 - 43 - LRB104 17481 RPS 30907 b
become participants on or after January 1, 2011.
(a) Notwithstanding any provision of law to the contrary,
including Section 1-160, this Section applies to a person who,
on or after January 1, 2011, first becomes a member or
participant under a pension fund or retirement system
established under any of Articles 3 through 8 and 10 through 17
of this Code. To the extent that any provision of this Section
conflicts with any other provision of this Code, this Section
controls, except for a conflict that would diminish or impair
a benefit of membership in a pension or retirement system of
the State.
(b) Beginning on January 1, 2028, for all purposes under
this Code (including, without limitation, the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed the
Social Security wage base for the applicable plan year. In
this subsection, "Social Security wage base" means the
contribution and benefit base calculated for the calendar year
in question by the Commissioner of Social Security under
Section 230 of the federal Social Security Act (42 U.S.C.
430).
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Code exceed any limitation
imposed on annual earnings, salary, or wages under Section
1-117. Under no circumstances shall the maximum amount of

HB4673 - 44 - LRB104 17481 RPS 30907 b
annual earnings, salary, or wages be greater than the amount
set forth in this subsection as a result of reciprocal service
or any provisions regarding reciprocal services, nor shall the
retirement system or pension fund be required to pay any
refund as a result of the application of this maximum annual
earnings, salary, and wage cap.
Nothing in this Section shall cause or otherwise result in
any retroactive adjustment of any employee contributions.
Nothing in this Section shall cause or otherwise result in any
retroactive adjustment of benefit payments made between
January 1, 2011 and January 1, 2028.
(c) With regard to a member's or participant's earnings,
salary, or wages received on or after January 1, 2011 and
before January 1, 2028, the limitation on annual earnings,
salary, or wages shall be retroactively increased to an amount
equal to the Social Security wage base for that year. This
subsection does not require a member or participant to make
any additional contribution to the pension fund or retirement
system for the period from January 1, 2011 to January 1, 2028.
This subsection applies only to a person who, on or after
January 1, 2028, is an active member or active participant of a
pension fund or retirement system established under this Code.
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)

HB4673 - 45 - LRB104 17481 RPS 30907 b
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:

HB4673 - 46 - LRB104 17481 RPS 30907 b
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of

HB4673 - 47 - LRB104 17481 RPS 30907 b
Public Act 96-889), the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, beginning
January 1, 2011 and until January 1, 2028, the highest salary
for annuity purposes may not exceed $106,800, except that that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1. "Consumer
price index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the Board by November 1 of each year.
Beginning January 1, 2028, the highest salary for annuity
purposes shall not exceed the Social Security wage base for
the applicable plan year. In this subsection, "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social

HB4673 - 48 - LRB104 17481 RPS 30907 b
Security Act (42 U.S.C. 430). However, in no event shall the
highest salary for annuity purposes exceed any limitation
imposed on annual salary under Section 1-117. Under no
circumstances shall the maximum amount of annual earnings,
salary, or wages be greater than the amount set forth in this
subsection as a result of reciprocal service or any provisions
regarding reciprocal services, nor shall the System be
required to pay any refund as a result of the application of
the limitation on highest salary for annuity purposes.
Nothing in the changes made to this Section by this
amendatory Act of the 104th General Assembly shall cause or
otherwise result in any retroactive adjustment of any employee
contributions. Nothing in this Section shall cause or
otherwise result in any retroactive adjustment of benefit
payments made between January 1, 2011 and January 1, 2028.
With regard to a participant's salary received on or after
January 1, 2011 and before January 1, 2028, if the participant
is in service on or after January 1, 2028, then the limitation
on highest salary for annuity purposes shall be retroactively
increased to an amount equal to the Social Security wage base
for that year. The retroactive increase in the salary
limitation under this paragraph does not require a participant
to make any additional contribution to the System.
(b) The earnings limitations of subsection (a) apply to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in

HB4673 - 49 - LRB104 17481 RPS 30907 b
calculating a proportional annuity under this Article, except
in the case of a person who first became a member of this
System before August 22, 1994 and has not, on or after the
effective date of this amendatory Act of the 97th General
Assembly, irrevocably elected to have those limitations apply.
The limitations of subsection (a) shall apply, however, to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating the proportional annuity of a person who first
became a member of this System before August 22, 1994 if, on or
after the effective date of this amendatory Act of the 97th
General Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/3-153 new)
Sec. 3-153. Application of Section 1-163. To the extent

HB4673 - 50 - LRB104 17481 RPS 30907 b
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/4-145 new)
Sec. 4-145. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/5-239 new)
Sec. 5-239. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/6-231 new)
Sec. 6-231. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.

HB4673 - 51 - LRB104 17481 RPS 30907 b
(40 ILCS 5/7-226 new)
Sec. 7-226. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/8-251.5 new)
Sec. 8-251.5. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/10-110 new)
Sec. 10-110. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/11-233 new)
Sec. 11-233. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension

HB4673 - 52 - LRB104 17481 RPS 30907 b
or retirement system of the State.
(40 ILCS 5/12-196 new)
Sec. 12-196. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/13-217 new)
Sec. 13-217. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/14-157 new)
Sec. 14-157. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/15-203 new)
Sec. 15-203. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section

HB4673 - 53 - LRB104 17481 RPS 30907 b
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/16-207 new)
Sec. 16-207. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/17-160 new)
Sec. 17-160. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service

HB4673 - 54 - LRB104 17481 RPS 30907 b
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is

HB4673 - 55 - LRB104 17481 RPS 30907 b
greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after

HB4673 - 56 - LRB104 17481 RPS 30907 b
January 1, 2011 (the effective date of Public Act 96-889),
final average salary shall be the average monthly salary
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period; however, beginning
January 1, 2011 and until January 1, 2028, the annual salary
may not exceed $106,800, except that that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the Board
by November 1st of each year.
Beginning January 1, 2028, for a participant who first
serves as a judge on or after January 1, 2011, the annual
salary shall not exceed the Social Security wage base for the
applicable plan year. In this subsection, "Social Security
wage base" means the contribution and benefit base calculated

HB4673 - 57 - LRB104 17481 RPS 30907 b
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430). However, in no event shall the
highest salary for annuity purposes exceed any limitation
imposed on annual salary under Section 1-117. Under no
circumstances shall the maximum amount of annual salary be
greater than the amount set forth in this subsection as a
result of reciprocal service or any provisions regarding
reciprocal services, nor shall the System be required to pay
any refund as a result of the application of the limitation on
annual salary.
Nothing in the changes made to this Section by this
amendatory Act of the 104th General Assembly shall cause or
otherwise result in any retroactive adjustment of any employee
contributions. Nothing in this Section shall cause or
otherwise result in any retroactive adjustment of benefit
payments made between January 1, 2011 and January 1, 2028.
With regard to a participant's salary received on or after
January 1, 2011 and before January 1, 2028, if the participant
is in service on or after January 1, 2028, then the limitation
on highest salary for annuity purposes shall be retroactively
increased to an amount equal to the Social Security wage base
for that year. The retroactive increase in the salary
limitation under this paragraph does not require a participant
to make any additional contribution to the System.
(c) The retirement annuity for a participant who retires

HB4673 - 58 - LRB104 17481 RPS 30907 b
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)
Article 2.
Section 2-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, 5-238, 7-116, 7-142.1,

HB4673 - 59 - LRB104 17481 RPS 30907 b
15-112, and 18-125 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are

HB4673 - 60 - LRB104 17481 RPS 30907 b
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under

HB4673 - 61 - LRB104 17481 RPS 30907 b
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".

HB4673 - 62 - LRB104 17481 RPS 30907 b
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means, for benefits calculated on and after January 1,
2028, the average monthly or annual salary obtained by
dividing the total salary or earnings calculated under the
Article applicable to the member or participant during the 72
consecutive months or 6 consecutive years of service with the
last 120 months or 10 years of service in which the total
salary or earnings calculated under the applicable Article was
the highest by the number of months or years of service in that
period; unless such a calculation results in a lower benefit,
in which case the definition immediately preceding this
definition shall be used.
For an affected member or participant who is entitled to
an annuity under Section 14-110 and has at least 20 years of
eligible creditable service, as defined in Section 14-110,
"final average salary" means the greater of: (i) the average
monthly salary obtained by dividing the total salary of the
member or participant during the 48 consecutive months of
service within the last 60 months of service in which the total
salary was the highest by the number of months of service in
that period; or (ii) the average monthly salary obtained by

HB4673 - 63 - LRB104 17481 RPS 30907 b
dividing the total salary of the member or participant during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period.
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed

HB4673 - 64 - LRB104 17481 RPS 30907 b
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the

HB4673 - 65 - LRB104 17481 RPS 30907 b
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.

HB4673 - 66 - LRB104 17481 RPS 30907 b
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service

HB4673 - 67 - LRB104 17481 RPS 30907 b
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

HB4673 - 68 - LRB104 17481 RPS 30907 b
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not

HB4673 - 69 - LRB104 17481 RPS 30907 b
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be

HB4673 - 70 - LRB104 17481 RPS 30907 b
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a

HB4673 - 71 - LRB104 17481 RPS 30907 b
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is

HB4673 - 72 - LRB104 17481 RPS 30907 b
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for

HB4673 - 73 - LRB104 17481 RPS 30907 b
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,

HB4673 - 74 - LRB104 17481 RPS 30907 b
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section

HB4673 - 75 - LRB104 17481 RPS 30907 b
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.

HB4673 - 76 - LRB104 17481 RPS 30907 b
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final

HB4673 - 77 - LRB104 17481 RPS 30907 b
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means, for benefits calculated on and after January 1,
2028, the average monthly or annual salary obtained by
dividing the total salary or earnings calculated under the
Article applicable to the member or participant during the 72
consecutive months or 6 consecutive years of service with the
last 120 months or 10 years of service in which the total
salary or earnings calculated under the applicable Article was
the highest by the number of months or years of service in that
period; unless such a calculation results in a lower benefit,
in which case the definition immediately preceding this
definition shall be used.
For an affected member or participant who is entitled to
an annuity under Section 14-110 and has at least 20 years of
eligible creditable service, as defined in Section 14-110,

HB4673 - 78 - LRB104 17481 RPS 30907 b
"final average salary" means the greater of: (i) the average
monthly salary obtained by dividing the total salary of the
member or participant during the 48 consecutive months of
service within the last 60 months of service in which the total
salary was the highest by the number of months of service in
that period; or (ii) the average monthly salary obtained by
dividing the total salary of the member or participant during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period.
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number

HB4673 - 79 - LRB104 17481 RPS 30907 b
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a

HB4673 - 80 - LRB104 17481 RPS 30907 b
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is

HB4673 - 81 - LRB104 17481 RPS 30907 b
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who

HB4673 - 82 - LRB104 17481 RPS 30907 b
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member

HB4673 - 83 - LRB104 17481 RPS 30907 b
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the

HB4673 - 84 - LRB104 17481 RPS 30907 b
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the

HB4673 - 85 - LRB104 17481 RPS 30907 b
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or

HB4673 - 86 - LRB104 17481 RPS 30907 b
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the

HB4673 - 87 - LRB104 17481 RPS 30907 b
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that

HB4673 - 88 - LRB104 17481 RPS 30907 b
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of

HB4673 - 89 - LRB104 17481 RPS 30907 b
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior

HB4673 - 90 - LRB104 17481 RPS 30907 b
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in

HB4673 - 91 - LRB104 17481 RPS 30907 b
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average

HB4673 - 92 - LRB104 17481 RPS 30907 b
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means, for benefits calculated on and after January 1,
2028, the average monthly or annual salary obtained by
dividing the total salary or earnings calculated under the
Article applicable to the member or participant during the 72
consecutive months or 6 consecutive years of service with the
last 120 months or 10 years of service in which the total
salary or earnings calculated under the applicable Article was
the highest by the number of months or years of service in that
period; unless such a calculation results in a lower benefit,
in which case the definition immediately preceding this
definition shall be used.
For an affected member or participant who is entitled to
an annuity under Section 14-110 and has at least 20 years of
eligible creditable service, as defined in Section 14-110,
"final average salary" means the greater of: (i) the average
monthly salary obtained by dividing the total salary of the
member or participant during the 48 consecutive months of

HB4673 - 93 - LRB104 17481 RPS 30907 b
service within the last 60 months of service in which the total
salary was the highest by the number of months of service in
that period; or (ii) the average monthly salary obtained by
dividing the total salary of the member or participant during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period.
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of

HB4673 - 94 - LRB104 17481 RPS 30907 b
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual

HB4673 - 95 - LRB104 17481 RPS 30907 b
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the

HB4673 - 96 - LRB104 17481 RPS 30907 b
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB4673 - 97 - LRB104 17481 RPS 30907 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for

HB4673 - 98 - LRB104 17481 RPS 30907 b
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in

HB4673 - 99 - LRB104 17481 RPS 30907 b
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or

HB4673 - 100 - LRB104 17481 RPS 30907 b
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the

HB4673 - 101 - LRB104 17481 RPS 30907 b
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an

HB4673 - 102 - LRB104 17481 RPS 30907 b
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement

HB4673 - 103 - LRB104 17481 RPS 30907 b
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.

HB4673 - 104 - LRB104 17481 RPS 30907 b
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State

HB4673 - 105 - LRB104 17481 RPS 30907 b
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant

HB4673 - 106 - LRB104 17481 RPS 30907 b
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889) and who is not in service on or after
January 1, 2028, the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, beginning
January 1, 2011, the highest salary for annuity purposes may
not exceed $106,800, except that that amount shall annually
thereafter be increased by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division

HB4673 - 107 - LRB104 17481 RPS 30907 b
of the Department of Insurance and made available to the Board
by November 1 of each year.
Subject to any applicable limitation on the highest salary
for annuity purposes, for a participant who first becomes a
participant of this System on or after January 1, 2011 and who
is in service on or after January 1, 2028, "highest salary for
annuity purposes" means the average monthly or annual salary
obtained by dividing the total salary calculated under this
Article during the 72 consecutive months or 6 consecutive
years of service with the last 120 months or 10 years of
service in which the total salary was the highest by the number
of months or years of service in that period; unless such a
calculation results in a lower benefit, in which case the
definition immediately preceding this definition shall be
used.
(b) The earnings limitations of subsection (a) apply to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating a proportional annuity under this Article, except
in the case of a person who first became a member of this
System before August 22, 1994 and has not, on or after the
effective date of this amendatory Act of the 97th General
Assembly, irrevocably elected to have those limitations apply.
The limitations of subsection (a) shall apply, however, to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in

HB4673 - 108 - LRB104 17481 RPS 30907 b
calculating the proportional annuity of a person who first
became a member of this System before August 22, 1994 if, on or
after the effective date of this amendatory Act of the 97th
General Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has

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attained age 50 or more, and has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a police officer. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the police officer's age at retirement is
under age 55. The Tier 2 monthly retirement annuity is in lieu
of any age and service annuity or other form of retirement
annuity under this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b) for a policeman
who is not in service on or after January 1, 2028, "final
average salary" means the greater of: (i) the average monthly
salary obtained by dividing the total salary of the policeman
during the 96 consecutive months of service within the last
120 months of service in which the total salary was the highest
by the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the policeman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period. For the purposes of this subsection (b) for a
policeman who is in service on or after January 1, 2028, "final

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average salary" means the greater of: (i) the average monthly
salary obtained by dividing the total salary of the policeman
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the policeman during the 96 consecutive months of service
within the last 120 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, beginning July 1,
2025, the annual salary shall not exceed $141,407.74 and that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
Nothing in this amendatory Act of the 104th General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(c) Notwithstanding any other provision of this Article,

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for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.

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If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's earned annuity at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; (ii) 54% of the

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policeman's monthly salary at the time of the
policeman's death; or (iii) 66 2/3% of the Tier 2
monthly retirement annuity that the deceased policeman
would have been eligible to receive under subsection
(b) of this Section, based upon the actual service
accrued through the day before the policeman's death,
but determined as though the policeman was at least
age 55 on the day before his or her death and retired
on that day.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary

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is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be the
greater of: (i) 30% of the annual maximum salary
attached to the classified civil service position of a
first class patrolman at the time of his death; or (ii)
54% of the policeman's monthly salary at the time of
the policeman's death.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is

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in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except
that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman's death was
caused by an intervening illness or injury unrelated
to the illness or injury that had prevented him from

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subsequently resuming active service in the police
department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with
the September preceding each November 1, whichever is
less, of the originally granted Tier 2 surviving
spouse's annuity. If the unadjusted percentage change
in the consumer price index-u for a 12-month period
ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of
Labor that measures the average change in prices of
goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.

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The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of
the Department of Insurance and made available to the
boards of the pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
5-152 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable

HB4673 - 118 - LRB104 17481 RPS 30907 b
under this subsection (c).
(3) Surviving parents of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier
2 parent's annuity shall be subject to the Tier 2 salary
cap provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
Notwithstanding Section 1-103.1, the changes made to this
subsection by this amendatory Act of the 104th General
Assembly apply without regard to whether the deceased
policeman was in service on or after the effective date of this
amendatory Act of the 104th General Assembly. The changes made
by this amendatory Act of the 104th General Assembly shall not
diminish the survivor's benefits described in this Section.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the

HB4673 - 119 - LRB104 17481 RPS 30907 b
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this
Section as enacted by Public Act 96-1495, and are hereby
declared to represent and be consistent with the original and
continuing intent of this Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 104-65, eff. 8-1-25.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) for Tier 1 regular

HB4673 - 120 - LRB104 17481 RPS 30907 b
employees, the 48 consecutive months of service within the
last 120 months of service in which his total earnings were the
highest, (2) for Tier 2 regular employees, the 96 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest, (3) for Tier 2
regular employees who are in service on or after January 1,
2028, the 72 consecutive months or 6 consecutive years of
service with the last 120 months or 10 years of service in
which the total earnings calculated under this Article was the
highest by the number of months or years of service in that
period (unless such a calculation results in a lower benefit,
in which case the calculation used in item (2) of this
subsection shall be used), or (4) (3) the employee's total
period of service, by the number of months of service in such
period.
(b) For death benefits, the higher of the rate determined
under paragraph (a) of this Section or total earnings received
in the last 12 months of service divided by twelve. If the
deceased employee has less than 12 months of service, the
monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be

HB4673 - 121 - LRB104 17481 RPS 30907 b
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service
is received under Section 7-139 or, if there is less than 3
years of creditable prior service, the average for the total
prior service period for which creditable service is received
under Section 7-139; (2) for out of state service and
authorized leave, the earnings rate shall be the rate upon
which service credits are granted; (3) periods of military
leave shall not be considered; (4) the earnings rate for all
periods of disability shall be considered equal to the rate of
earnings upon which the employee's disability benefits are
computed for such periods; (5) the earnings to be considered
for each of the final three months of the final earnings period
for persons who first became participants before January 1,
2012 and the earnings to be considered for each of the final 24
months for participants who first become participants on or
after January 1, 2012 shall not exceed 125% of the highest
earnings of any other month in the final earnings period; and
(6) the annual amount of final rate of earnings shall be the
monthly amount multiplied by the number of months of service
normally required by the position in a year.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by

HB4673 - 122 - LRB104 17481 RPS 30907 b
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying
2.5% for each year of such service by his annual final rate of

HB4673 - 123 - LRB104 17481 RPS 30907 b
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has
service in any other capacity may convert up to 10 years of

HB4673 - 124 - LRB104 17481 RPS 30907 b
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General

HB4673 - 125 - LRB104 17481 RPS 30907 b
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means, for a sheriff's law enforcement employee who
is not an active sheriff's law enforcement employee on or

HB4673 - 126 - LRB104 17481 RPS 30907 b
after January 1, 2028, the average monthly earnings obtained
by dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was
the highest by the number of months of service in that period.
For the purposes of this subsection (f), "final rate of
earnings" means, for a sheriff's law enforcement employee who
is an active sheriff's law enforcement employee on or after
January 1, 2028, the greater of: (i) the average monthly
salary obtained by dividing the total earnings of the employee
during the 48 consecutive months of service within the last 60
months of service in which the total earnings was the highest
by the number of months of service in that period; or (ii) the
average monthly earnings obtained by dividing the total
earnings of the employee during the 96 consecutive months of
service within the last 120 months of service in which the
total earnings was the highest by the number of months of
service in that period.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall
not include overtime and shall not exceed $106,800; however,
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous

HB4673 - 127 - LRB104 17481 RPS 30907 b
adjustments, or (ii) one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of age 60 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
annuity shall not be increased.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.

HB4673 - 128 - LRB104 17481 RPS 30907 b
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of

HB4673 - 129 - LRB104 17481 RPS 30907 b
earnings":
(a) This subsection (a) applies only to a Tier 1 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings during the 48
consecutive calendar month period ending with the last day of
final termination of employment or the 4 consecutive academic
years of service in which the employee's earnings were the
highest, whichever is greater. For any other employee, the
average annual earnings during the 4 consecutive academic
years of service in which his or her earnings were the highest.
For an employee with less than 48 months or 4 consecutive
academic years of service, the average earnings during his or
her entire period of service. The earnings of an employee with
more than 36 months of service under item (a) of Section
15-113.1 prior to the date of becoming a participant are, for
such period, considered equal to the average earnings during
the last 36 months of such service.
(b) This subsection (b) applies to a Tier 2 member who does
not receive earnings on or after January 1, 2028.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings obtained by
dividing by 8 the total earnings of the employee during the 96
consecutive months in which the total earnings were the
highest within the last 120 months prior to termination or the

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average annual earnings during the 8 consecutive academic
years of service within the 10 years of service prior to
termination in which the employee's earnings were the highest,
whichever is greater.
For any other employee, the average annual earnings during
the 8 consecutive academic years of service within the 10
years of service prior to termination in which the employee's
earnings were the highest. For an employee with less than 96
consecutive months or 8 consecutive academic years of service,
whichever is necessary, the average earnings during his or her
entire period of service.
The changes made to this subsection (b) by this amendatory
Act of the 104th General Assembly are corrections and
clarifications of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-1490), notwithstanding the provisions of Section
1-103.1 of this Code.
(b-5) This subsection (b-5) applies to a Tier 2 member who
receives earnings on or after January 1, 2028.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings obtained by
dividing by 6 the total earnings of the employee during the 72
consecutive months in which the total earnings were the
highest within the last 120 months prior to termination or the
average annual earnings during the 6 consecutive academic

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years of service within the 10 years of service prior to
termination in which the employee's earnings were the highest,
whichever is greater.
For any other employee, the average annual earnings during
the 6 consecutive academic years of service within the 10
years of service prior to termination in which the employee's
earnings were the highest. For an employee with less than 72
consecutive months or 6 consecutive academic years of service,
whichever is necessary, the average earnings during his or her
entire period of service.
(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after August 22,
1997 (the effective date of Public Act 90-511) with at least 20
years of service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate of
earnings received by the participant on his or her last day as
a firefighter or police officer under this Article, if that is
greater than the final rate of earnings as calculated under

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the other provisions of this Section.
(e-5) For a Tier 2 member who retires on or after January
1, 2028 with at least 20 years of service as a firefighter or
police officer under this Article, the final rate of earnings
shall be the greater of: (i) the average monthly salary
obtained by dividing the total earnings of the firefighter or
police officer during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period; or (ii) the average monthly earnings obtained by
dividing the total salary of the firefighter or police officer
during the 96 consecutive months of service within the last
120 months of service in which the total earnings was the
highest by the number of months of service in that period.
(f) If a Tier 1 member is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year, and
(2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this
Section.
(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year

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by more than 20% shall be excluded; in the event that an
employee has more than one employer this limitation shall be
calculated separately for the earnings with each employer. In
making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or
overtime or to contracts for summer employment. Beginning
September 1, 2024, this subsection (g) also applies to an
employee who has been employed at 1/2 time or less for 3 or
more years.
(h) The following are not considered as earnings in
determining the final rate of earnings: (1) severance or
separation pay, (2) retirement pay, (3) payment for unused
sick leave, and (4) payments from an employer for the period
used in determining the final rate of earnings for any purpose
other than (i) services rendered, (ii) leave of absence or
vacation granted during that period, and (iii) vacation of up
to 56 work days allowed upon termination of employment; except
that, if the benefit has been collectively bargained between
the employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance
with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section. Any unused
sick leave considered as earnings under this Section shall not
be taken into account in calculating service credit under

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Section 15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining the final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23; 104-284, eff. 8-15-25;
104-417, eff. 8-15-25.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the

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last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive

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months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who does not serve as a judge on or after January 1, 2028,
final average salary shall be the average monthly salary
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period; however, beginning
January 1, 2011, the annual salary may not exceed $106,800,
except that that amount shall annually thereafter be increased
by the lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the

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12 months ending with the September preceding each November 1.
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100. The new amount resulting
from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the Board by November 1st of each year.
Subject to any applicable limitation on final average
salary, for a participant who first serves as a judge on or
after January 1, 2011 and serves as a judge on or after January
1, 2028, final average salary shall be the average monthly or
annual salary obtained by dividing the total salary calculated
under this Article during the 72 consecutive months or 6
consecutive years of service with the last 120 months or 10
years of service in which the total salary was the highest by
the number of months or years of service in that period; unless
such a calculation results in a lower benefit, in which case
the calculation immediately preceding this paragraph shall be
used.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after

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December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)
Article 3.
Section 3-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-119.1, 3-111.1, 4-109.1, 5-167.1,
6-164, 7-142, 7-142.1, 15-136, and 18-125.1 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)

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Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a

HB4673 - 140 - LRB104 17481 RPS 30907 b
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings

HB4673 - 141 - LRB104 17481 RPS 30907 b
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:

HB4673 - 142 - LRB104 17481 RPS 30907 b
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by

HB4673 - 143 - LRB104 17481 RPS 30907 b
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum

HB4673 - 144 - LRB104 17481 RPS 30907 b
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.

HB4673 - 145 - LRB104 17481 RPS 30907 b
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10

HB4673 - 146 - LRB104 17481 RPS 30907 b
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election

HB4673 - 147 - LRB104 17481 RPS 30907 b
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within

HB4673 - 148 - LRB104 17481 RPS 30907 b
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
Beginning January 1, 2028, for persons to whom this
Section applies, each annual increase in a retirement annuity

HB4673 - 149 - LRB104 17481 RPS 30907 b
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a

HB4673 - 150 - LRB104 17481 RPS 30907 b
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is

HB4673 - 151 - LRB104 17481 RPS 30907 b
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for

HB4673 - 152 - LRB104 17481 RPS 30907 b
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,

HB4673 - 153 - LRB104 17481 RPS 30907 b
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section

HB4673 - 154 - LRB104 17481 RPS 30907 b
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.

HB4673 - 155 - LRB104 17481 RPS 30907 b
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".

HB4673 - 156 - LRB104 17481 RPS 30907 b
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed

HB4673 - 157 - LRB104 17481 RPS 30907 b
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the

HB4673 - 158 - LRB104 17481 RPS 30907 b
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.

HB4673 - 159 - LRB104 17481 RPS 30907 b
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service

HB4673 - 160 - LRB104 17481 RPS 30907 b
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

HB4673 - 161 - LRB104 17481 RPS 30907 b
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not

HB4673 - 162 - LRB104 17481 RPS 30907 b
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be

HB4673 - 163 - LRB104 17481 RPS 30907 b
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
Beginning January 1, 2028, for persons to whom this
Section applies, each annual increase in a retirement annuity
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in

HB4673 - 164 - LRB104 17481 RPS 30907 b
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price

HB4673 - 165 - LRB104 17481 RPS 30907 b
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created

HB4673 - 166 - LRB104 17481 RPS 30907 b
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or

HB4673 - 167 - LRB104 17481 RPS 30907 b
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,

HB4673 - 168 - LRB104 17481 RPS 30907 b
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits

HB4673 - 169 - LRB104 17481 RPS 30907 b
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".

HB4673 - 170 - LRB104 17481 RPS 30907 b
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or

HB4673 - 171 - LRB104 17481 RPS 30907 b
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the

HB4673 - 172 - LRB104 17481 RPS 30907 b
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise

HB4673 - 173 - LRB104 17481 RPS 30907 b
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

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(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or

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(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection

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(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start

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date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
Beginning January 1, 2028, for persons to whom this
Section applies, each annual increase in a retirement annuity
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

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applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the

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annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity

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or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and

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required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial

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increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the
System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67, have

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the amount of the retirement annuity then being paid increased
by 3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less;
except that, beginning January 1, 2028, each annual increase
under this subsection shall be calculated at 3% of the amount
of the retirement annuity then being paid.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an

HB4673 - 184 - LRB104 17481 RPS 30907 b
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following
attainment of age 60 if it occurs after the first anniversary

HB4673 - 185 - LRB104 17481 RPS 30907 b
of retirement, by 3% of the originally granted pension and by
an additional 3% of the originally granted pension in January
of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by
1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an

HB4673 - 186 - LRB104 17481 RPS 30907 b
additional 3% of the originally granted pension in January of
each year thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) Notwithstanding the other provisions of this Section,
beginning with increases granted on or after July 1, 1993, the

HB4673 - 187 - LRB104 17481 RPS 30907 b
second and all subsequent automatic annual increases granted
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 60 or the first anniversary of the pension
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension; except that, beginning January 1, 2028, each annual
increase under this subsection shall be calculated at 3% of
the amount of the originally granted pension. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
pension shall not be increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor

HB4673 - 188 - LRB104 17481 RPS 30907 b
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective

HB4673 - 189 - LRB104 17481 RPS 30907 b
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each
year the firefighter received pension payments. In each
January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or

HB4673 - 190 - LRB104 17481 RPS 30907 b
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in

HB4673 - 191 - LRB104 17481 RPS 30907 b
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving

HB4673 - 192 - LRB104 17481 RPS 30907 b
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase
shall be calculated at 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, whichever is less, of the
originally granted pension; except that, beginning January 1,
2028, each annual increase under this subsection shall be
calculated at 3% of the amount of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the pension shall not be increased.
For the purposes of this subsection (g), "consumer price

HB4673 - 193 - LRB104 17481 RPS 30907 b
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable

HB4673 - 194 - LRB104 17481 RPS 30907 b
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but

HB4673 - 195 - LRB104 17481 RPS 30907 b
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 94th General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the

HB4673 - 196 - LRB104 17481 RPS 30907 b
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall

HB4673 - 197 - LRB104 17481 RPS 30907 b
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2028, each annual increase under this subsection
shall be calculated at 3% of the originally granted retirement
annuity. If the annual unadjusted percentage change in the

HB4673 - 198 - LRB104 17481 RPS 30907 b
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(Source: P.A. 103-582, eff. 12-8-23.)
(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date

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of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this

HB4673 - 200 - LRB104 17481 RPS 30907 b
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of
his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,

HB4673 - 201 - LRB104 17481 RPS 30907 b
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is
age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an

HB4673 - 202 - LRB104 17481 RPS 30907 b
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in

HB4673 - 203 - LRB104 17481 RPS 30907 b
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or
after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2028, each annual increase under this subsection
shall be calculated at 3% of the originally granted retirement
annuity. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
For the purposes of this subsection (d), "consumer price

HB4673 - 204 - LRB104 17481 RPS 30907 b
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities; amount annuities -
Amount.
(a) The amount of a retirement annuity shall be the sum of
the following, determined in accordance with the actuarial
tables in effect at the time of the grant of the annuity:
1. For Tier 1 regular employees with 8 or more years of
service or for Tier 2 regular employees, an annuity
computed pursuant to subparagraphs a or b of this

HB4673 - 205 - LRB104 17481 RPS 30907 b
subparagraph 1, whichever is the higher, and for employees
with less than 8 or 10 years of service, respectively, the
annuity computed pursuant to subparagraph a:
a. The monthly annuity which can be provided from
the total accumulated normal, municipality and prior
service credits, as of the attained age of the
employee on the date the annuity begins provided that
such annuity shall not exceed 75% of the final rate of
earnings of the employee.
b. (i) The monthly annuity amount determined as
follows by multiplying (a) 1 2/3% for annuitants with
not more than 15 years or (b) 1 2/3% for the first 15
years and 2% for each year in excess of 15 years for
annuitants with more than 15 years by the number of
years plus fractional years, prorated on a basis of
months, of creditable service and multiply the product
thereof by the employee's final rate of earnings.
(ii) For the sole purpose of computing the formula
(and not for the purposes of the limitations
hereinafter stated) $125 shall be considered the final
rate of earnings in all cases where the final rate of
earnings is less than such amount.
(iii) The monthly annuity computed in accordance
with this subparagraph b, shall not exceed an amount
equal to 75% of the final rate of earnings.
(iv) For employees who have less than 35 years of

HB4673 - 206 - LRB104 17481 RPS 30907 b
service, the annuity computed in accordance with this
subparagraph b (as reduced by application of
subparagraph (iii) above) shall be reduced by 0.25%
thereof (0.5% if service was terminated before January
1, 1988 or if the employee is a Tier 2 regular
employee) for each month or fraction thereof (1) that
the employee's age is less than 60 years for Tier 1
regular employees, (2) that the employee's age is less
than 67 years for Tier 2 regular employees, or (3) if
the employee has at least 30 years of service credit,
that the employee's service credit is less than 35
years, whichever is less, on the date the annuity
begins.
2. The annuity which can be provided from the total
accumulated additional credits as of the attained age of
the employee on the date the annuity begins.
(b) If payment of an annuity begins prior to the earliest
age at which the employee will become eligible for an old age
insurance benefit under the federal Federal Social Security
Act, he may elect that the annuity payments from this fund
shall exceed those payable after his attaining such age by an
amount, computed as determined by rules of the Board, but not
in excess of his estimated Social Security Benefit, determined
as of the effective date of the annuity, provided that in no
case shall the total annuity payments made by this fund exceed
in actuarial value the annuity which would have been payable

HB4673 - 207 - LRB104 17481 RPS 30907 b
had no such election been made.
(c) Beginning January 1, 1984 and each January 1
thereafter, the retirement annuity of a Tier 1 regular
employee shall be increased by 3% each year, not compounded.
This increase shall be computed from the effective date of the
retirement annuity, the first increase being 0.25% of the
monthly amount times the number of months from the effective
date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8,
1971.
A retirement annuity of a Tier 2 regular employee shall
receive annual increases on the January 1 occurring either on
or after the attainment of age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at the lesser of 3% or one-half
the annual unadjusted percentage increase (but not less than
zero) in the consumer price index-u for the 12 months ending
with the September preceding each November 1 of the originally
granted retirement annuity; except that, beginning January 1,
2028, each annual increase under this subsection shall be
calculated at 3% of the amount of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the

HB4673 - 208 - LRB104 17481 RPS 30907 b
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(d) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to

HB4673 - 209 - LRB104 17481 RPS 30907 b
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying
2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this

HB4673 - 210 - LRB104 17481 RPS 30907 b
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has
service in any other capacity may convert up to 10 years of
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution

HB4673 - 211 - LRB104 17481 RPS 30907 b
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend

HB4673 - 212 - LRB104 17481 RPS 30907 b
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was
the highest by the number of months of service in that period.
Notwithstanding any other provision of this Article,

HB4673 - 213 - LRB104 17481 RPS 30907 b
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall
not include overtime earned prior to January 1, 2028 and shall
not exceed $106,800; however, that amount shall annually
thereafter be increased by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of age 60 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2028, each annual increase under this subsection
shall be calculated at 3% of the amount of the originally
granted retirement annuity. If the annual unadjusted

HB4673 - 214 - LRB104 17481 RPS 30907 b
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall not be
increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted

HB4673 - 215 - LRB104 17481 RPS 30907 b
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities; amount annuities -
Amount. The provisions of this Section 15-136 apply only to
those participants who are participating in the traditional
benefit package or the portable benefit package and do not
apply to participants who are participating in the
self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:

HB4673 - 216 - LRB104 17481 RPS 30907 b
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for each
year of service in excess of 20 but not exceeding 30, and 2.30%
for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who

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retires on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of

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

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under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that
transfer until the employee's next termination of service
with the University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided
under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
each month the participant is under age 60 at the time of
retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of

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

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Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.
(d-5) A retirement annuity of a Tier 2 member shall

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receive annual increases on the January 1 occurring either on
or after the attainment of age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half one half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2028, each annual increase under this subsection
shall be calculated at 3% of the amount of the originally
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for the 12
months ending with the September preceding each November 1 is
zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than

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

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

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(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.
Notwithstanding any other provision of this Article, a
retirement annuity for a participant who first serves as a
judge on or after January 1, 2011 (the effective date of Public
Act 96-889) shall be increased in January of the year next
following the year in which the first anniversary of
retirement occurs, but in no event prior to age 67, and in
January of each year thereafter, by an amount equal to 3% or
the annual percentage increase in the consumer price index-u
as determined by the Public Pension Division of the Department
of Insurance under subsection (b-5) of Section 18-125,
whichever is less, of the retirement annuity then being paid;
except that, beginning January 1, 2028, each annual increase
under this subsection shall be calculated at 3% of the amount
of the retirement annuity then being paid.
For the purposes of Section 1-103.1 of this Code, the

HB4673 - 226 - LRB104 17481 RPS 30907 b
changes made to this Section by this amendatory Act of the
104th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 104th General
Assembly.
This Section is not applicable to a participant who
retires before he or she has made contributions at the rate
prescribed in Section 18-133 for automatic increases for not
less than the equivalent of one full year, unless such a
participant arranges to pay the system the amount required to
bring the total contributions for the automatic increase to
the equivalent of one year's contribution based upon his or
her last year's salary.
This Section is applicable to all participants in service
after June 30, 1969 unless a participant has elected, prior to
September 1, 1969, in a written direction filed with the board
not to be subject to the provisions of this Section. Any
participant in service on or after July 1, 1992 shall have the
option of electing prior to April 1, 1993, in a written
direction filed with the board, to be covered by the
provisions of the 1969 amendatory Act. Such participant shall
be required to make the aforesaid additional contributions
with compound interest at 4% per annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge
after receiving a retirement annuity under this Article shall

HB4673 - 227 - LRB104 17481 RPS 30907 b
have the amount of his or her retirement annuity increased by
3% of the originally granted annuity amount for each year of
such resumed service, beginning in January of the year next
following the date of such resumed service, upon subsequent
termination of such resumed service.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
Article 5.
Section 5-5. The Illinois Pension Code is amended by
adding Sections 3-144.3, 4-138.15, 5-240, and 6-232 as
follows:
(40 ILCS 5/3-144.3 new)
Sec. 3-144.3. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 104th General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's

HB4673 - 228 - LRB104 17481 RPS 30907 b
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/4-138.15 new)
Sec. 4-138.15. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 104th General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/5-240 new)
Sec. 5-240. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 104th General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.

HB4673 - 229 - LRB104 17481 RPS 30907 b
(40 ILCS 5/6-232 new)
Sec. 6-232. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 104th General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
Article 6.
Section 6-5. The Illinois Pension Code is amended by
changing Section 7-109.3 as follows:
(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" or "SLEP" means:
(1) A county sheriff and all deputies, other than
special deputies, employed on a full-time full time basis
in the office of the sheriff.
(2) A person who has elected to participate in this
Fund under Section 3-109.1 of this Code, and who is

HB4673 - 230 - LRB104 17481 RPS 30907 b
employed by a participating municipality to perform police
duties.
(3) A law enforcement officer employed on a full-time
full time basis by a forest preserve district Forest
Preserve District, provided that such officer shall be
deemed a "sheriff's law enforcement employee" for the
purposes of this Article, and service in that capacity
shall be deemed to be service as a sheriff's law
enforcement employee, only if the board of commissioners
of the District have so elected by adoption of an
affirmative resolution. Such election, once made, may not
be rescinded.
(4) A person not eligible to participate in a fund
established under Article 3 of this Code who is employed
on a full-time basis by a participating municipality or
participating instrumentality to perform police duties at
an airport, but only if the governing authority of the
employer has approved sheriff's law enforcement employee
status for its airport police employees by adoption of an
affirmative resolution. Such approval, once given, may not
be rescinded.
(5) A person first hired on or after January 1, 2011
who (i) is employed by a participating municipality that
has both 30 or more full-time police officers and 50 or
more full-time firefighters and has not established a fund
under Article 3 or Article 4 of this Code and (ii) is

HB4673 - 231 - LRB104 17481 RPS 30907 b
employed on a full-time basis by that participating
municipality to perform police duties or firefighting and
EMS duties; but only if the governing authority of that
municipality has approved sheriff's law enforcement
employee status for its police officer or firefighter
employees by adoption of an affirmative resolution. The
resolution must specify that SLEP status shall be
applicable to such employment occurring on or after the
adoption of the resolution. Such resolution shall be
irrevocable, but shall automatically terminate upon the
establishment of an Article 3 or 4 fund by the
municipality.
(6) A person who is a county correctional officer or
probation officer.
(7) A person who participates in the Fund and
qualifies as a firefighter, as defined in Section 3 of the
Public Safety Employee Benefits Act.
(8) A person who is a sworn law enforcement officer
for a municipal employer that has not established a
pension fund under Article 3.
(b) An employee who is a sheriff's law enforcement
employee and is granted military leave or authorized leave of
absence shall receive service credit in that capacity.
Sheriff's law enforcement employees shall not be entitled to
out-of-State service credit under Section 7-139.
(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)

HB4673 - 232 - LRB104 17481 RPS 30907 b
Article 7.
Section 7-5. The Illinois Pension Code is amended by
changing Section 4-106 as follows:
(40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
Sec. 4-106. Firefighter, firefighters. "Firefighter,
firefighters":
(a) In municipalities which have adopted Division 1 of
Article 10 of the Illinois Municipal Code, any person employed
in the municipality's fire service as a firefighter, fire
engineer, marine engineer, fire pilot, bomb technician or
scuba diver; and in any of these positions where such person's
duties also include those of a firefighter as classified by
the Civil Service Commission of that city, and whose duty is to
participate in the work of controlling and extinguishing fires
at the location of any such fires.
(b) In municipalities which are subject to Division 2.1 of
Article 10 of the Illinois Municipal Code, any person employed
by a city in its fire service as a firefighter, fire engineer,
marine engineer, fire pilot, bomb technician, or scuba diver;
and, in any of these positions whose duties also include those
of a firefighter and are certified in the same manner as a
firefighter in that city.
(c) Any person employed in a municipality's or fire

HB4673 - 233 - LRB104 17481 RPS 30907 b
protection district's fire service as a de facto firefighter.
In this definition, "de facto firefighter" means a
firefighter:
(1) who spends a majority of the firefighter's working
time participating in the work of controlling and
extinguishing fires at the location of any such fires,
preparing for such work or waiting to respond to such
calls for work; and
(2) whose scheduled or actual work hours are
commensurate in duration and frequency with firefighters
who are subject to Division 1 or Division 2.1 of Article 10
of the Illinois Municipal Code.
"De facto firefighter" does not include part-time
firefighters who are not covered under this Section;
auxiliary, reserve, or voluntary firefighters, including
paid-on-call firefighters; and clerks, dispatchers, or other
civilian employees of a fire department or fire protection
district who are not routinely expected to perform firefighter
duties. In municipalities which are subject to neither
Division 1 nor Division 2.1 of Article 10 of the Illinois
Municipal Code, any person who would have been included as a
firefighter under sub-paragraph (a) or (b) above except that
he served as a de facto and not as a de jure firefighter.
(d) Notwithstanding the other provisions of this Section,
"firefighter" does not include any person who is actively
participating in the State Universities Retirement System

HB4673 - 234 - LRB104 17481 RPS 30907 b
under subsection (h) of Section 15-107 with respect to the
employment for which he or she is a participating employee in
that System.
(e) This amendatory Act of 1977 does not affect persons
covered by this Article prior to September 22, 1977.
The changes made to this Section by this amendatory Act of
the 104th General Assembly do not affect persons covered by
this Article before the effective date of this amendatory Act
of the 104th General Assembly.
(Source: P.A. 90-576, eff. 3-31-98.)
Article 8.
Section 8-5. The Illinois Pension Code is amended by
changing Section 4-109 as follows:
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the
monthly salary attached to the rank held by him or her in the
fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of

HB4673 - 235 - LRB104 17481 RPS 30907 b
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:
For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;
For 17 years of service, 37.4% of salary;

HB4673 - 236 - LRB104 17481 RPS 30907 b
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011.
A firefighter age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the firefighter
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the firefighter during the 96 consecutive months of service
within the last 120 months of service in which the total salary

HB4673 - 237 - LRB104 17481 RPS 30907 b
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(d) Notwithstanding any other provision of this Article to
the contrary, including subsection (c), a firefighter who has
enough service to be entitled to the maximum pension under
this Section shall be eligible to receive an unreduced monthly
pension, regardless of the firefighter's age.
(Source: P.A. 101-610, eff. 1-1-20.)
Section 8-10. The Illinois Municipal Code is amended by
changing Sections 10-1-7.1 and 10-2.1-6.3 as follows:

HB4673 - 238 - LRB104 17481 RPS 30907 b
(65 ILCS 5/10-1-7.1)
Sec. 10-1-7.1. Original appointments; full-time fire
department.
(a) Applicability. Unless a commission elects to follow
the provisions of Section 10-1-7.2, this Section shall apply
to all original appointments to an affected full-time fire
department. Existing registers of eligibles shall continue to
be valid until their expiration dates, or up to a maximum of 2
years after August 4, 2011 (the effective date of Public Act
97-251).
Notwithstanding any statute, ordinance, rule, or other law
to the contrary, all original appointments to an affected
department to which this Section applies shall be administered
in the manner provided for in this Section. Provisions of the
Illinois Municipal Code, municipal ordinances, and rules
adopted pursuant to such authority and other laws relating to
initial hiring of firefighters in affected departments shall
continue to apply to the extent they are compatible with this
Section, but in the event of a conflict between this Section
and any other law, this Section shall control.
A home rule or non-home rule municipality may not
administer its fire department process for original
appointments in a manner that is less stringent than this
Section. This Section is a limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by home rule units of the powers and

HB4673 - 239 - LRB104 17481 RPS 30907 b
functions exercised by the State.
A municipality that is operating under a court order or
consent decree regarding original appointments to a full-time
fire department before August 4, 2011 (the effective date of
Public Act 97-251) is exempt from the requirements of this
Section for the duration of the court order or consent decree.
Notwithstanding any other provision of this subsection
(a), this Section does not apply to a municipality with more
than 1,000,000 inhabitants.
(b) Original appointments. All original appointments made
to an affected fire department shall be made from a register of
eligibles established in accordance with the processes
established by this Section. Only persons who meet or exceed
the performance standards required by this Section shall be
placed on a register of eligibles for original appointment to
an affected fire department.
Whenever an appointing authority authorizes action to hire
a person to perform the duties of a firefighter or to hire a
firefighter-paramedic to fill a position that is a new
position or vacancy due to resignation, discharge, promotion,
death, the granting of a disability or retirement pension, or
any other cause, the appointing authority shall appoint to
that position the person with the highest ranking on the final
eligibility list. If the appointing authority has reason to
conclude that the highest ranked person fails to meet the
minimum standards for the position or if the appointing

HB4673 - 240 - LRB104 17481 RPS 30907 b
authority believes an alternate candidate would better serve
the needs of the department, then the appointing authority has
the right to pass over the highest ranked person and appoint
either: (i) any person who has a ranking in the top 5% of the
register of eligibles or (ii) any person who is among the top 5
highest ranked persons on the list of eligibles if the number
of people who have a ranking in the top 5% of the register of
eligibles is less than 5 people.
Any candidate may pass on an appointment once without
losing his or her position on the register of eligibles. Any
candidate who passes a second time may be removed from the list
by the appointing authority provided that such action shall
not prejudice a person's opportunities to participate in
future examinations, including an examination held during the
time a candidate is already on the municipality's register of
eligibles.
The sole authority to issue certificates of appointment
shall be vested in the Civil Service Commission. All
certificates of appointment issued to any officer or member of
an affected department shall be signed by the chairperson and
secretary, respectively, of the commission upon appointment of
such officer or member to the affected department by the
commission. After being selected from the register of
eligibles to fill a vacancy in the affected department, each
appointee shall be presented with his or her certificate of
appointment on the day on which he or she is sworn in as a

HB4673 - 241 - LRB104 17481 RPS 30907 b
classified member of the affected department. Firefighters who
were not issued a certificate of appointment when originally
appointed shall be provided with a certificate within 10 days
after making a written request to the chairperson of the Civil
Service Commission. Each person who accepts a certificate of
appointment and successfully completes his or her probationary
period shall be enrolled as a firefighter and as a regular
member of the fire department.
For the purposes of this Section, "firefighter" means any
person who has been prior to, on, or after August 4, 2011 (the
effective date of Public Act 97-251) appointed to a fire
department or fire protection district or employed by a State
university and sworn or commissioned to perform firefighter
duties or paramedic duties, or both, except that the following
persons are not included: part-time firefighters; auxiliary,
reserve, or voluntary firefighters, including paid-on-call
firefighters; clerks and dispatchers or other civilian
employees of a fire department or fire protection district who
are not routinely expected to perform firefighter duties; and
elected officials.
(c) Qualification for placement on register of eligibles.
The purpose of establishing a register of eligibles is to
identify applicants who possess and demonstrate the mental
aptitude and physical ability to perform the duties required
of members of the fire department in order to provide the
highest quality of service to the public. To this end, all

HB4673 - 242 - LRB104 17481 RPS 30907 b
applicants for original appointment to an affected fire
department shall be subject to examination and testing which
shall be public, competitive, and open to all applicants
unless the municipality shall by ordinance limit applicants to
residents of the municipality, county or counties in which the
municipality is located, State, or nation. Any examination and
testing procedure utilized under subsection (e) of this
Section shall be supported by appropriate validation evidence
and shall comply with all applicable State and federal laws.
Municipalities may establish educational, emergency medical
service licensure, and other prerequisites for participation
in an examination or for hire as a firefighter. Any
municipality may charge a fee to cover the costs of the
application process.
Residency requirements in effect at the time an individual
enters the fire service of a municipality cannot be made more
restrictive for that individual during his or her period of
service for that municipality, or be made a condition of
promotion, except for the rank or position of fire chief and
for no more than 2 positions that rank immediately below that
of the chief rank which are appointed positions pursuant to
the Fire Department Promotion Act.
No person who is 35 years of age or older shall be eligible
to take an examination for a position as a firefighter unless
the person has had previous employment status as a firefighter
in the regularly constituted fire department of the

HB4673 - 243 - LRB104 17481 RPS 30907 b
municipality, except as provided in this Section. The age
limitation does not apply to:
(1) any person previously employed as a full-time
firefighter in a regularly constituted fire department of
(i) any municipality or fire protection district located
in Illinois, (ii) a fire protection district whose
obligations were assumed by a municipality under Section
21 of the Fire Protection District Act, or (iii) a
municipality whose obligations were taken over by a fire
protection district,
(2) any person who has served a municipality as a
regularly enrolled volunteer, paid-on-call, or part-time
firefighter, or
(3) any person who turned 35 while serving as a member
of the active or reserve components of any of the branches
of the Armed Forces of the United States or the National
Guard of any state, whose service was characterized as
honorable or under honorable, if separated from the
military, and is currently under the age of 40.
No person who is under 18 21 years of age shall be eligible
for employment as a firefighter.
No applicant shall be examined concerning his or her
political or religious opinions or affiliations. The
examinations shall be conducted by the commissioners of the
municipality or their designees and agents.
No municipality shall require that any firefighter

HB4673 - 244 - LRB104 17481 RPS 30907 b
appointed to the lowest rank serve a probationary employment
period of longer than one year of actual active employment,
which may exclude periods of training, or injury or illness
leaves, including duty related leave, in excess of 30 calendar
days. Notwithstanding anything to the contrary in this
Section, the probationary employment period limitation may be
extended for a firefighter who is required, as a condition of
employment, to be a licensed paramedic, during which time the
sole reason that a firefighter may be discharged without a
hearing is for failing to meet the requirements for paramedic
licensure.
In the event that any applicant who has been found
eligible for appointment and whose name has been placed upon
the final eligibility register provided for in this Division 1
has not been appointed to a firefighter position within one
year after the date of his or her physical ability
examination, the commission may cause a second examination to
be made of that applicant's physical ability prior to his or
her appointment. If, after the second examination, the
physical ability of the applicant shall be found to be less
than the minimum standard fixed by the rules of the
commission, the applicant shall not be appointed. The
applicant's name may be retained upon the register of
candidates eligible for appointment and when next reached for
certification and appointment that applicant may be again
examined as provided in this Section, and if the physical

HB4673 - 245 - LRB104 17481 RPS 30907 b
ability of that applicant is found to be less than the minimum
standard fixed by the rules of the commission, the applicant
shall not be appointed, and the name of the applicant shall be
removed from the register.
(d) Notice, examination, and testing components. Notice of
the time, place, general scope, merit criteria for any
subjective component, and fee of every examination shall be
given by the commission, by a publication at least 2 weeks
preceding the examination: (i) in one or more newspapers
published in the municipality, or if no newspaper is published
therein, then in one or more newspapers with a general
circulation within the municipality, or (ii) on the
municipality's Internet website. Additional notice of the
examination may be given as the commission shall prescribe.
The examination and qualifying standards for employment of
firefighters shall be based on: mental aptitude, physical
ability, preferences, moral character, and health. The mental
aptitude, physical ability, and preference components shall
determine an applicant's qualification for and placement on
the final register of eligibles. The examination may also
include a subjective component based on merit criteria as
determined by the commission. Scores from the examination must
be made available to the public.
(e) Mental aptitude. No person who does not possess at
least a high school diploma or an equivalent high school
education shall be placed on a register of eligibles.

HB4673 - 246 - LRB104 17481 RPS 30907 b
Examination of an applicant's mental aptitude shall be based
upon a written examination. The examination shall be practical
in character and relate to those matters that fairly test the
capacity of the persons examined to discharge the duties
performed by members of a fire department. Written
examinations shall be administered in a manner that ensures
the security and accuracy of the scores achieved.
(f) Physical ability. All candidates shall be required to
undergo an examination of their physical ability to perform
the essential functions included in the duties they may be
called upon to perform as a member of a fire department. For
the purposes of this Section, essential functions of the job
are functions associated with duties that a firefighter may be
called upon to perform in response to emergency calls. The
frequency of the occurrence of those duties as part of the fire
department's regular routine shall not be a controlling factor
in the design of examination criteria or evolutions selected
for testing. These physical examinations shall be open,
competitive, and based on industry standards designed to test
each applicant's physical abilities in the following
dimensions:
(1) Muscular strength to perform tasks and evolutions
that may be required in the performance of duties
including grip strength, leg strength, and arm strength.
Tests shall be conducted under anaerobic as well as
aerobic conditions to test both the candidate's speed and

HB4673 - 247 - LRB104 17481 RPS 30907 b
endurance in performing tasks and evolutions. Tasks tested
may be based on standards developed, or approved, by the
local appointing authority.
(2) The ability to climb ladders, operate from
heights, walk or crawl in the dark along narrow and uneven
surfaces, and operate in proximity to hazardous
environments.
(3) The ability to carry out critical, time-sensitive,
and complex problem solving during physical exertion in
stressful and hazardous environments. The testing
environment may be hot and dark with tightly enclosed
spaces, flashing lights, sirens, and other distractions.
The tests utilized to measure each applicant's
capabilities in each of these dimensions may be tests based on
industry standards currently in use or equivalent tests
approved by the Joint Labor-Management Committee of the Office
of the State Fire Marshal.
Physical ability examinations administered under this
Section shall be conducted with a reasonable number of
proctors and monitors, open to the public, and subject to
reasonable regulations of the commission.
(g) Scoring of examination components. Appointing
authorities may create a preliminary eligibility register. A
person shall be placed on the list based upon his or her
passage of the written examination or the passage of the
written examination and the physical ability component.

HB4673 - 248 - LRB104 17481 RPS 30907 b
Passage of the written examination means attaining the minimum
score set by the commission. Minimum scores should be set by
the commission so as to demonstrate a candidate's ability to
perform the essential functions of the job. The minimum score
set by the commission shall be supported by appropriate
validation evidence and shall comply with all applicable State
and federal laws. The appointing authority may conduct the
physical ability component and any subjective components
subsequent to the posting of the preliminary eligibility
register.
The examination components for an initial eligibility
register shall be graded on a 100-point scale. A person's
position on the list shall be determined by the following: (i)
the person's score on the written examination, (ii) the person
successfully passing the physical ability component, and (iii)
the person's results on any subjective component as described
in subsection (d).
In order to qualify for placement on the final eligibility
register, an applicant's score on the written examination,
before any applicable preference points or subjective points
are applied, shall be at or above the minimum score set by the
commission. The local appointing authority may prescribe the
score to qualify for placement on the final eligibility
register, but the score shall not be less than the minimum
score set by the commission.
The commission shall prepare and keep a register of

HB4673 - 249 - LRB104 17481 RPS 30907 b
persons whose total score is not less than the minimum score
for passage and who have passed the physical ability
examination. These persons shall take rank upon the register
as candidates in the order of their relative excellence based
on the highest to the lowest total points scored on the mental
aptitude, subjective component, and preference components of
the test administered in accordance with this Section. No more
than 60 days after each examination, an initial eligibility
list shall be posted by the commission. The list shall include
the final grades of the candidates without reference to
priority of the time of examination and subject to claim for
preference credit.
Commissions may conduct additional examinations, including
without limitation a polygraph test, after a final eligibility
register is established and before it expires with the
candidates ranked by total score without regard to date of
examination. No more than 60 days after each examination, an
initial eligibility list shall be posted by the commission
showing the final grades of the candidates without reference
to priority of time of examination and subject to claim for
preference credit.
(h) Preferences. The following are preferences:
(1) Veteran preference. Persons who were engaged in
the military service of the United States for a period of
at least one year of active duty and who were honorably
discharged therefrom, or who are now or have been members

HB4673 - 250 - LRB104 17481 RPS 30907 b
on inactive or reserve duty in such military or naval
service, shall be preferred for appointment to and
employment with the fire department of an affected
department.
(2) Fire cadet preference. Persons who have
successfully completed 2 years of study in fire techniques
or cadet training within a cadet program established under
the rules of the Joint Labor and Management Committee
(JLMC), as defined in Section 50 of the Fire Department
Promotion Act, may be preferred for appointment to and
employment with the fire department.
(3) Educational preference. Persons who have
successfully obtained an associate's degree in the field
of fire service or emergency medical services, or a
bachelor's degree from an accredited college or university
may be preferred for appointment to and employment with
the fire department.
(4) Paramedic preference. Persons who have obtained a
license as a paramedic may be preferred for appointment to
and employment with the fire department of an affected
department providing emergency medical services.
(5) Experience preference. All persons employed by a
municipality who have been paid-on-call or part-time
certified Firefighter II, certified Firefighter III, State
of Illinois or nationally licensed EMT, EMT-I, A-EMT, or
paramedic, or any combination of those capacities may be

HB4673 - 251 - LRB104 17481 RPS 30907 b
awarded up to a maximum of 5 points. However, the
applicant may not be awarded more than 0.5 points for each
complete year of paid-on-call or part-time service.
Applicants from outside the municipality who were employed
as full-time firefighters or firefighter-paramedics by a
fire protection district or another municipality may be
awarded up to 5 experience preference points. However, the
applicant may not be awarded more than one point for each
complete year of full-time service.
Upon request by the commission, the governing body of
the municipality or in the case of applicants from outside
the municipality the governing body of any fire protection
district or any other municipality shall certify to the
commission, within 10 days after the request, the number
of years of successful paid-on-call, part-time, or
full-time service of any person. A candidate may not
receive the full amount of preference points under this
subsection if the amount of points awarded would place the
candidate before a veteran on the eligibility list. If
more than one candidate receiving experience preference
points is prevented from receiving all of their points due
to not being allowed to pass a veteran, the candidates
shall be placed on the list below the veteran in rank order
based on the totals received if all points under this
subsection were to be awarded. Any remaining ties on the
list shall be determined by lot.

HB4673 - 252 - LRB104 17481 RPS 30907 b
(6) Residency preference. Applicants whose principal
residence is located within the fire department's
jurisdiction may be preferred for appointment to and
employment with the fire department.
(7) Additional preferences. Up to 5 additional
preference points may be awarded for unique categories
based on an applicant's experience or background as
identified by the commission.
(7.5) Apprentice preferences. A person who has
performed fire suppression service for a department as a
firefighter apprentice and otherwise meets the
qualifications for original appointment as a firefighter
specified in this Section may be awarded up to 20
preference points. To qualify for preference points, an
applicant shall have completed a minimum of 600 hours of
fire suppression work on a regular shift for the affected
fire department over a 12-month period. The fire
suppression work must be in accordance with Section
10-1-14 of this Division and the terms established by a
Joint Apprenticeship Committee included in a collective
bargaining agreement agreed between the employer and its
certified bargaining agent. An eligible applicant must
apply to the Joint Apprenticeship Committee for preference
points under this item. The Joint Apprenticeship Committee
shall evaluate the merit of the applicant's performance,
determine the preference points to be awarded, and certify

HB4673 - 253 - LRB104 17481 RPS 30907 b
the amount of points awarded to the commissioners. The
commissioners may add the certified preference points to
the final grades achieved by the applicant on the other
components of the examination.
(8) Scoring of preferences. The commission shall give
preference for original appointment to persons designated
in item (1) by adding to the final grade that they receive
5 points for the recognized preference achieved. The
commission may give preference for original appointment to
persons designated in item (7.5) by adding to the final
grade the amount of points designated by the Joint
Apprenticeship Committee as defined in item (7.5). The
commission shall determine the number of preference points
for each category, except items (1) and (7.5). The number
of preference points for each category shall range from 0
to 5, except item (7.5). In determining the number of
preference points, the commission shall prescribe that if
a candidate earns the maximum number of preference points
in all categories except item (7.5), that number may not
be less than 10 nor more than 30. The commission shall give
preference for original appointment to persons designated
in items (2) through (7) by adding the requisite number of
points to the final grade for each recognized preference
achieved. The numerical result thus attained shall be
applied by the commission in determining the final
eligibility list and appointment from the eligibility

HB4673 - 254 - LRB104 17481 RPS 30907 b
list. The local appointing authority may prescribe the
total number of preference points awarded under this
Section, but the total number of preference points, except
item (7.5), shall not be less than 10 points or more than
30 points. Apprentice preference points may be added in
addition to other preference points awarded by the
commission.
No person entitled to any preference shall be required to
claim the credit before any examination held under the
provisions of this Section, but the preference shall be given
after the posting or publication of the initial eligibility
list or register at the request of a person entitled to a
credit before any certification or appointments are made from
the eligibility register, upon the furnishing of verifiable
evidence and proof of qualifying preference credit. Candidates
who are eligible for preference credit shall make a claim in
writing within 10 days after the posting of the initial
eligibility list, or the claim shall be deemed waived. Final
eligibility registers shall be established after the awarding
of verified preference points. However, apprentice preference
credit earned subsequent to the establishment of the final
eligibility register may be applied to the applicant's score
upon certification by the Joint Apprenticeship Committee to
the commission and the rank order of candidates on the final
eligibility register shall be adjusted accordingly. All
employment shall be subject to the commission's initial hire

HB4673 - 255 - LRB104 17481 RPS 30907 b
background review, including, but not limited to, criminal
history, employment history, moral character, oral
examination, and medical and psychological examinations, all
on a pass-fail basis. The medical and psychological
examinations must be conducted last, and may only be performed
after a conditional offer of employment has been extended.
Any person placed on an eligibility list who exceeds the
age requirement before being appointed to a fire department
shall remain eligible for appointment until the list is
abolished, or his or her name has been on the list for a period
of 2 years. No person who has attained the age of 35 years
shall be inducted into a fire department, except as otherwise
provided in this Section.
The commission shall strike off the names of candidates
for original appointment after the names have been on the list
for more than 2 years.
(i) Moral character. No person shall be appointed to a
fire department unless he or she is a person of good character;
not a habitual drunkard, a gambler, or a person who has been
convicted of a felony or a crime involving moral turpitude.
However, no person shall be disqualified from appointment to
the fire department because of the person's record of
misdemeanor convictions except those under Sections 11-6,
11-7, 11-9, 11-14, 11-15, 11-17, 11-18, 11-19, 12-2, 12-6,
12-15, 14-4, 16-1, 21.1-3, 24-3.1, 24-5, 25-1, 28-3, 31-1,
31-4, 31-6, 31-7, 32-1, 32-2, 32-3, 32-4, 32-8, and paragraphs

HB4673 - 256 - LRB104 17481 RPS 30907 b
(1), (6), and (8) of subsection (a) of Section 24-1 of the
Criminal Code of 1961 or the Criminal Code of 2012, or arrest
for any cause without conviction thereon. Any such person who
is in the department may be removed on charges brought for
violating this subsection and after a trial as hereinafter
provided.
A classifiable set of the fingerprints of every person who
is offered employment as a certificated member of an affected
fire department whether with or without compensation, shall be
furnished to the Illinois State Police and to the Federal
Bureau of Investigation by the commission.
Whenever a commission is authorized or required by law to
consider some aspect of criminal history record information
for the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in
conformance with the requirements of Section 2605-400 of the
Illinois State Police Law of the Civil Administrative Code of
Illinois, the Illinois State Police is authorized to furnish,
pursuant to positive identification, the information contained
in State files as is necessary to fulfill the request.
(j) Temporary appointments. In order to prevent a stoppage
of public business, to meet extraordinary exigencies, or to
prevent material impairment of the fire department, the
commission may make temporary appointments, to remain in force
only until regular appointments are made under the provisions
of this Division, but never to exceed 60 days. No temporary

HB4673 - 257 - LRB104 17481 RPS 30907 b
appointment of any one person shall be made more than twice in
any calendar year.
(k) A person who knowingly divulges or receives test
questions or answers before a written examination, or
otherwise knowingly violates or subverts any requirement of
this Section, commits a violation of this Section and may be
subject to charges for official misconduct.
A person who is the knowing recipient of test information
in advance of the examination shall be disqualified from the
examination or discharged from the position to which he or she
was appointed, as applicable, and otherwise subjected to
disciplinary actions.
(Source: P.A. 101-489, eff. 8-23-19; 102-375, eff. 8-13-21;
102-538, eff. 8-20-21; 102-558, eff. 8-20-21; 102-813, eff.
5-13-22.)
(65 ILCS 5/10-2.1-6.3)
Sec. 10-2.1-6.3. Original appointments; full-time fire
department.
(a) Applicability. Unless a commission elects to follow
the provisions of Section 10-2.1-6.4, this Section shall apply
to all original appointments to an affected full-time fire
department. Existing registers of eligibles shall continue to
be valid until their expiration dates, or up to a maximum of 2
years after August 4, 2011 (the effective date of Public Act
97-251).

HB4673 - 258 - LRB104 17481 RPS 30907 b
Notwithstanding any statute, ordinance, rule, or other law
to the contrary, all original appointments to an affected
department to which this Section applies shall be administered
in the manner provided for in this Section. Provisions of the
Illinois Municipal Code, municipal ordinances, and rules
adopted pursuant to such authority and other laws relating to
initial hiring of firefighters in affected departments shall
continue to apply to the extent they are compatible with this
Section, but in the event of a conflict between this Section
and any other law, this Section shall control.
A home rule or non-home rule municipality may not
administer its fire department process for original
appointments in a manner that is less stringent than this
Section. This Section is a limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by home rule units of the powers and
functions exercised by the State.
A municipality that is operating under a court order or
consent decree regarding original appointments to a full-time
fire department before August 4, 2011 (the effective date of
Public Act 97-251) is exempt from the requirements of this
Section for the duration of the court order or consent decree.
Notwithstanding any other provision of this subsection
(a), this Section does not apply to a municipality with more
than 1,000,000 inhabitants.
(b) Original appointments. All original appointments made

HB4673 - 259 - LRB104 17481 RPS 30907 b
to an affected fire department shall be made from a register of
eligibles established in accordance with the processes
established by this Section. Only persons who meet or exceed
the performance standards required by this Section shall be
placed on a register of eligibles for original appointment to
an affected fire department.
Whenever an appointing authority authorizes action to hire
a person to perform the duties of a firefighter or to hire a
firefighter-paramedic to fill a position that is a new
position or vacancy due to resignation, discharge, promotion,
death, the granting of a disability or retirement pension, or
any other cause, the appointing authority shall appoint to
that position the person with the highest ranking on the final
eligibility list. If the appointing authority has reason to
conclude that the highest ranked person fails to meet the
minimum standards for the position or if the appointing
authority believes an alternate candidate would better serve
the needs of the department, then the appointing authority has
the right to pass over the highest ranked person and appoint
either: (i) any person who has a ranking in the top 5% of the
register of eligibles or (ii) any person who is among the top 5
highest ranked persons on the list of eligibles if the number
of people who have a ranking in the top 5% of the register of
eligibles is less than 5 people.
Any candidate may pass on an appointment once without
losing his or her position on the register of eligibles. Any

HB4673 - 260 - LRB104 17481 RPS 30907 b
candidate who passes a second time may be removed from the list
by the appointing authority provided that such action shall
not prejudice a person's opportunities to participate in
future examinations, including an examination held during the
time a candidate is already on the municipality's register of
eligibles.
The sole authority to issue certificates of appointment
shall be vested in the board of fire and police commissioners.
All certificates of appointment issued to any officer or
member of an affected department shall be signed by the
chairperson and secretary, respectively, of the board upon
appointment of such officer or member to the affected
department by action of the board. After being selected from
the register of eligibles to fill a vacancy in the affected
department, each appointee shall be presented with his or her
certificate of appointment on the day on which he or she is
sworn in as a classified member of the affected department.
Firefighters who were not issued a certificate of appointment
when originally appointed shall be provided with a certificate
within 10 days after making a written request to the
chairperson of the board of fire and police commissioners.
Each person who accepts a certificate of appointment and
successfully completes his or her probationary period shall be
enrolled as a firefighter and as a regular member of the fire
department.
For the purposes of this Section, "firefighter" means any

HB4673 - 261 - LRB104 17481 RPS 30907 b
person who has been prior to, on, or after August 4, 2011 (the
effective date of Public Act 97-251) appointed to a fire
department or fire protection district or employed by a State
university and sworn or commissioned to perform firefighter
duties or paramedic duties, or both, except that the following
persons are not included: part-time firefighters; auxiliary,
reserve, or voluntary firefighters, including paid-on-call
firefighters; clerks and dispatchers or other civilian
employees of a fire department or fire protection district who
are not routinely expected to perform firefighter duties; and
elected officials.
(c) Qualification for placement on register of eligibles.
The purpose of establishing a register of eligibles is to
identify applicants who possess and demonstrate the mental
aptitude and physical ability to perform the duties required
of members of the fire department in order to provide the
highest quality of service to the public. To this end, all
applicants for original appointment to an affected fire
department shall be subject to examination and testing which
shall be public, competitive, and open to all applicants
unless the municipality shall by ordinance limit applicants to
residents of the municipality, county or counties in which the
municipality is located, State, or nation. Any examination and
testing procedure utilized under subsection (e) of this
Section shall be supported by appropriate validation evidence
and shall comply with all applicable State and federal laws.

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Municipalities may establish educational, emergency medical
service licensure, and other prerequisites for participation
in an examination or for hire as a firefighter. Any
municipality may charge a fee to cover the costs of the
application process.
Residency requirements in effect at the time an individual
enters the fire service of a municipality cannot be made more
restrictive for that individual during his or her period of
service for that municipality, or be made a condition of
promotion, except for the rank or position of fire chief and
for no more than 2 positions that rank immediately below that
of the chief rank which are appointed positions pursuant to
the Fire Department Promotion Act.
No person who is 35 years of age or older shall be eligible
to take an examination for a position as a firefighter unless
the person has had previous employment status as a firefighter
in the regularly constituted fire department of the
municipality, except as provided in this Section. The age
limitation does not apply to:
(1) any person previously employed as a full-time
firefighter in a regularly constituted fire department of
(i) any municipality or fire protection district located
in Illinois, (ii) a fire protection district whose
obligations were assumed by a municipality under Section
21 of the Fire Protection District Act, or (iii) a
municipality whose obligations were taken over by a fire

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protection district,
(2) any person who has served a municipality as a
regularly enrolled volunteer, paid-on-call, or part-time
firefighter, or
(3) any person who turned 35 while serving as a member
of the active or reserve components of any of the branches
of the Armed Forces of the United States or the National
Guard of any state, whose service was characterized as
honorable or under honorable, if separated from the
military, and is currently under the age of 40.
No person who is under 18 21 years of age shall be eligible
for employment as a firefighter.
No applicant shall be examined concerning his or her
political or religious opinions or affiliations. The
examinations shall be conducted by the commissioners of the
municipality or their designees and agents.
No municipality shall require that any firefighter
appointed to the lowest rank serve a probationary employment
period of longer than one year of actual active employment,
which may exclude periods of training, or injury or illness
leaves, including duty related leave, in excess of 30 calendar
days. Notwithstanding anything to the contrary in this
Section, the probationary employment period limitation may be
extended for a firefighter who is required, as a condition of
employment, to be a licensed paramedic, during which time the
sole reason that a firefighter may be discharged without a

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hearing is for failing to meet the requirements for paramedic
licensure.
In the event that any applicant who has been found
eligible for appointment and whose name has been placed upon
the final eligibility register provided for in this Section
has not been appointed to a firefighter position within one
year after the date of his or her physical ability
examination, the commission may cause a second examination to
be made of that applicant's physical ability prior to his or
her appointment. If, after the second examination, the
physical ability of the applicant shall be found to be less
than the minimum standard fixed by the rules of the
commission, the applicant shall not be appointed. The
applicant's name may be retained upon the register of
candidates eligible for appointment and when next reached for
certification and appointment that applicant may be again
examined as provided in this Section, and if the physical
ability of that applicant is found to be less than the minimum
standard fixed by the rules of the commission, the applicant
shall not be appointed, and the name of the applicant shall be
removed from the register.
(d) Notice, examination, and testing components. Notice of
the time, place, general scope, merit criteria for any
subjective component, and fee of every examination shall be
given by the commission, by a publication at least 2 weeks
preceding the examination: (i) in one or more newspapers

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published in the municipality, or if no newspaper is published
therein, then in one or more newspapers with a general
circulation within the municipality, or (ii) on the
municipality's Internet website. Additional notice of the
examination may be given as the commission shall prescribe.
The examination and qualifying standards for employment of
firefighters shall be based on: mental aptitude, physical
ability, preferences, moral character, and health. The mental
aptitude, physical ability, and preference components shall
determine an applicant's qualification for and placement on
the final register of eligibles. The examination may also
include a subjective component based on merit criteria as
determined by the commission. Scores from the examination must
be made available to the public.
(e) Mental aptitude. No person who does not possess at
least a high school diploma or an equivalent high school
education shall be placed on a register of eligibles.
Examination of an applicant's mental aptitude shall be based
upon a written examination. The examination shall be practical
in character and relate to those matters that fairly test the
capacity of the persons examined to discharge the duties
performed by members of a fire department. Written
examinations shall be administered in a manner that ensures
the security and accuracy of the scores achieved.
(f) Physical ability. All candidates shall be required to
undergo an examination of their physical ability to perform

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the essential functions included in the duties they may be
called upon to perform as a member of a fire department. For
the purposes of this Section, essential functions of the job
are functions associated with duties that a firefighter may be
called upon to perform in response to emergency calls. The
frequency of the occurrence of those duties as part of the fire
department's regular routine shall not be a controlling factor
in the design of examination criteria or evolutions selected
for testing. These physical examinations shall be open,
competitive, and based on industry standards designed to test
each applicant's physical abilities in the following
dimensions:
(1) Muscular strength to perform tasks and evolutions
that may be required in the performance of duties
including grip strength, leg strength, and arm strength.
Tests shall be conducted under anaerobic as well as
aerobic conditions to test both the candidate's speed and
endurance in performing tasks and evolutions. Tasks tested
may be based on standards developed, or approved, by the
local appointing authority.
(2) The ability to climb ladders, operate from
heights, walk or crawl in the dark along narrow and uneven
surfaces, and operate in proximity to hazardous
environments.
(3) The ability to carry out critical, time-sensitive,
and complex problem solving during physical exertion in

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stressful and hazardous environments. The testing
environment may be hot and dark with tightly enclosed
spaces, flashing lights, sirens, and other distractions.
The tests utilized to measure each applicant's
capabilities in each of these dimensions may be tests based on
industry standards currently in use or equivalent tests
approved by the Joint Labor-Management Committee of the Office
of the State Fire Marshal.
Physical ability examinations administered under this
Section shall be conducted with a reasonable number of
proctors and monitors, open to the public, and subject to
reasonable regulations of the commission.
(g) Scoring of examination components. Appointing
authorities may create a preliminary eligibility register. A
person shall be placed on the list based upon his or her
passage of the written examination or the passage of the
written examination and the physical ability component.
Passage of the written examination means attaining the minimum
score set by the commission. Minimum scores should be set by
the commission so as to demonstrate a candidate's ability to
perform the essential functions of the job. The minimum score
set by the commission shall be supported by appropriate
validation evidence and shall comply with all applicable State
and federal laws. The appointing authority may conduct the
physical ability component and any subjective components
subsequent to the posting of the preliminary eligibility

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register.
The examination components for an initial eligibility
register shall be graded on a 100-point scale. A person's
position on the list shall be determined by the following: (i)
the person's score on the written examination, (ii) the person
successfully passing the physical ability component, and (iii)
the person's results on any subjective component as described
in subsection (d).
In order to qualify for placement on the final eligibility
register, an applicant's score on the written examination,
before any applicable preference points or subjective points
are applied, shall be at or above the minimum score as set by
the commission. The local appointing authority may prescribe
the score to qualify for placement on the final eligibility
register, but the score shall not be less than the minimum
score set by the commission.
The commission shall prepare and keep a register of
persons whose total score is not less than the minimum score
for passage and who have passed the physical ability
examination. These persons shall take rank upon the register
as candidates in the order of their relative excellence based
on the highest to the lowest total points scored on the mental
aptitude, subjective component, and preference components of
the test administered in accordance with this Section. No more
than 60 days after each examination, an initial eligibility
list shall be posted by the commission. The list shall include

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the final grades of the candidates without reference to
priority of the time of examination and subject to claim for
preference credit.
Commissions may conduct additional examinations, including
without limitation a polygraph test, after a final eligibility
register is established and before it expires with the
candidates ranked by total score without regard to date of
examination. No more than 60 days after each examination, an
initial eligibility list shall be posted by the commission
showing the final grades of the candidates without reference
to priority of time of examination and subject to claim for
preference credit.
(h) Preferences. The following are preferences:
(1) Veteran preference. Persons who were engaged in
the military service of the United States for a period of
at least one year of active duty and who were honorably
discharged therefrom, or who are now or have been members
on inactive or reserve duty in such military or naval
service, shall be preferred for appointment to and
employment with the fire department of an affected
department.
(2) Fire cadet preference. Persons who have
successfully completed 2 years of study in fire techniques
or cadet training within a cadet program established under
the rules of the Joint Labor and Management Committee
(JLMC), as defined in Section 50 of the Fire Department

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Promotion Act, may be preferred for appointment to and
employment with the fire department.
(3) Educational preference. Persons who have
successfully obtained an associate's degree in the field
of fire service or emergency medical services, or a
bachelor's degree from an accredited college or university
may be preferred for appointment to and employment with
the fire department.
(4) Paramedic preference. Persons who have obtained a
license as a paramedic shall be preferred for appointment
to and employment with the fire department of an affected
department providing emergency medical services.
(5) Experience preference. All persons employed by a
municipality who have been paid-on-call or part-time
certified Firefighter II, State of Illinois or nationally
licensed EMT, EMT-I, A-EMT, or any combination of those
capacities shall be awarded 0.5 point for each year of
successful service in one or more of those capacities, up
to a maximum of 5 points. Certified Firefighter III and
State of Illinois or nationally licensed paramedics shall
be awarded one point per year up to a maximum of 5 points.
Applicants from outside the municipality who were employed
as full-time firefighters or firefighter-paramedics by a
fire protection district or another municipality for at
least 2 years shall be awarded 5 experience preference
points. These additional points presuppose a rating scale

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totaling 100 points available for the eligibility list. If
more or fewer points are used in the rating scale for the
eligibility list, the points awarded under this subsection
shall be increased or decreased by a factor equal to the
total possible points available for the examination
divided by 100.
Upon request by the commission, the governing body of
the municipality or in the case of applicants from outside
the municipality the governing body of any fire protection
district or any other municipality shall certify to the
commission, within 10 days after the request, the number
of years of successful paid-on-call, part-time, or
full-time service of any person. A candidate may not
receive the full amount of preference points under this
subsection if the amount of points awarded would place the
candidate before a veteran on the eligibility list. If
more than one candidate receiving experience preference
points is prevented from receiving all of their points due
to not being allowed to pass a veteran, the candidates
shall be placed on the list below the veteran in rank order
based on the totals received if all points under this
subsection were to be awarded. Any remaining ties on the
list shall be determined by lot.
(6) Residency preference. Applicants whose principal
residence is located within the fire department's
jurisdiction shall be preferred for appointment to and

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employment with the fire department.
(7) Additional preferences. Up to 5 additional
preference points may be awarded for unique categories
based on an applicant's experience or background as
identified by the commission.
(7.5) Apprentice preferences. A person who has
performed fire suppression service for a department as a
firefighter apprentice and otherwise meets the
qualifications for original appointment as a firefighter
specified in this Section is eligible to be awarded up to
20 preference points. To qualify for preference points, an
applicant shall have completed a minimum of 600 hours of
fire suppression work on a regular shift for the affected
fire department over a 12-month period. The fire
suppression work must be in accordance with Section
10-2.1-4 of this Division and the terms established by a
Joint Apprenticeship Committee included in a collective
bargaining agreement agreed between the employer and its
certified bargaining agent. An eligible applicant must
apply to the Joint Apprenticeship Committee for preference
points under this item. The Joint Apprenticeship Committee
shall evaluate the merit of the applicant's performance,
determine the preference points to be awarded, and certify
the amount of points awarded to the commissioners. The
commissioners may add the certified preference points to
the final grades achieved by the applicant on the other

HB4673 - 273 - LRB104 17481 RPS 30907 b
components of the examination.
(8) Scoring of preferences. The commission may give
preference for original appointment to persons designated
in item (1) by adding to the final grade that they receive
5 points for the recognized preference achieved. The
commission may give preference for original appointment to
persons designated in item (7.5) by adding to the final
grade the amount of points designated by the Joint
Apprenticeship Committee as defined in item (7.5). The
commission shall determine the number of preference points
for each category, except items (1) and (7.5). The number
of preference points for each category shall range from 0
to 5, except item (7.5). In determining the number of
preference points, the commission shall prescribe that if
a candidate earns the maximum number of preference points
in all categories except item (7.5), that number may not
be less than 10 nor more than 30. The commission shall give
preference for original appointment to persons designated
in items (2) through (7) by adding the requisite number of
points to the final grade for each recognized preference
achieved. The numerical result thus attained shall be
applied by the commission in determining the final
eligibility list and appointment from the eligibility
list. The local appointing authority may prescribe the
total number of preference points awarded under this
Section, but the total number of preference points, except

HB4673 - 274 - LRB104 17481 RPS 30907 b
item (7.5), shall not be less than 10 points or more than
30 points. Apprentice preference points may be added in
addition to other preference points awarded by the
commission.
No person entitled to any preference shall be required to
claim the credit before any examination held under the
provisions of this Section, but the preference may be given
after the posting or publication of the initial eligibility
list or register at the request of a person entitled to a
credit before any certification or appointments are made from
the eligibility register, upon the furnishing of verifiable
evidence and proof of qualifying preference credit. Candidates
who are eligible for preference credit may make a claim in
writing within 10 days after the posting of the initial
eligibility list, or the claim may be deemed waived. Final
eligibility registers may be established after the awarding of
verified preference points. However, apprentice preference
credit earned subsequent to the establishment of the final
eligibility register may be applied to the applicant's score
upon certification by the Joint Apprenticeship Committee to
the commission and the rank order of candidates on the final
eligibility register shall be adjusted accordingly. All
employment shall be subject to the commission's initial hire
background review, including, but not limited to, criminal
history, employment history, moral character, oral
examination, and medical and psychological examinations, all

HB4673 - 275 - LRB104 17481 RPS 30907 b
on a pass-fail basis. The medical and psychological
examinations must be conducted last, and may only be performed
after a conditional offer of employment has been extended.
Any person placed on an eligibility list who exceeds the
age requirement before being appointed to a fire department
shall remain eligible for appointment until the list is
abolished, or his or her name has been on the list for a period
of 2 years. No person who has attained the age of 35 years
shall be inducted into a fire department, except as otherwise
provided in this Section.
The commission shall strike off the names of candidates
for original appointment after the names have been on the list
for more than 2 years.
(i) Moral character. No person shall be appointed to a
fire department unless he or she is a person of good character;
not a habitual drunkard, a gambler, or a person who has been
convicted of a felony or a crime involving moral turpitude.
However, no person shall be disqualified from appointment to
the fire department because of the person's record of
misdemeanor convictions except those under Sections 11-6,
11-7, 11-9, 11-14, 11-15, 11-17, 11-18, 11-19, 12-2, 12-6,
12-15, 14-4, 16-1, 21.1-3, 24-3.1, 24-5, 25-1, 28-3, 31-1,
31-4, 31-6, 31-7, 32-1, 32-2, 32-3, 32-4, 32-8, and paragraphs
(1), (6), and (8) of subsection (a) of Section 24-1 of the
Criminal Code of 1961 or the Criminal Code of 2012, or arrest
for any cause without conviction thereon. Any such person who

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is in the department may be removed on charges brought for
violating this subsection and after a trial as hereinafter
provided.
A classifiable set of the fingerprints of every person who
is offered employment as a certificated member of an affected
fire department whether with or without compensation, shall be
furnished to the Illinois State Police and to the Federal
Bureau of Investigation by the commission.
Whenever a commission is authorized or required by law to
consider some aspect of criminal history record information
for the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in
conformance with the requirements of Section 2605-400 of the
Illinois State Police Law of the Civil Administrative Code of
Illinois, the Illinois State Police is authorized to furnish,
pursuant to positive identification, the information contained
in State files as is necessary to fulfill the request.
(j) Temporary appointments. In order to prevent a stoppage
of public business, to meet extraordinary exigencies, or to
prevent material impairment of the fire department, the
commission may make temporary appointments, to remain in force
only until regular appointments are made under the provisions
of this Division, but never to exceed 60 days. No temporary
appointment of any one person shall be made more than twice in
any calendar year.
(k) A person who knowingly divulges or receives test

HB4673 - 277 - LRB104 17481 RPS 30907 b
questions or answers before a written examination, or
otherwise knowingly violates or subverts any requirement of
this Section, commits a violation of this Section and may be
subject to charges for official misconduct.
A person who is the knowing recipient of test information
in advance of the examination shall be disqualified from the
examination or discharged from the position to which he or she
was appointed, as applicable, and otherwise subjected to
disciplinary actions.
(Source: P.A. 101-489, eff. 8-23-19; 102-375, eff. 8-13-21;
102-538, eff. 8-20-21; 102-558, eff. 8-20-21; 102-813, eff.
5-13-22.)
Section 8-15. The Fire Protection District Act is amended
by changing Section 16.06b as follows:
(70 ILCS 705/16.06b)
Sec. 16.06b. Original appointments; full-time fire
department.
(a) Applicability. Unless a commission elects to follow
the provisions of Section 16.06c, this Section shall apply to
all original appointments to an affected full-time fire
department. Existing registers of eligibles shall continue to
be valid until their expiration dates, or up to a maximum of 2
years after August 4, 2011 (the effective date of Public Act
97-251).

HB4673 - 278 - LRB104 17481 RPS 30907 b
Notwithstanding any statute, ordinance, rule, or other law
to the contrary, all original appointments to an affected
department to which this Section applies shall be administered
in a no less stringent manner than the manner provided for in
this Section. Provisions of the Illinois Municipal Code, Fire
Protection District Act, fire district ordinances, and rules
adopted pursuant to such authority and other laws relating to
initial hiring of firefighters in affected departments shall
continue to apply to the extent they are compatible with this
Section, but in the event of a conflict between this Section
and any other law, this Section shall control.
A fire protection district that is operating under a court
order or consent decree regarding original appointments to a
full-time fire department before August 4, 2011 (the effective
date of Public Act 97-251) is exempt from the requirements of
this Section for the duration of the court order or consent
decree.
(b) Original appointments. All original appointments made
to an affected fire department shall be made from a register of
eligibles established in accordance with the processes
required by this Section. Only persons who meet or exceed the
performance standards required by the Section shall be placed
on a register of eligibles for original appointment to an
affected fire department.
Whenever an appointing authority authorizes action to hire
a person to perform the duties of a firefighter or to hire a

HB4673 - 279 - LRB104 17481 RPS 30907 b
firefighter-paramedic to fill a position that is a new
position or vacancy due to resignation, discharge, promotion,
death, the granting of a disability or retirement pension, or
any other cause, the appointing authority shall appoint to
that position the person with the highest ranking on the final
eligibility list. If the appointing authority has reason to
conclude that the highest ranked person fails to meet the
minimum standards for the position or if the appointing
authority believes an alternate candidate would better serve
the needs of the department, then the appointing authority has
the right to pass over the highest ranked person and appoint
either: (i) any person who has a ranking in the top 5% of the
register of eligibles or (ii) any person who is among the top 5
highest ranked persons on the list of eligibles if the number
of people who have a ranking in the top 5% of the register of
eligibles is less than 5 people.
Any candidate may pass on an appointment once without
losing his or her position on the register of eligibles. Any
candidate who passes a second time may be removed from the list
by the appointing authority provided that such action shall
not prejudice a person's opportunities to participate in
future examinations, including an examination held during the
time a candidate is already on the fire district's register of
eligibles.
The sole authority to issue certificates of appointment
shall be vested in the board of fire commissioners, or board of

HB4673 - 280 - LRB104 17481 RPS 30907 b
trustees serving in the capacity of a board of fire
commissioners. All certificates of appointment issued to any
officer or member of an affected department shall be signed by
the chairperson and secretary, respectively, of the commission
upon appointment of such officer or member to the affected
department by action of the commission. After being selected
from the register of eligibles to fill a vacancy in the
affected department, each appointee shall be presented with
his or her certificate of appointment on the day on which he or
she is sworn in as a classified member of the affected
department. Firefighters who were not issued a certificate of
appointment when originally appointed shall be provided with a
certificate within 10 days after making a written request to
the chairperson of the board of fire commissioners, or board
of trustees serving in the capacity of a board of fire
commissioners. Each person who accepts a certificate of
appointment and successfully completes his or her probationary
period shall be enrolled as a firefighter and as a regular
member of the fire department.
For the purposes of this Section, "firefighter" means any
person who has been prior to, on, or after August 4, 2011 (the
effective date of Public Act 97-251) appointed to a fire
department or fire protection district or employed by a State
university and sworn or commissioned to perform firefighter
duties or paramedic duties, or both, except that the following
persons are not included: part-time firefighters; auxiliary,

HB4673 - 281 - LRB104 17481 RPS 30907 b
reserve, or voluntary firefighters, including paid-on-call
firefighters; clerks and dispatchers or other civilian
employees of a fire department or fire protection district who
are not routinely expected to perform firefighter duties; and
elected officials.
(c) Qualification for placement on register of eligibles.
The purpose of establishing a register of eligibles is to
identify applicants who possess and demonstrate the mental
aptitude and physical ability to perform the duties required
of members of the fire department in order to provide the
highest quality of service to the public. To this end, all
applicants for original appointment to an affected fire
department shall be subject to examination and testing which
shall be public, competitive, and open to all applicants
unless the district shall by ordinance limit applicants to
residents of the district, county or counties in which the
district is located, State, or nation. Any examination and
testing procedure utilized under subsection (e) of this
Section shall be supported by appropriate validation evidence
and shall comply with all applicable State and federal laws.
Districts may establish educational, emergency medical service
licensure, and other prerequisites for participation in an
examination or for hire as a firefighter. Any fire protection
district may charge a fee to cover the costs of the application
process.
Residency requirements in effect at the time an individual

HB4673 - 282 - LRB104 17481 RPS 30907 b
enters the fire service of a district cannot be made more
restrictive for that individual during his or her period of
service for that district, or be made a condition of
promotion, except for the rank or position of fire chief and
for no more than 2 positions that rank immediately below that
of the chief rank which are appointed positions pursuant to
the Fire Department Promotion Act.
No person who is 35 years of age or older shall be eligible
to take an examination for a position as a firefighter unless
the person has had previous employment status as a firefighter
in the regularly constituted fire department of the district,
except as provided in this Section. The age limitation does
not apply to:
(1) any person previously employed as a full-time
firefighter in a regularly constituted fire department of
(i) any municipality or fire protection district located
in Illinois, (ii) a fire protection district whose
obligations were assumed by a municipality under Section
21 of the Fire Protection District Act, or (iii) a
municipality whose obligations were taken over by a fire
protection district;
(2) any person who has served a fire district as a
regularly enrolled volunteer, paid-on-call, or part-time
firefighter; or
(3) any person who turned 35 while serving as a member
of the active or reserve components of any of the branches

HB4673 - 283 - LRB104 17481 RPS 30907 b
of the Armed Forces of the United States or the National
Guard of any state, whose service was characterized as
honorable or under honorable, if separated from the
military, and is currently under the age of 40.
No person who is under 18 21 years of age shall be eligible
for employment as a firefighter.
No applicant shall be examined concerning his or her
political or religious opinions or affiliations. The
examinations shall be conducted by the commissioners of the
district or their designees and agents.
No district shall require that any firefighter appointed
to the lowest rank serve a probationary employment period of
longer than one year of actual active employment, which may
exclude periods of training, or injury or illness leaves,
including duty related leave, in excess of 30 calendar days.
Notwithstanding anything to the contrary in this Section, the
probationary employment period limitation may be extended for
a firefighter who is required, as a condition of employment,
to be a licensed paramedic, during which time the sole reason
that a firefighter may be discharged without a hearing is for
failing to meet the requirements for paramedic licensure.
In the event that any applicant who has been found
eligible for appointment and whose name has been placed upon
the final eligibility register provided for in this Section
has not been appointed to a firefighter position within one
year after the date of his or her physical ability

HB4673 - 284 - LRB104 17481 RPS 30907 b
examination, the commission may cause a second examination to
be made of that applicant's physical ability prior to his or
her appointment. If, after the second examination, the
physical ability of the applicant shall be found to be less
than the minimum standard fixed by the rules of the
commission, the applicant shall not be appointed. The
applicant's name may be retained upon the register of
candidates eligible for appointment and when next reached for
certification and appointment that applicant may be again
examined as provided in this Section, and if the physical
ability of that applicant is found to be less than the minimum
standard fixed by the rules of the commission, the applicant
shall not be appointed, and the name of the applicant shall be
removed from the register.
(d) Notice, examination, and testing components. Notice of
the time, place, general scope, merit criteria for any
subjective component, and fee of every examination shall be
given by the commission, by a publication at least 2 weeks
preceding the examination: (i) in one or more newspapers
published in the district, or if no newspaper is published
therein, then in one or more newspapers with a general
circulation within the district, or (ii) on the fire
protection district's Internet website. Additional notice of
the examination may be given as the commission shall
prescribe.
The examination and qualifying standards for employment of

HB4673 - 285 - LRB104 17481 RPS 30907 b
firefighters shall be based on: mental aptitude, physical
ability, preferences, moral character, and health. The mental
aptitude, physical ability, and preference components shall
determine an applicant's qualification for and placement on
the final register of eligibles. The examination may also
include a subjective component based on merit criteria as
determined by the commission. Scores from the examination must
be made available to the public.
(e) Mental aptitude. No person who does not possess at
least a high school diploma or an equivalent high school
education shall be placed on a register of eligibles.
Examination of an applicant's mental aptitude shall be based
upon a written examination. The examination shall be practical
in character and relate to those matters that fairly test the
capacity of the persons examined to discharge the duties
performed by members of a fire department. Written
examinations shall be administered in a manner that ensures
the security and accuracy of the scores achieved.
(f) Physical ability. All candidates shall be required to
undergo an examination of their physical ability to perform
the essential functions included in the duties they may be
called upon to perform as a member of a fire department. For
the purposes of this Section, essential functions of the job
are functions associated with duties that a firefighter may be
called upon to perform in response to emergency calls. The
frequency of the occurrence of those duties as part of the fire

HB4673 - 286 - LRB104 17481 RPS 30907 b
department's regular routine shall not be a controlling factor
in the design of examination criteria or evolutions selected
for testing. These physical examinations shall be open,
competitive, and based on industry standards designed to test
each applicant's physical abilities in the following
dimensions:
(1) Muscular strength to perform tasks and evolutions
that may be required in the performance of duties
including grip strength, leg strength, and arm strength.
Tests shall be conducted under anaerobic as well as
aerobic conditions to test both the candidate's speed and
endurance in performing tasks and evolutions. Tasks tested
may be based on standards developed, or approved, by the
local appointing authority.
(2) The ability to climb ladders, operate from
heights, walk or crawl in the dark along narrow and uneven
surfaces, and operate in proximity to hazardous
environments.
(3) The ability to carry out critical, time-sensitive,
and complex problem solving during physical exertion in
stressful and hazardous environments. The testing
environment may be hot and dark with tightly enclosed
spaces, flashing lights, sirens, and other distractions.
The tests utilized to measure each applicant's
capabilities in each of these dimensions may be tests based on
industry standards currently in use or equivalent tests

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approved by the Joint Labor-Management Committee of the Office
of the State Fire Marshal.
Physical ability examinations administered under this
Section shall be conducted with a reasonable number of
proctors and monitors, open to the public, and subject to
reasonable regulations of the commission.
(g) Scoring of examination components. Appointing
authorities may create a preliminary eligibility register. A
person shall be placed on the list based upon his or her
passage of the written examination or the passage of the
written examination and the physical ability component.
Passage of the written examination means attaining the minimum
score set by the commission. Minimum scores should be set by
the appointing authorities so as to demonstrate a candidate's
ability to perform the essential functions of the job. The
minimum score set by the commission shall be supported by
appropriate validation evidence and shall comply with all
applicable State and federal laws. The appointing authority
may conduct the physical ability component and any subjective
components subsequent to the posting of the preliminary
eligibility register.
The examination components for an initial eligibility
register shall be graded on a 100-point scale. A person's
position on the list shall be determined by the following: (i)
the person's score on the written examination, (ii) the person
successfully passing the physical ability component, and (iii)

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the person's results on any subjective component as described
in subsection (d).
In order to qualify for placement on the final eligibility
register, an applicant's score on the written examination,
before any applicable preference points or subjective points
are applied, shall be at or above the minimum score set by the
commission. The local appointing authority may prescribe the
score to qualify for placement on the final eligibility
register, but the score shall not be less than the minimum
score set by the commission.
The commission shall prepare and keep a register of
persons whose total score is not less than the minimum score
for passage and who have passed the physical ability
examination. These persons shall take rank upon the register
as candidates in the order of their relative excellence based
on the highest to the lowest total points scored on the mental
aptitude, subjective component, and preference components of
the test administered in accordance with this Section. No more
than 60 days after each examination, an initial eligibility
list shall be posted by the commission. The list shall include
the final grades of the candidates without reference to
priority of the time of examination and subject to claim for
preference credit.
Commissions may conduct additional examinations, including
without limitation a polygraph test, after a final eligibility
register is established and before it expires with the

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candidates ranked by total score without regard to date of
examination. No more than 60 days after each examination, an
initial eligibility list shall be posted by the commission
showing the final grades of the candidates without reference
to priority of time of examination and subject to claim for
preference credit.
(h) Preferences. The following are preferences:
(1) Veteran preference. Persons who were engaged in
the military service of the United States for a period of
at least one year of active duty and who were honorably
discharged therefrom, or who are now or have been members
on inactive or reserve duty in such military or naval
service, shall be preferred for appointment to and
employment with the fire department of an affected
department.
(2) Fire cadet preference. Persons who have
successfully completed 2 years of study in fire techniques
or cadet training within a cadet program established under
the rules of the Joint Labor and Management Committee
(JLMC), as defined in Section 50 of the Fire Department
Promotion Act, may be preferred for appointment to and
employment with the fire department.
(3) Educational preference. Persons who have
successfully obtained an associate's degree in the field
of fire service or emergency medical services, or a
bachelor's degree from an accredited college or university

HB4673 - 290 - LRB104 17481 RPS 30907 b
may be preferred for appointment to and employment with
the fire department.
(4) Paramedic preference. Persons who have obtained a
license as a paramedic may be preferred for appointment to
and employment with the fire department of an affected
department providing emergency medical services.
(5) Experience preference. All persons employed by a
district who have been paid-on-call or part-time certified
Firefighter II, certified Firefighter III, State of
Illinois or nationally licensed EMT, EMT-I, A-EMT, or
paramedic, or any combination of those capacities may be
awarded up to a maximum of 5 points. However, the
applicant may not be awarded more than 0.5 points for each
complete year of paid-on-call or part-time service.
Applicants from outside the district who were employed as
full-time firefighters or firefighter-paramedics by a fire
protection district or municipality for at least 2 years
may be awarded up to 5 experience preference points.
However, the applicant may not be awarded more than one
point for each complete year of full-time service.
Upon request by the commission, the governing body of
the district or in the case of applicants from outside the
district the governing body of any other fire protection
district or any municipality shall certify to the
commission, within 10 days after the request, the number
of years of successful paid-on-call, part-time, or

HB4673 - 291 - LRB104 17481 RPS 30907 b
full-time service of any person. A candidate may not
receive the full amount of preference points under this
subsection if the amount of points awarded would place the
candidate before a veteran on the eligibility list. If
more than one candidate receiving experience preference
points is prevented from receiving all of their points due
to not being allowed to pass a veteran, the candidates
shall be placed on the list below the veteran in rank order
based on the totals received if all points under this
subsection were to be awarded. Any remaining ties on the
list shall be determined by lot.
(6) Residency preference. Applicants whose principal
residence is located within the fire department's
jurisdiction may be preferred for appointment to and
employment with the fire department.
(7) Additional preferences. Up to 5 additional
preference points may be awarded for unique categories
based on an applicant's experience or background as
identified by the commission.
(7.5) Apprentice preferences. A person who has
performed fire suppression service for a department as a
firefighter apprentice and otherwise meets the
qualifications for original appointment as a firefighter
specified in this Section is eligible to be awarded up to
20 preference points. To qualify for preference points, an
applicant shall have completed a minimum of 600 hours of

HB4673 - 292 - LRB104 17481 RPS 30907 b
fire suppression work on a regular shift for the affected
fire department over a 12-month period. The fire
suppression work must be in accordance with Section 16.06
of this Act and the terms established by a Joint
Apprenticeship Committee included in a collective
bargaining agreement agreed between the employer and its
certified bargaining agent. An eligible applicant must
apply to the Joint Apprenticeship Committee for preference
points under this item. The Joint Apprenticeship Committee
shall evaluate the merit of the applicant's performance,
determine the preference points to be awarded, and certify
the amount of points awarded to the commissioners. The
commissioners may add the certified preference points to
the final grades achieved by the applicant on the other
components of the examination.
(8) Scoring of preferences. The commission shall give
preference for original appointment to persons designated
in item (1) by adding to the final grade that they receive
5 points for the recognized preference achieved. The
commission may give preference for original appointment to
persons designated in item (7.5) by adding to the final
grade the amount of points designated by the Joint
Apprenticeship Committee as defined in item (7.5). The
commission shall determine the number of preference points
for each category, except (1) and (7.5). The number of
preference points for each category shall range from 0 to

HB4673 - 293 - LRB104 17481 RPS 30907 b
5, except item (7.5). In determining the number of
preference points, the commission shall prescribe that if
a candidate earns the maximum number of preference points
in all categories except item (7.5), that number may not
be less than 10 nor more than 30. The commission shall give
preference for original appointment to persons designated
in items (2) through (7) by adding the requisite number of
points to the final grade for each recognized preference
achieved. The numerical result thus attained shall be
applied by the commission in determining the final
eligibility list and appointment from the eligibility
list. The local appointing authority may prescribe the
total number of preference points awarded under this
Section, but the total number of preference points, except
item (7.5), shall not be less than 10 points or more than
30 points. Apprentice preference points may be added in
addition to other preference points awarded by the
commission.
No person entitled to any preference shall be required to
claim the credit before any examination held under the
provisions of this Section, but the preference shall be given
after the posting or publication of the initial eligibility
list or register at the request of a person entitled to a
credit before any certification or appointments are made from
the eligibility register, upon the furnishing of verifiable
evidence and proof of qualifying preference credit. Candidates

HB4673 - 294 - LRB104 17481 RPS 30907 b
who are eligible for preference credit shall make a claim in
writing within 10 days after the posting of the initial
eligibility list, or the claim shall be deemed waived. Final
eligibility registers shall be established after the awarding
of verified preference points. However, apprentice preference
credit earned subsequent to the establishment of the final
eligibility register may be applied to the applicant's score
upon certification by the Joint Apprenticeship Committee to
the commission and the rank order of candidates on the final
eligibility register shall be adjusted accordingly. All
employment shall be subject to the commission's initial hire
background review, including, but not limited to, criminal
history, employment history, moral character, oral
examination, and medical and psychological examinations, all
on a pass-fail basis. The medical and psychological
examinations must be conducted last, and may only be performed
after a conditional offer of employment has been extended.
Any person placed on an eligibility list who exceeds the
age requirement before being appointed to a fire department
shall remain eligible for appointment until the list is
abolished, or his or her name has been on the list for a period
of 2 years. No person who has attained the age of 35 years
shall be inducted into a fire department, except as otherwise
provided in this Section.
The commission shall strike off the names of candidates
for original appointment after the names have been on the list

HB4673 - 295 - LRB104 17481 RPS 30907 b
for more than 2 years.
(i) Moral character. No person shall be appointed to a
fire department unless he or she is a person of good character;
not a habitual drunkard, a gambler, or a person who has been
convicted of a felony or a crime involving moral turpitude.
However, no person shall be disqualified from appointment to
the fire department because of the person's record of
misdemeanor convictions except those under Sections 11-6,
11-7, 11-9, 11-14, 11-15, 11-17, 11-18, 11-19, 12-2, 12-6,
12-15, 14-4, 16-1, 21.1-3, 24-3.1, 24-5, 25-1, 28-3, 31-1,
31-4, 31-6, 31-7, 32-1, 32-2, 32-3, 32-4, 32-8, and paragraphs
(1), (6), and (8) of subsection (a) of Section 24-1 of the
Criminal Code of 1961 or the Criminal Code of 2012, or arrest
for any cause without conviction thereon. Any such person who
is in the department may be removed on charges brought for
violating this subsection and after a trial as hereinafter
provided.
A classifiable set of the fingerprints of every person who
is offered employment as a certificated member of an affected
fire department whether with or without compensation, shall be
furnished to the Illinois State Police and to the Federal
Bureau of Investigation by the commission.
Whenever a commission is authorized or required by law to
consider some aspect of criminal history record information
for the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in

HB4673 - 296 - LRB104 17481 RPS 30907 b
conformance with the requirements of Section 2605-400 of the
Illinois State Police Law of the Civil Administrative Code of
Illinois, the Illinois State Police is authorized to furnish,
pursuant to positive identification, the information contained
in State files as is necessary to fulfill the request.
(j) Temporary appointments. In order to prevent a stoppage
of public business, to meet extraordinary exigencies, or to
prevent material impairment of the fire department, the
commission may make temporary appointments, to remain in force
only until regular appointments are made under the provisions
of this Section, but never to exceed 60 days. No temporary
appointment of any one person shall be made more than twice in
any calendar year.
(k) A person who knowingly divulges or receives test
questions or answers before a written examination, or
otherwise knowingly violates or subverts any requirement of
this Section, commits a violation of this Section and may be
subject to charges for official misconduct.
A person who is the knowing recipient of test information
in advance of the examination shall be disqualified from the
examination or discharged from the position to which he or she
was appointed, as applicable, and otherwise subjected to
disciplinary actions.
(Source: P.A. 101-489, eff. 8-23-19; 102-375, eff. 8-13-21;
102-538, eff. 8-20-21; 102-558, eff. 8-20-21; 102-813, eff.
5-13-22.)

HB4673 - 297 - LRB104 17481 RPS 30907 b
Article 9.
Section 9-5. The Illinois Pension Code is amended by
adding Section 1-168 as follows:
(40 ILCS 5/1-168 new)
Sec. 1-168. Repayment of refund; Tier 1 status.
(a) A member or participant of a retirement system
established under this Code may repay a refund or establish
service under the relevant pension system if the member or
participant:
(1) is an active participant in any retirement system
under this Code, regardless of whether that pension fund
or retirement system is the pension fund or retirement
system where service is being reestablished, or is
employed in a position that would otherwise allow the
member or participant to participate in a pension fund or
retirement system had the member or participant not opted
out of coverage of the retirement system or pension fund;
(2) makes a payment established by the pension fund or
retirement system to equal the employee and employer
contributions that would have been required or, in the
case of a refund, the repayment of the refund plus
interest on the amount under item (2) established by the
pension fund or retirement system from the time of refund

HB4673 - 298 - LRB104 17481 RPS 30907 b
or the time the member or participant would have been
enrolled in the pension fund or retirement system had the
member or participant not opted out;
(3) completes all forms reasonably required by the
pension fund or retirement system; and
(4) meets these requirements within one year of the
effective date of this amendatory Act of the 104th General
Assembly; except that, for a pension fund or retirement
system that allows periodic payments of the amounts
established under item (2), the individual shall be deemed
to have completed this item (4) by entering into a payment
plan established by the pension fund or retirement plan.
(b) Any person who earned service as a Tier 1 member or
participant in any retirement system or pension fund
established under this Code shall continue to earn service as
a Tier 1 member and shall remain a Tier 1 member in any
retirement system or pension fund established under this Code
that the member or participant participates in thereafter. If
there is conflict between this paragraph and any Section of
this Code, this Section shall prevail. This paragraph is
intended to clarify existing law and any benefit or credit
awarded inconsistently with this Section shall be changed to
become compliant with this Section; however, nothing in this
Section shall require a pension fund or retirement system to
recalculate a final determined retirement annuity or benefit
that the member or participant is in receipt of, except for a

HB4673 - 299 - LRB104 17481 RPS 30907 b
member or participant who has a pending action against a
pension fund or retirement system regarding a final determined
retirement annuity or benefit as of the date this amendatory
Act of the 104th General Assembly becomes law.
Article 10.
Section 10-5. The Budget Stabilization Act is amended by
changing Section 20 as follows:
(30 ILCS 122/20)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20. Pension Stabilization Fund.
(a) The Pension Stabilization Fund is hereby created as a
special fund in the State treasury. Moneys in the fund shall be
used for the sole purpose of making payments to the designated
retirement systems as provided in Section 25.
(b) For each fiscal year when the General Assembly's
appropriations and transfers or diversions as required by law
from general funds do not exceed 99% of the estimated general
funds revenues pursuant to subsection (a) of Section 10, the
Comptroller shall transfer from the General Revenue Fund as
provided by this Section a total amount equal to 0.5% of the
estimated general funds revenues to the Pension Stabilization
Fund.

HB4673 - 300 - LRB104 17481 RPS 30907 b
(c) For each fiscal year when the General Assembly's
appropriations and transfers or diversions as required by law
from general funds do not exceed 98% of the estimated general
funds revenues pursuant to subsection (b) of Section 10, the
Comptroller shall transfer from the General Revenue Fund as
provided by this Section a total amount equal to 1.0% of the
estimated general funds revenues to the Pension Stabilization
Fund.
(c-5) In addition to any other transfers that may be
provided by law, the Comptroller shall transfer from the
General Revenue Fund to the Pension Stabilization Fund the
amount set forth as follows for each of the specified fiscal
years:
Fiscal Year Amount
2030 $300,000,000
2031 $400,000,000
2032 $400,000,000
2033 $400,000,000
2034 $600,000,000
2035 $600,000,000
2036 $600,000,000
2037 $600,000,000
2038 $600,000,000
2039 $550,000,000
2040 $450,000,000
2041 $350,000,000

HB4673 - 301 - LRB104 17481 RPS 30907 b
2042 $350,000,000
2043 $350,000,000
2044 $350,000,000
2045 $350,000,000
2046 $350,000,000
2047 $350,000,000
2048 $350,000,000
2049 $350,000,000
(d) The Comptroller shall transfer 1/12 of the total
amount to be transferred each fiscal year under this Section
into the Pension Stabilization Fund on the first day of each
month of that fiscal year or as soon thereafter as possible;
except that the final transfer of the fiscal year shall be made
as soon as practical after the August 31 following the end of
the fiscal year.
Before the final transfer for a fiscal year is made, the
Comptroller shall reconcile the estimated general funds
revenues used in calculating the other transfers under this
Section for that fiscal year with the actual general funds
revenues for that fiscal year. The final transfer for the
fiscal year shall be adjusted so that the total amount
transferred under this Section for that fiscal year is equal
to the percentage specified in subsection (b) or (c) of this
Section, whichever is applicable, of the actual general funds
revenues for that fiscal year. The actual general funds
revenues for the fiscal year shall be calculated in a manner

HB4673 - 302 - LRB104 17481 RPS 30907 b
consistent with subsection (c) of Section 10 of this Act.
(Source: P.A. 94-839, eff. 6-6-06.)
Section 10-10. The Illinois Pension Code is amended by
changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as
follows:
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the
contributions of participants, interest earned on investments,
and other income will meet the cost of maintaining and
administering the System on a 100% 90% funded basis by the end
of State fiscal year 2049 in accordance with actuarial
recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c). In making its determination, the Board
shall disregard any contributions scheduled to be received in
a future State fiscal year under the Budget Stabilization Act.
(c) Beginning in State fiscal year 2050, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the

HB4673 - 303 - LRB104 17481 RPS 30907 b
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by Section 2-134 plus the amounts
required under subsection (c-5), such that the total assets of
the System equal 100% of the total actuarial liabilities of
the System 20 years after the State fiscal year during which
the contribution is made. The required State contribution
shall be determined under the entry age normal actuarial cost
method.
For State fiscal years 2036 through 2049, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by Section 2-134 plus the amounts
required under subsection (c-5), such that the total assets of
the System equal 100% of the total actuarial liabilities of
the System 20 years after the State fiscal year during which
the contribution is made. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2049 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 2028 through 2035, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be an amount determined by the System
to be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the

HB4673 - 304 - LRB104 17481 RPS 30907 b
end of State fiscal year 2049. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2049 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2027 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 and before State
fiscal year 2036 or thereafter shall be implemented in equal
annual amounts over a 5-year period beginning in the State
fiscal year in which the actuarial change first applies to the
required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:

HB4673 - 305 - LRB104 17481 RPS 30907 b
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $4,157,000.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $5,220,300.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under

HB4673 - 306 - LRB104 17481 RPS 30907 b
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $10,454,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 2-134 and shall be made from the
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share
of total bond proceeds, (ii) any amounts received from the
General Revenue Fund in fiscal year 2011, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.

HB4673 - 307 - LRB104 17481 RPS 30907 b
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
2-134, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section

HB4673 - 308 - LRB104 17481 RPS 30907 b
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(c-5) For State fiscal year 2036 and each State fiscal
year thereafter, the contribution to the System to be made by
the State shall include an adjustment for differences between
the unfunded liability reported in the current actuarial
valuation and the unfunded liability reported in the previous
year's actuarial valuation required by Section 2-134. The
adjustment shall be implemented in equal annual amounts over a
20-year period beginning in the State fiscal year in which the
current actuarial valuation is used to determine the required
State contribution under subsection (c).
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's

HB4673 - 309 - LRB104 17481 RPS 30907 b
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
This subsection is inoperative on and after July 1, 2035.
(e) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 100% 90% funded basis by the end of State
fiscal year 2049 in accordance with actuarial recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that

HB4673 - 310 - LRB104 17481 RPS 30907 b
are picked up or otherwise paid by the State or a department on
behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board, using the formula in subsection (e). In making its
determination, the Board shall disregard any contributions
scheduled to be received in a future State fiscal year under
the Budget Stabilization Act.
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that fiscal
year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act and
Section 1 of the State Pension Funds Continuing Appropriation
Act, if any, for the fiscal year ending on the June 30
immediately preceding the applicable November 15 certification
deadline), the estimated payroll (including all forms of
compensation) for personal services rendered by eligible
employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may elect
to participate in the System but have not so elected, persons
who are serving a qualifying period that is required for
participation, and annuitants employed by a department as

HB4673 - 311 - LRB104 17481 RPS 30907 b
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several departments
for each pay period by warrants drawn by the State Comptroller
against their respective funds or appropriations based upon
vouchers stating the amount to be so contributed. These
amounts shall be based on the full rate certified by the Board
under Section 14-135.08 for that fiscal year. From March 5,
2004 (the effective date of Public Act 93-665) through the
payment of the final payroll from fiscal year 2004
appropriations, the several departments shall not make
contributions for the remainder of fiscal year 2004 but shall
instead make payments as required under subsection (a-1) of
Section 14.1 of the State Finance Act. The several departments
shall resume those contributions at the commencement of fiscal
year 2005.
(c-1) Notwithstanding subsection (c) of this Section, for
fiscal years 2010, 2012, and each fiscal year thereafter,
contributions by the several departments are not required to
be made for General Revenue Funds payrolls processed by the
Comptroller. Payrolls paid by the several departments from all
other State funds must continue to be processed pursuant to
subsection (c) of this Section.
(c-2) Unless otherwise directed by the Comptroller under
subsection (c-3), the Board shall submit vouchers for payment
of State contributions to the System for the applicable month
on the 15th day of each month, or as soon thereafter as may be

HB4673 - 312 - LRB104 17481 RPS 30907 b
practicable. The amount vouchered for a monthly payment shall
total one-twelfth of the fiscal year General Revenue Fund
contribution as certified by the System pursuant to Section
14-135.08 of this Code.
(c-3) Beginning in State fiscal year 2025, if the
Comptroller requests that the Board submit, during a State
fiscal year, vouchers for multiple monthly payments for
advance payment of State contributions due to the System for
that State fiscal year, then the Board shall submit those
additional vouchers as directed by the Comptroller,
notwithstanding subsection (c-2). Unless an act of
appropriations provides otherwise, nothing in this Section
authorizes the Board to submit, in a State fiscal year,
vouchers for the payment of State contributions to the System
in an amount that exceeds the rate of payroll that is certified
by the System under Section 14-135.08 for that State fiscal
year.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid
by the State.
(e) Beginning in State fiscal year 2050, the minimum
contribution to the System to be made by the State for each

HB4673 - 313 - LRB104 17481 RPS 30907 b
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by Section 14-135.08 plus the
amounts required under subsection (e-5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. The required State
contribution shall be determined under the entry age normal
actuarial cost method.
For State fiscal years 2036 through 2049, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by Section 14-135.08 plus the
amounts required under subsection (e-5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over the
years remaining to and including fiscal year 2049 and shall be
determined under the projected unit credit actuarial cost
method.
For State fiscal years 2028 through 2035, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be an amount determined by the System

HB4673 - 314 - LRB104 17481 RPS 30907 b
to be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the
end of State fiscal year 2049. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2049 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2027 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 and before State
fiscal year 2036 or thereafter shall be implemented in equal
annual amounts over a 5-year period beginning in the State
fiscal year in which the actuarial change first applies to the
required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and

HB4673 - 315 - LRB104 17481 RPS 30907 b
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that (i) for State fiscal year 1998, for all purposes of this
Code and any other law of this State, the certified percentage
of the applicable employee payroll shall be 5.052% for
employees earning eligible creditable service under Section
14-110 and 6.500% for all other employees, notwithstanding any
contrary certification made under Section 14-135.08 before
July 7, 1997 (the effective date of Public Act 90-65), and (ii)
in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee

HB4673 - 316 - LRB104 17481 RPS 30907 b
payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
and 10.8% in FY 2004.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
14-135.08, shall not exceed an amount equal to (i) the amount

HB4673 - 317 - LRB104 17481 RPS 30907 b
of the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act.
(e-5) For State fiscal year 2036 and each State fiscal
year thereafter, the contribution to the System to be made by
the State shall include an adjustment for differences between
the unfunded liability reported in the current actuarial
valuation and the unfunded liability reported in the previous
year's actuarial valuation required by Section 14-135.08. The
adjustment shall be implemented in equal annual amounts over a
20-year period beginning in the State fiscal year in which the
current actuarial valuation is used to determine the required
State contribution under subsection (e).
(f) (Blank).
(g) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's

HB4673 - 318 - LRB104 17481 RPS 30907 b
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
This subsection is inoperative on and after July 1, 2035.
(h) For purposes of determining the required State
contribution to the System for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the System's actuarially assumed rate of
return.
(i) (Blank).
(j) (Blank).
(k) For fiscal year 2012 and each fiscal year thereafter,
after the submission of all payments for eligible employees
from personal services line items paid from the General
Revenue Fund in the fiscal year have been made, the
Comptroller shall provide to the System a certification of the
sum of all expenditures in the fiscal year for personal
services. Upon receipt of the certification, the System shall
determine the amount due to the System based on the full rate
certified by the Board under Section 14-135.08 for the fiscal
year in order to meet the State's obligation under this
Section. The System shall compare this amount due to the
amount received by the System for the fiscal year. If the

HB4673 - 319 - LRB104 17481 RPS 30907 b
amount due is more than the amount received, the difference
shall be termed the "Prior Fiscal Year Shortfall" for purposes
of this Section, and the Prior Fiscal Year Shortfall shall be
satisfied under Section 1.2 of the State Pension Funds
Continuing Appropriation Act. If the amount due is less than
the amount received, the difference shall be termed the "Prior
Fiscal Year Overpayment" for purposes of this Section, and the
Prior Fiscal Year Overpayment shall be repaid by the System to
the General Revenue Fund as soon as practicable after the
certification.
(Source: P.A. 103-588, eff. 6-5-24.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 100% 90% funded
basis by the end of State fiscal year 2049 in accordance with
actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the

HB4673 - 320 - LRB104 17481 RPS 30907 b
formula in subsection (a-1). In making its determination, the
Board shall disregard any contributions scheduled to be
received in a future State fiscal year under the Budget
Stabilization Act.
(a-1) Beginning in State fiscal year 2050, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by subsection (a-5) of Section
15-165 plus the amounts required under subsection (a-1.5),
such that the total assets of the System equal 100% of the
total actuarial liabilities of the System 20 years after the
State fiscal year during which the contribution is made. The
required State contribution shall be determined under the
entry age normal actuarial cost method.
For State fiscal years 2036 through 2049, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by subsection (a-5) of Section
15-165 plus the amounts required under subsection (a-1.5),
such that the total assets of the System equal 100% of the
total actuarial liabilities of the System 20 years after the
State fiscal year during which the contribution is made. In
making these determinations, the required State contribution
shall be calculated each year as a level percentage of payroll

HB4673 - 321 - LRB104 17481 RPS 30907 b
over the years remaining to and including fiscal year 2049 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 2028 through 2035, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be an amount determined by the System
to be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the
end of State fiscal year 2049. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2049 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2027 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed

HB4673 - 322 - LRB104 17481 RPS 30907 b
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 and before State
fiscal year 2036 or thereafter shall be implemented in equal
annual amounts over a 5-year period beginning in the State
fiscal year in which the actuarial change first applies to the
required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is

HB4673 - 323 - LRB104 17481 RPS 30907 b
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $252,064,100.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $702,514,000 and shall be made from the State Pensions Fund
and proceeds of bonds sold in fiscal year 2010 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the
System's share of total bond proceeds, (ii) any amounts
received from the General Revenue Fund in fiscal year 2010,
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011

HB4673 - 324 - LRB104 17481 RPS 30907 b
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 15-165 and shall be made from the
State Pensions Fund and proceeds of bonds sold in fiscal year
2011 pursuant to Section 7.2 of the General Obligation Bond
Act, less (i) the pro rata share of bond sale expenses
determined by the System's share of total bond proceeds, (ii)
any amounts received from the General Revenue Fund in fiscal
year 2011, and (iii) any reduction in bond proceeds due to the
issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the

HB4673 - 325 - LRB104 17481 RPS 30907 b
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
15-165, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(a-1.5) For State fiscal year 2036 and each State fiscal
year thereafter, the contribution to the System to be made by

HB4673 - 326 - LRB104 17481 RPS 30907 b
the State shall include an adjustment for differences between
the unfunded liability reported in the current actuarial
valuation and the unfunded liability reported in the previous
year's actuarial valuation required by subsection (a-5) of
Section 15-165. The adjustment shall be implemented in equal
annual amounts over a 20-year period beginning in the State
fiscal year in which the current actuarial valuation is used
to determine the required State contribution under subsection
(a-1).
(a-2) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; plus
(ii) the amount required for that fiscal year to

HB4673 - 327 - LRB104 17481 RPS 30907 b
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
15-155.2, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (a-2)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
As used in this subsection, "academic year" means the
12-month period beginning September 1.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income

HB4673 - 328 - LRB104 17481 RPS 30907 b
funds, or service enterprise funds are not required to pay
such contributions on behalf of those employees. The local
auxiliary funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of
the actuary, and shall be expressed as a percentage of salary
for each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or

HB4673 - 329 - LRB104 17481 RPS 30907 b
other funds, in accordance with actuarial procedures approved
by the Board. State of Illinois contributions for employers
receiving State appropriations for personal services shall be
payable from appropriations made to the employers or to the
System. The contributions for Class I community colleges
covering earnings other than those paid from trust and federal
funds, shall be payable solely from appropriations to the
Illinois Community College Board or the System for employer
contributions.
(d) Beginning in State fiscal year 1996, the required
State contributions to the System shall be appropriated
directly to the System and shall be payable through vouchers
issued in accordance with subsection (c) of Section 15-165,
except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System
because of the credits earned for service rendered by the
participants during the fiscal year and expenses of
administering the System, but shall not include the principal
of or any redemption premium or interest on any bonds issued by
the Board or any expenses incurred or deposits required in
connection therewith.

HB4673 - 330 - LRB104 17481 RPS 30907 b
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the
System, the present value of the increase in benefits
resulting from the portion of the increase in earnings that is
in excess of 6%. This present value shall be computed by the
System on the basis of the actuarial assumptions and tables
used in the most recent actuarial valuation of the System that
is available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection (g), the System shall calculate
the amount of the payment and bill the employer for that
amount. The bill shall specify the calculations used to
determine the amount due. If the employer disputes the amount
of the bill, it may, within 30 days after receipt of the bill,
apply to the System in writing for a recalculation. The
application must specify in detail the grounds of the dispute
and, if the employer asserts that the calculation is subject
to subsection (h), (h-5), or (i) of this Section, must include

HB4673 - 331 - LRB104 17481 RPS 30907 b
an affidavit setting forth and attesting to all facts within
the employer's knowledge that are pertinent to the
applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(g) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 7 years after the employer's receipt
of the bill.
When assessing payment for any amount due under this
subsection (g), the System shall include earnings, to the
extent not established by a participant under Section
15-113.11 or 15-113.12, that would have been paid to the
participant had the participant not taken (i) periods of
voluntary or involuntary furlough occurring on or after July
1, 2015 and on or before June 30, 2017 or (ii) periods of
voluntary pay reduction in lieu of furlough occurring on or
after July 1, 2015 and on or before June 30, 2017. Determining
earnings that would have been paid to a participant had the
participant not taken periods of voluntary or involuntary
furlough or periods of voluntary pay reduction shall be the

HB4673 - 332 - LRB104 17481 RPS 30907 b
responsibility of the employer, and shall be reported in a
manner prescribed by the System.
This subsection (g) does not apply to (1) Tier 2 hybrid
plan members and (2) Tier 2 defined benefit members who first
participate under this Article on or after the implementation
date of the Optional Hybrid Plan.
(g-1) (Blank).
(h) This subsection (h) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting
from overload work, including a contract for summer teaching,
or overtime when the employer has certified to the System, and
the System has approved the certification, that: (i) in the

HB4673 - 333 - LRB104 17481 RPS 30907 b
case of overloads (A) the overload work is for the sole purpose
of academic instruction in excess of the standard number of
instruction hours for a full-time employee occurring during
the academic year that the overload is paid and (B) the
earnings increases are equal to or less than the rate of pay
for academic instruction computed using the participant's
current salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in
academic rank for a tenured or tenure-track faculty position,
or (iii) a promotion that the Illinois Community College Board
has recommended in accordance with subsection (k) of this
Section. These earnings increases shall be excluded only if
the promotion is to a position that has existed and been filled
by a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(h-5) When assessing payment for any amount due under
subsection (g), the System shall exclude any earnings increase
paid in an academic year beginning on or after July 1, 2020

HB4673 - 334 - LRB104 17481 RPS 30907 b
resulting from overload work performed in an academic year
subsequent to an academic year in which the employer was
unable to offer or allow to be conducted overload work due to
an emergency declaration limiting such activities.
(i) When assessing payment for any amount due under
subsection (g), the System shall exclude any salary increase
described in subsection (h) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Except as provided in subsection (h-5), any payments made or
salary increases given after June 30, 2014 shall be used in
assessing payment for any amount due under subsection (g) of
this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by

HB4673 - 335 - LRB104 17481 RPS 30907 b
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(j-5) For State fiscal years beginning on or after July 1,
2017, if the amount of a participant's earnings for any State
fiscal year exceeds the amount of the salary set by law for the
Governor that is in effect on July 1 of that fiscal year, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
earnings in excess of the amount of the salary set by law for
the Governor. This amount shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is
available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculation used to determine the
amount due. If the employer disputes the amount of the bill, it

HB4673 - 336 - LRB104 17481 RPS 30907 b
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
issuance of the bill. If the employer contributions are not
paid within 90 days after issuance of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after issuance of the bill. All
payments must be received within 3 years after issuance of the
bill. If the employer fails to make complete payment,
including applicable interest, within 3 years, then the System
may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the
Comptroller shall thereupon deduct the certified delinquent
amount from State funds payable to the employer and pay them
instead to the System.
This subsection (j-5) does not apply to a participant's
earnings to the extent an employer pays the employer normal
cost of such earnings.
The changes made to this subsection (j-5) by Public Act
100-624 are intended to apply retroactively to July 6, 2017

HB4673 - 337 - LRB104 17481 RPS 30907 b
(the effective date of Public Act 100-23).
(k) The Illinois Community College Board shall adopt rules
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for
State universities by the State Universities Civil Service
System. The Illinois Community College Board shall file a copy
of its findings with the System. The System shall consider the
findings of the Illinois Community College Board when making
determinations under this Section. The System shall not
exclude any earnings increases resulting from a promotion when
the promotion was not submitted by a community college.
Nothing in this subsection (k) shall require any community
college to submit any information to the Community College
Board.
(l) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal

HB4673 - 338 - LRB104 17481 RPS 30907 b
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
This subsection is inoperative on and after July 1, 2035.
(m) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 104-284, eff. 1-1-26.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 100% 90% funded
basis by the end of State fiscal year 2049 in accordance with
actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3). In making its determination, the

HB4673 - 339 - LRB104 17481 RPS 30907 b
Board shall disregard any contributions scheduled to be
received in a future State fiscal year under the Budget
Stabilization Act.
(a-1) Annually, on or before November 15 until November
15, 2011, the Board shall certify to the Governor the amount of
the required State contribution for the coming fiscal year.
The certification under this subsection (a-1) shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by Public Act 94-4.
On or before April 1, 2011, the Board shall recalculate
and recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011,
applying the changes made by Public Act 96-889 to the System's
assets and liabilities as of June 30, 2009 as though Public Act

HB4673 - 340 - LRB104 17481 RPS 30907 b
96-889 was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed
certification of the amount of the required State contribution
to the System for the next fiscal year, along with all of the
actuarial assumptions, calculations, and data upon which that
proposed certification is based. On or before January 1 of
each year, beginning January 1, 2013, the State Actuary shall
issue a preliminary report concerning the proposed
certification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. On or before January 15, 2013 and each January
15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The Board's certification must note
any deviations from the State Actuary's recommended changes,
the reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-10) By November 1, 2017, the Board shall recalculate
and recertify to the State Actuary, the Governor, and the
General Assembly the amount of the State contribution to the
System for State fiscal year 2018, taking into account the

HB4673 - 341 - LRB104 17481 RPS 30907 b
changes in required State contributions made by Public Act
100-23. The State Actuary shall review the assumptions and
valuations underlying the Board's revised certification and
issue a preliminary report concerning the proposed
recertification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. The Board's final certification must note any
deviations from the State Actuary's recommended changes, the
reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-15) On or after June 15, 2019, but no later than June
30, 2019, the Board shall recalculate and recertify to the
Governor and the General Assembly the amount of the State
contribution to the System for State fiscal year 2019, taking
into account the changes in required State contributions made
by Public Act 100-587. The recalculation shall be made using
assumptions adopted by the Board for the original fiscal year
2019 certification. The monthly voucher for the 12th month of
fiscal year 2019 shall be paid by the Comptroller after the
recertification required pursuant to this subsection is
submitted to the Governor, Comptroller, and General Assembly.
The recertification submitted to the General Assembly shall be
filed with the Clerk of the House of Representatives and the

HB4673 - 342 - LRB104 17481 RPS 30907 b
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Unless otherwise directed by the Comptroller under
subsection (b-1.1), the Board shall submit vouchers for
payment of State contributions to the System for the
applicable month on the 15th day of each month, or as soon
thereafter as may be practicable. The amount vouchered for a
monthly payment shall total one-twelfth of the required annual
State contribution certified under subsection (a-1).
(b-1.1) Beginning in State fiscal year 2025, if the
Comptroller requests that the Board submit, during a State
fiscal year, vouchers for multiple monthly payments for the
advance payment of State contributions due to the System for
that State fiscal year, then the Board shall submit those
additional vouchers as directed by the Comptroller,
notwithstanding subsection (b-1). Unless an act of
appropriations provides otherwise, nothing in this Section
authorizes the Board to submit, in a State fiscal year,
vouchers for the payment of State contributions to the System
in an amount that exceeds the rate of payroll that is certified
by the System under this Section for that State fiscal year.
(b-1.2) The vouchers described in subsections (b-1) and
(b-1.1) shall be paid by the State Comptroller and Treasurer

HB4673 - 343 - LRB104 17481 RPS 30907 b
by warrants drawn on the funds appropriated to the System for
that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) Beginning in State fiscal year 2050, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by subsection (a-5) plus the
amounts required under subsection (b-3.5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. The required State
contribution shall be determined under the entry age normal
actuarial cost method.
For State fiscal years 2036 through 2049, the minimum

HB4673 - 344 - LRB104 17481 RPS 30907 b
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by subsection (a-5) plus the
amounts required under subsection (b-3.5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over the
years remaining to and including fiscal year 2049 and shall be
determined under the projected unit credit actuarial cost
method.
For State fiscal years 2028 through 2035, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be an amount determined by the System
to be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the
end of State fiscal year 2049. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2049 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2027 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be

HB4673 - 345 - LRB104 17481 RPS 30907 b
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 and before State
fiscal year 2036 or thereafter shall be implemented in equal
annual amounts over a 5-year period beginning in the State
fiscal year in which the actuarial change first applies to the
required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in

HB4673 - 346 - LRB104 17481 RPS 30907 b
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a), and notwithstanding any
contrary certification made under subsection (a-1) before May
27, 1998 (the effective date of Public Act 90-582): 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007

HB4673 - 347 - LRB104 17481 RPS 30907 b
is $738,014,500.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the Common School
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to subsection (a-1) of this Section and shall be
made from the proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by
the System's share of total bond proceeds, (ii) any amounts

HB4673 - 348 - LRB104 17481 RPS 30907 b
received from the Common School Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable. This amount shall include, in
addition to the amount certified by the System, an amount
necessary to meet employer contributions required by the State
as an employer under paragraph (e) of this Section, which may
also be used by the System for contributions required by
paragraph (a) of Section 16-127.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for

HB4673 - 349 - LRB104 17481 RPS 30907 b
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under subsection
(a-1), shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(b-3.5) For State fiscal year 2036 and each State fiscal
year thereafter, the contribution to the System to be made by
the State shall include an adjustment for differences between

HB4673 - 350 - LRB104 17481 RPS 30907 b
the unfunded liability reported in the current actuarial
valuation and the unfunded liability reported in the previous
year's actuarial valuation required by subsection (a-5). The
adjustment shall be implemented in equal annual amounts over a
20-year period beginning in the State fiscal year in which the
current actuarial valuation is used to determine the required
State contribution under subsection (b-3).
(b-4) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities

HB4673 - 351 - LRB104 17481 RPS 30907 b
attributable to the employer's account under Section
16-158.3, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (b-4)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and
all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs

HB4673 - 352 - LRB104 17481 RPS 30907 b
based upon that service, which, beginning July 1, 2017, shall
be at a rate, expressed as a percentage of salary, equal to the
total employer's normal cost, expressed as a percentage of
payroll, as determined by the System. Employer contributions,
based on salary paid to members from federal funds, may be
forwarded by the distributing agency of the State of Illinois
to the System prior to allocation, in an amount determined in
accordance with guidelines established by such agency and the
System. Any contribution for fiscal year 2015 collected as a
result of the change made by Public Act 98-674 shall be
considered a State contribution under subsection (b-3) of this
Section.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and

HB4673 - 353 - LRB104 17481 RPS 30907 b
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from Public Act 90-582.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that

HB4673 - 354 - LRB104 17481 RPS 30907 b
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by Public Act 90-582 is the responsibility of
the teacher and not the teacher's employer, unless the
employer agrees, through collective bargaining or otherwise,
to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines

HB4673 - 355 - LRB104 17481 RPS 30907 b
established by the System, the present value of the increase
in benefits resulting from the portion of the increase in
salary that is in excess of 6%. This present value shall be
computed by the System on the basis of the actuarial
assumptions and tables used in the most recent actuarial
valuation of the System that is available at the time of the
computation. If a teacher's salary for the 2005-2006 school
year is used to determine final average salary under this
subsection (f), then the changes made to this subsection (f)
by Public Act 94-1057 shall apply in calculating whether the
increase in his or her salary is in excess of 6%. For the
purposes of this Section, change in employment under Section
10-21.12 of the School Code on or after June 1, 2005 shall
constitute a change in employer. The System may require the
employer to provide any pertinent information or
documentation. The changes made to this subsection (f) by
Public Act 94-1111 apply without regard to whether the teacher
was in service on or after its effective date.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the

HB4673 - 356 - LRB104 17481 RPS 30907 b
employer asserts that the calculation is subject to subsection
(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
must include an affidavit setting forth and attesting to all
facts within the employer's knowledge that are pertinent to
the applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 7 years after the employer's receipt
of the bill.
(f-1) (Blank).
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to
teachers under contracts or collective bargaining agreements
entered into, amended, or renewed before June 1, 2005.

HB4673 - 357 - LRB104 17481 RPS 30907 b
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases
are equal to or less than the rate of pay for classroom
instruction computed on the teacher's current salary and work
schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the

HB4673 - 358 - LRB104 17481 RPS 30907 b
district requiring the same certification or the amount
stipulated in the collective bargaining agreement for a
similar position requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final
average salary.
(g-5) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from overload or stipend work performed in a school
year subsequent to a school year in which the employer was
unable to offer or allow to be conducted overload or stipend
work due to an emergency declaration limiting such activities.
(g-10) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from increased instructional time that exceeded the
instructional time required during the 2019-2020 school year.
(g-15) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from teaching summer school on or after May 1, 2021
and before September 15, 2022.
(g-20) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
necessary to bring a school board in compliance with Public

HB4673 - 359 - LRB104 17481 RPS 30907 b
Act 101-443 or this amendatory Act of the 103rd General
Assembly.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution

HB4673 - 360 - LRB104 17481 RPS 30907 b
resulting from the changes made to this Section by Public
Act 94-1057.
(i-5) For school years beginning on or after July 1, 2017,
if the amount of a participant's salary for any school year
exceeds the amount of the salary set for the Governor, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
salary in excess of the amount of the salary set for the
Governor. This amount shall be computed by the System on the
basis of the actuarial assumptions and tables used in the most
recent actuarial valuation of the System that is available at
the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a

HB4673 - 361 - LRB104 17481 RPS 30907 b
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
This subsection is inoperative on and after July 1, 2035.
(k) For purposes of determining the required State
contribution to the system for a particular year, the

HB4673 - 362 - LRB104 17481 RPS 30907 b
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 103-515, eff. 8-11-23; 103-588, eff. 6-5-24;
104-284, eff. 1-1-26.)
(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to this
System by appropriations of the amounts which, together with
the contributions of participants, net earnings on
investments, and other income, will meet the costs of
maintaining and administering this System on a 100% 90% funded
basis by the end of State fiscal year 2049 in accordance with
actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c). In making its determination, the Board
shall disregard any contributions scheduled to be received in
a future State fiscal year under the Budget Stabilization Act.
(c) Beginning in State fiscal year 2050, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's

HB4673 - 363 - LRB104 17481 RPS 30907 b
actuarial valuation required by Section 18-140 plus the
amounts required under subsection (c-5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. The required State
contribution shall be determined under the entry age normal
actuarial cost method.
For State fiscal years 2036 through 2049, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be the contribution amount for the
upcoming State fiscal year estimated in the previous year's
actuarial valuation required by Section 18-140 plus the
amounts required under subsection (c-5), such that the total
assets of the System equal 100% of the total actuarial
liabilities of the System 20 years after the State fiscal year
during which the contribution is made. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over the
years remaining to and including fiscal year 2049 and shall be
determined under the projected unit credit actuarial cost
method.
For State fiscal years 2028 through 2035, the minimum
contribution to the System to be made by the State for each
State fiscal year shall be an amount determined by the System
to be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the

HB4673 - 364 - LRB104 17481 RPS 30907 b
end of State fiscal year 2049. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2048 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2027 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 and before State
fiscal year 2036 or thereafter shall be implemented in equal
annual amounts over a 5-year period beginning in the State
fiscal year in which the actuarial change first applies to the
required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:

HB4673 - 365 - LRB104 17481 RPS 30907 b
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $29,189,400.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $35,236,800.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under

HB4673 - 366 - LRB104 17481 RPS 30907 b
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $78,832,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 18-140 and shall be made from the
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share
of total bond proceeds, (ii) any amounts received from the
General Revenue Fund in fiscal year 2011, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.

HB4673 - 367 - LRB104 17481 RPS 30907 b
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
18-140, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section

HB4673 - 368 - LRB104 17481 RPS 30907 b
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(c-5) For State fiscal year 2036 and each State fiscal
year thereafter, the contribution to the System to be made by
the State shall include an adjustment for differences between
the unfunded liability reported in the current actuarial
valuation and the unfunded liability reported in the previous
year's actuarial valuation required by Section 18-140. The
adjustment shall be implemented in equal annual amounts over a
20-year period beginning in the State fiscal year in which the
current actuarial valuation is used to determine the required
State contribution under subsection (e).
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's

HB4673 - 369 - LRB104 17481 RPS 30907 b
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
This subsection is inoperative on and after July 1, 2035.
(e) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 100-23, eff. 7-6-17.)
Article 11.
Section 11-5. The Illinois Pension Code is amended by
changing Sections 3-125 and 4-118 as follows:
(40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
Sec. 3-125. Financing.
(a) The city council or the board of trustees of the
municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar which
will produce an amount which, when added to the deductions
from the salaries or wages of police officers, and revenues

HB4673 - 370 - LRB104 17481 RPS 30907 b
available from other sources, will equal a sum sufficient to
meet the annual requirements of the police pension fund. The
annual requirements to be provided by such tax levy are equal
to (1) the normal cost of the pension fund for the year
involved, plus (2) an amount sufficient to bring the total
assets of the pension fund up to 90% of the total actuarial
liabilities of the pension fund by the end of municipal fiscal
year 2055 2040, as annually updated and determined by an
enrolled actuary employed by the Illinois Department of
Insurance or by an enrolled actuary retained by the pension
fund or the municipality. In making these determinations, the
required minimum employer contribution shall be calculated
each year as a level percentage of payroll over the years
remaining up to and including fiscal year 2055 2040 and shall
be determined under the entry age normal projected unit credit
actuarial cost method. The tax shall be levied and collected
in the same manner as the general taxes of the municipality,
and in addition to all other taxes now or hereafter authorized
to be levied upon all property within the municipality, and
shall be in addition to the amount authorized to be levied for
general purposes as provided by Section 8-3-1 of the Illinois
Municipal Code, approved May 29, 1961, as amended. The tax
shall be forwarded directly to the treasurer of the board
within 30 business days after receipt by the county.
(b) For purposes of determining the required employer
contribution to a pension fund, the value of the pension

HB4673 - 371 - LRB104 17481 RPS 30907 b
fund's assets shall be equal to the actuarial value of the
pension fund's assets, which shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of a
pension fund's assets shall be equal to the market value
of the assets as of that date.
(2) In determining the actuarial value of the System's
assets for fiscal years after March 30, 2011, any
actuarial gains or losses from investment return incurred
in a fiscal year shall be recognized in equal annual
amounts over the 5-year period following that fiscal year.
(c) If a participating municipality fails to transmit to
the fund contributions required of it under this Article for
more than 90 days after the payment of those contributions is
due, the fund may, after giving notice to the municipality,
certify to the State Comptroller the amounts of the delinquent
payments in accordance with any applicable rules of the
Comptroller, and the Comptroller must, beginning in fiscal
year 2016, deduct and remit to the fund the certified amounts
or a portion of those amounts from the following proportions
of payments of State funds to the municipality:
(1) in fiscal year 2016, one-third of the total amount
of any payments of State funds to the municipality;
(2) in fiscal year 2017, two-thirds of the total
amount of any payments of State funds to the municipality;
and
(3) in fiscal year 2018 and each fiscal year

HB4673 - 372 - LRB104 17481 RPS 30907 b
thereafter, the total amount of any payments of State
funds to the municipality.
The State Comptroller may not deduct from any payments of
State funds to the municipality more than the amount of
delinquent payments certified to the State Comptroller by the
fund.
(d) The police pension fund shall consist of the following
moneys which shall be set apart by the treasurer of the
municipality:
(1) All moneys derived from the taxes levied
hereunder;
(2) Contributions by police officers under Section
3-125.1;
(2.5) All moneys received from the Police Officers'
Pension Investment Fund as provided in Article 22B of this
Code;
(3) All moneys accumulated by the municipality under
any previous legislation establishing a fund for the
benefit of disabled or retired police officers;
(4) Donations, gifts or other transfers authorized by
this Article.
(e) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the
General Assembly on or before January 1, 2013. To the fullest
extent possible, the study shall include, but not be limited

HB4673 - 373 - LRB104 17481 RPS 30907 b
to, the following:
(1) fund balances;
(2) historical employer contribution rates for each
fund;
(3) the actuarial formulas used as a basis for
employer contributions, including the actual assumed rate
of return for each year, for each fund;
(4) available contribution funding sources;
(5) the impact of any revenue limitations caused by
PTELL and employer home rule or non-home rule status; and
(6) existing statutory funding compliance procedures
and funding enforcement mechanisms for all municipal
pension funds.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
Sec. 4-118. Financing.
(a) The city council or the board of trustees of the
municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar which
will produce an amount which, when added to the deductions
from the salaries or wages of firefighters and revenues
available from other sources, will equal a sum sufficient to
meet the annual actuarial requirements of the pension fund, as
determined by an enrolled actuary employed by the Illinois
Department of Insurance or by an enrolled actuary retained by

HB4673 - 374 - LRB104 17481 RPS 30907 b
the pension fund or municipality. For the purposes of this
Section, the annual actuarial requirements of the pension fund
are equal to (1) the normal cost of the pension fund, or 17.5%
of the salaries and wages to be paid to firefighters for the
year involved, whichever is greater, plus (2) an annual amount
sufficient to bring the total assets of the pension fund up to
90% of the total actuarial liabilities of the pension fund by
the end of municipal fiscal year 2055 2040, as annually
updated and determined by an enrolled actuary employed by the
Illinois Department of Insurance or by an enrolled actuary
retained by the pension fund or the municipality. In making
these determinations, the required minimum employer
contribution shall be calculated each year as a level
percentage of payroll over the years remaining up to and
including fiscal year 2055 2040 and shall be determined under
the entry age normal projected unit credit actuarial cost
method. The amount to be applied towards the amortization of
the unfunded accrued liability in any year shall not be less
than the annual amount required to amortize the unfunded
accrued liability, including interest, as a level percentage
of payroll over the number of years remaining in the 40-year
amortization period.
(a-2) A municipality that has established a pension fund
under this Article and that employs a full-time firefighter,
as defined in Section 4-106, shall be deemed a primary
employer with respect to that full-time firefighter. Any

HB4673 - 375 - LRB104 17481 RPS 30907 b
municipality of 5,000 or more inhabitants that employs or
enrolls a firefighter while that firefighter continues to earn
service credit as a participant in a primary employer's
pension fund under this Article shall be deemed a secondary
employer and such employees shall be deemed to be secondary
employee firefighters. To ensure that the primary employer's
pension fund under this Article is aware of additional
liabilities and risks to which firefighters are exposed when
performing work as firefighters for secondary employers, a
secondary employer shall annually prepare a report accounting
for all hours worked by and wages and salaries paid to the
secondary employee firefighters it receives services from or
employs for each fiscal year in which such firefighters are
employed and transmit a certified copy of that report to the
primary employer's pension fund, the Department of Insurance,
and the secondary employee firefighter no later than 30 days
after the end of any fiscal year in which wages were paid to
the secondary employee firefighters.
Nothing in this Section shall be construed to allow a
secondary employee to qualify for benefits or creditable
service for employment as a firefighter for a secondary
employer.
(a-5) For purposes of determining the required employer
contribution to a pension fund, the value of the pension
fund's assets shall be equal to the actuarial value of the
pension fund's assets, which shall be calculated as follows:

HB4673 - 376 - LRB104 17481 RPS 30907 b
(1) On March 30, 2011, the actuarial value of a
pension fund's assets shall be equal to the market value
of the assets as of that date.
(2) In determining the actuarial value of the pension
fund's assets for fiscal years after March 30, 2011, any
actuarial gains or losses from investment return incurred
in a fiscal year shall be recognized in equal annual
amounts over the 5-year period following that fiscal year.
(b) The tax shall be levied and collected in the same
manner as the general taxes of the municipality, and shall be
in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and in
addition to the amount authorized to be levied for general
purposes, under Section 8-3-1 of the Illinois Municipal Code
or under Section 14 of the Fire Protection District Act. The
tax shall be forwarded directly to the treasurer of the board
within 30 business days of receipt by the county (or, in the
case of amounts added to the tax levy under subsection (f),
used by the municipality to pay the employer contributions
required under subsection (b-1) of Section 15-155 of this
Code).
(b-5) If a participating municipality fails to transmit to
the fund contributions required of it under this Article for
more than 90 days after the payment of those contributions is
due, the fund may, after giving notice to the municipality,
certify to the State Comptroller the amounts of the delinquent

HB4673 - 377 - LRB104 17481 RPS 30907 b
payments in accordance with any applicable rules of the
Comptroller, and the Comptroller must, beginning in fiscal
year 2016, deduct and remit to the fund the certified amounts
or a portion of those amounts from the following proportions
of payments of State funds to the municipality:
(1) in fiscal year 2016, one-third of the total amount
of any payments of State funds to the municipality;
(2) in fiscal year 2017, two-thirds of the total
amount of any payments of State funds to the municipality;
and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments of State
funds to the municipality.
The State Comptroller may not deduct from any payments of
State funds to the municipality more than the amount of
delinquent payments certified to the State Comptroller by the
fund.
(c) The board shall make available to the membership and
the general public for inspection and copying at reasonable
times the most recent Actuarial Valuation Balance Sheet and
Tax Levy Requirement issued to the fund by the Department of
Insurance.
(d) The firefighters' pension fund shall consist of the
following moneys which shall be set apart by the treasurer of
the municipality: (1) all moneys derived from the taxes levied
hereunder; (2) contributions by firefighters as provided under

HB4673 - 378 - LRB104 17481 RPS 30907 b
Section 4-118.1; (2.5) all moneys received from the
Firefighters' Pension Investment Fund as provided in Article
22C of this Code; (3) all rewards in money, fees, gifts, and
emoluments that may be paid or given for or on account of
extraordinary service by the fire department or any member
thereof, except when allowed to be retained by competitive
awards; and (4) any money, real estate or personal property
received by the board.
(e) For the purposes of this Section, "enrolled actuary"
means an actuary: (1) who is a member of the Society of
Actuaries or the American Academy of Actuaries; and (2) who is
enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974, or who has been
engaged in providing actuarial services to one or more public
retirement systems for a period of at least 3 years as of July
1, 1983.
(f) The corporate authorities of a municipality that
employs a person who is described in subdivision (d) of
Section 4-106 may add to the tax levy otherwise provided for in
this Section an amount equal to the projected cost of the
employer contributions required to be paid by the municipality
to the State Universities Retirement System under subsection
(b-1) of Section 15-155 of this Code.
(g) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the

HB4673 - 379 - LRB104 17481 RPS 30907 b
General Assembly on or before January 1, 2013. To the fullest
extent possible, the study shall include, but not be limited
to, the following:
(1) fund balances;
(2) historical employer contribution rates for each
fund;
(3) the actuarial formulas used as a basis for
employer contributions, including the actual assumed rate
of return for each year, for each fund;
(4) available contribution funding sources;
(5) the impact of any revenue limitations caused by
PTELL and employer home rule or non-home rule status; and
(6) existing statutory funding compliance procedures
and funding enforcement mechanisms for all municipal
pension funds.
(Source: P.A. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20;
102-59, eff. 7-9-21; 102-558, eff. 8-20-21.)
Article 12.
Section 12-5. The Illinois Pension Code is amended by
changing Sections 22B-115, 22B-116, 22B-117, 22C-115, 22C-116,
and 22C-117 as follows:
(40 ILCS 5/22B-115)
Sec. 22B-115. Board of Trustees of the Fund.

HB4673 - 380 - LRB104 17481 RPS 30907 b
(a) No later than one month after the effective date of
this amendatory Act of the 101st General Assembly or as soon
thereafter as may be practicable, the Governor shall appoint,
by and with the advice and consent of the Senate, a transition
board of trustees consisting of 9 members as follows:
(1) three members representing municipalities who are
mayors, presidents, chief executive officers, chief
financial officers, or other officers, executives, or
department heads of municipalities and appointed from
among candidates recommended by the Illinois Municipal
League;
(2) three members representing participants and who
are participants, 2 of whom shall be appointed from among
candidates recommended by a statewide fraternal
organization representing more than 20,000 active and
retired police officers in the State of Illinois, and one
of whom shall be appointed from among candidates
recommended by a benevolent association representing sworn
police officers in the State of Illinois;
(3) two members representing beneficiaries and who are
beneficiaries, one of whom shall be appointed from among
candidates recommended by a statewide fraternal
organization representing more than 20,000 active and
retired police officers in the State of Illinois, and one
of whom shall be appointed from among candidates
recommended by a benevolent association representing sworn

HB4673 - 381 - LRB104 17481 RPS 30907 b
police officers in the State of Illinois; and
(4) one member who is a representative of the Illinois
Municipal League.
The transition board members shall serve until the initial
permanent board members are elected and qualified.
The transition board of trustees shall select the
chairperson of the transition board of trustees from among the
trustees for the duration of the transition board's tenure.
(b) The permanent board of trustees shall consist of 10 9
members as follows:
(1) Four Three members who are mayors, presidents,
chief executive officers, chief financial officers, or
other officers, executives, or department heads of
municipalities that have participating pension funds and
are elected by the mayors and presidents of municipalities
that have participating pension funds.
(2) Three members who are participants of
participating pension funds and are elected by the
participants of participating pension funds.
(3) Two members who are beneficiaries of participating
pension funds and are elected by the beneficiaries of
participating pension funds.
(4) The chief executive officer of One member
recommended by the Illinois Municipal League or the chief
executive officer's designee who shall be appointed by the
Governor with the advice and consent of the Senate.

HB4673 - 382 - LRB104 17481 RPS 30907 b
The permanent board of trustees shall select the
chairperson of the permanent board of trustees from among the
trustees for a term of 2 years. The holder of the office of
chairperson shall alternate between a person described elected
or appointed under item (1) or (4) of this subsection (b), as
selected by the members described under item (1) or (4) of this
subsection (b), and a person described elected under item (2)
or (3) of this subsection (b), as selected by the members
described under item (2) or (3) of this subsection.
(c) Each trustee shall qualify by taking an oath of office
before the Secretary of State or the legal counsel of the fund
stating that he or she will diligently and honestly administer
the affairs of the board and will not violate or knowingly
permit the violation of any provision of this Article.
(d) Trustees shall receive no salary for service on the
board but shall be reimbursed for travel expenses incurred
while on business for the board according to Article 1 of this
Code and rules adopted by the board.
A municipality employing a police officer who is an
elected or appointed trustee of the board must allow
reasonable time off with compensation for the police officer
to conduct official business related to his or her position on
the board, including time for travel. The board shall notify
the municipality in advance of the dates, times, and locations
of this official business. The Fund shall timely reimburse the
municipality for the reasonable costs incurred that are due to

HB4673 - 383 - LRB104 17481 RPS 30907 b
the police officer's absence.
(e) No trustee shall have any interest in any brokerage
fee, commission, or other profit or gain arising out of any
investment directed by the board. This subsection does not
preclude ownership by any member of any minority interest in
any common stock or any corporate obligation in which an
investment is directed by the board.
(f) Notwithstanding any provision or interpretation of law
to the contrary, any member of the transition board may also be
elected or appointed as a member of the permanent board.
Notwithstanding any provision or interpretation of law to
the contrary, any trustee of a fund established under Article
3 of this Code may also be appointed as a member of the
transition board or elected or appointed as a member of the
permanent board.
The restriction in Section 3.1 of the Lobbyist
Registration Act shall not apply to a member of the transition
board appointed pursuant to item (4) of subsection (a) or to a
member of the permanent board described under appointed
pursuant to item (4) of subsection (b).
(Source: P.A. 103-506, eff. 8-4-23.)
(40 ILCS 5/22B-116)
Sec. 22B-116. Conduct and administration of elections;
terms of office.
(a) For the election of the permanent trustees, the

HB4673 - 384 - LRB104 17481 RPS 30907 b
transition board shall administer the initial elections and
the permanent board shall administer all subsequent elections.
Each board shall develop and implement such procedures as it
determines to be appropriate for the conduct of such
elections. For the purposes of obtaining information necessary
to conduct elections under this Section, participating pension
funds shall cooperate with the Fund.
(b) All nominations for election shall be by petition.
Each petition for a trustee shall be executed as follows:
(1) for trustees to be elected by the mayors and
presidents of municipalities that have participating
pension funds, by at least 20 such mayors and presidents;
(2) for trustees to be elected by participants, by at
least 400 participants; and
(3) for trustees to be elected by beneficiaries, by at
least 100 beneficiaries.
(c) A separate ballot shall be used for each class of
trustee. The board shall prepare and send ballots and ballot
envelopes to the participants and beneficiaries eligible to
vote in accordance with rules adopted by the board. The
ballots shall contain the names of all candidates in
alphabetical order. The ballot envelope shall have on the
outside a form of certificate stating that the person voting
the ballot is a participant or beneficiary entitled to vote.
Participants and beneficiaries, upon receipt of the
ballot, shall vote the ballot and place it in the ballot

HB4673 - 385 - LRB104 17481 RPS 30907 b
envelope, seal the envelope, execute the certificate thereon,
and return the ballot to the Fund.
The board shall set a final date for ballot return, and
ballots received prior to that date in a ballot envelope with a
properly executed certificate and properly voted shall be
valid ballots.
The board shall set a day for counting the ballots and name
judges and clerks of election to conduct the count of ballots
and shall make any rules necessary for the conduct of the
count.
The candidate or candidates receiving the highest number
of votes for each class of trustee shall be elected. In the
case of a tie vote, the winner shall be determined in
accordance with procedures developed by the Department of
Insurance.
In lieu of conducting elections via mail balloting as
described in this Section, the board may instead adopt rules
to provide for elections to be carried out solely via Internet
balloting or phone balloting. Nothing in this Section
prohibits the Fund from contracting with a third party to
administer the election in accordance with this Section.
(d) At any election, voting shall be as follows:
(1) Each person authorized to vote for an elected
trustee may cast one vote for each related position for
which such person is entitled to vote and may cast such
vote for any candidate or candidates on the ballot for

HB4673 - 386 - LRB104 17481 RPS 30907 b
such trustee position.
(2) If only one candidate for each position is
properly nominated in petitions received, that candidate
shall be deemed the winner and no election under this
Section shall be required.
(3) The results shall be entered in the minutes of the
first meeting of the board following the tally of votes.
(e) The initial election for permanent trustees shall be
held and the permanent board shall be seated no later than 12
months after the effective date of this amendatory Act of the
101st General Assembly. Each subsequent election shall be held
no later than 30 days prior to the end of the term of the
incumbent trustees.
(f) The elected trustees shall each serve for terms of 4
years commencing on the first business day of the first month
after election; except that the terms of office of the
initially elected trustees shall be as follows:
(1) one trustee elected pursuant to item (1) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and 2 trustees elected pursuant to item (1) of
subsection (b) of Section 22B-115 shall serve for a term
of 4 years;
(2) two trustees elected pursuant to item (2) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and one trustee elected pursuant to item (2) of
subsection (b) of Section 22B-115 shall serve for a term

HB4673 - 387 - LRB104 17481 RPS 30907 b
of 4 years; and
(3) one trustee elected pursuant to item (3) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and one trustee elected pursuant to item (3) of
subsection (b) of Section 22B-115 shall serve for a term
of 4 years.
(g) (Blank). The trustee appointed pursuant to item (4) of
subsection (b) of Section 22B-115 shall serve for a term of 2
years commencing on the first business day of the first month
after the election of the elected trustees.
(h) A member of the board who was elected pursuant to item
(1) of subsection (b) of Section 22B-115 who ceases to serve as
a mayor, president, chief executive officer, chief financial
officer, or other officer, executive, or department head of a
municipality that has a participating pension fund shall not
be eligible to serve as a member of the board and his or her
position shall be deemed vacant. A member of the board who was
elected by the participants of participating pension funds who
ceases to be a participant may serve the remainder of his or
her elected term.
For a vacancy of a trustee under item (1) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (1) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the

HB4673 - 388 - LRB104 17481 RPS 30907 b
Fund.
For a vacancy of a trustee under item (2) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (2) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the
Fund.
For a vacancy of a trustee under item (3) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (3) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the
Fund.
A trustee appointed to fill the vacancy of an elected
trustee shall serve until a successor is elected. Special
elections to fill the remainder of an unexpired term vacated
by an elected trustee shall be held concurrently with and in
the same manner as the next regular election for an elected
trustee position.
Vacancies among the appointed trustees shall be filled for
unexpired terms by appointment in like manner as for the
original appointments.
(Source: P.A. 103-506, eff. 8-4-23.)

HB4673 - 389 - LRB104 17481 RPS 30907 b
(40 ILCS 5/22B-117)
Sec. 22B-117. Meetings of the board.
(a) The transition board and the permanent board shall
each meet at least quarterly and otherwise upon written
request of either the Chairperson or 3 other members. The
Chairperson shall preside over meetings of the board. The
executive director and personnel of the board shall prepare
agendas and materials and required postings for meetings of
the board.
(b) Six members of the board shall constitute a quorum.
(c) All actions taken by the transition board and the
permanent board shall require a vote of least 6 5 trustees,
including for the following actions except that the following
shall require a vote of at least 6 trustees: the adoption of
actuarial assumptions; the selection of the chief investment
officer, fiduciary counsel, or a consultant as defined under
Section 1-101.5 of this Code; the adoption of rules for the
conduct of election of trustees; and the adoption of asset
allocation policies and investment policies.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/22C-115)
Sec. 22C-115. Board of Trustees of the Fund.
(a) No later than February 1, 2020 (one month after the
effective date of Public Act 101-610) or as soon thereafter as
may be practicable, the Governor shall appoint, by and with

HB4673 - 390 - LRB104 17481 RPS 30907 b
the advice and consent of the Senate, a transition board of
trustees consisting of 9 members as follows:
(1) three members representing municipalities and fire
protection districts who are mayors, presidents, chief
executive officers, chief financial officers, or other
officers, executives, or department heads of
municipalities or fire protection districts and appointed
from among candidates recommended by the Illinois
Municipal League;
(2) three members representing participants who are
participants and appointed from among candidates
recommended by the statewide labor organization
representing firefighters employed by at least 85
municipalities that is affiliated with the Illinois State
Federation of Labor;
(3) one member representing beneficiaries who is a
beneficiary and appointed from among the candidate or
candidates recommended by the statewide labor organization
representing firefighters employed by at least 85
municipalities that is affiliated with the Illinois State
Federation of Labor;
(4) one member recommended by the Illinois Municipal
League; and
(5) one member who is a participant recommended by the
statewide labor organization representing firefighters
employed by at least 85 municipalities and that is

HB4673 - 391 - LRB104 17481 RPS 30907 b
affiliated with the Illinois State Federation of Labor.
The transition board members shall serve until the initial
permanent board members are elected and qualified.
The transition board of trustees shall select the
chairperson of the transition board of trustees from among the
trustees for the duration of the transition board's tenure.
(b) The permanent board of trustees shall consist of 10 9
members comprised as follows:
(1) Four Three members who are mayors, presidents,
chief executive officers, chief financial officers, or
other officers, executives, or department heads of
municipalities or fire protection districts that have
participating pension funds and are elected by the mayors
and presidents of municipalities or fire protection
districts that have participating pension funds.
(2) Three members who are participants of
participating pension funds and elected by the
participants of participating pension funds.
(3) One member who is a beneficiary of a participating
pension fund and is elected by the beneficiaries of
participating pension funds.
(4) The chief executive officer of One member
recommended by the Illinois Municipal League or the chief
executive officer's designee who shall be appointed by the
Governor with the advice and consent of the Senate.
(5) The president of One member recommended by the

HB4673 - 392 - LRB104 17481 RPS 30907 b
statewide labor organization representing firefighters
employed by at least 85 municipalities and that is
affiliated with the Illinois State Federation of Labor or
the president's designee who shall be appointed by the
Governor with the advice and consent of the Senate.
The permanent board of trustees shall select the
chairperson of the permanent board of trustees from among the
trustees for a term of 2 years. The holder of the office of
chairperson shall alternate between a person described elected
or appointed under item (1) or (4) of this subsection (b), as
selected by the members described under item (1) or (4) of this
subsection (b), and a person described elected or appointed
under item (2), (3), or (5) of this subsection (b), as selected
by the members described under item (2), (3), or (5) of this
subsection (b).
(c) Each trustee shall qualify by taking an oath of office
before the Secretary of State or the Board's appointed legal
counsel stating that he or she will diligently and honestly
administer the affairs of the board and will not violate or
knowingly permit the violation of any provision of this
Article.
(d) Trustees shall receive no salary for service on the
board but shall be reimbursed for travel expenses incurred
while on business for the board.
A municipality or fire protection district employing a
firefighter who is an elected or appointed trustee of the

HB4673 - 393 - LRB104 17481 RPS 30907 b
board must allow reasonable time off with compensation for the
firefighter to conduct official business related to his or her
position on the board, including time for travel. The board
shall notify the municipality or fire protection district in
advance of the dates, times, and locations of this official
business. The Fund shall timely reimburse the municipality or
fire protection district for the reasonable costs incurred
that are due to the firefighter's absence.
(e) No trustee shall have any interest in any brokerage
fee, commission, or other profit or gain arising out of any
investment directed by the board. This subsection does not
preclude ownership by any member of any minority interest in
any common stock or any corporate obligation in which an
investment is directed by the board.
(f) Notwithstanding any provision or interpretation of law
to the contrary, any member of the transition board may also be
elected or appointed as a member of the permanent board.
Notwithstanding any provision or interpretation of law to
the contrary, any trustee of a fund established under Article
4 of this Code may also be appointed as a member of the
transition board or elected or appointed as a member of the
permanent board.
The restriction in Section 3.1 of the Lobbyist
Registration Act shall not apply to a member of the transition
board appointed pursuant to item items (4) or (5) of
subsection (a) or to a member of the permanent board described

HB4673 - 394 - LRB104 17481 RPS 30907 b
under item appointed pursuant to items (4) or (5) of
subsection (b).
(Source: P.A. 102-558, eff. 8-20-21; 103-552, eff. 8-11-23.)
(40 ILCS 5/22C-116)
Sec. 22C-116. Conduct and administration of elections;
terms of office.
(a) For the election of the permanent trustees, the
transition board shall administer the initial elections and
the permanent board shall administer all subsequent elections.
Each board shall develop and implement such procedures as it
determines to be appropriate for the conduct of such
elections. For the purposes of obtaining information necessary
to conduct elections under this Section, participating pension
funds shall cooperate with the Fund.
(b) All nominations for election shall be by petition.
Each petition for a trustee shall be executed as follows:
(1) for trustees to be elected by the mayors and
presidents of municipalities or fire protection districts
that have participating pension funds, by at least 20 such
mayors and presidents; except that this item (1) shall
apply only with respect to participating pension funds;
(2) for trustees to be elected by participants, by at
least 200 participants; and
(3) for trustees to be elected by beneficiaries, by at
least 100 beneficiaries.

HB4673 - 395 - LRB104 17481 RPS 30907 b
(c) A separate ballot shall be used for each class of
trustee. The board shall prepare and send ballots and ballot
envelopes to eligible voters in accordance with rules adopted
by the board. The ballots shall contain the names of all
candidates in alphabetical order.
Eligible voters, upon receipt of the ballot, shall vote
the ballot and place it in the ballot envelope, seal the
envelope, and return the ballot to the Fund.
The board shall set a final date for ballot return, and
ballots received prior to that date in a ballot envelope shall
be valid ballots.
The board shall set a day for counting the ballots and name
judges and clerks of election to conduct the count of ballots
and shall make any rules necessary for the conduct of the
count.
The candidate or candidates receiving the highest number
of votes for each class of trustee shall be elected. In the
case of a tie vote, the winner shall be determined in
accordance with procedures developed by the Department of
Insurance.
In lieu of or in addition to conducting elections via mail
balloting as described in this Section, the board may adopt
rules to provide for elections to be carried out via Internet
balloting, phone balloting, or a combination thereof. Nothing
in this Section prohibits the Fund from contracting with a
third party to administer the election in accordance with this

HB4673 - 396 - LRB104 17481 RPS 30907 b
Section.
(d) At any election, voting shall be as follows:
(1) Each person authorized to vote for an elected
trustee may cast one vote for each related position for
which such person is entitled to vote and may cast such
vote for any candidate or candidates on the ballot for
such trustee position.
(2) If only one candidate for each position is
properly nominated in petitions received, that candidate
shall be deemed the winner and no election under this
Section shall be required.
(3) The results shall be entered in the minutes of the
first meeting of the board following the tally of votes.
(e) The initial election for permanent trustees shall be
held and the permanent board shall be seated no later than 12
months after the effective date of this amendatory Act of the
101st General Assembly. Each subsequent election shall be held
no later than 30 days prior to the end of the term of the
incumbent trustees.
(f) The elected trustees shall each serve for terms of 4
years commencing on the first business day of the first month
after election; except that the terms of office of the
initially elected trustees shall be as follows:
(1) One trustee elected pursuant to item (1) of
subsection (b) of Section 22C-115 shall serve for a term
of 2 years and 2 trustees elected pursuant to item (1) of

HB4673 - 397 - LRB104 17481 RPS 30907 b
subsection (b) of Section 22C-115 shall serve for a term
of 4 years;
(2) One trustee elected pursuant to item (2) of
subsection (b) of Section 22C-115 shall serve for a term
of 2 years and 2 trustees elected pursuant to item (2) of
subsection (b) of Section 22C-115 shall serve for a term
of 4 years; and
(3) The trustee elected pursuant to item (3) of
subsection (b) of Section 22C-115 shall serve for a term
of 2 years.
(g) (Blank). The trustees appointed pursuant to items (4)
and (5) of subsection (b) of Section 22C-115 shall each serve
for a term of 4 years commencing on the first business day of
the first month after the election of the elected trustees.
(h) A member of the board who was elected pursuant to item
(1) of subsection (b) of Section 22C-115 who ceases to serve as
a mayor, president, chief executive officer, chief financial
officer, or other officer, executive, or department head of a
municipality or fire protection district that has a
participating pension fund shall not be eligible to serve as a
member of the board and his or her position shall be deemed
vacant. A member of the board who was elected by the
participants of participating pension funds who ceases to be a
participant may serve the remainder of his or her elected
term.
For a vacancy of an elected trustee, the vacancy shall be

HB4673 - 398 - LRB104 17481 RPS 30907 b
filled by appointment by the board as follows: a vacancy of a
member elected pursuant to item (1) of subsection (b) of
Section 22C-115 shall be filled by a mayor, president, chief
executive officer, chief financial officer, or other officer,
executive, or department head of a municipality or fire
protection district that has a participating pension fund; a
vacancy of a member elected pursuant to item (2) of subsection
(b) of Section 22C-115 shall be filled by a participant of a
participating pension fund; and a vacancy of a member elected
under item (3) of subsection (b) of Section 22C-115 shall be
filled by a beneficiary of a participating pension fund. A
trustee appointed to fill the vacancy of an elected trustee
shall serve until a successor is elected. Special elections to
fill the remainder of an unexpired term vacated by an elected
trustee shall be held concurrently with and in the same manner
as the next regular election for an elected trustee position.
Vacancies among the appointed trustees shall be filled for
unexpired terms by appointment in like manner as for the
original appointments.
(Source: P.A. 103-552, eff. 8-11-23; 104-284, eff. 1-1-26.)
(40 ILCS 5/22C-117)
Sec. 22C-117. Meetings of the board.
(a) The transition board and the permanent board shall
each meet at least quarterly and otherwise upon written
request of either the Chairperson or 3 other members. The

HB4673 - 399 - LRB104 17481 RPS 30907 b
Chairperson shall preside over meetings of the board. The
executive director and personnel of the board shall prepare
agendas, and materials, and required postings for meetings of
the board.
(b) Six members of the board shall constitute a quorum.
(c) All actions taken by the transition board and the
permanent board shall require a vote of at least 6 5 trustees,
including for the following actions except that the following
shall require a vote of at least 6 trustees: the adoption of
actuarial assumptions; the selection of the chief investment
officer, fiduciary counsel, or a consultant as defined under
Section 1-101.5 of this Code; the adoption of rules for the
conduct of election of trustees; and the adoption of asset
allocation policies and investment policies.
(Source: P.A. 101-610, eff. 1-1-20; revised 6-26-25.)
Article 13.
Section 13-5. The Illinois Pension Code is amended by
changing Section 1-160, 2-119, 2-119.01, 2-119.1, 7-142,
14-110, 15-135, 15-136, 18-124, and 18-125 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,

HB4673 - 400 - LRB104 17481 RPS 30907 b
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161

HB4673 - 401 - LRB104 17481 RPS 30907 b
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.

HB4673 - 402 - LRB104 17481 RPS 30907 b
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the

HB4673 - 403 - LRB104 17481 RPS 30907 b
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"

HB4673 - 404 - LRB104 17481 RPS 30907 b
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of

HB4673 - 405 - LRB104 17481 RPS 30907 b
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she: (i) has
attained age 67 (age 65, with respect to service under Article
12 that is subject to this Section, for a member or participant
under Article 12 who first becomes a member or participant
under Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article;
(ii) was an active member or active participant of a pension
fund or retirement system on or after January 1, 2028, has
attained age 65, has at least 20 years of service credit, and
is otherwise eligible under the requirements of the applicable
Article; or (iii) was an active member or active participant
of a pension fund or retirement system on or after January 1,
2028, has attained age 62, has the maximum amount of service

HB4673 - 406 - LRB104 17481 RPS 30907 b
credit under the applicable Article, and is otherwise eligible
under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article or who is within 5
years of the normal retirement age established for that member
or participant based on the amount of service credit the
member or participant has and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section. None of the changes made in this Section shall
allow for a retroactive retirement calculation for any
purposes under this Code, nor shall it allow for a
recalculation of benefits or a refund of any contributions
otherwise legally made.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least

HB4673 - 407 - LRB104 17481 RPS 30907 b
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding any other provision of this Code to
the contrary, a participant who is subject to this Section and
is (i) a deputy sheriff under Article 9, (ii) a member of the
Cook County Police Department under Article 9, (iii) a
correctional officer under Article 9, or (iv) a police officer
with the Cook County Forest Preserve District under Article 10
is entitled to a retirement annuity upon written application
if he or she has attained age 55, has at least 20 years of
service credit for service in any combination of those
positions, and is otherwise eligible under the applicable
Article of this Code.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit or who is within 5 years of the normal retirement age
established for that member or participant based on the amount
of service credit the member or participant has and is
otherwise eligible under the requirements of the applicable
Article shall be reduced by one-half of 1% for each full month

HB4673 - 408 - LRB104 17481 RPS 30907 b
that the member's age is under the normal retirement age for
that member or participant age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring within 5 years of the normal
retirement age established for that person based on the amount
of service credit the person has at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under the normal
retirement age established for that person age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for

HB4673 - 409 - LRB104 17481 RPS 30907 b
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in

HB4673 - 410 - LRB104 17481 RPS 30907 b
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) For a member or participant who is not an affected
member or participant, any Any retirement annuity or
supplemental annuity shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 (age 65, with respect to service under Article 12 that
is subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15); and beginning on
July 6, 2017 (the effective date of Public Act 100-23), age 65
with respect to service under Article 8 or Article 11 for

HB4673 - 411 - LRB104 17481 RPS 30907 b
eligible persons who: (i) are subject to subsection (c-5) of
this Section; or (ii) made the election under item (i) of
subsection (d-10) of this Section) or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.
For an affected member or participant, any retirement
annuity or supplemental annuity shall be subject to annual
increases on the January 1 occurring either on or after the
attainment of the retirement age under the Article applicable
to that member or participant or the first anniversary of the
annuity start date, whichever is later.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

HB4673 - 412 - LRB104 17481 RPS 30907 b
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the

HB4673 - 413 - LRB104 17481 RPS 30907 b
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a fire fighter in the fire protection service of a
department, a security employee of the Department of
Corrections or the Department of Juvenile Justice, a security
employee of the Department of Innovation and Technology, a
security employee of the Department of Human Services, an
investigator for the Department of the Lottery, a State
policeman, an investigator for the Secretary of State, a
conservation police officer, an investigator for the
Department of Revenue or the Illinois Gaming Board, an
investigator for the Office of the Attorney General, a
Commerce Commission police officer, an arson investigator, or
a State highway maintenance worker a fire fighter in the fire
protection service of a department, a security employee of the
Department of Corrections or the Department of Juvenile
Justice, or a security employee of the Department of
Innovation and Technology, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if (i)
the person has withdrawn from service with not less than 25 20

HB4673 - 414 - LRB104 17481 RPS 30907 b
years of eligible creditable service and has attained age 50
60, regardless of whether the attainment of age 50 60 occurs
while the person is still in service or (ii) the person has
withdrawn from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created

HB4673 - 415 - LRB104 17481 RPS 30907 b
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or

HB4673 - 416 - LRB104 17481 RPS 30907 b
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,

HB4673 - 417 - LRB104 17481 RPS 30907 b
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits

HB4673 - 418 - LRB104 17481 RPS 30907 b
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:

HB4673 - 419 - LRB104 17481 RPS 30907 b
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number

HB4673 - 420 - LRB104 17481 RPS 30907 b
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a

HB4673 - 421 - LRB104 17481 RPS 30907 b
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she: (i) has
attained age 67 (age 65, with respect to service under Article

HB4673 - 422 - LRB104 17481 RPS 30907 b
12 that is subject to this Section, for a member or participant
under Article 12 who first becomes a member or participant
under Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article;
(ii) was an active member or active participant of a pension
fund or retirement system on or after January 1, 2028, has
attained age 65, has at least 20 years of service credit, and
is otherwise eligible under the requirements of the applicable
Article; or (iii) was an active member or active participant
of a pension fund or retirement system on or after January 1,
2028, has attained age 62, has the maximum amount of service
credit under the applicable Article, and is otherwise eligible
under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article or who is within 5
years of the normal retirement age established for that member
or participant based on the amount of service credit the
member or participant has and is otherwise eligible under the

HB4673 - 423 - LRB104 17481 RPS 30907 b
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section. None of the changes made in this Section shall
allow for a retroactive retirement calculation for any
purposes under this Code, nor shall it allow for a
recalculation of benefits or a refund of any contributions
otherwise legally made.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding any other provision of this Code to
the contrary, a participant who is subject to this Section and
is (i) a deputy sheriff under Article 9, (ii) a member of the
Cook County Police Department under Article 9, (iii) a
correctional officer under Article 9, or (iv) a police officer
with the Cook County Forest Preserve District under Article 10
is entitled to a retirement annuity upon written application
if he or she has attained age 55, has at least 20 years of
service credit for service in any combination of those
positions, and is otherwise eligible under the applicable

HB4673 - 424 - LRB104 17481 RPS 30907 b
Article of this Code.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit or who is within 5 years of the normal retirement age
established for that member or participant based on the amount
of service credit the member or participant has and is
otherwise eligible under the requirements of the applicable
Article shall be reduced by one-half of 1% for each full month
that the member's age is under the normal retirement age for
that member or participant age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring within 5 years of the normal
retirement age established for that person based on the amount
of service credit the person has at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for

HB4673 - 425 - LRB104 17481 RPS 30907 b
each full month that the member's age is under the normal
retirement age established for that person age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election

HB4673 - 426 - LRB104 17481 RPS 30907 b
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within

HB4673 - 427 - LRB104 17481 RPS 30907 b
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) For a member or participant who is not an affected
member or participant, any Any retirement annuity or
supplemental annuity shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 (age 65, with respect to service under Article 12 that
is subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15); and beginning on
July 6, 2017 (the effective date of Public Act 100-23), age 65
with respect to service under Article 8 or Article 11 for
eligible persons who: (i) are subject to subsection (c-5) of
this Section; or (ii) made the election under item (i) of
subsection (d-10) of this Section) or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.

HB4673 - 428 - LRB104 17481 RPS 30907 b
For an affected member or participant, any retirement
annuity or supplemental annuity shall be subject to annual
increases on the January 1 occurring either on or after the
attainment of the retirement age under the Article applicable
to that member or participant or the first anniversary of the
annuity start date, whichever is later.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be

HB4673 - 429 - LRB104 17481 RPS 30907 b
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a fire fighter in the fire protection service of a
department, a security employee of the Department of
Corrections or the Department of Juvenile Justice, a security
employee of the Department of Innovation and Technology, a
security employee of the Department of Human Services, an
investigator for the Department of the Lottery, a State
policeman, an investigator for the Secretary of State, a
conservation police officer, an investigator for the

HB4673 - 430 - LRB104 17481 RPS 30907 b
Department of Revenue or the Illinois Gaming Board, an
investigator for the Office of the Attorney General, a
Commerce Commission police officer, an arson investigator, or
a State highway maintenance worker a State policeman, a fire
fighter in the fire protection service of a department, a
conservation police officer, an investigator for the Secretary
of State, an arson investigator, a Commerce Commission police
officer, investigator for the Department of Revenue or the
Illinois Gaming Board, a security employee of the Department
of Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if (i) the
person has withdrawn from service with not less than 25 20
years of eligible creditable service and has attained age 50
60, regardless of whether the attainment of age 50 60 occurs
while the person is still in service or (ii) the person has
withdrawn from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section

HB4673 - 431 - LRB104 17481 RPS 30907 b
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit

HB4673 - 432 - LRB104 17481 RPS 30907 b
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in

HB4673 - 433 - LRB104 17481 RPS 30907 b
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that

HB4673 - 434 - LRB104 17481 RPS 30907 b
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2028; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any

HB4673 - 435 - LRB104 17481 RPS 30907 b
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8

HB4673 - 436 - LRB104 17481 RPS 30907 b
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes

HB4673 - 437 - LRB104 17481 RPS 30907 b
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.

HB4673 - 438 - LRB104 17481 RPS 30907 b
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she: (i) has
attained age 67 (age 65, with respect to service under Article
12 that is subject to this Section, for a member or participant
under Article 12 who first becomes a member or participant
under Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article;
(ii) was an active member or active participant of a pension
fund or retirement system on or after January 1, 2028, has
attained age 65, has at least 20 years of service credit, and
is otherwise eligible under the requirements of the applicable
Article; or (iii) was an active member or active participant
of a pension fund or retirement system on or after January 1,
2028, has attained age 62, has the maximum amount of service
credit under the applicable Article, and is otherwise eligible
under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article or who is within 5

HB4673 - 439 - LRB104 17481 RPS 30907 b
years of the normal retirement age established for that member
or participant based on the amount of service credit the
member or participant has and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section. None of the changes made in this Section shall
allow for a retroactive retirement calculation for any
purposes under this Code, nor shall it allow for a
recalculation of benefits or a refund of any contributions
otherwise legally made.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(c-10) Notwithstanding any other provision of this Code to
the contrary, a participant who is subject to this Section and
is (i) a deputy sheriff under Article 9, (ii) a member of the
Cook County Police Department under Article 9, (iii) a
correctional officer under Article 9, or (iv) a police officer
with the Cook County Forest Preserve District under Article 10
is entitled to a retirement annuity upon written application

HB4673 - 440 - LRB104 17481 RPS 30907 b
if he or she has attained age 55, has at least 20 years of
service credit for service in any combination of those
positions, and is otherwise eligible under the applicable
Article of this Code.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit or who is within 5 years of the normal retirement age
established for that member or participant based on the amount
of service credit the member or participant has and is
otherwise eligible under the requirements of the applicable
Article shall be reduced by one-half of 1% for each full month
that the member's age is under the normal retirement age for
that member or participant age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring within 5 years of the normal

HB4673 - 441 - LRB104 17481 RPS 30907 b
retirement age established for that person based on the amount
of service credit the person has at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under the normal
retirement age established for that person age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).

HB4673 - 442 - LRB104 17481 RPS 30907 b
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to

HB4673 - 443 - LRB104 17481 RPS 30907 b
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) For a member or participant who is not an affected
member or participant, any Any retirement annuity or
supplemental annuity shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 (age 65, with respect to service under Article 12 that
is subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15); and beginning on
July 6, 2017 (the effective date of Public Act 100-23), age 65
with respect to service under Article 8 or Article 11 for
eligible persons who: (i) are subject to subsection (c-5) of
this Section; or (ii) made the election under item (i) of
subsection (d-10) of this Section) or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for

HB4673 - 444 - LRB104 17481 RPS 30907 b
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.
For an affected member or participant, any retirement
annuity or supplemental annuity shall be subject to annual
increases on the January 1 occurring either on or after the
attainment of the retirement age under the Article applicable
to that member or participant or the first anniversary of the
annuity start date, whichever is later.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member

HB4673 - 445 - LRB104 17481 RPS 30907 b
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a fire fighter in the fire protection service of a
department, a security employee of the Department of
Corrections or the Department of Juvenile Justice, a security
employee of the Department of Innovation and Technology, a
security employee of the Department of Human Services, an

HB4673 - 446 - LRB104 17481 RPS 30907 b
investigator for the Department of the Lottery, a State
policeman, an investigator for the Secretary of State, a
conservation police officer, an investigator for the
Department of Revenue or the Illinois Gaming Board, an
investigator for the Office of the Attorney General, a
Commerce Commission police officer, an arson investigator, or
a State highway maintenance worker a State policeman, a fire
fighter in the fire protection service of a department, a
conservation police officer, an investigator for the Secretary
of State, an investigator for the Office of the Attorney
General, an arson investigator, a Commerce Commission police
officer, investigator for the Department of Revenue or the
Illinois Gaming Board, a security employee of the Department
of Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if (i) the
person has withdrawn from service with not less than 25 20
years of eligible creditable service and has attained age 50
60, regardless of whether the attainment of age 50 60 occurs
while the person is still in service or (ii) the person has
withdrawn from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of

HB4673 - 447 - LRB104 17481 RPS 30907 b
whether the attainment of age 55 occurs while the person is
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension

HB4673 - 448 - LRB104 17481 RPS 30907 b
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119. Retirement annuity; conditions annuity -
conditions for eligibility.
(a) A participant whose service as a member is terminated,
regardless of age or cause, is entitled to a retirement
annuity beginning on the date specified by the participant in
a written application subject to the following conditions:

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1. The date the annuity begins does not precede the
date of final termination of service, or is not more than
30 days before the receipt of the application by the board
in the case of annuities based on disability or one year
before the receipt of the application in the case of
annuities based on attained age;
2. The participant meets one of the following
eligibility requirements:
For a participant who first becomes a participant of
this System before January 1, 2011 (the effective date of
Public Act 96-889):
(A) He or she has attained age 55 and has at least
8 years of service credit;
(B) He or she has attained age 62 and terminated
service after July 1, 1971 with at least 4 years of
service credit; or
(C) He or she has completed 8 years of service and
has become permanently disabled and, as a consequence,
is unable to perform the duties of his or her office.
For a participant who first becomes a participant of
this System on or after January 1, 2011 (the effective
date of Public Act 96-889): (i) , he or she has attained
age 67 and has at least 8 years of service credit; (ii) he
or she was an active participant on or after January 1,
2028, has attained age 65, and has at least 20 years of
service credit; or (iii) he or she was an active

HB4673 - 450 - LRB104 17481 RPS 30907 b
participant on or after January 1, 2028, has attained age
62, and has enough service credit to be eligible for a
retirement annuity based on the maximum percentage of
salary allowed under this System.
(a-5) A participant who first becomes a participant of
this System on or after January 1, 2011 (the effective date of
Public Act 96-889) who (i) has attained age 62 or is within 5
years of the normal retirement age established for that
participant based on the amount of service credit the
participant has and (ii) has at least 8 years of service credit
may elect to receive the lower retirement annuity provided in
paragraph (c) of Section 2-119.01 of this Code.
(b) A participant shall be considered permanently disabled
only if: (1) disability occurs while in service and is of such
a nature as to prevent him or her from reasonably performing
the duties of his or her office at the time; and (2) the board
has received a written certificate by at least 2 licensed
physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(c) None of the changes made to this Section by this
amendatory Act of the 104th General Assembly shall allow for a
retroactive retirement calculation for any purposes under this
Code, nor shall it allow for a recalculation of benefits or a
refund of any contributions otherwise legally made.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

HB4673 - 451 - LRB104 17481 RPS 30907 b
(40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
Sec. 2-119.01. Retirement annuities; amount annuities -
Amount.
(a) For a participant in service after June 30, 1977 who
has not made contributions to this System after January 1,
1982, the annual retirement annuity is 3% for each of the first
8 years of service, plus 4% for each of the next 4 years of
service, plus 5% for each year of service in excess of 12
years, based on the participant's highest salary for annuity
purposes. The maximum retirement annuity payable shall be 80%
of the participant's highest salary for annuity purposes.
(b) For a participant in service after June 30, 1977 who
has made contributions to this System on or after January 1,
1982, the annual retirement annuity is 3% for each of the first
4 years of service, plus 3 1/2% for each of the next 2 years of
service, plus 4% for each of the next 2 years of service, plus
4 1/2% for each of the next 4 years of service, plus 5% for
each year of service in excess of 12 years, of the
participant's highest salary for annuity purposes. The maximum
retirement annuity payable shall be 85% of the participant's
highest salary for annuity purposes.
(c) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's highest
salary for annuity purposes for each year of service. The

HB4673 - 452 - LRB104 17481 RPS 30907 b
maximum retirement annuity payable shall be 60% of the
participant's highest salary for annuity purposes.
(d) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62 with at least 8 years of
service credit or who is within 5 years of the normal
retirement age applicable to that participant based on the
amount of service credit the participant has, the retirement
annuity shall be reduced by one-half of 1% for each month that
the member's age is under the normal retirement age applicable
to that participant age 67.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year

HB4673 - 453 - LRB104 17481 RPS 30907 b
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the
System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary

HB4673 - 454 - LRB104 17481 RPS 30907 b
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to the normal
retirement age applicable to that participant age 67, have the
amount of the retirement annuity then being paid increased by
3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted

HB4673 - 455 - LRB104 17481 RPS 30907 b
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities; amount annuities -
Amount.
(a) The amount of a retirement annuity shall be the sum of
the following, determined in accordance with the actuarial
tables in effect at the time of the grant of the annuity:
1. For Tier 1 regular employees with 8 or more years of
service or for Tier 2 regular employees, an annuity
computed pursuant to subparagraphs a or b of this
subparagraph 1, whichever is the higher, and for employees
with less than 8 or 10 years of service, respectively, the
annuity computed pursuant to subparagraph a:
a. The monthly annuity which can be provided from
the total accumulated normal, municipality and prior
service credits, as of the attained age of the

HB4673 - 456 - LRB104 17481 RPS 30907 b
employee on the date the annuity begins provided that
such annuity shall not exceed 75% of the final rate of
earnings of the employee.
b. (i) The monthly annuity amount determined as
follows by multiplying (a) 1 2/3% for annuitants with
not more than 15 years or (b) 1 2/3% for the first 15
years and 2% for each year in excess of 15 years for
annuitants with more than 15 years by the number of
years plus fractional years, prorated on a basis of
months, of creditable service and multiply the product
thereof by the employee's final rate of earnings.
(ii) For the sole purpose of computing the formula
(and not for the purposes of the limitations
hereinafter stated) $125 shall be considered the final
rate of earnings in all cases where the final rate of
earnings is less than such amount.
(iii) The monthly annuity computed in accordance
with this subparagraph b, shall not exceed an amount
equal to 75% of the final rate of earnings.
(iv) For employees who have less than 35 years of
service, the annuity computed in accordance with this
subparagraph b (as reduced by application of
subparagraph (iii) above) shall be reduced by 0.25%
thereof (0.5% if service was terminated before January
1, 1988 or if the employee is a Tier 2 regular
employee) for each month or fraction thereof (1) that

HB4673 - 457 - LRB104 17481 RPS 30907 b
the employee's age is less than 60 years for Tier 1
regular employees, (2) that the employee's age is less
than 67 years for Tier 2 regular employees who were not
in service on or after January 1, 2028 or who were in
service on or after January 1, 2028 and have less than
20 years of service, less than age 65 for Tier 2
regular employees who were in active service on or
after January 1, 2028 and have at least 20 years of
service, or less than age 62 for Tier 2 regular
employees who were in active service on or after
January 1, 2028 and have a sufficient amount of
service to be eligible for the maximum monthly annuity
under subparagraph (iii), or (3) if the employee has
at least 30 years of service credit, that the
employee's service credit is less than 35 years,
whichever is less, on the date the annuity begins.
2. The annuity which can be provided from the total
accumulated additional credits as of the attained age of
the employee on the date the annuity begins.
(b) If payment of an annuity begins prior to the earliest
age at which the employee will become eligible for an old age
insurance benefit under the federal Federal Social Security
Act, he may elect that the annuity payments from this fund
shall exceed those payable after his attaining such age by an
amount, computed as determined by rules of the Board, but not
in excess of his estimated Social Security Benefit, determined

HB4673 - 458 - LRB104 17481 RPS 30907 b
as of the effective date of the annuity, provided that in no
case shall the total annuity payments made by this fund exceed
in actuarial value the annuity which would have been payable
had no such election been made.
(c) Beginning January 1, 1984 and each January 1
thereafter, the retirement annuity of a Tier 1 regular
employee shall be increased by 3% each year, not compounded.
This increase shall be computed from the effective date of the
retirement annuity, the first increase being 0.25% of the
monthly amount times the number of months from the effective
date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8,
1971.
A retirement annuity of a Tier 2 regular employee shall
receive annual increases on the January 1 occurring either on
or after the attainment of the normal retirement age
applicable to that employee age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at the lesser of 3% or one-half
the annual unadjusted percentage increase (but not less than
zero) in the consumer price index-u for the 12 months ending
with the September preceding each November 1 of the originally
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for the 12
months ending with the September preceding each November 1 is
zero or there is a decrease, then the annuity shall not be

HB4673 - 459 - LRB104 17481 RPS 30907 b
increased.
(d) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
(Text of Section from P.A. 102-813, 103-34, and 104-284)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,

HB4673 - 460 - LRB104 17481 RPS 30907 b
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee

HB4673 - 461 - LRB104 17481 RPS 30907 b
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(a-5) A member who is eligible to receive an alternative
retirement annuity under this Section may elect to receive an
estimated payment that shall commence no later than 30 days
after the later of either the member's last day of employment
or 30 days after the member files for the retirement benefit
with the System. The estimated payment shall be the best
estimate by the System of the total monthly amount due to the
member based on the information that the System possesses at
the time of the estimate. If the amount of the estimate is
greater or less than the actual amount of the monthly annuity,
the System shall pay or recover the difference within 6 months
after the start of the monthly annuity.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;

HB4673 - 462 - LRB104 17481 RPS 30907 b
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For

HB4673 - 463 - LRB104 17481 RPS 30907 b
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the

HB4673 - 464 - LRB104 17481 RPS 30907 b
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled

HB4673 - 465 - LRB104 17481 RPS 30907 b
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the

HB4673 - 466 - LRB104 17481 RPS 30907 b
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public

HB4673 - 467 - LRB104 17481 RPS 30907 b
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,

HB4673 - 468 - LRB104 17481 RPS 30907 b
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties

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as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for

HB4673 - 470 - LRB104 17481 RPS 30907 b
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,

HB4673 - 471 - LRB104 17481 RPS 30907 b
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator

HB4673 - 472 - LRB104 17481 RPS 30907 b
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible

HB4673 - 473 - LRB104 17481 RPS 30907 b
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental

HB4673 - 474 - LRB104 17481 RPS 30907 b
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of

HB4673 - 475 - LRB104 17481 RPS 30907 b
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and

HB4673 - 476 - LRB104 17481 RPS 30907 b
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police

HB4673 - 477 - LRB104 17481 RPS 30907 b
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the

HB4673 - 478 - LRB104 17481 RPS 30907 b
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State

HB4673 - 479 - LRB104 17481 RPS 30907 b
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the

HB4673 - 480 - LRB104 17481 RPS 30907 b
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),

HB4673 - 481 - LRB104 17481 RPS 30907 b
(k), (l), (l-5), and (o), and (r) of this Section shall not
exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,

HB4673 - 482 - LRB104 17481 RPS 30907 b
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service

HB4673 - 483 - LRB104 17481 RPS 30907 b
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of

HB4673 - 484 - LRB104 17481 RPS 30907 b
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 104th General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and

HB4673 - 485 - LRB104 17481 RPS 30907 b
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160

HB4673 - 486 - LRB104 17481 RPS 30907 b
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(q) A security employee of the Department of Human
Services who is subject to subsection (g) of Section 1-160 may
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 104th
General Assembly as a security employee of the Department of
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 104th General

HB4673 - 487 - LRB104 17481 RPS 30907 b
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State
highway maintenance worker subject to subsection (g) of
Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 104th General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 104th General Assembly, accompanied by
payment of an amount to be determined by the Board equal to (i)
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest

HB4673 - 488 - LRB104 17481 RPS 30907 b
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-813, eff. 5-13-22; 103-34, eff. 1-1-24; 104-284, eff.
8-15-25.)
(Text of Section from P.A. 102-856, 103-34, and 104-284)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and

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(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(a-5) A member who is eligible to receive an alternative
retirement annuity under this Section may elect to receive an
estimated payment that shall commence no later than 30 days
after the later of either the member's last day of employment
or 30 days after the member files for the retirement benefit
with the System. The estimated payment shall be the best
estimate by the System of the total monthly amount due to the
member based on the information that the System possesses at

HB4673 - 490 - LRB104 17481 RPS 30907 b
the time of the estimate. If the amount of the estimate is
greater or less than the actual amount of the monthly annuity,
the System shall pay or recover the difference within 6 months
after the start of the monthly annuity.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;

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

HB4673 - 492 - LRB104 17481 RPS 30907 b
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,

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

HB4673 - 494 - LRB104 17481 RPS 30907 b
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person

HB4673 - 495 - LRB104 17481 RPS 30907 b
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security

HB4673 - 496 - LRB104 17481 RPS 30907 b
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement

HB4673 - 497 - LRB104 17481 RPS 30907 b
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys

HB4673 - 498 - LRB104 17481 RPS 30907 b
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the

HB4673 - 499 - LRB104 17481 RPS 30907 b
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the

HB4673 - 500 - LRB104 17481 RPS 30907 b
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of

HB4673 - 501 - LRB104 17481 RPS 30907 b
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward

HB4673 - 502 - LRB104 17481 RPS 30907 b
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.

HB4673 - 503 - LRB104 17481 RPS 30907 b
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish

HB4673 - 504 - LRB104 17481 RPS 30907 b
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for

HB4673 - 505 - LRB104 17481 RPS 30907 b
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State

HB4673 - 506 - LRB104 17481 RPS 30907 b
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for

HB4673 - 507 - LRB104 17481 RPS 30907 b
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and

HB4673 - 508 - LRB104 17481 RPS 30907 b
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of

HB4673 - 509 - LRB104 17481 RPS 30907 b
State, or arson investigator may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, a court
services officer under Article 9, or a firefighter under
Article 4 by filing a written election with the Board within 6
months after the effective date of this amendatory Act of the
102nd General Assembly and paying to the System an amount to be
determined by the Board equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Sections 4-108.8, 7-139.8, and 9-121.10
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the

HB4673 - 510 - LRB104 17481 RPS 30907 b
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of
State, or arson investigator may elect to convert service
credit earned under this Article to eligible creditable
service, as defined by this Section, by filing a written
election with the Board within 6 months after the effective
date of this amendatory Act of the 102nd General Assembly and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee
contributions originally paid for that service and the amounts
that would have been contributed had such contributions been
made at the rates applicable to investigators for the
Department of Revenue, investigators for the Illinois Gaming
Board, investigators for the Secretary of State, or arson
investigators, plus (ii) the difference between the employer's
normal cost of the credit prior to the conversion authorized
by this amendatory Act of the 102nd General Assembly and the
employer's normal cost of the credit converted in accordance

HB4673 - 511 - LRB104 17481 RPS 30907 b
with this amendatory Act of the 102nd General Assembly, plus
(iii) interest thereon at the actuarially assumed rate for
each year, compounded annually, from the date of service to
the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o), and (r) of this Section shall not
exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a

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

HB4673 - 513 - LRB104 17481 RPS 30907 b
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items

HB4673 - 514 - LRB104 17481 RPS 30907 b
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 104th General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the

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Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to

HB4673 - 516 - LRB104 17481 RPS 30907 b
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(q) A security employee of the Department of Human
Services who is subject to subsection (g) of Section 1-160 may

HB4673 - 517 - LRB104 17481 RPS 30907 b
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 104th
General Assembly as a security employee of the Department of
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 104th General
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State
highway maintenance worker subject to subsection (g) of
Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 104th General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 104th General Assembly, accompanied by
payment of an amount to be determined by the Board equal to (i)

HB4673 - 518 - LRB104 17481 RPS 30907 b
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-856, eff. 1-1-23; 103-34, eff. 1-1-24; 104-284, eff.
8-15-25.)
(Text of Section from P.A. 102-956, 103-34, and 104-284)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable

HB4673 - 519 - LRB104 17481 RPS 30907 b
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(a-5) A member who is eligible to receive an alternative
retirement annuity under this Section may elect to receive an

HB4673 - 520 - LRB104 17481 RPS 30907 b
estimated payment that shall commence no later than 30 days
after the later of either the member's last day of employment
or 30 days after the member files for the retirement benefit
with the System. The estimated payment shall be the best
estimate by the System of the total monthly amount due to the
member based on the information that the System possesses at
the time of the estimate. If the amount of the estimate is
greater or less than the actual amount of the monthly annuity,
the System shall pay or recover the difference within 6 months
after the start of the monthly annuity.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;

HB4673 - 521 - LRB104 17481 RPS 30907 b
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.

HB4673 - 522 - LRB104 17481 RPS 30907 b
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the

HB4673 - 523 - LRB104 17481 RPS 30907 b
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any

HB4673 - 524 - LRB104 17481 RPS 30907 b
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has

HB4673 - 525 - LRB104 17481 RPS 30907 b
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of

HB4673 - 526 - LRB104 17481 RPS 30907 b
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any

HB4673 - 527 - LRB104 17481 RPS 30907 b
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program

HB4673 - 528 - LRB104 17481 RPS 30907 b
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed

HB4673 - 529 - LRB104 17481 RPS 30907 b
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's

HB4673 - 530 - LRB104 17481 RPS 30907 b
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all

HB4673 - 531 - LRB104 17481 RPS 30907 b
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible

HB4673 - 532 - LRB104 17481 RPS 30907 b
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between

HB4673 - 533 - LRB104 17481 RPS 30907 b
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such

HB4673 - 534 - LRB104 17481 RPS 30907 b
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would

HB4673 - 535 - LRB104 17481 RPS 30907 b
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the

HB4673 - 536 - LRB104 17481 RPS 30907 b
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date

HB4673 - 537 - LRB104 17481 RPS 30907 b
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under

HB4673 - 538 - LRB104 17481 RPS 30907 b
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to

HB4673 - 539 - LRB104 17481 RPS 30907 b
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), (o), and (p), and (r) of this Section shall
not exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate

HB4673 - 540 - LRB104 17481 RPS 30907 b
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first

HB4673 - 541 - LRB104 17481 RPS 30907 b
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time

HB4673 - 542 - LRB104 17481 RPS 30907 b
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the

HB4673 - 543 - LRB104 17481 RPS 30907 b
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 104th General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the

HB4673 - 544 - LRB104 17481 RPS 30907 b
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission

HB4673 - 545 - LRB104 17481 RPS 30907 b
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(p) Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General subject to
subsection (g) of Section 1-160 may elect to convert up to 8
years of service credit established before the effective date
of this amendatory Act of the 102nd General Assembly as an
investigator for the Office of the Attorney General under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after the
effective date of this amendatory Act of the 102nd General
Assembly, accompanied by payment of an amount to be determined
by the Board equal to (i) the difference between the amount of
the employee contributions actually paid for that service and

HB4673 - 546 - LRB104 17481 RPS 30907 b
the amount of the employee contributions that would have been
paid had the employee contributions been made as a noncovered
employee serving in a position in which eligible creditable
service, as defined in this Section, may be earned, plus (ii)
interest thereon at the effective rate for each year,
compounded annually, from the date of service to the date of
payment.
(q) A security employee of the Department of Human
Services who is subject to subsection (g) of Section 1-160 may
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 104th
General Assembly as a security employee of the Department of
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 104th General
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State

HB4673 - 547 - LRB104 17481 RPS 30907 b
highway maintenance worker subject to subsection (g) of
Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 104th General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 104th General Assembly, accompanied by
payment of an amount to be determined by the Board equal to (i)
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-956, eff. 5-27-22; 103-34, eff. 1-1-24; 104-284, eff.
8-15-25.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A
participant who retires in one of the following specified
years with the specified amount of service is entitled to a

HB4673 - 548 - LRB104 17481 RPS 30907 b
retirement annuity at any age under the retirement program
applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(a-5) A Tier 2 member is entitled to a retirement annuity
upon written application if he or she: (i) has attained age 67
and has at least 10 years of service credit and is otherwise
eligible under the requirements of this Article; (ii) has
attained age 65, has at least 20 years of service credit, and
is otherwise eligible under the requirements of this Article;
or (iii) has attained age 62, has enough service credit to be
entitled to the maximum rate of annuity under this Article. A

HB4673 - 549 - LRB104 17481 RPS 30907 b
Tier 2 member who has attained age 62 and has at least 10 years
of service credit and is otherwise eligible under the
requirements of this Article or who is within 5 years of the
normal retirement age established for that Tier 2 member based
on the amount of service credit the Tier 2 member has and is
otherwise eligible under the requirements of this Article may
elect to receive the lower retirement annuity provided in
subsection (b-5) of Section 15-136 of this Article.
(a-10) A Tier 2 member who was not in service on or after
January 1, 2028 and has at least 20 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity upon written application on or after the
attainment of age 60 if Rule 4 of Section 15-136 is applicable
to the participant. A Tier 2 member who has at least 20 years
of service in this system as a police officer is entitled to a
retirement annuity upon written application on or after the
attainment of age 52 if Rule 4 of Section 15-136 is applicable
to the participant. The changes made to this subsection by
this amendatory Act of the 101st General Assembly apply
retroactively to January 1, 2011.
(b) The annuity payment period shall begin on the date
specified by the participant or the recipient of a disability
retirement annuity submitting a written application. For a
participant, the date on which the annuity payment period
begins shall not be prior to termination of employment or more
than one year before the application is received by the board;

HB4673 - 550 - LRB104 17481 RPS 30907 b
however, if the participant is not an employee of an employer
participating in this System or in a participating system as
defined in Article 20 of this Code on April 1 of the calendar
year next following the calendar year in which the participant
attains the age specified under Section 401(a)(9) of the
Internal Revenue Code of 1986, as amended, the annuity payment
period shall begin on that date regardless of whether an
application has been filed. For a recipient of a disability
retirement annuity, the date on which the annuity payment
period begins shall not be prior to the discontinuation of the
disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under
Section 15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities; amount annuities -
Amount. The provisions of this Section 15-136 apply only to
those participants who are participating in the traditional
benefit package or the portable benefit package and do not
apply to participants who are participating in the
self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:

HB4673 - 551 - LRB104 17481 RPS 30907 b
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for each
year of service in excess of 20 but not exceeding 30, and 2.30%
for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who

HB4673 - 552 - LRB104 17481 RPS 30907 b
retires on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of

HB4673 - 553 - LRB104 17481 RPS 30907 b
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1. A Tier 2
member is eligible for a retirement annuity calculated under
Rule 4 only if that Tier 2 member meets the service
requirements for that benefit calculation as prescribed under
this Rule 4 in addition to the applicable age requirement

HB4673 - 554 - LRB104 17481 RPS 30907 b
under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that
transfer until the employee's next termination of service
with the University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided
under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
each month the participant is under age 60 at the time of
retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of

HB4673 - 555 - LRB104 17481 RPS 30907 b
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(b-5) The retirement annuity of a Tier 2 member who is
retiring under Rule 1 or 3 after attaining age 62 with at least
10 years of service credit or attaining an age that is within 5
years of the normal retirement age based on the amount of
service credit the Tier 2 member has shall be reduced by 1/2 of
1% for each full month that the member's age is under the
normal retirement age applicable to that Tier 2 member age 67.
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in his
or her retirement annuity as follows:
Effective January 1 immediately following the date the

HB4673 - 556 - LRB104 17481 RPS 30907 b
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is

HB4673 - 557 - LRB104 17481 RPS 30907 b
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.
(d-5) A retirement annuity of a Tier 2 member shall
receive annual increases on the January 1 occurring either on
or after the attainment of the retirement age applicable to
that Tier 2 member under this Article age 67 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half one
half the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the
retirement annuity shall be increased as of January 1, 1987,
or the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be

HB4673 - 558 - LRB104 17481 RPS 30907 b
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's

HB4673 - 559 - LRB104 17481 RPS 30907 b
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8�
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory
Act of the 101st General Assembly apply retroactively to
January 1, 2011.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
Sec. 18-124. Retirement annuities; conditions annuities -
conditions for eligibility.
(a) This subsection (a) applies to a participant who first

HB4673 - 560 - LRB104 17481 RPS 30907 b
serves as a judge before the effective date of this amendatory
Act of the 96th General Assembly.
A participant whose employment as a judge is terminated,
regardless of age or cause is entitled to a retirement annuity
beginning on the date specified in a written application
subject to the following:
(1) the date the annuity begins is subsequent to the
date of final termination of employment, or the date 30
days prior to the receipt of the application by the board
for annuities based on disability, or one year before the
receipt of the application by the board for annuities
based on attained age;
(2) the participant is at least age 55, or has become
permanently disabled and as a consequence is unable to
perform the duties of his or her office;
(3) the participant has at least 10 years of service
credit except that a participant terminating service after
June 30 1975, with at least 6 years of service credit,
shall be entitled to a retirement annuity at age 62 or
over;
(4) the participant is not receiving or entitled to
receive, at the date of retirement, any salary from an
employer for service currently performed.
(b) This subsection (b) applies to a participant who first
serves as a judge on or after the effective date of this
amendatory Act of the 96th General Assembly.

HB4673 - 561 - LRB104 17481 RPS 30907 b
A participant who has at least 8 years of creditable
service is entitled to a retirement annuity when he or she has
attained age 67. A participant who has at least 20 years of
creditable service is entitled to a retirement annuity when he
or she has attained age 65. A participant who has enough
service to be eligible for a retirement annuity based on the
maximum percentage of salary under this Article is entitled to
a retirement annuity when he or she has attained age 62.
A member who has attained age 62 and has at least 8 years
of service credit or who is within 5 years of the normal
retirement age applicable to that member based on the amount
of service credit the member has may elect to receive the lower
retirement annuity provided in subsection (d) of Section
18-125 of this Code.
(Source: P.A. 96-889, eff. 1-1-11.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of

HB4673 - 562 - LRB104 17481 RPS 30907 b
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to

HB4673 - 563 - LRB104 17481 RPS 30907 b
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889),
final average salary shall be the average monthly salary

HB4673 - 564 - LRB104 17481 RPS 30907 b
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period; however, beginning
January 1, 2011, the annual salary may not exceed $106,800,
except that that amount shall annually thereafter be increased
by the lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the
12 months ending with the September preceding each November 1.
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100. The new amount resulting
from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the Board by November 1st of each year.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month

HB4673 - 565 - LRB104 17481 RPS 30907 b
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62 or within 5 years of the
normal retirement age applicable to that member based on the
amount of service credit the participant has, the retirement
annuity shall be reduced by 1/2 of 1% for each month that the
participant's age is under the normal retirement age
applicable to that participant age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)
Article 14.
Section 14-5. The Pension Code is amended by changing
Sections 3-111, 3-111.1, 4-109, 4-109.1, 5-167.1, 5-238,
6-164, and 6-229 as follows:
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.

HB4673 - 566 - LRB104 17481 RPS 30907 b
(a) A police officer age 50 or more with 20 or more years
of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer
in service as a police officer, shall receive a pension of 1/2
of the salary attached to the rank held by the officer on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater. The pension shall be increased by 2.5%
of such salary for each additional year of service over 20
years of service through 30 years of service, to a maximum of
75% of such salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30,
1973 shall be less than $200 per month. Beginning July 1, 1987,
the minimum retirement pension for a police officer having at
least 20 years of creditable service shall be $400 per month,
without regard to whether or not retirement occurred prior to

HB4673 - 567 - LRB104 17481 RPS 30907 b
that date. If the minimum pension established in Section
3-113.1 is greater than the minimum provided in this
subsection, the Section 3-113.1 minimum controls.
(b) A police officer mandatorily retired from service due
to age by operation of law, having at least 8 but less than 20
years of creditable service, shall receive a pension equal to
2 1/2% of the salary attached to the rank he or she held on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater, for each year of creditable service.
A police officer who retires or is separated from service
having at least 8 years but less than 20 years of creditable
service, who is not mandatorily retired due to age by
operation of law, and who does not apply for a refund of
contributions at his or her last separation from police
service, shall receive a pension upon attaining age 60 equal
to 2.5% of the salary attached to the rank held by the police
officer on the police force for one year immediately prior to
retirement or, beginning July 1, 1987 for persons terminating
service on or after that date, the salary attached to the rank
held on the last day of service or for one year prior to the
last day, whichever is greater, for each year of creditable
service.
(c) A police officer no longer in service who has at least

HB4673 - 568 - LRB104 17481 RPS 30907 b
one but less than 8 years of creditable service in a police
pension fund but meets the requirements of this subsection (c)
shall be eligible to receive a pension from that fund equal to
2.5% of the salary attached to the rank held on the last day of
service under that fund or for one year prior to that last day,
whichever is greater, for each year of creditable service in
that fund. The pension shall begin no earlier than upon
attainment of age 60 (or upon mandatory retirement from the
fund by operation of law due to age, if that occurs before age
60) and in no event before the effective date of this
amendatory Act of 1997.
In order to be eligible for a pension under this
subsection (c), the police officer must have at least 8 years
of creditable service in a second police pension fund under
this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police
officer need not be in service on or after the effective date
of this amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is
not a participant in the self-managed plan under Section
3-109.3 and who first becomes a police officer under this
Article on or after January 1, 2011.
A police officer age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a police officer

HB4673 - 569 - LRB104 17481 RPS 30907 b
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
A police officer age 52 or more who has 20 or more years of
service in that capacity and was in active service on or after
January 1, 2028 shall be entitled at his or her option to
receive a monthly pension for his or her service as a police
officer computed by multiplying 2.5% for each year of such
service by his or her final average salary.
The pension of a police officer who is retiring after
attaining age 50 with 10 or more years of creditable service or
who is retiring within 5 years of the normal retirement age
based on the amount of service credit the police officer has
shall be reduced by one-half of 1% for each month that the
police officer's age is under the normal retirement age
applicable to that police officer age 55.
The maximum pension under this subsection (d) shall be 75%
of final average salary.
For the purposes of this subsection (d), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the police officer
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the police officer during the 96 consecutive months of
service within the last 120 months of service in which the

HB4673 - 570 - LRB104 17481 RPS 30907 b
total salary was the highest by the number of months of service
in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following

HB4673 - 571 - LRB104 17481 RPS 30907 b
attainment of age 60 if it occurs after the first anniversary
of retirement, by 3% of the originally granted pension and by
an additional 3% of the originally granted pension in January
of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by
1/12 of 3% of the originally granted pension for each full

HB4673 - 572 - LRB104 17481 RPS 30907 b
month that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in January of
each year thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) Notwithstanding the other provisions of this Section,

HB4673 - 573 - LRB104 17481 RPS 30907 b
beginning with increases granted on or after July 1, 1993, the
second and all subsequent automatic annual increases granted
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of the normal retirement age applicable to that
police officer under this Article age 60 or the first
anniversary of the pension start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor

HB4673 - 574 - LRB104 17481 RPS 30907 b
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the
monthly salary attached to the rank held by him or her in the
fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the

HB4673 - 575 - LRB104 17481 RPS 30907 b
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:
For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;
For 17 years of service, 37.4% of salary;
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011.
A firefighter age 55 or more who has 10 or more years of

HB4673 - 576 - LRB104 17481 RPS 30907 b
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
A firefighter age 52 or more who has 20 or more years of
service in that capacity and was in active service on or after
January 1, 2028 shall be entitled at his or her option to
receive a monthly pension for service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the firefighter
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the firefighter during the 96 consecutive months of service
within the last 120 months of service in which the total salary
was the highest by the number of months of service in that

HB4673 - 577 - LRB104 17481 RPS 30907 b
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be

HB4673 - 578 - LRB104 17481 RPS 30907 b
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each
year the firefighter received pension payments. In each
January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the

HB4673 - 579 - LRB104 17481 RPS 30907 b
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the

HB4673 - 580 - LRB104 17481 RPS 30907 b
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and

HB4673 - 581 - LRB104 17481 RPS 30907 b
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of the normal retirement age applicable
to that firefighter age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase
shall be calculated at 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.

HB4673 - 582 - LRB104 17481 RPS 30907 b
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but

HB4673 - 583 - LRB104 17481 RPS 30907 b
has not received the initial increase under this subsection
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section

HB4673 - 584 - LRB104 17481 RPS 30907 b
made by this amendatory Act of the 94th General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or

HB4673 - 585 - LRB104 17481 RPS 30907 b
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement

HB4673 - 586 - LRB104 17481 RPS 30907 b
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of the normal retirement age
applicable to that policeman under this Article age 60 or (ii)
the first anniversary of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for a 12-month period ending in September is zero or,
when compared with the preceding period, decreases, then the
annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that

HB4673 - 587 - LRB104 17481 RPS 30907 b
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 103-582, eff. 12-8-23.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 or more or who is within 5 years of the normal
retirement age for that policeman based on the amount of
service credit the policeman has, and has 10 or more years of
service in that capacity shall be entitled, upon proper
application being received by the Fund, to receive a Tier 2
monthly retirement annuity for his service as a police
officer. The Tier 2 monthly retirement annuity shall be
computed by multiplying 2.5% for each year of such service by

HB4673 - 588 - LRB104 17481 RPS 30907 b
his or her final average salary, subject to an annuity
reduction factor of one-half of 1% for each month that the
police officer's age at retirement is under the normal
retirement age applicable to that policeman under this Article
age 55. For a policeman who was in active service on or after
January 1, 2028, has attained age 52, and has 20 years or more
years of service in that capacity, the annuity reduction
factor under this subsection shall be 0%. The Tier 2 monthly
retirement annuity is in lieu of any age and service annuity or
other form of retirement annuity under this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the policeman during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the policeman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the

HB4673 - 589 - LRB104 17481 RPS 30907 b
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, beginning July 1,
2025, the annual salary shall not exceed $141,407.74 and that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
Nothing in this amendatory Act of the 104th General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's

HB4673 - 590 - LRB104 17481 RPS 30907 b
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's earned annuity at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the

HB4673 - 591 - LRB104 17481 RPS 30907 b
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; (ii) 54% of the
policeman's monthly salary at the time of the
policeman's death; or (iii) 66 2/3% of the Tier 2
monthly retirement annuity that the deceased policeman
would have been eligible to receive under subsection
(b) of this Section, based upon the actual service
accrued through the day before the policeman's death,
but determined as though the policeman was at least
age 55 on the day before his or her death and retired
on that day.
If the deceased policeman was a parent of a child
or children, including any child who has been
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the

HB4673 - 592 - LRB104 17481 RPS 30907 b
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be the
greater of: (i) 30% of the annual maximum salary
attached to the classified civil service position of a
first class patrolman at the time of his death; or (ii)
54% of the policeman's monthly salary at the time of
the policeman's death.
If the deceased policeman was a parent of a child
or children, including any child who has been

HB4673 - 593 - LRB104 17481 RPS 30907 b
conceived but not yet born, and there is a surviving
spouse, 12% of the policeman's monthly salary at the
date of death shall be granted to the guardian of any
such minor child or children for each such child until
attainment of age 18. Upon the death of the surviving
spouse leaving one or more children under the age of
18, or upon the death of a policeman leaving one or
more children under the age of 18 but no surviving
spouse, a monthly pension of 20% of the policeman's
monthly salary at the date of death shall be granted to
the duly appointed guardian of each such child for the
support and maintenance of each such child until the
child reaches age 18. The benefit in this paragraph is
in lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision

HB4673 - 594 - LRB104 17481 RPS 30907 b
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except
that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman's death was
caused by an intervening illness or injury unrelated
to the illness or injury that had prevented him from
subsequently resuming active service in the police
department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with

HB4673 - 595 - LRB104 17481 RPS 30907 b
the September preceding each November 1, whichever is
less, of the originally granted Tier 2 surviving
spouse's annuity. If the unadjusted percentage change
in the consumer price index-u for a 12-month period
ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of
Labor that measures the average change in prices of
goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of
the Department of Insurance and made available to the
boards of the pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility

HB4673 - 596 - LRB104 17481 RPS 30907 b
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
5-152 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier
2 parent's annuity shall be subject to the Tier 2 salary
cap provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a

HB4673 - 597 - LRB104 17481 RPS 30907 b
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
Notwithstanding Section 1-103.1, the changes made to this
subsection by this amendatory Act of the 104th General
Assembly apply without regard to whether the deceased
policeman was in service on or after the effective date of this
amendatory Act of the 104th General Assembly. The changes made
by this amendatory Act of the 104th General Assembly shall not
diminish the survivor's benefits described in this Section.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this
Section as enacted by Public Act 96-1495, and are hereby
declared to represent and be consistent with the original and
continuing intent of this Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th

HB4673 - 598 - LRB104 17481 RPS 30907 b
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 104-65, eff. 8-1-25.)
(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for

HB4673 - 599 - LRB104 17481 RPS 30907 b
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before

HB4673 - 600 - LRB104 17481 RPS 30907 b
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of
his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and

HB4673 - 601 - LRB104 17481 RPS 30907 b
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is
age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such

HB4673 - 602 - LRB104 17481 RPS 30907 b
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or

HB4673 - 603 - LRB104 17481 RPS 30907 b
after (i) the attainment of the normal retirement age
applicable to that fireman under this Article age 60 or (ii)
the first anniversary of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for a 12-month period ending in September is zero or,
when compared with the preceding period, decreases, then the
annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires; Tier 2.

HB4673 - 604 - LRB104 17481 RPS 30907 b
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1,
2011, and to certain qualified survivors of such a fireman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A fireman who has withdrawn from service, has attained
age 50 or more or who is within 5 years of the normal
retirement age for that fireman based on the amount of service
credit the fireman has, and has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a fireman. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the fireman's age at retirement is under the
normal retirement age applicable to that fireman age 55. For a
fireman who was in active service on or after January 1, 2028,
has attained age 52, and has 20 years or more years of service
in that capacity, the annuity reduction factor under this
subsection shall be 0%. The Tier 2 monthly retirement annuity
is in lieu of any age and service annuity or other form of
retirement annuity under this Article.
The maximum retirement annuity under this subsection (b)

HB4673 - 605 - LRB104 17481 RPS 30907 b
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the greater of (1) the average monthly salary
obtained by dividing the total salary of the fireman during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period or (2) the
average monthly salary obtained by dividing the total salary
of the fireman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, beginning July 1,
2025, the annual salary shall not exceed $141,407.74 and that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
Nothing in this amendatory Act of the 104th General
Assembly shall cause or otherwise result in any retroactive

HB4673 - 606 - LRB104 17481 RPS 30907 b
adjustment of any employee contributions.
(b-5) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the retirement systems and pension funds by
November 1 of each year.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman under this Article on
or after January 1, 2011, eligibility for and the amount of the
annuity to which the qualified surviving spouse, children, and
parents of the fireman are entitled under this subsection (c)
shall be determined as follows:
(1) The surviving spouse of a deceased fireman to whom
this Section applies shall be deemed qualified to receive
a Tier 2 surviving spouse's annuity under this paragraph
(1) if: (i) the deceased fireman meets the requirements
specified under subdivision (A), (B), (C), or (D) of this
paragraph (1); and (ii) the surviving spouse would not
otherwise be excluded from receiving a widow's annuity
under the eligibility requirements for a widow's annuity
set forth in Section 6-142. The Tier 2 surviving spouse's

HB4673 - 607 - LRB104 17481 RPS 30907 b
annuity is in lieu of the widow's annuity determined under
any other Section of this Article and is subject to the
requirements of Section 6-143.2.
As used in this subsection (c), "earned pension" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the fireman had received pursuant to Section 6-164.
(A) If the deceased fireman was receiving an
earned pension at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the fireman's
earned pension at the date of death.
If the deceased fireman was a parent of a child or
children, including any child who has been conceived
but not yet born, and there is a surviving spouse, 12%
of the fireman's earned annuity at the date of death
shall be granted to the guardian of any such minor
child or children for each such child until attainment
of age 18. Upon the death of the surviving spouse
leaving one or more children under the age of 18, or
upon the death of a fireman leaving one or more
children under the age of 18 but no surviving spouse, a
monthly pension of 20% of the fireman's monthly salary
at the date of death shall be granted to the duly
appointed guardian of each such child for the support
and maintenance of each such child until the child

HB4673 - 608 - LRB104 17481 RPS 30907 b
reaches age 18. The benefit in this paragraph is in
lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(B) If the deceased fireman was not receiving an
earned pension but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; (ii) 54% of the
fireman's monthly salary at the time of the fireman's
death; or (iii) 66 2/3% of the Tier 2 monthly
retirement annuity that the deceased fireman would
have been eligible to receive under subsection (b) of
this Section, based upon the actual service accrued
through the day before the fireman's death, but
determined as though the fireman was at least age 55 on
the day before his or her death and retired on that
day.
If the deceased fireman was a parent of a child or
children, including any child who has been conceived
but not yet born, and there is a surviving spouse, 12%
of the fireman's monthly salary at the date of death
shall be granted to the guardian of any such minor

HB4673 - 609 - LRB104 17481 RPS 30907 b
child or children for each such child until attainment
of age 18. Upon the death of the surviving spouse
leaving one or more children under the age of 18, or
upon the death of a fireman leaving one or more
children under the age of 18 but no surviving spouse, a
monthly pension of 20% of the fireman's monthly salary
at the date of death shall be granted to the duly
appointed guardian of each such child for the support
and maintenance of each such child until the child
reaches age 18. The benefit in this paragraph is in
lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(C) If the deceased fireman was an active fireman
with at least 1 1/2 but less than 10 years of service
at the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; or (ii) 54% of the
fireman's monthly salary at the time of the fireman's
death.
If the deceased fireman was a parent of a child or
children, including any child who has been conceived
but not yet born, and there is a surviving spouse, 12%

HB4673 - 610 - LRB104 17481 RPS 30907 b
of the fireman's monthly salary at the date of death
shall be granted to the guardian of any such minor
child or children for each such child until attainment
of age 18. Upon the death of the surviving spouse
leaving one or more children under the age of 18, or
upon the death of a fireman leaving one or more
children under the age of 18 but no surviving spouse, a
monthly pension of 20% of the fireman's monthly salary
at the date of death shall be granted to the duly
appointed guardian of each such child for the support
and maintenance of each such child until the child
reaches age 18. The benefit in this paragraph is in
lieu of a benefit under paragraph (2) of this
subsection (c) but does not apply if the beneficiary
is entitled to receive a greater benefit under
paragraph (2) of this subsection (c).
(D) Notwithstanding subdivisions (A), (B), and (C)
of this paragraph (1), if the performance of an act or
acts of duty results directly in the death of a fireman
subject to this Section, or prevents him from
subsequently resuming active service in the fire
department, then a surviving spouse who would
otherwise meet the eligibility requirements for a
death in the line of duty widow's annuity granted
under Section 6-140 shall be deemed to be qualified
for a Tier 2 surviving spouse's annuity under this

HB4673 - 611 - LRB104 17481 RPS 30907 b
subdivision (D); except that no such annuity shall be
paid to the surviving spouse of a fireman who dies
while in receipt of disability benefits when the
fireman's death was caused by an intervening illness
or injury unrelated to the illness or injury that had
prevented him from subsequently resuming active
service in the fire department. The Tier 2 surviving
spouse's annuity calculated under this subdivision (D)
shall be in lieu of, but in the same amount and paid in
the same manner as, the widow's annuity provided under
Section 6-140; except that the salary used for
computing a Tier 2 surviving spouse's annuity under
this subdivision (D) shall be subject to the Tier 2
salary cap provided under subsection (b) of this
Section.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase in the consumer price index-u for
the 12 months ending with September preceding each

HB4673 - 612 - LRB104 17481 RPS 30907 b
November 1, whichever is less, of the originally
granted Tier 2 surviving spouse's annuity. If the
annual unadjusted percentage change in the consumer
price index-u for a 12-month period ending in
September is zero or, when compared with the preceding
period, decreases, then the annuity shall not be
increased.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 6-128.4.
(2) Surviving children of a deceased fireman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
6-147 and 6-148 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section

HB4673 - 613 - LRB104 17481 RPS 30907 b
6-148 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
6-149 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
6-149; except that any salary used for computing a Tier 2
parent's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 6-149 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
Notwithstanding Section 1-103.1, the changes made to this
subsection by this amendatory Act of the 104th General
Assembly apply without regard to whether the deceased fireman
was in service on or after the effective date of this
amendatory Act of the 104th General Assembly. The changes made
by this amendatory Act of the 104th General Assembly shall not
diminish the survivor's benefits described in this Section.
(d) The General Assembly finds and declares that the

HB4673 - 614 - LRB104 17481 RPS 30907 b
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 6-150, 6-158, 6-164 (except for
the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are enacted to clarify the provisions of this Section as
enacted by Public Act 96-1495, and are hereby declared to
represent and be consistent with the original and continuing
intent of this Section and Public Act 96-1495.
(e) The changes to Sections 6-150, 6-158, 6-164 (except
for the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are intended to be retroactive to January 1, 2011 (the
effective date of Public Act 96-1495) and, for the purposes of
Section 1-103.1 of this Code, they apply without regard to
whether the relevant fireman was in service on or after the
effective date of this amendatory Act of the 99th General
Assembly.
(Source: P.A. 103-579, eff. 12-8-23; 104-65, eff. 8-1-25.)
Article 15.

HB4673 - 615 - LRB104 17481 RPS 30907 b
Section 15-5. The Illinois Pension Code is amended by
changing Sections 3-109.1, 3-109.4, 3-124.1, and 7-109 as
follows:
(40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
Sec. 3-109.1. Chief of police.
(a) Beginning Except as provided in subsection (a-5),
beginning January 1, 1990, any person who is employed as the
chief of police of a "participating municipality" as defined
in Section 7-106 of this Code, may elect to participate in the
Illinois Municipal Retirement Fund rather than in a fund
created under this Article 3. Except as provided in subsection
(b), this election shall be irrevocable, and shall be filed in
writing with the Board of the Illinois Municipal Retirement
Fund.
(a-5) On or after January 1, 2019, a person may not elect
to participate in the Illinois Municipal Retirement Fund with
respect to his or her employment as the chief of police of a
participating municipality, unless that person became a
participating employee in the Illinois Municipal Retirement
Fund before January 1, 2019.
(b) Until January 1, 1999, a chief of police who has
elected under this Section to participate in IMRF rather than
a fund created under this Article may elect to rescind that
election and transfer his or her participation to the police
pension fund established under this Article by the employing

HB4673 - 616 - LRB104 17481 RPS 30907 b
municipality. The chief must notify the boards of trustees of
both funds in writing of his or her decision to rescind the
election and transfer participation. A chief of police who
transfers participation under this subsection (b) shall not be
deemed ineligible to participate in the police pension fund by
reason of having failed to apply within the 3-month period
specified in Section 3-106.
(Source: P.A. 100-281, eff. 8-24-17.)
(40 ILCS 5/3-109.4)
Sec. 3-109.4. Defined contribution plan for certain police
officers.
(a) Except as otherwise provided in this Section, each
Each municipality shall establish a defined contribution plan
that aggregates police officer and employer contributions in
individual accounts used for retirement. The defined
contribution plan, including both police officer and employer
contributions, established by the municipality must, at a
minimum: meet the safe harbor provisions of the Internal
Revenue Code of 1986, as amended; be a qualified plan under the
Internal Revenue Code of 1986, as amended; and comply with all
other applicable laws, rules, and regulations. Contributions
shall vest immediately upon deposit in the police officer's
account.
On and after the effective date of this amendatory Act of
the 104th General Assembly, a municipality is not required to

HB4673 - 617 - LRB104 17481 RPS 30907 b
establish a defined contribution plan under this Section.
However, a municipality is required to maintain a defined
contribution plan for persons who began participating in the
defined contribution plan before the effective date of this
amendatory Act of the 104th General Assembly.
A police officer who participates in the defined
contribution plan under this Section may not earn creditable
service or otherwise participate in the defined benefit plan
offered by his or her employing municipality, except as an
annuitant in another fund or as a survivor, while he or she is
a participant in the defined contribution plan. The defined
contribution plan under this Section shall not be construed to
be a pension, annuity, or other defined benefit under this
Code.
(b) If a police officer who first became a police officer
under this Article before the effective date of this
amendatory Act of the 104th General Assembly and has more than
10 years of creditable service in a fund enters active service
with a different municipality, he or she may elect to
participate in the defined contribution plan under this
Section in lieu of the defined benefit plan if the
municipality has such a defined contribution plan.
A police officer who has elected under this subsection to
participate in the defined contribution plan may, in writing,
rescind that election in accordance with the rules of the
board. Any employer contributions, and the earnings thereon,

HB4673 - 618 - LRB104 17481 RPS 30907 b
shall remain vested in the police officer's account. A police
officer who rescinds the election may begin participating in
the defined benefit plan on the first day of the month
following the rescission.
(c) As used in this Section, "defined benefit plan" means
the retirement plan available to police officers under this
Article who do not participate in the defined contribution
plan under this Section.
(Source: P.A. 100-281, eff. 8-24-17.)
(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
Sec. 3-124.1. Re-entry into active service. (a) If a
police officer who is receiving pension payments other than as
provided in Section 3-109.3 re-enters active service, pension
payment shall be suspended while he or she is in service. When
he or she again retires, pension payments shall be resumed. If
the police officer remains in service after re-entry for a
period of less than 5 years, the pension shall be the same as
upon first retirement. If the officer's service after re-entry
is at least 5 years and the officer makes the required
contributions during the period of re-entry, his or her
pension shall be recomputed by taking into account the
additional period of service and salary.
(b) If a police officer who first becomes a member on or
after January 1, 2019 but before the effective date of this
amendatory Act of the 104th General Assembly is receiving

HB4673 - 619 - LRB104 17481 RPS 30907 b
pension payments (other than as provided in Section 3-109.3)
and re-enters active service with any municipality that has
established a pension fund under this Article, that police
officer may continue to receive pension payments while he or
she is in active service, but shall only participate in a
defined contribution plan established by the municipality
pursuant to Section 3-109.4, if the municipality has
established such a defined contribution plan, and may not
establish creditable service in the pension fund established
by that municipality or have his or her pension recomputed.
(Source: P.A. 100-281, eff. 8-24-17.)
(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
Sec. 7-109. Employee.
(1) "Employee" means any person who:
(a) 1. Receives earnings as payment for the
performance of personal services or official duties out of
the general fund of a municipality, or out of any special
fund or funds controlled by a municipality, or by an
instrumentality thereof, or a participating
instrumentality, including, in counties, the fees or
earnings of any county fee office; and
2. Under the usual common law rules applicable in
determining the employer-employee relationship, has the
status of an employee with a municipality, or any
instrumentality thereof, or a participating

HB4673 - 620 - LRB104 17481 RPS 30907 b
instrumentality, including alderpersons, county
supervisors and other persons (excepting those employed as
independent contractors) who are paid compensation, fees,
allowances or other emolument for official duties, and, in
counties, the several county fee offices.
(b) Serves as a township treasurer appointed under the
School Code, as heretofore or hereafter amended, and who
receives for such services regular compensation as
distinguished from per diem compensation, and any regular
employee in the office of any township treasurer whether
or not his earnings are paid from the income of the
permanent township fund or from funds subject to
distribution to the several school districts and parts of
school districts as provided in the School Code, or from
both such sources; or is the chief executive officer,
chief educational officer, chief fiscal officer, or other
employee of a Financial Oversight Panel established
pursuant to Article 1H of the School Code, other than a
superintendent or certified school business official,
except that such person shall not be treated as an
employee under this Section if that person has negotiated
with the Financial Oversight Panel, in conjunction with
the school district, a contractual agreement for exclusion
from this Section.
(c) Holds an elective office in a municipality,
instrumentality thereof or participating instrumentality.

HB4673 - 621 - LRB104 17481 RPS 30907 b
(2) "Employee" does not include persons who:
(a) Are eligible for inclusion under any of the
following laws:
1. "An Act in relation to an Illinois State
Teachers' Pension and Retirement Fund", approved May
27, 1915, as amended;
2. Articles 15 and 16 of this Code.
However, such persons shall be included as employees
to the extent of earnings that are not eligible for
inclusion under the foregoing laws for services not of an
instructional nature of any kind.
However, any member of the armed forces who is
employed as a teacher of subjects in the Reserve Officers
Training Corps of any school and who is not certified
under the law governing the certification of teachers
shall be included as an employee.
(b) Are designated by the governing body of a
municipality in which a pension fund is required by law to
be established for policemen or firemen, respectively, as
performing police or fire protection duties, except that
when such persons are the heads of the police or fire
department and are not eligible to be included within any
such pension fund, they shall be included within this
Article; provided, that such persons shall not be excluded
to the extent of concurrent service and earnings not
designated as being for police or fire protection duties.

HB4673 - 622 - LRB104 17481 RPS 30907 b
However, (i) any head of a police department who was a
participant under this Article immediately before October
1, 1977 and did not elect, under Section 3-109 of this Act,
to participate in a police pension fund shall be an
"employee", and (ii) any chief of police who became a
participating employee under this Article before January
1, 2019 and who elects to participate in this Fund under
Section 3-109.1 of this Code, regardless of whether such
person continues to be employed as chief of police or is
employed in some other rank or capacity within the police
department, shall be an employee under this Article for so
long as such person is employed to perform police duties
by a participating municipality and has not lawfully
rescinded that election.
(b-5) Were not participating employees under this
Article before August 26, 2018 (the effective date of
Public Act 100-1097) and participated as a chief of police
in a fund under Article 3 and return to work in any
capacity with the police department, with any oversight of
the police department, or in an advisory capacity for the
police department with the same municipality with which
that pension was earned, regardless of whether they are
considered an employee of the police department or are
eligible for inclusion in the municipality's Article 3
fund.
(c) Are contributors to or eligible to contribute to a

HB4673 - 623 - LRB104 17481 RPS 30907 b
Taft-Hartley pension plan to which the participating
municipality is required to contribute as the person's
employer based on earnings from the municipality. Nothing
in this paragraph shall affect service credit or
creditable service for any period of service prior to July
16, 2014 (the effective date of Public Act 98-712), and
this paragraph shall not apply to individuals who are
participating in the Fund prior to July 16, 2014 (the
effective date of Public Act 98-712).
(d) Become an employee of any of the following
participating instrumentalities on or after January 1,
2017 (the effective date of Public Act 99-830): the
Illinois Municipal League; the Illinois Association of
Park Districts; the Illinois Supervisors, County
Commissioners and Superintendents of Highways Association;
an association, or not-for-profit corporation, membership
in which is authorized under Section 85-15 of the Township
Code; the United Counties Council; or the Will County
Governmental League.
(e) Are members of the Board of Trustees of the
Firefighters' Pension Investment Fund, as created under
Article 22C of this Code, in their capacity as members of
the Board of Trustees of the Firefighters' Pension
Investment Fund.
(f) Are members of the Board of Trustees of the Police
Officers' Pension Investment Fund, as created under

HB4673 - 624 - LRB104 17481 RPS 30907 b
Article 22B of this Code, in their capacity as members of
the Board of Trustees of the Police Officers' Pension
Investment Fund.
(3) All persons, including, without limitation, public
defenders and probation officers, who receive earnings from
general or special funds of a county for performance of
personal services or official duties within the territorial
limits of the county, are employees of the county (unless
excluded by subsection (2) of this Section) notwithstanding
that they may be appointed by and are subject to the direction
of a person or persons other than a county board or a county
officer. It is hereby established that an employer-employee
relationship under the usual common law rules exists between
such employees and the county paying their salaries by reason
of the fact that the county boards fix their rates of
compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and
this amendatory Act shall apply to all such employees from the
date of appointment whether such date is prior to or after the
effective date of this amendatory Act and is intended to
clarify existing law pertaining to their status as
participating employees in the Fund.
(Source: P.A. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21;
102-813, eff. 5-13-22.)
Article 16.

HB4673 - 625 - LRB104 17481 RPS 30907 b
Section 16-5. The Illinois Pension Code is amended by
changing Sections 3-114.5 and 4-114.2 as follows:
(40 ILCS 5/3-114.5) (from Ch. 108 1/2, par. 3-114.5)
Sec. 3-114.5. Reduction of disability and survivor's
benefits for corresponding benefits payable under Workers'
Compensation and Workers' Occupational Diseases Acts.
(a) Whenever a person is entitled to a disability or
survivor's benefit under this Article and to benefits under
the Workers' Compensation Act or the Workers' Occupational
Diseases Act for the same injury or disease, the benefits
payable under this Article shall be reduced by an amount
computed in accordance with subsection (b) of this Section.
There shall be no reduction, however, for any of the
following: payments for medical, surgical and hospital
services, non-medical remedial care and treatment rendered in
accordance with a religious method of healing recognized by
the laws of this State and for artificial appliances; payments
made for scheduled losses for the loss of or permanent and
complete or permanent and partial loss of the use of any bodily
member or the body taken as a whole under subdivision (d)2 or
subsection (e) of Section 8 of the Workers' Compensation Act
or Section 7 of the Workers' Occupational Diseases Act;
payments made for statutorily prescribed losses under
subdivision (d)2 of Section 8 of the Workers' Compensation Act

HB4673 - 626 - LRB104 17481 RPS 30907 b
or Section 7 of the Workers' Occupational Diseases Act; and
that portion of the payments which is utilized to pay
attorneys' fees and the costs of securing the workers'
compensation benefits under either the Workers' Compensation
Act or Workers' Occupational Diseases Act.
In addition, if a person is a surviving spouse entitled to
a survivor's benefit under Section 3-112 as a result of the
decedent's sickness, accident, or injury incurred in or
resulting from the performance of an act of duty or from the
cumulative effects of acts of duty, then there shall be no
reduction in the benefits payable to that person under this
Article.
(b) The reduction prescribed by this Section shall be
computed as follows:
(1) In the event that a person entitled to benefits
under this Article incurs costs or attorneys' fees in
order to establish his entitlement, the reduction
prescribed by this Section shall itself be reduced by the
amount of such costs and attorneys' fees.
(2) If the benefits deductible under this Section are
stated in a weekly amount, the monthly amount for the
purpose of this Section shall be 52 times the weekly
amount, divided by 12.
(Source: P.A. 84-1472.)
(40 ILCS 5/4-114.2) (from Ch. 108 1/2, par. 4-114.2)

HB4673 - 627 - LRB104 17481 RPS 30907 b
Sec. 4-114.2. Reduction of disability and survivor's
benefits for corresponding benefits payable under Workers'
Compensation and Workers' Occupational Diseases Acts.
(a) Whenever a person is entitled to a disability or
survivor's benefit under this Article and to benefits under
the Workers' Compensation Act or the Workers' Occupational
Diseases Act for the same injury or disease, the benefits
payable under this Article shall be reduced by an amount
computed in accordance with subsection (b) of this Section.
There shall be no reduction, however, for any of the
following: payments for medical, surgical and hospital
services, non-medical remedial care and treatment rendered in
accordance with a religious method of healing recognized by
the laws of this State and for artificial appliances; payments
made for scheduled losses for the loss of or permanent and
complete or permanent and partial loss of the use of any bodily
member or the body taken as a whole under subdivision (d)2 or
subsection (e) of Section 8 of the Workers' Compensation Act
or Section 7 of the Workers' Occupational Diseases Act;
payments made for statutorily prescribed losses under
subdivision (d)2 of Section 8 of the Workers' Compensation Act
or Section 7 of the Workers' Occupational Diseases Act; and
that portion of the payments which is utilized to pay
attorneys' fees and the costs of securing the workers'
compensation benefits under either the Workers' Compensation
Act or Workers' Occupational Diseases Act.

HB4673 - 628 - LRB104 17481 RPS 30907 b
In addition, if a person is a surviving spouse entitled to
a survivor's benefit under Section 4-114 as a result of the
decedent's sickness, accident, or injury incurred in or
resulting from the performance of an act of duty or from the
cumulative effects of acts of duty, then there shall be no
reduction in the benefits payable to that person under this
Article.
(b) The reduction prescribed by this Section shall be
computed as follows:
(1) In the event that a person entitled to benefits
under this Article incurs costs or attorneys' fees in
order to establish his entitlement, the reduction
prescribed by this Section shall itself be reduced by the
amount of such costs and attorneys' fees.
(2) If the benefits deductible under this Section are
stated in a weekly amount, the monthly amount for the
purpose of this Section shall be 52 times the weekly
amount, divided by 12.
(Source: P.A. 84-1039.)
Article 17.
Section 17-5. The Illinois Pension Code is amended by
changing Section 16-158 as follows:
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)

HB4673 - 629 - LRB104 17481 RPS 30907 b
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15 until November
15, 2011, the Board shall certify to the Governor the amount of
the required State contribution for the coming fiscal year.
The certification under this subsection (a-1) shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General

HB4673 - 630 - LRB104 17481 RPS 30907 b
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by Public Act 94-4.
On or before April 1, 2011, the Board shall recalculate
and recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011,
applying the changes made by Public Act 96-889 to the System's
assets and liabilities as of June 30, 2009 as though Public Act
96-889 was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed
certification of the amount of the required State contribution
to the System for the next fiscal year, along with all of the
actuarial assumptions, calculations, and data upon which that
proposed certification is based. On or before January 1 of
each year, beginning January 1, 2013, the State Actuary shall
issue a preliminary report concerning the proposed
certification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. On or before January 15, 2013 and each January
15 thereafter, the Board shall certify to the Governor and the

HB4673 - 631 - LRB104 17481 RPS 30907 b
General Assembly the amount of the required State contribution
for the next fiscal year. The Board's certification must note
any deviations from the State Actuary's recommended changes,
the reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-10) By November 1, 2017, the Board shall recalculate
and recertify to the State Actuary, the Governor, and the
General Assembly the amount of the State contribution to the
System for State fiscal year 2018, taking into account the
changes in required State contributions made by Public Act
100-23. The State Actuary shall review the assumptions and
valuations underlying the Board's revised certification and
issue a preliminary report concerning the proposed
recertification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. The Board's final certification must note any
deviations from the State Actuary's recommended changes, the
reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-15) On or after June 15, 2019, but no later than June
30, 2019, the Board shall recalculate and recertify to the

HB4673 - 632 - LRB104 17481 RPS 30907 b
Governor and the General Assembly the amount of the State
contribution to the System for State fiscal year 2019, taking
into account the changes in required State contributions made
by Public Act 100-587. The recalculation shall be made using
assumptions adopted by the Board for the original fiscal year
2019 certification. The monthly voucher for the 12th month of
fiscal year 2019 shall be paid by the Comptroller after the
recertification required pursuant to this subsection is
submitted to the Governor, Comptroller, and General Assembly.
The recertification submitted to the General Assembly shall be
filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Unless otherwise directed by the Comptroller under
subsection (b-1.1), the Board shall submit vouchers for
payment of State contributions to the System for the
applicable month on the 15th day of each month, or as soon
thereafter as may be practicable. The amount vouchered for a
monthly payment shall total one-twelfth of the required annual
State contribution certified under subsection (a-1).
(b-1.1) Beginning in State fiscal year 2025, if the
Comptroller requests that the Board submit, during a State
fiscal year, vouchers for multiple monthly payments for the

HB4673 - 633 - LRB104 17481 RPS 30907 b
advance payment of State contributions due to the System for
that State fiscal year, then the Board shall submit those
additional vouchers as directed by the Comptroller,
notwithstanding subsection (b-1). Unless an act of
appropriations provides otherwise, nothing in this Section
authorizes the Board to submit, in a State fiscal year,
vouchers for the payment of State contributions to the System
in an amount that exceeds the rate of payroll that is certified
by the System under this Section for that State fiscal year.
(b-1.2) The vouchers described in subsections (b-1) and
(b-1.1) shall be paid by the State Comptroller and Treasurer
by warrants drawn on the funds appropriated to the System for
that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal years 2012 through 2045, the

HB4673 - 634 - LRB104 17481 RPS 30907 b
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and

HB4673 - 635 - LRB104 17481 RPS 30907 b
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a), and notwithstanding any
contrary certification made under subsection (a-1) before May
27, 1998 (the effective date of Public Act 90-582): 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $534,627,700.
Notwithstanding any other provision of this Article, the

HB4673 - 636 - LRB104 17481 RPS 30907 b
total required State contribution for State fiscal year 2007
is $738,014,500.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the Common School
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to subsection (a-1) of this Section and shall be
made from the proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by

HB4673 - 637 - LRB104 17481 RPS 30907 b
the System's share of total bond proceeds, (ii) any amounts
received from the Common School Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable. This amount shall include, in
addition to the amount certified by the System, an amount
necessary to meet employer contributions required by the State
as an employer under paragraph (e) of this Section, which may
also be used by the System for contributions required by
paragraph (a) of Section 16-127.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the

HB4673 - 638 - LRB104 17481 RPS 30907 b
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under subsection
(a-1), shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(b-4) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution

HB4673 - 639 - LRB104 17481 RPS 30907 b
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
16-158.3, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System

HB4673 - 640 - LRB104 17481 RPS 30907 b
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (b-4)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and
all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs
based upon that service, which, beginning July 1, 2017, shall
be at a rate, expressed as a percentage of salary, equal to the
total employer's normal cost, expressed as a percentage of
payroll, as determined by the System. Employer contributions,
based on salary paid to members from federal funds, may be
forwarded by the distributing agency of the State of Illinois
to the System prior to allocation, in an amount determined in
accordance with guidelines established by such agency and the
System. Any contribution for fiscal year 2015 collected as a

HB4673 - 641 - LRB104 17481 RPS 30907 b
result of the change made by Public Act 98-674 shall be
considered a State contribution under subsection (b-3) of this
Section.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the

HB4673 - 642 - LRB104 17481 RPS 30907 b
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from Public Act 90-582.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by Public Act 90-582 is the responsibility of
the teacher and not the teacher's employer, unless the
employer agrees, through collective bargaining or otherwise,
to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May

HB4673 - 643 - LRB104 17481 RPS 30907 b
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines
established by the System, the present value of the increase
in benefits resulting from the portion of the increase in
salary that is in excess of 6%. This present value shall be
computed by the System on the basis of the actuarial
assumptions and tables used in the most recent actuarial
valuation of the System that is available at the time of the
computation. If a teacher's salary for the 2005-2006 school
year is used to determine final average salary under this
subsection (f), then the changes made to this subsection (f)

HB4673 - 644 - LRB104 17481 RPS 30907 b
by Public Act 94-1057 shall apply in calculating whether the
increase in his or her salary is in excess of 6%. For the
purposes of this Section, change in employment under Section
10-21.12 of the School Code on or after June 1, 2005 shall
constitute a change in employer. The System may require the
employer to provide any pertinent information or
documentation. The changes made to this subsection (f) by
Public Act 94-1111 apply without regard to whether the teacher
was in service on or after its effective date.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(g), (g-5), (g-10), (g-15), (g-20), (g-25), or (h) of this
Section, must include an affidavit setting forth and attesting
to all facts within the employer's knowledge that are
pertinent to the applicability of that subsection. Upon
receiving a timely application for recalculation, the System
shall review the application and, if appropriate, recalculate
the amount due.
The employer contributions required under this subsection

HB4673 - 645 - LRB104 17481 RPS 30907 b
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 7 years after the employer's receipt
of the bill.
(f-1) (Blank).
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to
teachers under contracts or collective bargaining agreements
entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has

HB4673 - 646 - LRB104 17481 RPS 30907 b
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases
are equal to or less than the rate of pay for classroom
instruction computed on the teacher's current salary and work
schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the
district requiring the same certification or the amount
stipulated in the collective bargaining agreement for a
similar position requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final

HB4673 - 647 - LRB104 17481 RPS 30907 b
average salary.
(g-5) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from overload or stipend work performed in a school
year subsequent to a school year in which the employer was
unable to offer or allow to be conducted overload or stipend
work due to an emergency declaration limiting such activities.
(g-10) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from increased instructional time that exceeded the
instructional time required during the 2019-2020 school year.
(g-15) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from teaching summer school on or after May 1, 2021
and before September 15, 2022.
(g-20) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
necessary to bring a school board in compliance with Public
Act 101-443 or this amendatory Act of the 103rd General
Assembly.
(g-25) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
given on or after July 1, 2026 resulting from overload work,
including summer school, when the school district has
certified to the System, and the System has approved the
certification, that (i) the overload work is for the sole

HB4673 - 648 - LRB104 17481 RPS 30907 b
purpose of classroom instruction in excess of the standard
number of classes for a full-time teacher in a school district
during a school year and (ii) the salary increases are equal to
or less than the rate of pay for classroom instruction
computed on the teacher's current salary and work schedule.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each

HB4673 - 649 - LRB104 17481 RPS 30907 b
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(i-5) For school years beginning on or after July 1, 2017,
if the amount of a participant's salary for any school year
exceeds the amount of the salary set for the Governor, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
salary in excess of the amount of the salary set for the
Governor. This amount shall be computed by the System on the
basis of the actuarial assumptions and tables used in the most
recent actuarial valuation of the System that is available at
the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it

HB4673 - 650 - LRB104 17481 RPS 30907 b
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.

HB4673 - 651 - LRB104 17481 RPS 30907 b
(k) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 103-515, eff. 8-11-23; 103-588, eff. 6-5-24;
104-284, eff. 1-1-26.)
Article 18.
Section 18-5. The Illinois Pension Code is amended by
adding Section 1-168 as follows:
(40 ILCS 5/1-168 new)
Sec. 1-168. Deferred retirement option plan.
(a) In this Section:
"Applicable pension fund" means the pension fund
established under Article 3 or 5 under which the eligible
member or DROP member participates and whose employer or
pension fund is offering a DROP under this Section.
"Deferred retirement option plan" or "DROP" means the plan
created under this Section that provides an alternative method
of benefit accrual in the pension fund.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than July 1, 2031.
"Eligible member" means a participating member under a

HB4673 - 652 - LRB104 17481 RPS 30907 b
pension fund established under Article 3 or 5, whose employer
or pension fund is offering a DROP under this Section, who, at
the time of the member's election to participate in the DROP:
(1) is otherwise eligible to retire under the
applicable Article with a pension or annuity, as
determined by the pension fund of which the member is an
active member at the time of the election to participate
in the DROP, under any of the following provisions:
(A) Section 3-111;
(B) Section 5-132; or
(C) Section 5-238;
(2) is not in receipt of a disability benefit or
retirement annuity from the applicable pension fund at the
time of his or her election to participate in the DROP;
(3) is actively employed as a police officer or
policeman as described or defined under Article 3 or
Article 5; and
(4) is not subject to mandatory retirement under the
law and will not become subject to mandatory retirement
under the law during participation in the DROP.
(b) The DROP shall be made available to eligible members
no later than July 1, 2027.
(c) Eligible members must make their election to
participate in the DROP in writing with the employer or
applicable pension fund in a form acceptable to the applicable
pension fund. The employer or applicable pension fund must

HB4673 - 653 - LRB104 17481 RPS 30907 b
process the election and begin crediting an account on behalf
of the DROP member as soon as is practicable after the election
has been received.
At the time of or prior to electing to participate in the
DROP, a member must, unless otherwise provided by law, make
all other elections required to be made in order to calculate
the amounts deposited into the DROP consistent with this
Section at or before the date of retirement, including, but
not limited to, purchase of optional service, election of an
accelerated pension benefit payment, or any other election
identified by the pension fund. Nothing in this paragraph
shall require a member to otherwise make elections not
required for the calculation of the benefits under the DROP.
(d) An eligible member may participate in the DROP for a
period not to exceed 5 years from the date of the eligible
member's election.
(e) During the period of the DROP member's participation
in the DROP, the applicable pension fund shall transfer and
credit into a notional account on behalf of the DROP member an
amount equal to the monthly amount of retirement annuity the
DROP member would otherwise be eligible to receive if the DROP
member had retired on the date of the election under this
Section. A DROP member who is entitled to a benefit from a
participating system under the Retirement Systems Reciprocal
Act shall be eligible to have the benefit the DROP member would
have otherwise been eligible to receive if the DROP member

HB4673 - 654 - LRB104 17481 RPS 30907 b
retired on the date of the election under this Section
deposited with the applicable pension fund in the DROP
member's DROP account and administered in a manner consistent
with the requirements of this Section. The applicable pension
fund shall deduct any amounts required to be deducted under
State or federal law, including, but not limited to, payments
required under a Qualified Illinois Domestic Relations Order
under Section 1-119. Any automatic annual increases that would
have otherwise been applied to the DROP member's benefit if
the DROP member had elected to retire instead of participate
in the DROP shall accrue to the DROP member's monthly payment
placed into the account prior to the expiration of the DROP and
shall otherwise apply to the DROP member's annuity upon
expiration of the DROP. The account shall be held on behalf of
the DROP member.
(f) DROP members shall make contributions to the
applicable pension fund during their participation in the DROP
in an amount equal to the employee contributions under the
applicable Article that would otherwise be required if the
DROP member were an active participant of the applicable
pension fund. Those amounts shall be credited to the member's
DROP account and shall be kept by the pension fund to pay any
administrative costs determined by the pension fund to be
attributable to the administration of the DROP benefits
experienced by the applicable pension fund, when the
investment returns of the DROP account is less than the amount

HB4673 - 655 - LRB104 17481 RPS 30907 b
necessary to cover administrative costs attributable to the
administration of the DROP benefits experienced by the
applicable pension fund. Any investment returns in excess of
the costs of the administration of the DROP account shall be
applied toward the unfunded liability of the pension fund or
shall be deposited with the pension fund by the employer
within 120 days of the end of the DROP.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the applicable pension fund. The
amounts in the DROP account shall accrue interest based on the
actual rate of return on investment experienced by the
applicable pension fund, as determined annually by the
applicable pension fund. Nothing in this Section prohibits a
pension fund from investing the notional accounts differently
from the other assets managed by the pension fund, nor is there
any prohibition on assigning an interest rate that is
different from any interest rate otherwise used by the pension
fund. If, in any year, the actual rate of return on investment
experienced by the applicable pension fund is less than zero,
the interest accrual for that year shall be zero. The
applicable pension fund shall reduce the amounts in the DROP
account on a schedule set by the applicable pension fund to
cover all of the administrative costs of the applicable
pension fund that are deemed to be attributable to the
administration of the DROP account and any duties required
under this Section that are not otherwise provided for by the

HB4673 - 656 - LRB104 17481 RPS 30907 b
member's contribution or the actual investment returns
provided for in this Section.
(h) Upon expiration or termination of the DROP member's
participation in the DROP, the account balance shall be paid
to the DROP member as a lump sum. The applicable pension fund
shall provide options for the transfer of the account
consistent with its fiduciary duty and any applicable State or
federal law. The expiration or termination of a DROP member's
participation in the DROP may not occur after July 1, 2036.
(i) The DROP election is irrevocable, and the DROP member
may not, except as otherwise provided in this Section, access
the account prior to the date established as the last day of
the DROP when the DROP member made the initial election to
participate in the DROP. The DROP member must terminate
employment with the employer at the same time as the
expiration of his or her participation in the DROP. The DROP
member's participation in the DROP shall terminate prior to
the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the pension fund; or
(3) upon the death of the DROP member.
Upon termination from the DROP, the member shall commence
his or her retirement annuity from the pension fund. After

HB4673 - 657 - LRB104 17481 RPS 30907 b
termination or expiration of a member's participation in the
DROP, the member may not participate in employment in any way
that would require the member to become an active contributing
member of the pension fund.
The applicable pension fund may allow for the payment of
the balance of the DROP account prior to the last date of
participation in the DROP established by the DROP member when
the DROP member made the initial election to participate in
the DROP if (i) the member's participation in the DROP
terminated and (ii) the applicable pension fund determines the
DROP member should have access to the DROP account balance due
to hardship or necessity as determined by the applicable
pension fund.
(j) A DROP member shall be considered in active service
for purposes of eligibility for death and disability benefits
and access to any health care benefits provided for by the
employer and shall retain all rights of employment as
established under the DROP member's collective bargaining
agreement.
The DROP member shall not accrue additional service credit
in the pension fund while participating in the DROP,
regardless of any service accruals, future pay increases,
active cost of living adjustments, or promotions.
Additionally, the DROP member shall not be eligible to
purchase any optional service credit or to repay any refunds.
Eligibility for a surviving spouse benefit shall be

HB4673 - 658 - LRB104 17481 RPS 30907 b
determined at the time of the DROP election.
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election and such amounts
shall be payable at the time of election.
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid
to the DROP member's estate.
When determining if a member is owed a refund of
contributions due to the member's death prior to collecting an
amount equal to or greater than the member's contributions,
the proceeds of the DROP account shall be considered part of
the total payment made to the member or the member's estate.
(k) It is intended that the DROP shall not jeopardize the
tax qualified status of the pension fund. The pension fund
shall have the authority to adopt rules necessary or
appropriate for the DROP to maintain compliance with
applicable federal laws and regulations. Notwithstanding any
other provision of this Code, all benefits provided under the
DROP shall be subject to the requirements and limits of the
Internal Revenue Code of 1986, as amended.
(l) An employer of a participant electing a DROP under
Article 3 or 5 shall participate in the DROP under this
Section. For all other employers of employees covered by this
Section, the implementation of a DROP and the positions

HB4673 - 659 - LRB104 17481 RPS 30907 b
covered by the DROP shall be a permissive subject of
bargaining and may be implemented by mutual agreement of the
employer and the collective bargaining agent of the majority
of potentially covered active employees. An employer under
Article 3 or Article 5 may manage the notional DROP accounts
created under this Section instead of a pension fund
established under Article 3 or Article 5. The employer and
pension fund shall follow any applicable laws, and the pension
fund shall administer the program in the best interest of the
DROP members in a way that a prudent person in a similar
circumstance would.
Article 19.
Section 19-5. The General Obligation Bond Act is amended
by changing Sections 7.2 and 7.6 as follows:
(30 ILCS 330/7.2)
Sec. 7.2. State pension funding.
(a) The amount of $10,000,000,000 is authorized to be used
for the purpose of making contributions to the designated
retirement systems. For the purposes of this Section,
"designated retirement systems" means the State Employees'
Retirement System of Illinois; the Teachers' Retirement System
of the State of Illinois; the State Universities Retirement
System; the Judges Retirement System of Illinois; and the

HB4673 - 660 - LRB104 17481 RPS 30907 b
General Assembly Retirement System.
The amount of $3,466,000,000 of Bonds authorized by Public
Act 96-43 is authorized to be used for the purpose of making a
portion of the State's Fiscal Year 2010 required contributions
to the designated retirement systems.
The amount of $4,096,348,300 of Bonds authorized by this
amendatory Act of the 96th General Assembly is authorized to
be used for the purpose of making a portion of the State's
Fiscal Year 2011 required contributions to the designated
retirement systems.
(b) The Pension Contribution Fund is created as a special
fund in the State treasury Treasury.
The proceeds of the additional $10,000,000,000 of Bonds
authorized by Public Act 93-2, less the amounts authorized in
the Bond Sale Order to be deposited directly into the
capitalized interest account of the General Obligation Bond
Retirement and Interest Fund or otherwise directly paid out
for bond sale expenses under Section 8, shall be deposited
into the Pension Contribution Fund and used as provided in
this Section.
The proceeds of the additional $3,466,000,000 of Bonds
authorized by Public Act 96-43, less the amounts directly paid
out for bond sale expenses under Section 8, shall be deposited
into the Pension Contribution Fund, and the Comptroller and
the Treasurer shall, as soon as practical, (i) first, transfer
from the Pension Contribution Fund to the General Revenue Fund

HB4673 - 661 - LRB104 17481 RPS 30907 b
or Common School Fund an amount equal to the amount of
payments, if any, made to the designated retirement systems
from the General Revenue Fund or Common School Fund in State
fiscal year 2010 and (ii) second, make transfers from the
Pension Contribution Fund to the designated retirement systems
pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
of the Illinois Pension Code.
The proceeds of the additional $4,096,348,300 of Bonds
authorized by this amendatory Act of the 96th General
Assembly, less the amounts directly paid out for bond sale
expenses under Section 8, shall be deposited into the Pension
Contribution Fund, and the Comptroller and the Treasurer
shall, as soon as practical, (i) first, transfer from the
Pension Contribution Fund to the General Revenue Fund or
Common School Fund an amount equal to the amount of payments,
if any, made to the designated retirement systems from the
General Revenue Fund or Common School Fund in State fiscal
year 2011 and (ii) second, make transfers from the Pension
Contribution Fund to the designated retirement systems
pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
of the Illinois Pension Code.
(c) Of the amount of Bond proceeds from the bond sale
authorized by Public Act 93-2 first deposited into the Pension
Contribution Fund, there shall be reserved for transfers under
this subsection the sum of $300,000,000, representing the
required State contributions to the designated retirement

HB4673 - 662 - LRB104 17481 RPS 30907 b
systems for the last quarter of State fiscal year 2003, plus
the sum of $1,860,000,000, representing the required State
contributions to the designated retirement systems for State
fiscal year 2004.
Upon the deposit of sufficient moneys from the bond sale
authorized by Public Act 93-2 into the Pension Contribution
Fund, the Comptroller and Treasurer shall immediately transfer
the sum of $300,000,000 from the Pension Contribution Fund to
the General Revenue Fund.
Whenever any payment of required State contributions for
State fiscal year 2004 is made to one of the designated
retirement systems, the Comptroller and Treasurer shall, as
soon as practicable, transfer from the Pension Contribution
Fund to the General Revenue Fund an amount equal to the amount
of that payment to the designated retirement system. Beginning
on the effective date of this amendatory Act of the 93rd
General Assembly, the transfers from the Pension Contribution
Fund to the General Revenue Fund shall be suspended until June
30, 2004, and the remaining balance in the Pension
Contribution Fund shall be transferred directly to the
designated retirement systems as provided in Section 6z-61 of
the State Finance Act. On and after July 1, 2004, in the event
that any amount is on deposit in the Pension Contribution Fund
from time to time, the Comptroller and Treasurer shall
continue to make such transfers based on fiscal year 2005
payments until the entire amount on deposit has been

HB4673 - 663 - LRB104 17481 RPS 30907 b
transferred.
(d) All amounts deposited into the Pension Contribution
Fund, other than the amounts reserved for the transfers under
subsection (c) from the bond sale authorized by Public Act
93-2, other than amounts deposited into the Pension
Contribution Fund from the bond sale authorized by Public Act
96-43 and other than amounts deposited into the Pension
Contribution Fund from the bond sale authorized by this
amendatory Act of the 96th General Assembly, shall be
appropriated to the designated retirement systems to reduce
their actuarial reserve deficiencies. The amount of the
appropriation to each designated retirement system shall
constitute a portion of the total appropriation under this
subsection that is the same as that retirement system's
portion of the total actuarial reserve deficiency of the
systems, as most recently determined by the Governor's Office
of Management and Budget under Section 8.12 of the State
Finance Act.
With respect to proceeds from the bond sale authorized by
Public Act 93-2 only, within 15 days after any Bond proceeds in
excess of the amounts initially reserved under subsection (c)
are deposited into the Pension Contribution Fund, the
Governor's Office of Management and Budget shall (i) allocate
those proceeds among the designated retirement systems in
proportion to their respective actuarial reserve deficiencies,
as most recently determined under Section 8.12 of the State

HB4673 - 664 - LRB104 17481 RPS 30907 b
Finance Act, and (ii) certify those allocations to the
designated retirement systems and the Comptroller.
Upon receiving certification of an allocation under this
subsection, a designated retirement system shall submit to the
Comptroller a voucher for the amount of its allocation. The
voucher shall be paid out of the amount appropriated to that
designated retirement system from the Pension Contribution
Fund pursuant to this subsection.
(e) Every fiscal year after all the bonds authorized by
Public Act 93-2 are retired, the State Treasurer shall direct
and the State Comptroller shall transfer the sum of
$250,000,000 from the General Revenue Fund to the Pension
Unfunded Liability Reduction Fund each fiscal year, which
shall be used to make additional contributions to eligible
pension funds in accordance with Section 8s of the State
Finance Act, and the sum of $250,000,000 from the General
Revenue Fund to the Local Government Distributive Fund, which
shall be used only to make additional contributions to pension
funds other than the pension funds or retirement systems
established under Article 2, 14, 15, 16, 17, or 18 of the
Illinois Pension Code.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
(30 ILCS 330/7.6)
Sec. 7.6. Income Tax Proceed Bonds.
(a) As used in this Act, "Income Tax Proceed Bonds" means

HB4673 - 665 - LRB104 17481 RPS 30907 b
Bonds (i) authorized by Public Act 100-23 or any other Public
Act of the 100th or 101st General Assembly authorizing the
issuance of Income Tax Proceed Bonds and (ii) used for the
payment of unpaid obligations of the State as incurred from
time to time and as authorized by the General Assembly.
(b) Income Tax Proceed Bonds in the amount of
$6,000,000,000 are hereby authorized to be used for the
purpose of paying vouchers incurred by the State prior to July
1, 2017. Additional Income Tax Proceed Bonds in the amount of
$1,200,000,000 are hereby authorized to be used for the
purpose of paying vouchers incurred by the State and accruing
interest payable by the State prior to the date on which the
Income Tax Proceed Bonds are issued.
(c) The Income Tax Bond Fund is hereby created as a special
fund in the State treasury. All moneys from the proceeds of the
sale of the Income Tax Proceed Bonds, less the amounts
authorized in the Bond Sale Order to be directly paid out for
bond sale expenses under Section 8, shall be deposited into
the Income Tax Bond Fund. All moneys in the Income Tax Bond
Fund shall be used for the purpose of paying vouchers incurred
by the State prior to July 1, 2017 or for paying vouchers
incurred by the State more than 90 days prior to the date on
which the Income Tax Proceed Bonds are issued. For the purpose
of paying such vouchers, the Comptroller has the authority to
transfer moneys from the Income Tax Bond Fund to general funds
and the Health Insurance Reserve Fund. "General funds" has the

HB4673 - 666 - LRB104 17481 RPS 30907 b
meaning provided in Section 50-40 of the State Budget Law.
(d) Every fiscal year after all the bonds authorized under
this Section are retired, the State Treasurer shall direct and
the State Comptroller shall transfer the sum of $250,000,000
from the General Revenue Fund to the Pension Unfunded
Liability Reduction Fund each fiscal year, which shall be used
to make additional contributions to eligible pension funds in
accordance with Section 8s of the State Finance Act, and the
sum of $250,000,000 from the General Revenue Fund to the Local
Government Distributive Fund, which shall be used only to make
additional contributions to pension funds other than the
pension funds or retirement systems established under Article
2, 14, 15, 16, 17, or 18 of the Illinois Pension Code.
(Source: P.A. 103-7, eff. 7-1-23.)
Section 19-10. The State Finance Act is amended by adding
Section 8s as follows:
(30 ILCS 105/8s new)
Sec. 8s. Pension Unfunded Liability Reduction Fund.
(a) In this Section, "eligible pension fund" means a
pension fund or retirement system established under Article 2,
14, 15, 16, 17, or 18 of the Illinois Pension Code that has a
total actuarial liability in excess of its total actuarial
assets.
(b) The Pension Unfunded Liability Reduction Fund is

HB4673 - 667 - LRB104 17481 RPS 30907 b
created as a special fund in the State treasury. Moneys in the
Fund may only be used to make annual additional contributions
to eligible pension funds.
(c) Moneys in the Fund shall be disbursed every fiscal
year to each eligible pension fund based on the pro rata share
of the State's required annual contribution to that eligible
pension fund for that fiscal year relative to the State's
total required annual contribution to all eligible pension
funds for that fiscal year.
Article 90.
Section 90-5. The Illinois Pension Code is amended by
changing Sections 2-162, 12-195, 14-152.1, 15-198, 16-203, and
18-169 as follows:
(40 ILCS 5/2-162)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase

HB4673 - 668 - LRB104 17481 RPS 30907 b
resulting from the changes made to this Article by this
amendatory Act of the 104th General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is

HB4673 - 669 - LRB104 17481 RPS 30907 b
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.)
(40 ILCS 5/12-195)
Sec. 12-195. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment

HB4673 - 670 - LRB104 17481 RPS 30907 b
to this Code that takes effect after the effective date of this
amendatory Act of the 98th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 104th General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the Fund of additional
funding at least sufficient to fund the resulting annual
increase in cost to the Fund as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection (c). The State Actuary shall analyze whether
adequate additional funding has been provided for the new
benefit increase. A new benefit increase created by a Public
Act that does not include the additional funding required
under this subsection (c) is null and void. If the State
Actuary determines that the additional funding provided for a
new benefit increase under this subsection (c) is or has
become inadequate, it may so certify to the Governor and the
State Comptroller and, in the absence of corrective action by
the General Assembly, the new benefit increase shall expire at

HB4673 - 671 - LRB104 17481 RPS 30907 b
the end of the fiscal year in which the certification is made.
(Source: P.A. 102-263, eff. 8-6-21.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, Public Act
104-284, or this amendatory Act of the 104th General Assembly
or this amendatory Act of the 104th General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional

HB4673 - 672 - LRB104 17481 RPS 30907 b
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires

HB4673 - 673 - LRB104 17481 RPS 30907 b
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 104-284, eff. 8-15-25.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
100-23, Public Act 100-587, Public Act 100-769, Public Act
101-10, Public Act 101-610, Public Act 102-16, Public Act
103-80, or Public Act 103-548, or this amendatory Act of the
104th General Assembly.
(b) Notwithstanding any other provision of this Code or

HB4673 - 674 - LRB104 17481 RPS 30907 b
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified

HB4673 - 675 - LRB104 17481 RPS 30907 b
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
103-548, eff. 8-11-23; 103-605, eff. 7-1-24.)
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",

HB4673 - 676 - LRB104 17481 RPS 30907 b
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
95-910, Public Act 100-23, Public Act 100-587, Public Act
100-743, Public Act 100-769, Public Act 101-10, Public Act
101-49, Public Act 102-16, or Public Act 102-871, or this
amendatory Act of the 104th General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is

HB4673 - 677 - LRB104 17481 RPS 30907 b
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
6-30-23.)
(40 ILCS 5/18-169)

HB4673 - 678 - LRB104 17481 RPS 30907 b
Sec. 18-169. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 104th General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of

HB4673 - 679 - LRB104 17481 RPS 30907 b
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.

HB4673 - 680 - LRB104 17481 RPS 30907 b
(Source: P.A. 103-426, eff. 8-4-23.)
Section 90-90. The State Mandates Act is amended by adding
Section 8.50 as follows:
(30 ILCS 805/8.50 new)
Sec. 8.50. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 104th General Assembly.
Article 99.
Section 99-99. Effective date. This Act takes effect upon
becoming law.
HB4673 - 681 - LRB104 17481 RPS 30907 b
INDEX
Statutes amended in order of appearance
40 ILCS 5/1-160
40 ILCS 5/1-163 new
40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/3-153 new
40 ILCS 5/4-145 new
40 ILCS 5/5-239 new
40 ILCS 5/6-231 new
40 ILCS 5/7-226 new
40 ILCS 5/8-251.5 new
40 ILCS 5/10-110 new
40 ILCS 5/11-233 new
40 ILCS 5/12-196 new
40 ILCS 5/13-217 new
40 ILCS 5/14-157 new
40 ILCS 5/15-203 new
40 ILCS 5/16-207 new
40 ILCS 5/17-160 new
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/1-160
40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/5-238
40 ILCS 5/7-116 from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
HB4673 - 682 - LRB104 17481 RPS 30907 b
40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/1-160
40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
40 ILCS 5/7-142 from Ch. 108 1/2, par. 7-142
40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/3-144.3 new
40 ILCS 5/4-138.15 new
40 ILCS 5/5-240 new
40 ILCS 5/6-232 new
40 ILCS 5/7-109.3 from Ch. 108 1/2, par. 7-109.3
40 ILCS 5/4-106 from Ch. 108 1/2, par. 4-106
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
65 ILCS 5/10-1-7.1
65 ILCS 5/10-2.1-6.3
70 ILCS 705/16.06b
40 ILCS 5/1-168 new
30 ILCS 122/20
40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
HB4673 - 683 - LRB104 17481 RPS 30907 b
40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131 from Ch. 108 1/2, par. 18-131
40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
40 ILCS 5/22B-115
40 ILCS 5/22B-116
40 ILCS 5/22B-117
40 ILCS 5/22C-115
40 ILCS 5/22C-116
40 ILCS 5/22C-117
40 ILCS 5/1-160
40 ILCS 5/2-119 from Ch. 108 1/2, par. 2-119
40 ILCS 5/2-119.01 from Ch. 108 1/2, par. 2-119.01
40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/7-142 from Ch. 108 1/2, par. 7-142
40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/18-124 from Ch. 108 1/2, par. 18-124
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
HB4673 - 684 - LRB104 17481 RPS 30907 b
40 ILCS 5/5-238
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
40 ILCS 5/6-229
40 ILCS 5/3-109.1 from Ch. 108 1/2, par. 3-109.1
40 ILCS 5/3-109.4
40 ILCS 5/3-124.1 from Ch. 108 1/2, par. 3-124.1
40 ILCS 5/7-109 from Ch. 108 1/2, par. 7-109
40 ILCS 5/3-114.5 from Ch. 108 1/2, par. 3-114.5
40 ILCS 5/4-114.2 from Ch. 108 1/2, par. 4-114.2
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/1-168 new
30 ILCS 330/7.2
30 ILCS 330/7.6
30 ILCS 105/8s new
40 ILCS 5/2-162
40 ILCS 5/12-195
40 ILCS 5/14-152.1
40 ILCS 5/15-198
40 ILCS 5/16-203
40 ILCS 5/18-169
30 ILCS 805/8.50 new