103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4873
 
Introduced , by Rep. Stephanie A. Kifowit
 
SYNOPSIS AS INTRODUCED:

See Index
 Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. 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 Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025.


LRB103 35886 RPS 65971 b


 
 
A BILL FOR
 
HB4873LRB103 35886 RPS 65971 b


1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4
Article 1. 


5 Section 1-5. The Illinois Pension Code is amended by 
6changing Sections 1-160, 2-108.1, 2-119.1, 14-103.10, 15-111, 
718-125, and 18-128.01 as follows:

8 (40 ILCS 5/1-160)
9 (Text of Section from P.A. 102-719)
10 Sec. 1-160. Provisions applicable to new hires. 
11 (a) The provisions of this Section apply to a person who, 
12on or after January 1, 2011, first becomes a member or a 
13participant under any reciprocal retirement system or pension 
14fund established under this Code, other than a retirement 
15system or pension fund established under Article 2, 3, 4, 5, 6, 
167, 15, or 18 of this Code, notwithstanding any other provision 
17of this Code to the contrary, but do not apply to any 
18self-managed plan established under this Code or to any 
19participant of the retirement plan established under Section 
2022-101; except that this Section applies to a person who 
21elected to establish alternative credits by electing in 
22writing after January 1, 2011, but before August 8, 2011, 
 
 
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1under Section 7-145.1 of this Code. Notwithstanding anything 
2to the contrary in this Section, for purposes of this Section, 
3a person who is a Tier 1 regular employee as defined in Section 
47-109.4 of this Code or who participated in a retirement 
5system under Article 15 prior to January 1, 2011 shall be 
6deemed a person who first became a member or participant prior 
7to January 1, 2011 under any retirement system or pension fund 
8subject to this Section. The changes made to this Section by 
9Public Act 98-596 are a clarification of existing law and are 
10intended to be retroactive to January 1, 2011 (the effective 
11date of Public Act 96-889), notwithstanding the provisions of 
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a 
14noncovered employee under Article 14 on or after the 
15implementation date of the plan created under Section 1-161 
16for that Article, unless that person elects under subsection 
17(b) of Section 1-161 to instead receive the benefits provided 
18under this Section and the applicable provisions of that 
19Article.
20 This Section does not apply to a person who first becomes a 
21member or participant under Article 16 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
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1 This Section does not apply to a person who elects under 
2subsection (c-5) of Section 1-161 to receive the benefits 
3under Section 1-161. 
4 This Section does not apply to a person who first becomes a 
5member or participant of an affected pension fund on or after 6 
6months after the resolution or ordinance date, as defined in 
7Section 1-162, unless that person elects under subsection (c) 
8of Section 1-162 to receive the benefits provided under this 
9Section and the applicable provisions of the Article under 
10which he or she is a member or participant. 
11 (b) "Final average salary" means, except as otherwise 
12provided in this subsection, the average monthly (or annual) 
13salary obtained by dividing the total salary or earnings 
14calculated under the Article applicable to the member or 
15participant during the 96 consecutive months (or 8 consecutive 
16years) of service within the last 120 months (or 10 years) of 
17service in which the total salary or earnings calculated under 
18the applicable Article was the highest by the number of months 
19(or years) of service in that period. For the purposes of a 
20person who first becomes a member or participant of any 
21retirement system or pension fund to which this Section 
22applies on or after January 1, 2011, in this Code, "final 
23average salary" shall be substituted for the following:
24  (1) (Blank).
25  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
26 annual salary for any 4 consecutive years within the last 
 
 
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1 10 years of service immediately preceding the date of 
2 withdrawal". 
3  (3) In Article 13, "average final salary". 
4  (4) In Article 14, "final average compensation". 
5  (5) In Article 17, "average salary". 
6  (6) In Section 22-207, "wages or salary received by 
7 him at the date of retirement or discharge". 
8 A member of the Teachers' Retirement System of the State 
9of Illinois who retires on or after June 1, 2021 and for whom 
10the 2020-2021 school year is used in the calculation of the 
11member's final average salary shall use the higher of the 
12following for the purpose of determining the member's final 
13average salary:
14  (A) the amount otherwise calculated under the first 
15 paragraph of this subsection; or
16  (B) an amount calculated by the Teachers' Retirement 
17 System of the State of Illinois using the average of the 
18 monthly (or annual) salary obtained by dividing the total 
19 salary or earnings calculated under Article 16 applicable 
20 to the member or participant during the 96 months (or 8 
21 years) of service within the last 120 months (or 10 years) 
22 of service in which the total salary or earnings 
23 calculated under the Article was the highest by the number 
24 of months (or years) of service in that period.
25 (b-5) Except as provided in subsections (b-15) and (b-20) 
26Beginning on January 1, 2011, for all purposes under this Code 
 
 
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1(including without limitation the calculation of benefits and 
2employee contributions), the annual earnings, salary, or wages 
3(based on the plan year) of a member or participant to whom 
4this Section applies shall not exceed $106,800; however, that 
5amount shall annually thereafter be increased by the lesser of 
6(i) 3% of that amount, including all previous adjustments, or 
7(ii) one-half the annual unadjusted percentage increase (but 
8not less than zero) in the consumer price index-u for the 12 
9months ending with the September preceding each November 1, 
10including all previous adjustments.
11 For the purposes of this Section, "consumer price index-u" 
12means the index published by the Bureau of Labor Statistics of 
13the United States Department of Labor that measures the 
14average change in prices of goods and services purchased by 
15all urban consumers, United States city average, all items, 
161982-84 = 100. The new amount resulting from each annual 
17adjustment shall be determined by the Public Pension Division 
18of the Department of Insurance and made available to the 
19boards of the retirement systems and pension funds by November 
201 of each year. 
21 (b-10) Beginning on January 1, 2024, for all purposes 
22under this Code (including, without limitation, the 
23calculation of benefits and employee contributions), the 
24annual earnings, salary, or wages (based on the plan year) of a 
25member or participant under Article 9 to whom this Section 
26applies shall include an annual earnings, salary, or wage cap 
 
 
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1that tracks the Social Security wage base. Maximum annual 
2earnings, wages, or salary shall be the annual contribution 
3and benefit base established for the applicable year by the 
4Commissioner of the Social Security Administration under the 
5federal Social Security Act. 
6 However, in no event shall the annual earnings, salary, or 
7wages for the purposes of this Article and Article 9 exceed any 
8limitation imposed on annual earnings, salary, or wages under 
9Section 1-117. Under no circumstances shall the maximum amount 
10of annual earnings, salary, or wages be greater than the 
11amount set forth in this subsection (b-10) as a result of 
12reciprocal service or any provisions regarding reciprocal 
13services, nor shall the Fund under Article 9 be required to pay 
14any refund as a result of the application of this maximum 
15annual earnings, salary, and wage cap. 
16 Nothing in this subsection (b-10) shall cause or otherwise 
17result in any retroactive adjustment of any employee 
18contributions. Nothing in this subsection (b-10) shall cause 
19or otherwise result in any retroactive adjustment of 
20disability or other payments made between January 1, 2011 and 
21January 1, 2024. 
22 (b-15) Beginning January 1, 2026 and until January 1, 
232029, for all purposes under this Code (including, without 
24limitation, the calculation of benefits and employee 
25contributions), the annual earnings, salary, or wages (based 
26on the plan year) of a member or participant under Article 14, 
 
 
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116, or 17 to whom this Section applies shall not exceed the 
2amount determined under subsection (b-5) plus the earnings 
3limitation adjustment for that year.
4 In this subsection, "earnings limitation adjustment" means 
5the product that results from multiplying (i) the difference 
6between the federal Social Security wage base for the coming 
7calendar year and the amount calculated under subsection (b-5) 
8for that calendar year by (ii) the smoothing factor for that 
9calendar year. The earnings limitation adjustment shall be 
10determined by the Public Pension Division of the Department of 
11Insurance and made available to the boards of the retirement 
12systems and pension funds by December 1 of each year. If the 
13difference between the federal Social Security wage base for 
14the coming calendar year and the amount calculated under 
15subsection (b-5) for that calendar year is zero or less than 
16zero, the earnings limitation adjustment shall be zero.
17 In this subsection, "smoothing factor" means:
18  (1) for calendar year 2026, 25%;
19  (2) for calendar year 2027, 50%; and
20  (3) for calendar year 2028, 75%.
21 In this subsection and subsection (b-20), "Social Security 
22wage base" means the contribution and benefit base calculated 
23for the calendar year in question by the Commissioner of 
24Social Security under Section 230 of the federal Social 
25Security Act (42 U.S.C. 430). 
26 (b-20) Beginning January 1, 2029, for all purposes under 
 
 
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1this Code (including, without limitation, the calculation of 
2benefits and employee contributions), the annual earnings, 
3salary, or wages (based on the plan year) of a member or 
4participant under Article 14, 16, or 17 to whom this Section 
5applies shall not exceed the federal Social Security wage base 
6then in effect. 
7 (c) A member or participant is entitled to a retirement 
8annuity upon written application if he or she has attained age 
967 (age 65, with respect to service under Article 12 that is 
10subject to this Section, for a member or participant under 
11Article 12 who first becomes a member or participant under 
12Article 12 on or after January 1, 2022 or who makes the 
13election under item (i) of subsection (d-15) of this Section) 
14and has at least 10 years of service credit and is otherwise 
15eligible under the requirements of the applicable Article. 
16 A member or participant who has attained age 62 (age 60, 
17with respect to service under Article 12 that is subject to 
18this Section, for a member or participant under Article 12 who 
19first becomes a member or participant under Article 12 on or 
20after January 1, 2022 or who makes the election under item (i) 
21of subsection (d-15) of this Section) and has at least 10 years 
22of service credit and is otherwise eligible under the 
23requirements of the applicable Article may elect to receive 
24the lower retirement annuity provided in subsection (d) of 
25this Section. 
26 (c-5) A person who first becomes a member or a participant 
 
 
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1subject to this Section on or after July 6, 2017 (the effective 
2date of Public Act 100-23), notwithstanding any other 
3provision of this Code to the contrary, is entitled to a 
4retirement annuity under Article 8 or Article 11 upon written 
5application if he or she has attained age 65 and has at least 
610 years of service credit and is otherwise eligible under the 
7requirements of Article 8 or Article 11 of this Code, 
8whichever is applicable. 
9 (d) The retirement annuity of a member or participant who 
10is retiring after attaining age 62 (age 60, with respect to 
11service under Article 12 that is subject to this Section, for a 
12member or participant under Article 12 who first becomes a 
13member or participant under Article 12 on or after January 1, 
142022 or who makes the election under item (i) of subsection 
15(d-15) of this Section) with at least 10 years of service 
16credit shall be reduced by one-half of 1% for each full month 
17that the member's age is under age 67 (age 65, with respect to 
18service under Article 12 that is subject to this Section, for a 
19member or participant under Article 12 who first becomes a 
20member or participant under Article 12 on or after January 1, 
212022 or who makes the election under item (i) of subsection 
22(d-15) of this Section).
23 (d-5) The retirement annuity payable under Article 8 or 
24Article 11 to an eligible person subject to subsection (c-5) 
25of this Section who is retiring at age 60 with at least 10 
26years of service credit shall be reduced by one-half of 1% for 
 
 
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1each full month that the member's age is under age 65. 
2 (d-10) Each person who first became a member or 
3participant under Article 8 or Article 11 of this Code on or 
4after January 1, 2011 and prior to July 6, 2017 (the effective 
5date of Public Act 100-23) shall make an irrevocable election 
6either:
7  (i) to be eligible for the reduced retirement age 
8 provided in subsections (c-5) and (d-5) of this Section, 
9 the eligibility for which is conditioned upon the member 
10 or participant agreeing to the increases in employee 
11 contributions for age and service annuities provided in 
12 subsection (a-5) of Section 8-174 of this Code (for 
13 service under Article 8) or subsection (a-5) of Section 
14 11-170 of this Code (for service under Article 11); or 
15  (ii) to not agree to item (i) of this subsection 
16 (d-10), in which case the member or participant shall 
17 continue to be subject to the retirement age provisions in 
18 subsections (c) and (d) of this Section and the employee 
19 contributions for age and service annuity as provided in 
20 subsection (a) of Section 8-174 of this Code (for service 
21 under Article 8) or subsection (a) of Section 11-170 of 
22 this Code (for service under Article 11). 
23 The election provided for in this subsection shall be made 
24between October 1, 2017 and November 15, 2017. A person 
25subject to this subsection who makes the required election 
26shall remain bound by that election. A person subject to this 
 
 
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1subsection who fails for any reason to make the required 
2election within the time specified in this subsection shall be 
3deemed to have made the election under item (ii). 
4 (d-15) Each person who first becomes a member or 
5participant under Article 12 on or after January 1, 2011 and 
6prior to January 1, 2022 shall make an irrevocable election 
7either: 
8  (i) to be eligible for the reduced retirement age 
9 specified in subsections (c) and (d) of this Section, the 
10 eligibility for which is conditioned upon the member or 
11 participant agreeing to the increase in employee 
12 contributions for service annuities specified in 
13 subsection (b) of Section 12-150; or
14  (ii) to not agree to item (i) of this subsection 
15 (d-15), in which case the member or participant shall not 
16 be eligible for the reduced retirement age specified in 
17 subsections (c) and (d) of this Section and shall not be 
18 subject to the increase in employee contributions for 
19 service annuities specified in subsection (b) of Section 
20 12-150. 
21 The election provided for in this subsection shall be made 
22between January 1, 2022 and April 1, 2022. A person subject to 
23this subsection who makes the required election shall remain 
24bound by that election. A person subject to this subsection 
25who fails for any reason to make the required election within 
26the time specified in this subsection shall be deemed to have 
 
 
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1made the election under item (ii). 
2 (e) Any retirement annuity or supplemental annuity shall 
3be subject to annual increases on the January 1 occurring 
4either on or after the attainment of age 67 (age 65, with 
5respect to service under Article 12 that is subject to this 
6Section, for a member or participant under Article 12 who 
7first becomes a member or participant under Article 12 on or 
8after January 1, 2022 or who makes the election under item (i) 
9of subsection (d-15); and beginning on July 6, 2017 (the 
10effective date of Public Act 100-23), age 65 with respect to 
11service under Article 8 or Article 11 for eligible persons 
12who: (i) are subject to subsection (c-5) of this Section; or 
13(ii) made the election under item (i) of subsection (d-10) of 
14this Section) or the first anniversary of the annuity start 
15date, whichever is later. Each annual increase shall be 
16calculated at 3% or one-half the annual unadjusted percentage 
17increase (but not less than zero) in the consumer price 
18index-u for the 12 months ending with the September preceding 
19each November 1, whichever is less, of the originally granted 
20retirement annuity. If the annual unadjusted percentage change 
21in the consumer price index-u for the 12 months ending with the 
22September preceding each November 1 is zero or there is a 
23decrease, then the annuity shall not be increased. 
24 For the purposes of Section 1-103.1 of this Code, the 
25changes made to this Section by Public Act 102-263 are 
26applicable without regard to whether the employee was in 
 
 
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1active service on or after August 6, 2021 (the effective date 
2of Public Act 102-263). 
3 For the purposes of Section 1-103.1 of this Code, the 
4changes made to this Section by Public Act 100-23 are 
5applicable without regard to whether the employee was in 
6active service on or after July 6, 2017 (the effective date of 
7Public Act 100-23). 
8 (f) The initial survivor's or widow's annuity of an 
9otherwise eligible survivor or widow of a retired member or 
10participant who first became a member or participant on or 
11after January 1, 2011 shall be in the amount of 66 2/3% of the 
12retired member's or participant's retirement annuity at the 
13date of death. In the case of the death of a member or 
14participant who has not retired and who first became a member 
15or participant on or after January 1, 2011, eligibility for a 
16survivor's or widow's annuity shall be determined by the 
17applicable Article of this Code. The initial benefit shall be 
1866 2/3% of the earned annuity without a reduction due to age. A 
19child's annuity of an otherwise eligible child shall be in the 
20amount prescribed under each Article if applicable. Any 
21survivor's or widow's annuity shall be increased (1) on each 
22January 1 occurring on or after the commencement of the 
23annuity if the deceased member died while receiving a 
24retirement annuity or (2) in other cases, on each January 1 
25occurring after the first anniversary of the commencement of 
26the annuity. Each annual increase shall be calculated at 3% or 
 
 
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1one-half the annual unadjusted percentage increase (but not 
2less than zero) in the consumer price index-u for the 12 months 
3ending with the September preceding each November 1, whichever 
4is less, of the originally granted survivor's annuity. If the 
5annual unadjusted percentage change in the consumer price 
6index-u for the 12 months ending with the September preceding 
7each November 1 is zero or there is a decrease, then the 
8annuity shall not be increased. 
9 (g) The benefits in Section 14-110 apply if the person is a 
10fire fighter in the fire protection service of a department, a 
11security employee of the Department of Corrections or the 
12Department of Juvenile Justice, or a security employee of the 
13Department of Innovation and Technology, as those terms are 
14defined in subsection (b) and subsection (c) of Section 
1514-110. A person who meets the requirements of this Section is 
16entitled to an annuity calculated under the provisions of 
17Section 14-110, in lieu of the regular or minimum retirement 
18annuity, only if the person has withdrawn from service with 
19not less than 20 years of eligible creditable service and has 
20attained age 60, regardless of whether the attainment of age 
2160 occurs while the person is still in service. 
22 (g-5) The benefits in Section 14-110 apply if the person 
23is a State policeman, investigator for the Secretary of State, 
24conservation police officer, investigator for the Department 
25of Revenue or the Illinois Gaming Board, investigator for the 
26Office of the Attorney General, Commerce Commission police 
 
 
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1officer, or arson investigator, as those terms are defined in 
2subsection (b) and subsection (c) of Section 14-110. A person 
3who meets the requirements of this Section is entitled to an 
4annuity calculated under the provisions of Section 14-110, in 
5lieu of the regular or minimum retirement annuity, only if the 
6person has withdrawn from service with not less than 20 years 
7of eligible creditable service and has attained age 55, 
8regardless of whether the attainment of age 55 occurs while 
9the person is still in service. 
10 (h) If a person who first becomes a member or a participant 
11of a retirement system or pension fund subject to this Section 
12on or after January 1, 2011 is receiving a retirement annuity 
13or retirement pension under that system or fund and becomes a 
14member or participant under any other system or fund created 
15by this Code and is employed on a full-time basis, except for 
16those members or participants exempted from the provisions of 
17this Section under subsection (a) of this Section, then the 
18person's retirement annuity or retirement pension under that 
19system or fund shall be suspended during that employment. Upon 
20termination of that employment, the person's retirement 
21annuity or retirement pension payments shall resume and be 
22recalculated if recalculation is provided for under the 
23applicable Article of this Code.
24 If a person who first becomes a member of a retirement 
25system or pension fund subject to this Section on or after 
26January 1, 2012 and is receiving a retirement annuity or 
 
 
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1retirement pension under that system or fund and accepts on a 
2contractual basis a position to provide services to a 
3governmental entity from which he or she has retired, then 
4that person's annuity or retirement pension earned as an 
5active employee of the employer shall be suspended during that 
6contractual service. A person receiving an annuity or 
7retirement pension under this Code shall notify the pension 
8fund or retirement system from which he or she is receiving an 
9annuity or retirement pension, as well as his or her 
10contractual employer, of his or her retirement status before 
11accepting contractual employment. A person who fails to submit 
12such notification shall be guilty of a Class A misdemeanor and 
13required to pay a fine of $1,000. Upon termination of that 
14contractual employment, the person's retirement annuity or 
15retirement pension payments shall resume and, if appropriate, 
16be recalculated under the applicable provisions of this Code. 
17 (i) (Blank). 
18 (j) In the case of a conflict between the provisions of 
19this Section and any other provision of this Code, the 
20provisions of this Section shall control.
21(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
22102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
235-6-22.)

24 (Text of Section from P.A. 102-813)
25 Sec. 1-160. Provisions applicable to new hires. 
 
 
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1 (a) The provisions of this Section apply to a person who, 
2on or after January 1, 2011, first becomes a member or a 
3participant under any reciprocal retirement system or pension 
4fund established under this Code, other than a retirement 
5system or pension fund established under Article 2, 3, 4, 5, 6, 
67, 15, or 18 of this Code, notwithstanding any other provision 
7of this Code to the contrary, but do not apply to any 
8self-managed plan established under this Code or to any 
9participant of the retirement plan established under Section 
1022-101; except that this Section applies to a person who 
11elected to establish alternative credits by electing in 
12writing after January 1, 2011, but before August 8, 2011, 
13under Section 7-145.1 of this Code. Notwithstanding anything 
14to the contrary in this Section, for purposes of this Section, 
15a person who is a Tier 1 regular employee as defined in Section 
167-109.4 of this Code or who participated in a retirement 
17system under Article 15 prior to January 1, 2011 shall be 
18deemed a person who first became a member or participant prior 
19to January 1, 2011 under any retirement system or pension fund 
20subject to this Section. The changes made to this Section by 
21Public Act 98-596 are a clarification of existing law and are 
22intended to be retroactive to January 1, 2011 (the effective 
23date of Public Act 96-889), notwithstanding the provisions of 
24Section 1-103.1 of this Code.
25 This Section does not apply to a person who first becomes a 
26noncovered employee under Article 14 on or after the 
 
 
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1implementation date of the plan created under Section 1-161 
2for that Article, unless that person elects under subsection 
3(b) of Section 1-161 to instead receive the benefits provided 
4under this Section and the applicable provisions of that 
5Article.
6 This Section does not apply to a person who first becomes a 
7member or participant under Article 16 on or after the 
8implementation date of the plan created under Section 1-161 
9for that Article, unless that person elects under subsection 
10(b) of Section 1-161 to instead receive the benefits provided 
11under this Section and the applicable provisions of that 
12Article.
13 This Section does not apply to a person who elects under 
14subsection (c-5) of Section 1-161 to receive the benefits 
15under Section 1-161. 
16 This Section does not apply to a person who first becomes a 
17member or participant of an affected pension fund on or after 6 
18months after the resolution or ordinance date, as defined in 
19Section 1-162, unless that person elects under subsection (c) 
20of Section 1-162 to receive the benefits provided under this 
21Section and the applicable provisions of the Article under 
22which he or she is a member or participant. 
23 (b) "Final average salary" means, except as otherwise 
24provided in this subsection, the average monthly (or annual) 
25salary obtained by dividing the total salary or earnings 
26calculated under the Article applicable to the member or 
 
 
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1participant during the 96 consecutive months (or 8 consecutive 
2years) of service within the last 120 months (or 10 years) of 
3service in which the total salary or earnings calculated under 
4the applicable Article was the highest by the number of months 
5(or years) of service in that period. For the purposes of a 
6person who first becomes a member or participant of any 
7retirement system or pension fund to which this Section 
8applies on or after January 1, 2011, in this Code, "final 
9average salary" shall be substituted for the following:
10  (1) (Blank).
11  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
12 annual salary for any 4 consecutive years within the last 
13 10 years of service immediately preceding the date of 
14 withdrawal". 
15  (3) In Article 13, "average final salary". 
16  (4) In Article 14, "final average compensation". 
17  (5) In Article 17, "average salary". 
18  (6) In Section 22-207, "wages or salary received by 
19 him at the date of retirement or discharge". 
20 A member of the Teachers' Retirement System of the State 
21of Illinois who retires on or after June 1, 2021 and for whom 
22the 2020-2021 school year is used in the calculation of the 
23member's final average salary shall use the higher of the 
24following for the purpose of determining the member's final 
25average salary:
26  (A) the amount otherwise calculated under the first 
 
 
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1 paragraph of this subsection; or
2  (B) an amount calculated by the Teachers' Retirement 
3 System of the State of Illinois using the average of the 
4 monthly (or annual) salary obtained by dividing the total 
5 salary or earnings calculated under Article 16 applicable 
6 to the member or participant during the 96 months (or 8 
7 years) of service within the last 120 months (or 10 years) 
8 of service in which the total salary or earnings 
9 calculated under the Article was the highest by the number 
10 of months (or years) of service in that period.
11 (b-5) Except as provided in subsections (b-15) and (b-20) 
12Beginning on January 1, 2011, for all purposes under this Code 
13(including without limitation the calculation of benefits and 
14employee contributions), the annual earnings, salary, or wages 
15(based on the plan year) of a member or participant to whom 
16this Section applies shall not exceed $106,800; however, that 
17amount shall annually thereafter be increased by the lesser of 
18(i) 3% of that amount, including all previous adjustments, or 
19(ii) one-half the annual unadjusted percentage increase (but 
20not less than zero) in the consumer price index-u for the 12 
21months ending with the September preceding each November 1, 
22including all previous adjustments.
23 For the purposes of this Section, "consumer price index-u" 
24means the index published by the Bureau of Labor Statistics of 
25the United States Department of Labor that measures the 
26average change in prices of goods and services purchased by 
 
 
HB4873- 21 -LRB103 35886 RPS 65971 b


1all urban consumers, United States city average, all items, 
21982-84 = 100. The new amount resulting from each annual 
3adjustment shall be determined by the Public Pension Division 
4of the Department of Insurance and made available to the 
5boards of the retirement systems and pension funds by November 
61 of each year. 
7 (b-10) Beginning on January 1, 2024, for all purposes 
8under this Code (including, without limitation, the 
9calculation of benefits and employee contributions), the 
10annual earnings, salary, or wages (based on the plan year) of a 
11member or participant under Article 9 to whom this Section 
12applies shall include an annual earnings, salary, or wage cap 
13that tracks the Social Security wage base. Maximum annual 
14earnings, wages, or salary shall be the annual contribution 
15and benefit base established for the applicable year by the 
16Commissioner of the Social Security Administration under the 
17federal Social Security Act. 
18 However, in no event shall the annual earnings, salary, or 
19wages for the purposes of this Article and Article 9 exceed any 
20limitation imposed on annual earnings, salary, or wages under 
21Section 1-117. Under no circumstances shall the maximum amount 
22of annual earnings, salary, or wages be greater than the 
23amount set forth in this subsection (b-10) as a result of 
24reciprocal service or any provisions regarding reciprocal 
25services, nor shall the Fund under Article 9 be required to pay 
26any refund as a result of the application of this maximum 
 
 
HB4873- 22 -LRB103 35886 RPS 65971 b


1annual earnings, salary, and wage cap. 
2 Nothing in this subsection (b-10) shall cause or otherwise 
3result in any retroactive adjustment of any employee 
4contributions. Nothing in this subsection (b-10) shall cause 
5or otherwise result in any retroactive adjustment of 
6disability or other payments made between January 1, 2011 and 
7January 1, 2024. 
8 (b-15) Beginning January 1, 2026 and until January 1, 
92029, for all purposes under this Code (including, without 
10limitation, the calculation of benefits and employee 
11contributions), the annual earnings, salary, or wages (based 
12on the plan year) of a member or participant under Article 14, 
1316, or 17 to whom this Section applies shall not exceed the 
14amount determined under subsection (b-5) plus the earnings 
15limitation adjustment for that year.
16 In this subsection, "earnings limitation adjustment" means 
17the product that results from multiplying (i) the difference 
18between the federal Social Security wage base for the coming 
19calendar year and the amount calculated under subsection (b-5) 
20for that calendar year by (ii) the smoothing factor for that 
21calendar year. The earnings limitation adjustment shall be 
22determined by the Public Pension Division of the Department of 
23Insurance and made available to the boards of the retirement 
24systems and pension funds by December 1 of each year. If the 
25difference between the federal Social Security wage base for 
26the coming calendar year and the amount calculated under 
 
 
HB4873- 23 -LRB103 35886 RPS 65971 b


1subsection (b-5) for that calendar year is zero or less than 
2zero, the earnings limitation adjustment shall be zero.
3 In this subsection, "smoothing factor" means:
4  (1) for calendar year 2026, 25%;
5  (2) for calendar year 2027, 50%; and
6  (3) for calendar year 2028, 75%.
7 In this subsection and subsection (b-20), "Social Security 
8wage base" means the contribution and benefit base calculated 
9for the calendar year in question by the Commissioner of 
10Social Security under Section 230 of the federal Social 
11Security Act (42 U.S.C. 430). 
12 (b-20) Beginning January 1, 2029, for all purposes under 
13this Code (including, without limitation, the calculation of 
14benefits and employee contributions), the annual earnings, 
15salary, or wages (based on the plan year) of a member or 
16participant under Article 14, 16, or 17 to whom this Section 
17applies shall not exceed the federal Social Security wage base 
18then in effect. 
19 (c) A member or participant is entitled to a retirement 
20annuity upon written application if he or she has attained age 
2167 (age 65, with respect to service under Article 12 that is 
22subject to this Section, for a member or participant under 
23Article 12 who first becomes a member or participant under 
24Article 12 on or after January 1, 2022 or who makes the 
25election under item (i) of subsection (d-15) of this Section) 
26and has at least 10 years of service credit and is otherwise 
 
 
HB4873- 24 -LRB103 35886 RPS 65971 b


1eligible under the requirements of the applicable Article. 
2 A member or participant who has attained age 62 (age 60, 
3with respect to service under Article 12 that is subject to 
4this Section, for a member or participant under Article 12 who 
5first becomes a member or participant under Article 12 on or 
6after January 1, 2022 or who makes the election under item (i) 
7of subsection (d-15) of this Section) and has at least 10 years 
8of service credit and is otherwise eligible under the 
9requirements of the applicable Article may elect to receive 
10the lower retirement annuity provided in subsection (d) of 
11this Section. 
12 (c-5) A person who first becomes a member or a participant 
13subject to this Section on or after July 6, 2017 (the effective 
14date of Public Act 100-23), notwithstanding any other 
15provision of this Code to the contrary, is entitled to a 
16retirement annuity under Article 8 or Article 11 upon written 
17application if he or she has attained age 65 and has at least 
1810 years of service credit and is otherwise eligible under the 
19requirements of Article 8 or Article 11 of this Code, 
20whichever is applicable. 
21 (d) The retirement annuity of a member or participant who 
22is retiring after attaining age 62 (age 60, with respect to 
23service under Article 12 that is subject to this Section, for a 
24member or participant under Article 12 who first becomes a 
25member or participant under Article 12 on or after January 1, 
262022 or who makes the election under item (i) of subsection 
 
 
HB4873- 25 -LRB103 35886 RPS 65971 b


1(d-15) of this Section) with at least 10 years of service 
2credit shall be reduced by one-half of 1% for each full month 
3that the member's age is under age 67 (age 65, with respect to 
4service under Article 12 that is subject to this Section, for a 
5member or participant under Article 12 who first becomes a 
6member or participant under Article 12 on or after January 1, 
72022 or who makes the election under item (i) of subsection 
8(d-15) of this Section).
9 (d-5) The retirement annuity payable under Article 8 or 
10Article 11 to an eligible person subject to subsection (c-5) 
11of this Section who is retiring at age 60 with at least 10 
12years of service credit shall be reduced by one-half of 1% for 
13each full month that the member's age is under age 65. 
14 (d-10) Each person who first became a member or 
15participant under Article 8 or Article 11 of this Code on or 
16after January 1, 2011 and prior to July 6, 2017 (the effective 
17date of Public Act 100-23) shall make an irrevocable election 
18either:
19  (i) to be eligible for the reduced retirement age 
20 provided in subsections (c-5) and (d-5) of this Section, 
21 the eligibility for which is conditioned upon the member 
22 or participant agreeing to the increases in employee 
23 contributions for age and service annuities provided in 
24 subsection (a-5) of Section 8-174 of this Code (for 
25 service under Article 8) or subsection (a-5) of Section 
26 11-170 of this Code (for service under Article 11); or 
 
 
HB4873- 26 -LRB103 35886 RPS 65971 b


1  (ii) to not agree to item (i) of this subsection 
2 (d-10), in which case the member or participant shall 
3 continue to be subject to the retirement age provisions in 
4 subsections (c) and (d) of this Section and the employee 
5 contributions for age and service annuity as provided in 
6 subsection (a) of Section 8-174 of this Code (for service 
7 under Article 8) or subsection (a) of Section 11-170 of 
8 this Code (for service under Article 11). 
9 The election provided for in this subsection shall be made 
10between October 1, 2017 and November 15, 2017. A person 
11subject to this subsection who makes the required election 
12shall remain bound by that election. A person subject to this 
13subsection who fails for any reason to make the required 
14election within the time specified in this subsection shall be 
15deemed to have made the election under item (ii). 
16 (d-15) Each person who first becomes a member or 
17participant under Article 12 on or after January 1, 2011 and 
18prior to January 1, 2022 shall make an irrevocable election 
19either: 
20  (i) to be eligible for the reduced retirement age 
21 specified in subsections (c) and (d) of this Section, the 
22 eligibility for which is conditioned upon the member or 
23 participant agreeing to the increase in employee 
24 contributions for service annuities specified in 
25 subsection (b) of Section 12-150; or
26  (ii) to not agree to item (i) of this subsection 
 
 
HB4873- 27 -LRB103 35886 RPS 65971 b


1 (d-15), in which case the member or participant shall not 
2 be eligible for the reduced retirement age specified in 
3 subsections (c) and (d) of this Section and shall not be 
4 subject to the increase in employee contributions for 
5 service annuities specified in subsection (b) of Section 
6 12-150. 
7 The election provided for in this subsection shall be made 
8between January 1, 2022 and April 1, 2022. A person subject to 
9this subsection who makes the required election shall remain 
10bound by that election. A person subject to this subsection 
11who fails for any reason to make the required election within 
12the time specified in this subsection shall be deemed to have 
13made the election under item (ii). 
14 (e) Any retirement annuity or supplemental annuity shall 
15be subject to annual increases on the January 1 occurring 
16either on or after the attainment of age 67 (age 65, with 
17respect to service under Article 12 that is subject to this 
18Section, for a member or participant under Article 12 who 
19first becomes a member or participant under Article 12 on or 
20after January 1, 2022 or who makes the election under item (i) 
21of subsection (d-15); and beginning on July 6, 2017 (the 
22effective date of Public Act 100-23), age 65 with respect to 
23service under Article 8 or Article 11 for eligible persons 
24who: (i) are subject to subsection (c-5) of this Section; or 
25(ii) made the election under item (i) of subsection (d-10) of 
26this Section) or the first anniversary of the annuity start 
 
 
HB4873- 28 -LRB103 35886 RPS 65971 b


1date, whichever is later. Each annual increase shall be 
2calculated at 3% or one-half the annual unadjusted percentage 
3increase (but not less than zero) in the consumer price 
4index-u for the 12 months ending with the September preceding 
5each November 1, whichever is less, of the originally granted 
6retirement annuity. If the annual unadjusted percentage change 
7in the consumer price index-u for the 12 months ending with the 
8September preceding each November 1 is zero or there is a 
9decrease, then the annuity shall not be increased. 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by Public Act 102-263 are 
12applicable without regard to whether the employee was in 
13active service on or after August 6, 2021 (the effective date 
14of Public Act 102-263). 
15 For the purposes of Section 1-103.1 of this Code, the 
16changes made to this Section by Public Act 100-23 are 
17applicable without regard to whether the employee was in 
18active service on or after July 6, 2017 (the effective date of 
19Public Act 100-23). 
20 (f) The initial survivor's or widow's annuity of an 
21otherwise eligible survivor or widow of a retired member or 
22participant who first became a member or participant on or 
23after January 1, 2011 shall be in the amount of 66 2/3% of the 
24retired member's or participant's retirement annuity at the 
25date of death. In the case of the death of a member or 
26participant who has not retired and who first became a member 
 
 
HB4873- 29 -LRB103 35886 RPS 65971 b


1or participant on or after January 1, 2011, eligibility for a 
2survivor's or widow's annuity shall be determined by the 
3applicable Article of this Code. The initial benefit shall be 
466 2/3% of the earned annuity without a reduction due to age. A 
5child's annuity of an otherwise eligible child shall be in the 
6amount prescribed under each Article if applicable. Any 
7survivor's or widow's annuity shall be increased (1) on each 
8January 1 occurring on or after the commencement of the 
9annuity if the deceased member died while receiving a 
10retirement annuity or (2) in other cases, on each January 1 
11occurring after the first anniversary of the commencement of 
12the annuity. Each annual increase shall be calculated at 3% or 
13one-half the annual unadjusted percentage increase (but not 
14less than zero) in the consumer price index-u for the 12 months 
15ending with the September preceding each November 1, whichever 
16is less, of the originally granted survivor's annuity. If the 
17annual unadjusted percentage change in the consumer price 
18index-u for the 12 months ending with the September preceding 
19each November 1 is zero or there is a decrease, then the 
20annuity shall not be increased. 
21 (g) The benefits in Section 14-110 apply only if the 
22person is a State policeman, a fire fighter in the fire 
23protection service of a department, a conservation police 
24officer, an investigator for the Secretary of State, an arson 
25investigator, a Commerce Commission police officer, 
26investigator for the Department of Revenue or the Illinois 
 
 
HB4873- 30 -LRB103 35886 RPS 65971 b


1Gaming Board, a security employee of the Department of 
2Corrections or the Department of Juvenile Justice, or a 
3security employee of the Department of Innovation and 
4Technology, as those terms are defined in subsection (b) and 
5subsection (c) of Section 14-110. A person who meets the 
6requirements of this Section is entitled to an annuity 
7calculated under the provisions of Section 14-110, in lieu of 
8the regular or minimum retirement annuity, only if the person 
9has withdrawn from service with not less than 20 years of 
10eligible creditable service and has attained age 60, 
11regardless of whether the attainment of age 60 occurs while 
12the person is still in service. 
13 (h) If a person who first becomes a member or a participant 
14of a retirement system or pension fund subject to this Section 
15on or after January 1, 2011 is receiving a retirement annuity 
16or retirement pension under that system or fund and becomes a 
17member or participant under any other system or fund created 
18by this Code and is employed on a full-time basis, except for 
19those members or participants exempted from the provisions of 
20this Section under subsection (a) of this Section, then the 
21person's retirement annuity or retirement pension under that 
22system or fund shall be suspended during that employment. Upon 
23termination of that employment, the person's retirement 
24annuity or retirement pension payments shall resume and be 
25recalculated if recalculation is provided for under the 
26applicable Article of this Code.
 
 
HB4873- 31 -LRB103 35886 RPS 65971 b


1 If a person who first becomes a member of a retirement 
2system or pension fund subject to this Section on or after 
3January 1, 2012 and is receiving a retirement annuity or 
4retirement pension under that system or fund and accepts on a 
5contractual basis a position to provide services to a 
6governmental entity from which he or she has retired, then 
7that person's annuity or retirement pension earned as an 
8active employee of the employer shall be suspended during that 
9contractual service. A person receiving an annuity or 
10retirement pension under this Code shall notify the pension 
11fund or retirement system from which he or she is receiving an 
12annuity or retirement pension, as well as his or her 
13contractual employer, of his or her retirement status before 
14accepting contractual employment. A person who fails to submit 
15such notification shall be guilty of a Class A misdemeanor and 
16required to pay a fine of $1,000. Upon termination of that 
17contractual employment, the person's retirement annuity or 
18retirement pension payments shall resume and, if appropriate, 
19be recalculated under the applicable provisions of this Code. 
20 (i) (Blank). 
21 (j) In the case of a conflict between the provisions of 
22this Section and any other provision of this Code, the 
23provisions of this Section shall control.
24(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
25102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
265-13-22.)

 
 
HB4873- 32 -LRB103 35886 RPS 65971 b


1 (Text of Section from P.A. 102-956)
2 Sec. 1-160. Provisions applicable to new hires. 
3 (a) The provisions of this Section apply to a person who, 
4on or after January 1, 2011, first becomes a member or a 
5participant under any reciprocal retirement system or pension 
6fund established under this Code, other than a retirement 
7system or pension fund established under Article 2, 3, 4, 5, 6, 
87, 15, or 18 of this Code, notwithstanding any other provision 
9of this Code to the contrary, but do not apply to any 
10self-managed plan established under this Code or to any 
11participant of the retirement plan established under Section 
1222-101; except that this Section applies to a person who 
13elected to establish alternative credits by electing in 
14writing after January 1, 2011, but before August 8, 2011, 
15under Section 7-145.1 of this Code. Notwithstanding anything 
16to the contrary in this Section, for purposes of this Section, 
17a person who is a Tier 1 regular employee as defined in Section 
187-109.4 of this Code or who participated in a retirement 
19system under Article 15 prior to January 1, 2011 shall be 
20deemed a person who first became a member or participant prior 
21to January 1, 2011 under any retirement system or pension fund 
22subject to this Section. The changes made to this Section by 
23Public Act 98-596 are a clarification of existing law and are 
24intended to be retroactive to January 1, 2011 (the effective 
25date of Public Act 96-889), notwithstanding the provisions of 
 
 
HB4873- 33 -LRB103 35886 RPS 65971 b


1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a 
3noncovered employee under Article 14 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who first becomes a 
10member or participant under Article 16 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who elects under 
17subsection (c-5) of Section 1-161 to receive the benefits 
18under Section 1-161. 
19 This Section does not apply to a person who first becomes a 
20member or participant of an affected pension fund on or after 6 
21months after the resolution or ordinance date, as defined in 
22Section 1-162, unless that person elects under subsection (c) 
23of Section 1-162 to receive the benefits provided under this 
24Section and the applicable provisions of the Article under 
25which he or she is a member or participant. 
26 (b) "Final average salary" means, except as otherwise 
 
 
HB4873- 34 -LRB103 35886 RPS 65971 b


1provided in this subsection, the average monthly (or annual) 
2salary obtained by dividing the total salary or earnings 
3calculated under the Article applicable to the member or 
4participant during the 96 consecutive months (or 8 consecutive 
5years) of service within the last 120 months (or 10 years) of 
6service in which the total salary or earnings calculated under 
7the applicable Article was the highest by the number of months 
8(or years) of service in that period. For the purposes of a 
9person who first becomes a member or participant of any 
10retirement system or pension fund to which this Section 
11applies on or after January 1, 2011, in this Code, "final 
12average salary" shall be substituted for the following:
13  (1) (Blank).
14  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
15 annual salary for any 4 consecutive years within the last 
16 10 years of service immediately preceding the date of 
17 withdrawal". 
18  (3) In Article 13, "average final salary". 
19  (4) In Article 14, "final average compensation". 
20  (5) In Article 17, "average salary". 
21  (6) In Section 22-207, "wages or salary received by 
22 him at the date of retirement or discharge". 
23 A member of the Teachers' Retirement System of the State 
24of Illinois who retires on or after June 1, 2021 and for whom 
25the 2020-2021 school year is used in the calculation of the 
26member's final average salary shall use the higher of the 
 
 
HB4873- 35 -LRB103 35886 RPS 65971 b


1following for the purpose of determining the member's final 
2average salary:
3  (A) the amount otherwise calculated under the first 
4 paragraph of this subsection; or
5  (B) an amount calculated by the Teachers' Retirement 
6 System of the State of Illinois using the average of the 
7 monthly (or annual) salary obtained by dividing the total 
8 salary or earnings calculated under Article 16 applicable 
9 to the member or participant during the 96 months (or 8 
10 years) of service within the last 120 months (or 10 years) 
11 of service in which the total salary or earnings 
12 calculated under the Article was the highest by the number 
13 of months (or years) of service in that period.
14 (b-5) Except as provided in subsections (b-15) and (b-20) 
15Beginning on January 1, 2011, for all purposes under this Code 
16(including without limitation the calculation of benefits and 
17employee contributions), the annual earnings, salary, or wages 
18(based on the plan year) of a member or participant to whom 
19this Section applies shall not exceed $106,800; however, that 
20amount shall annually thereafter be increased by the lesser of 
21(i) 3% of that amount, including all previous adjustments, or 
22(ii) one-half the annual unadjusted percentage increase (but 
23not less than zero) in the consumer price index-u for the 12 
24months ending with the September preceding each November 1, 
25including all previous adjustments.
26 For the purposes of this Section, "consumer price index-u" 
 
 
HB4873- 36 -LRB103 35886 RPS 65971 b


1means the index published by the Bureau of Labor Statistics of 
2the United States Department of Labor that measures the 
3average change in prices of goods and services purchased by 
4all urban consumers, United States city average, all items, 
51982-84 = 100. The new amount resulting from each annual 
6adjustment shall be determined by the Public Pension Division 
7of the Department of Insurance and made available to the 
8boards of the retirement systems and pension funds by November 
91 of each year. 
10 (b-10) Beginning on January 1, 2024, for all purposes 
11under this Code (including, without limitation, the 
12calculation of benefits and employee contributions), the 
13annual earnings, salary, or wages (based on the plan year) of a 
14member or participant under Article 9 to whom this Section 
15applies shall include an annual earnings, salary, or wage cap 
16that tracks the Social Security wage base. Maximum annual 
17earnings, wages, or salary shall be the annual contribution 
18and benefit base established for the applicable year by the 
19Commissioner of the Social Security Administration under the 
20federal Social Security Act. 
21 However, in no event shall the annual earnings, salary, or 
22wages for the purposes of this Article and Article 9 exceed any 
23limitation imposed on annual earnings, salary, or wages under 
24Section 1-117. Under no circumstances shall the maximum amount 
25of annual earnings, salary, or wages be greater than the 
26amount set forth in this subsection (b-10) as a result of 
 
 
HB4873- 37 -LRB103 35886 RPS 65971 b


1reciprocal service or any provisions regarding reciprocal 
2services, nor shall the Fund under Article 9 be required to pay 
3any refund as a result of the application of this maximum 
4annual earnings, salary, and wage cap. 
5 Nothing in this subsection (b-10) shall cause or otherwise 
6result in any retroactive adjustment of any employee 
7contributions. Nothing in this subsection (b-10) shall cause 
8or otherwise result in any retroactive adjustment of 
9disability or other payments made between January 1, 2011 and 
10January 1, 2024. 
11 (b-15) Beginning January 1, 2026 and until January 1, 
122029, for all purposes under this Code (including, without 
13limitation, the calculation of benefits and employee 
14contributions), the annual earnings, salary, or wages (based 
15on the plan year) of a member or participant under Article 14, 
1616, or 17 to whom this Section applies shall not exceed the 
17amount determined under subsection (b-5) plus the earnings 
18limitation adjustment for that year.
19 In this subsection, "earnings limitation adjustment" means 
20the product that results from multiplying (i) the difference 
21between the federal Social Security wage base for the coming 
22calendar year and the amount calculated under subsection (b-5) 
23for that calendar year by (ii) the smoothing factor for that 
24calendar year. The earnings limitation adjustment shall be 
25determined by the Public Pension Division of the Department of 
26Insurance and made available to the boards of the retirement 
 
 
HB4873- 38 -LRB103 35886 RPS 65971 b


1systems and pension funds by December 1 of each year. If the 
2difference between the federal Social Security wage base for 
3the coming calendar year and the amount calculated under 
4subsection (b-5) for that calendar year is zero or less than 
5zero, the earnings limitation adjustment shall be zero.
6 In this subsection, "smoothing factor" means:
7  (1) for calendar year 2026, 25%;
8  (2) for calendar year 2027, 50%; and
9  (3) for calendar year 2028, 75%.
10 In this subsection and subsection (b-20), "Social Security 
11wage base" means the contribution and benefit base calculated 
12for the calendar year in question by the Commissioner of 
13Social Security under Section 230 of the federal Social 
14Security Act (42 U.S.C. 430). 
15 (b-20) Beginning January 1, 2029, for all purposes under 
16this Code (including, without limitation, the calculation of 
17benefits and employee contributions), the annual earnings, 
18salary, or wages (based on the plan year) of a member or 
19participant under Article 14, 16, or 17 to whom this Section 
20applies shall not exceed the federal Social Security wage base 
21then in effect. 
22 (c) A member or participant is entitled to a retirement 
23annuity upon written application if he or she has attained age 
2467 (age 65, with respect to service under Article 12 that is 
25subject to this Section, for a member or participant under 
26Article 12 who first becomes a member or participant under 
 
 
HB4873- 39 -LRB103 35886 RPS 65971 b


1Article 12 on or after January 1, 2022 or who makes the 
2election under item (i) of subsection (d-15) of this Section) 
3and has at least 10 years of service credit and is otherwise 
4eligible under the requirements of the applicable Article. 
5 A member or participant who has attained age 62 (age 60, 
6with respect to service under Article 12 that is subject to 
7this Section, for a member or participant under Article 12 who 
8first becomes a member or participant under Article 12 on or 
9after January 1, 2022 or who makes the election under item (i) 
10of subsection (d-15) of this Section) and has at least 10 years 
11of service credit and is otherwise eligible under the 
12requirements of the applicable Article may elect to receive 
13the lower retirement annuity provided in subsection (d) of 
14this Section. 
15 (c-5) A person who first becomes a member or a participant 
16subject to this Section on or after July 6, 2017 (the effective 
17date of Public Act 100-23), notwithstanding any other 
18provision of this Code to the contrary, is entitled to a 
19retirement annuity under Article 8 or Article 11 upon written 
20application if he or she has attained age 65 and has at least 
2110 years of service credit and is otherwise eligible under the 
22requirements of Article 8 or Article 11 of this Code, 
23whichever is applicable. 
24 (d) The retirement annuity of a member or participant who 
25is retiring after attaining age 62 (age 60, with respect to 
26service under Article 12 that is subject to this Section, for a 
 
 
HB4873- 40 -LRB103 35886 RPS 65971 b


1member or participant under Article 12 who first becomes a 
2member or participant under Article 12 on or after January 1, 
32022 or who makes the election under item (i) of subsection 
4(d-15) of this Section) with at least 10 years of service 
5credit shall be reduced by one-half of 1% for each full month 
6that the member's age is under age 67 (age 65, with respect to 
7service under Article 12 that is subject to this Section, for a 
8member or participant under Article 12 who first becomes a 
9member or participant under Article 12 on or after January 1, 
102022 or who makes the election under item (i) of subsection 
11(d-15) of this Section).
12 (d-5) The retirement annuity payable under Article 8 or 
13Article 11 to an eligible person subject to subsection (c-5) 
14of this Section who is retiring at age 60 with at least 10 
15years of service credit shall be reduced by one-half of 1% for 
16each full month that the member's age is under age 65. 
17 (d-10) Each person who first became a member or 
18participant under Article 8 or Article 11 of this Code on or 
19after January 1, 2011 and prior to July 6, 2017 (the effective 
20date of Public Act 100-23) shall make an irrevocable election 
21either:
22  (i) to be eligible for the reduced retirement age 
23 provided in subsections (c-5) and (d-5) of this Section, 
24 the eligibility for which is conditioned upon the member 
25 or participant agreeing to the increases in employee 
26 contributions for age and service annuities provided in 
 
 
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1 subsection (a-5) of Section 8-174 of this Code (for 
2 service under Article 8) or subsection (a-5) of Section 
3 11-170 of this Code (for service under Article 11); or 
4  (ii) to not agree to item (i) of this subsection 
5 (d-10), in which case the member or participant shall 
6 continue to be subject to the retirement age provisions in 
7 subsections (c) and (d) of this Section and the employee 
8 contributions for age and service annuity as provided in 
9 subsection (a) of Section 8-174 of this Code (for service 
10 under Article 8) or subsection (a) of Section 11-170 of 
11 this Code (for service under Article 11). 
12 The election provided for in this subsection shall be made 
13between October 1, 2017 and November 15, 2017. A person 
14subject to this subsection who makes the required election 
15shall remain bound by that election. A person subject to this 
16subsection who fails for any reason to make the required 
17election within the time specified in this subsection shall be 
18deemed to have made the election under item (ii). 
19 (d-15) Each person who first becomes a member or 
20participant under Article 12 on or after January 1, 2011 and 
21prior to January 1, 2022 shall make an irrevocable election 
22either: 
23  (i) to be eligible for the reduced retirement age 
24 specified in subsections (c) and (d) of this Section, the 
25 eligibility for which is conditioned upon the member or 
26 participant agreeing to the increase in employee 
 
 
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1 contributions for service annuities specified in 
2 subsection (b) of Section 12-150; or
3  (ii) to not agree to item (i) of this subsection 
4 (d-15), in which case the member or participant shall not 
5 be eligible for the reduced retirement age specified in 
6 subsections (c) and (d) of this Section and shall not be 
7 subject to the increase in employee contributions for 
8 service annuities specified in subsection (b) of Section 
9 12-150. 
10 The election provided for in this subsection shall be made 
11between January 1, 2022 and April 1, 2022. A person subject to 
12this subsection who makes the required election shall remain 
13bound by that election. A person subject to this subsection 
14who fails for any reason to make the required election within 
15the time specified in this subsection shall be deemed to have 
16made the election under item (ii). 
17 (e) Any retirement annuity or supplemental annuity shall 
18be subject to annual increases on the January 1 occurring 
19either on or after the attainment of age 67 (age 65, with 
20respect to service under Article 12 that is subject to this 
21Section, for a member or participant under Article 12 who 
22first becomes a member or participant under Article 12 on or 
23after January 1, 2022 or who makes the election under item (i) 
24of subsection (d-15); and beginning on July 6, 2017 (the 
25effective date of Public Act 100-23), age 65 with respect to 
26service under Article 8 or Article 11 for eligible persons 
 
 
HB4873- 43 -LRB103 35886 RPS 65971 b


1who: (i) are subject to subsection (c-5) of this Section; or 
2(ii) made the election under item (i) of subsection (d-10) of 
3this Section) or the first anniversary of the annuity start 
4date, whichever is later. Each annual increase shall be 
5calculated at 3% or one-half the annual unadjusted percentage 
6increase (but not less than zero) in the consumer price 
7index-u for the 12 months ending with the September preceding 
8each November 1, whichever is less, of the originally granted 
9retirement annuity. If the annual unadjusted percentage change 
10in the consumer price index-u for the 12 months ending with the 
11September preceding each November 1 is zero or there is a 
12decrease, then the annuity shall not be increased. 
13 For the purposes of Section 1-103.1 of this Code, the 
14changes made to this Section by Public Act 102-263 are 
15applicable without regard to whether the employee was in 
16active service on or after August 6, 2021 (the effective date 
17of Public Act 102-263). 
18 For the purposes of Section 1-103.1 of this Code, the 
19changes made to this Section by Public Act 100-23 are 
20applicable without regard to whether the employee was in 
21active service on or after July 6, 2017 (the effective date of 
22Public Act 100-23). 
23 (f) The initial survivor's or widow's annuity of an 
24otherwise eligible survivor or widow of a retired member or 
25participant who first became a member or participant on or 
26after January 1, 2011 shall be in the amount of 66 2/3% of the 
 
 
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1retired member's or participant's retirement annuity at the 
2date of death. In the case of the death of a member or 
3participant who has not retired and who first became a member 
4or participant on or after January 1, 2011, eligibility for a 
5survivor's or widow's annuity shall be determined by the 
6applicable Article of this Code. The initial benefit shall be 
766 2/3% of the earned annuity without a reduction due to age. A 
8child's annuity of an otherwise eligible child shall be in the 
9amount prescribed under each Article if applicable. Any 
10survivor's or widow's annuity shall be increased (1) on each 
11January 1 occurring on or after the commencement of the 
12annuity if the deceased member died while receiving a 
13retirement annuity or (2) in other cases, on each January 1 
14occurring after the first anniversary of the commencement of 
15the annuity. Each annual increase shall be calculated at 3% or 
16one-half the annual unadjusted percentage increase (but not 
17less than zero) in the consumer price index-u for the 12 months 
18ending with the September preceding each November 1, whichever 
19is less, of the originally granted survivor's annuity. If the 
20annual unadjusted percentage change in the consumer price 
21index-u for the 12 months ending with the September preceding 
22each November 1 is zero or there is a decrease, then the 
23annuity shall not be increased. 
24 (g) The benefits in Section 14-110 apply only if the 
25person is a State policeman, a fire fighter in the fire 
26protection service of a department, a conservation police 
 
 
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1officer, an investigator for the Secretary of State, an 
2investigator for the Office of the Attorney General, an arson 
3investigator, a Commerce Commission police officer, 
4investigator for the Department of Revenue or the Illinois 
5Gaming Board, a security employee of the Department of 
6Corrections or the Department of Juvenile Justice, or a 
7security employee of the Department of Innovation and 
8Technology, as those terms are defined in subsection (b) and 
9subsection (c) of Section 14-110. A person who meets the 
10requirements of this Section is entitled to an annuity 
11calculated under the provisions of Section 14-110, in lieu of 
12the regular or minimum retirement annuity, only if the person 
13has withdrawn from service with not less than 20 years of 
14eligible creditable service and has attained age 60, 
15regardless of whether the attainment of age 60 occurs while 
16the person is still in service. 
17 (h) If a person who first becomes a member or a participant 
18of a retirement system or pension fund subject to this Section 
19on or after January 1, 2011 is receiving a retirement annuity 
20or retirement pension under that system or fund and becomes a 
21member or participant under any other system or fund created 
22by this Code and is employed on a full-time basis, except for 
23those members or participants exempted from the provisions of 
24this Section under subsection (a) of this Section, then the 
25person's retirement annuity or retirement pension under that 
26system or fund shall be suspended during that employment. Upon 
 
 
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1termination of that employment, the person's retirement 
2annuity or retirement pension payments shall resume and be 
3recalculated if recalculation is provided for under the 
4applicable Article of this Code.
5 If a person who first becomes a member of a retirement 
6system or pension fund subject to this Section on or after 
7January 1, 2012 and is receiving a retirement annuity or 
8retirement pension under that system or fund and accepts on a 
9contractual basis a position to provide services to a 
10governmental entity from which he or she has retired, then 
11that person's annuity or retirement pension earned as an 
12active employee of the employer shall be suspended during that 
13contractual service. A person receiving an annuity or 
14retirement pension under this Code shall notify the pension 
15fund or retirement system from which he or she is receiving an 
16annuity or retirement pension, as well as his or her 
17contractual employer, of his or her retirement status before 
18accepting contractual employment. A person who fails to submit 
19such notification shall be guilty of a Class A misdemeanor and 
20required to pay a fine of $1,000. Upon termination of that 
21contractual employment, the person's retirement annuity or 
22retirement pension payments shall resume and, if appropriate, 
23be recalculated under the applicable provisions of this Code. 
24 (i) (Blank). 
25 (j) In the case of a conflict between the provisions of 
26this Section and any other provision of this Code, the 
 
 
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1provisions of this Section shall control.
2(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
3102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
48-11-23.)

5 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
6 (Text of Section WITHOUT the changes made by P.A. 98-599, 
7which has been held unconstitutional)
8 Sec. 2-108.1. Highest salary for annuity purposes. 
9 (a) "Highest salary for annuity purposes" means whichever 
10of the following is applicable to the participant:
11 For a participant who first becomes a participant of this 
12System before August 10, 2009 (the effective date of Public 
13Act 96-207):  
14  (1) For a participant who is a member of the General 
15 Assembly on his or her last day of service: the highest 
16 salary that is prescribed by law, on the participant's 
17 last day of service, for a member of the General Assembly 
18 who is not an officer; plus, if the participant was 
19 elected or appointed to serve as an officer of the General 
20 Assembly for 2 or more years and has made contributions as 
21 required under subsection (d) of Section 2-126, the 
22 highest additional amount of compensation prescribed by 
23 law, at the time of the participant's service as an 
24 officer, for members of the General Assembly who serve in 
25 that office. 
 
 
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1  (2) For a participant who holds one of the State 
2 executive offices specified in Section 2-105 on his or her 
3 last day of service: the highest salary prescribed by law 
4 for service in that office on the participant's last day 
5 of service. 
6  (3) For a participant who is Clerk or Assistant Clerk 
7 of the House of Representatives or Secretary or Assistant 
8 Secretary of the Senate on his or her last day of service: 
9 the salary received for service in that capacity on the 
10 last day of service, but not to exceed the highest salary 
11 (including additional compensation for service as an 
12 officer) that is prescribed by law on the participant's 
13 last day of service for the highest paid officer of the 
14 General Assembly. 
15  (4) For a participant who is a continuing participant 
16 under Section 2-117.1 on his or her last day of service: 
17 the salary received for service in that capacity on the 
18 last day of service, but not to exceed the highest salary 
19 (including additional compensation for service as an 
20 officer) that is prescribed by law on the participant's 
21 last day of service for the highest paid officer of the 
22 General Assembly.
23 For a participant who first becomes a participant of this 
24System on or after August 10, 2009 (the effective date of 
25Public Act 96-207) and before January 1, 2011 (the effective 
26date of Public Act 96-889), the average monthly salary 
 
 
HB4873- 49 -LRB103 35886 RPS 65971 b


1obtained by dividing the total salary of the participant 
2during the period of: (1) the 48 consecutive months of service 
3within the last 120 months of service in which the total 
4compensation was the highest, or (2) the total period of 
5service, if less than 48 months, by the number of months of 
6service in that period. 
7 For a participant who first becomes a participant of this 
8System on or after January 1, 2011 (the effective date of 
9Public Act 96-889), the average monthly salary obtained by 
10dividing the total salary of the participant during the 96 
11consecutive months of service within the last 120 months of 
12service in which the total compensation was the highest by the 
13number of months of service in that period; however, except as 
14provided in subsection (a-5) or (a-10), beginning January 1, 
152011, the highest salary for annuity purposes may not exceed 
16$106,800, except that that amount shall annually thereafter be 
17increased by the lesser of (i) 3% of that amount, including all 
18previous adjustments, or (ii) the annual unadjusted percentage 
19increase (but not less than zero) in the consumer price 
20index-u for the 12 months ending with the September preceding 
21each November 1. "Consumer price index-u" means the index 
22published by the Bureau of Labor Statistics of the United 
23States Department of Labor that measures the average change in 
24prices of goods and services purchased by all urban consumers, 
25United States city average, all items, 1982-84 = 100. The new 
26amount resulting from each annual adjustment shall be 
 
 
HB4873- 50 -LRB103 35886 RPS 65971 b


1determined by the Public Pension Division of the Department of 
2Insurance and made available to the Board by November 1 of each 
3year. 
4 (a-5) Beginning January 1, 2026 and until January 1, 2029, 
5for a participant who first becomes a participant of this 
6System on or after January 1, 2011, the highest salary for 
7annuity purposes may not exceed the amount determined under 
8subsection (a) plus the earnings limitation adjustment for 
9that year.
10 In this subsection, "earnings limitation adjustment" means 
11the product that results from multiplying (i) the difference 
12between the federal Social Security wage base for the coming 
13calendar year and the amount calculated under subsection (a) 
14for that calendar year by (ii) the smoothing factor for that 
15calendar year. The earnings limitation adjustment shall be 
16determined by the Public Pension Division of the Department of 
17Insurance and made available to the boards of the retirement 
18systems and pension funds by December 1 of each year. If the 
19difference between the federal Social Security wage base for 
20the coming calendar year and the amount calculated under 
21subsection (a) for that calendar year is zero or less than 
22zero, the earnings limitation adjustment shall be zero.
23 In this subsection, "smoothing factor" means:
24  (1) for calendar year 2026, 25%;
25  (2) for calendar year 2027, 50%; and
26  (3) for calendar year 2028, 75%.
 
 
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1 In this subsection and subsection (a-10), "Social Security 
2wage base" means the contribution and benefit base calculated 
3for the calendar year in question by the Commissioner of 
4Social Security under Section 230 of the federal Social 
5Security Act (42 U.S.C. 430). 
6 (a-10) Beginning January 1, 2029, the highest salary for 
7annuity purposes may not exceed the federal Social Security 
8wage base then in effect. 
9 (b) The earnings limitations of subsection (a), (a-5), and 
10(a-10), whichever is applicable, apply to earnings under any 
11other participating system under the Retirement Systems 
12Reciprocal Act that are considered in calculating a 
13proportional annuity under this Article, except in the case of 
14a person who first became a member of this System before August 
1522, 1994 and has not, on or after the effective date of this 
16amendatory Act of the 97th General Assembly, irrevocably 
17elected to have those limitations apply. The limitations of 
18subsection (a), (a-5), and (a-10), whichever is applicable, 
19shall apply, however, to earnings under any other 
20participating system under the Retirement Systems Reciprocal 
21Act that are considered in calculating the proportional 
22annuity of a person who first became a member of this System 
23before August 22, 1994 if, on or after the effective date of 
24this amendatory Act of the 97th General Assembly, that member 
25irrevocably elects to have those limitations apply.
26 (c) In calculating the subsection (a), (a-5), or (a-10), 
 
 
HB4873- 52 -LRB103 35886 RPS 65971 b


1whichever is applicable, earnings limitation to be applied to 
2earnings under any other participating system under the 
3Retirement Systems Reciprocal Act for the purpose of 
4calculating a proportional annuity under this Article, the 
5participant's last day of service shall be deemed to mean the 
6last day of service in any participating system from which the 
7person has applied for a proportional annuity under the 
8Retirement Systems Reciprocal Act.
9(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 
1096-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)

11 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
12 (Text of Section WITHOUT the changes made by P.A. 98-599, 
13which has been held unconstitutional)
14 Sec. 2-119.1. Automatic increase in retirement annuity. 
15 (a) A participant who retires after June 30, 1967, and who 
16has not received an initial increase under this Section before 
17the effective date of this amendatory Act of 1991, shall, in 
18January or July next following the first anniversary of 
19retirement, whichever occurs first, and in the same month of 
20each year thereafter, but in no event prior to age 60, have the 
21amount of the originally granted retirement annuity increased 
22as follows: for each year through 1971, 1 1/2%; for each year 
23from 1972 through 1979, 2%; and for 1980 and each year 
24thereafter, 3%. Annuitants who have received an initial 
25increase under this subsection prior to the effective date of 
 
 
HB4873- 53 -LRB103 35886 RPS 65971 b


1this amendatory Act of 1991 shall continue to receive their 
2annual increases in the same month as the initial increase.
3 (b) Beginning January 1, 1990, for eligible participants 
4who remain in service after attaining 20 years of creditable 
5service, the 3% increases provided under subsection (a) shall 
6begin to accrue on the January 1 next following the date upon 
7which the participant (1) attains age 55, or (2) attains 20 
8years of creditable service, whichever occurs later, and shall 
9continue to accrue while the participant remains in service; 
10such increases shall become payable on January 1 or July 1, 
11whichever occurs first, next following the first anniversary 
12of retirement. For any person who has service credit in the 
13System for the entire period from January 15, 1969 through 
14December 31, 1992, regardless of the date of termination of 
15service, the reference to age 55 in clause (1) of this 
16subsection (b) shall be deemed to mean age 50.
17 This subsection (b) does not apply to any person who first 
18becomes a member of the System after the effective date of this 
19amendatory Act of the 93rd General Assembly.
20 (b-5) Notwithstanding any other provision of this Article, 
21a participant who first becomes a participant on or after 
22January 1, 2011 (the effective date of Public Act 96-889) 
23shall, in January or July next following the first anniversary 
24of retirement, whichever occurs first, and in the same month 
25of each year thereafter, but in no event prior to age 67, have 
26the amount of the retirement annuity then being paid increased 
 
 
HB4873- 54 -LRB103 35886 RPS 65971 b


1by 3% or the annual unadjusted percentage increase in the 
2Consumer Price Index for All Urban Consumers as determined by 
3the Public Pension Division of the Department of Insurance 
4under subsection (a) of Section 2-108.1, whichever is less. 
5 In this subsection, "consumer price index-u" means the 
6index published by the Bureau of Labor Statistics of the 
7United States Department of Labor that measures the average 
8change in prices of goods and services purchased by all urban 
9consumers, United States city average, all items, 1982-84 = 
10100. The new amount resulting from each annual adjustment 
11shall be determined by the Public Pension Division of the 
12Department of Insurance and made available to the Board by 
13November 1 of each year. 
14 (c) The foregoing provisions relating to automatic 
15increases are not applicable to a participant who retires 
16before having made contributions (at the rate prescribed in 
17Section 2-126) for automatic increases for less than the 
18equivalent of one full year. However, in order to be eligible 
19for the automatic increases, such a participant may make 
20arrangements to pay to the system the amount required to bring 
21the total contributions for the automatic increase to the 
22equivalent of one year's contributions based upon his or her 
23last salary.
24 (d) A participant who terminated service prior to July 1, 
251967, with at least 14 years of service is entitled to an 
26increase in retirement annuity beginning January, 1976, and to 
 
 
HB4873- 55 -LRB103 35886 RPS 65971 b


1additional increases in January of each year thereafter.
2 The initial increase shall be 1 1/2% of the originally 
3granted retirement annuity multiplied by the number of full 
4years that the annuitant was in receipt of such annuity prior 
5to January 1, 1972, plus 2% of the originally granted 
6retirement annuity for each year after that date. The 
7subsequent annual increases shall be at the rate of 2% of the 
8originally granted retirement annuity for each year through 
91979 and at the rate of 3% for 1980 and thereafter.
10 (e) Beginning January 1, 1990, all automatic annual 
11increases payable under this Section shall be calculated as a 
12percentage of the total annuity payable at the time of the 
13increase, including previous increases granted under this 
14Article.
15(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

16 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
17 (Text of Section WITHOUT the changes made by P.A. 98-599, 
18which has been held unconstitutional)
19 Sec. 14-103.10. Compensation. 
20 (a) For periods of service prior to January 1, 1978, the 
21full rate of salary or wages payable to an employee for 
22personal services performed if he worked the full normal 
23working period for his position, subject to the following 
24maximum amounts: (1) prior to July 1, 1951, $400 per month or 
25$4,800 per year; (2) between July 1, 1951 and June 30, 1957 
 
 
HB4873- 56 -LRB103 35886 RPS 65971 b


1inclusive, $625 per month or $7,500 per year; (3) beginning 
2July 1, 1957, no limitation.
3 In the case of service of an employee in a position 
4involving part-time employment, compensation shall be 
5determined according to the employees' earnings record.
6 (b) For periods of service on and after January 1, 1978, 
7all remuneration for personal services performed defined as 
8"wages" under the Social Security Enabling Act, including that 
9part of such remuneration which is in excess of any maximum 
10limitation provided in such Act, and including any benefits 
11received by an employee under a sick pay plan in effect before 
12January 1, 1981, but excluding lump sum salary payments: 
13  (1) for vacation, 
14  (2) for accumulated unused sick leave, 
15  (3) upon discharge or dismissal, 
16  (4) for approved holidays.
17 (c) For periods of service on or after December 16, 1978, 
18compensation also includes any benefits, other than lump sum 
19salary payments made at termination of employment, which an 
20employee receives or is eligible to receive under a sick pay 
21plan authorized by law.
22 (d) For periods of service after September 30, 1985, 
23compensation also includes any remuneration for personal 
24services not included as "wages" under the Social Security 
25Enabling Act, which is deducted for purposes of participation 
26in a program established pursuant to Section 125 of the 
 
 
HB4873- 57 -LRB103 35886 RPS 65971 b


1Internal Revenue Code or its successor laws.
2 (e) For members for which Section 1-160 applies for 
3periods of service on and after January 1, 2011, all 
4remuneration for personal services performed defined as 
5"wages" under the Social Security Enabling Act, excluding 
6remuneration that is in excess of the annual earnings, salary, 
7or wages of a member or participant, as provided in subsection 
8(b-5) of Section 1-160, but including any benefits received by 
9an employee under a sick pay plan in effect before January 1, 
101981. Compensation shall exclude lump sum salary payments:
11  (1) for vacation;
12  (2) for accumulated unused sick leave;
13  (3) upon discharge or dismissal; and
14  (4) for approved holidays. 
15 (f) Notwithstanding the other provisions of this Section, 
16for service on or after July 1, 2013, "compensation" does not 
17include any stipend payable to an employee for service on a 
18board or commission. 
19(Source: P.A. 98-449, eff. 8-16-13.)

20 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
21 Sec. 15-111. Earnings.  
22 (a) "Earnings": Subject to Section 15-111.5, an amount 
23paid for personal services equal to the sum of the basic 
24compensation plus extra compensation for summer teaching, 
25overtime or other extra service. For periods for which an 
 
 
HB4873- 58 -LRB103 35886 RPS 65971 b


1employee receives service credit under subsection (c) of 
2Section 15-113.1 or Section 15-113.2, earnings are equal to 
3the basic compensation on which contributions are paid by the 
4employee during such periods. Compensation for employment 
5which is irregular, intermittent and temporary shall not be 
6considered earnings, unless the participant is also receiving 
7earnings from the employer as an employee under Section 
815-107.
9 With respect to transition pay paid by the University of 
10Illinois to a person who was a participating employee employed 
11in the fire department of the University of Illinois's 
12Champaign-Urbana campus immediately prior to the elimination 
13of that fire department: 
14  (1) "Earnings" includes transition pay paid to the 
15 employee on or after the effective date of this amendatory 
16 Act of the 91st General Assembly. 
17  (2) "Earnings" includes transition pay paid to the 
18 employee before the effective date of this amendatory Act 
19 of the 91st General Assembly only if (i) employee 
20 contributions under Section 15-157 have been withheld from 
21 that transition pay or (ii) the employee pays to the 
22 System before January 1, 2001 an amount representing 
23 employee contributions under Section 15-157 on that 
24 transition pay. Employee contributions under item (ii) may 
25 be paid in a lump sum, by withholding from additional 
26 transition pay accruing before January 1, 2001, or in any 
 
 
HB4873- 59 -LRB103 35886 RPS 65971 b


1 other manner approved by the System. Upon payment of the 
2 employee contributions on transition pay, the 
3 corresponding employer contributions become an obligation 
4 of the State.
5 (b) For a Tier 2 member, the annual earnings shall not 
6exceed $106,800; however, except as provided in subsection 
7(b-5) and (b-10), that amount shall annually thereafter be 
8increased by the lesser of (i) 3% of that amount, including all 
9previous adjustments, or (ii) one half the annual unadjusted 
10percentage increase (but not less than zero) in the consumer 
11price index-u for the 12 months ending with the September 
12preceding each November 1, including all previous adjustments. 
13 For the purposes of this Section, "consumer price index-u 
14index u" means the index published by the Bureau of Labor 
15Statistics of the United States Department of Labor that 
16measures the average change in prices of goods and services 
17purchased by all urban consumers, United States city average, 
18all items, 1982-84 = 100. The new amount resulting from each 
19annual adjustment shall be determined by the Public Pension 
20Division of the Department of Insurance and made available to 
21the boards of the retirement systems and pension funds by 
22November 1 of each year. 
23 (b-5) Beginning January 1, 2026 and until January 1, 2029, 
24for a participant who first becomes a participant of this 
25System on or after January 1, 2011, the annual earnings may not 
26exceed the amount determined under subsection (b) plus the 
 
 
HB4873- 60 -LRB103 35886 RPS 65971 b


1earnings limitation adjustment for that year.
2 In this subsection, "earnings limitation adjustment" means 
3the product that results from multiplying (i) the difference 
4between the federal Social Security wage base for the coming 
5calendar year and the amount calculated under subsection (b) 
6for that calendar year by (ii) the smoothing factor for that 
7calendar year. The earnings limitation adjustment shall be 
8determined by the Public Pension Division of the Department of 
9Insurance and made available to the boards of the retirement 
10systems and pension funds by December 1 of each year. If the 
11difference between the federal Social Security wage base for 
12the coming calendar year and the amount calculated under 
13subsection (b) for that calendar year is zero or less than 
14zero, the earnings limitation adjustment shall be zero.
15 In this subsection, "smoothing factor" means:
16  (1) for calendar year 2026, 25%;
17  (2) for calendar year 2027, 50%; and
18  (3) for calendar year 2028, 75%.
19 In this subsection and subsection (b-10), "Social Security 
20wage base" means the contribution and benefit base calculated 
21for the calendar year in question by the Commissioner of 
22Social Security under Section 230 of the federal Social 
23Security Act (42 U.S.C. 430).
24 (b-10) Beginning January 1, 2029, the annual earnings may 
25not exceed the federal Social Security wage base then in 
26effect. 
 
 
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1 (c) With each submission of payroll information in the 
2manner prescribed by the System, the employer shall certify 
3that the payroll information is correct and complies with all 
4applicable State and federal laws.
5(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)

6 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
7 Sec. 18-125. Retirement annuity amount. 
8 (a) The annual retirement annuity for a participant who 
9terminated service as a judge prior to July 1, 1971 shall be 
10based on the law in effect at the time of termination of 
11service.
12 (b) Except as provided in subsection (b-5), effective July 
131, 1971, the retirement annuity for any participant in service 
14on or after such date shall be 3 1/2% of final average salary, 
15as defined in this Section, for each of the first 10 years of 
16service, and 5% of such final average salary for each year of 
17service in excess of 10.
18 For purposes of this Section, final average salary for a 
19participant who first serves as a judge before August 10, 2009 
20(the effective date of Public Act 96-207) shall be:
21  (1) the average salary for the last 4 years of 
22 credited service as a judge for a participant who 
23 terminates service before July 1, 1975.
24  (2) for a participant who terminates service after 
25 June 30, 1975 and before July 1, 1982, the salary on the 
 
 
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1 last day of employment as a judge.
2  (3) for any participant who terminates service after 
3 June 30, 1982 and before January 1, 1990, the average 
4 salary for the final year of service as a judge.
5  (4) for a participant who terminates service on or 
6 after January 1, 1990 but before July 14, 1995 (the 
7 effective date of Public Act 89-136), the salary on the 
8 last day of employment as a judge.
9  (5) for a participant who terminates service on or 
10 after July 14, 1995 (the effective date of Public Act 
11 89-136), the salary on the last day of employment as a 
12 judge, or the highest salary received by the participant 
13 for employment as a judge in a position held by the 
14 participant for at least 4 consecutive years, whichever is 
15 greater.
16 However, in the case of a participant who elects to 
17discontinue contributions as provided in subdivision (a)(2) of 
18Section 18-133, the time of such election shall be considered 
19the last day of employment in the determination of final 
20average salary under this subsection.
21 For a participant who first serves as a judge on or after 
22August 10, 2009 (the effective date of Public Act 96-207) and 
23before January 1, 2011 (the effective date of Public Act 
2496-889), final average salary shall be the average monthly 
25salary obtained by dividing the total salary of the 
26participant during the period of: (1) the 48 consecutive 
 
 
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1months of service within the last 120 months of service in 
2which the total compensation was the highest, or (2) the total 
3period of service, if less than 48 months, by the number of 
4months of service in that period. 
5 The maximum retirement annuity for any participant shall 
6be 85% of final average salary.
7 (b-5) Notwithstanding any other provision of this Article, 
8for a participant who first serves as a judge on or after 
9January 1, 2011 (the effective date of Public Act 96-889), the 
10annual retirement annuity is 3% of the participant's final 
11average salary for each year of service. The maximum 
12retirement annuity payable shall be 60% of the participant's 
13final average salary. 
14 For a participant who first serves as a judge on or after 
15January 1, 2011 (the effective date of Public Act 96-889), 
16final average salary shall be the average monthly salary 
17obtained by dividing the total salary of the judge during the 
1896 consecutive months of service within the last 120 months of 
19service in which the total salary was the highest by the number 
20of months of service in that period; however, except as 
21provided in subsection (b-10) and (b-15), beginning January 1, 
222011, the annual salary may not exceed $106,800, except that 
23that amount shall annually thereafter be increased by the 
24lesser of (i) 3% of that amount, including all previous 
25adjustments, or (ii) the annual unadjusted percentage increase 
26(but not less than zero) in the consumer price index-u for the 
 
 
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112 months ending with the September preceding each November 1. 
2"Consumer price index-u" means the index published by the 
3Bureau of Labor Statistics of the United States Department of 
4Labor that measures the average change in prices of goods and 
5services purchased by all urban consumers, United States city 
6average, all items, 1982-84 = 100. The new amount resulting 
7from each annual adjustment shall be determined by the Public 
8Pension Division of the Department of Insurance and made 
9available to the Board by November 1st of each year. 
10 (b-10) Beginning January 1, 2026 and until January 1, 
112029, for a participant who first serves as a judge on or after 
12January 1, 2011, the annual salary may not exceed the amount 
13determined under subsection (b-5) plus the earnings limitation 
14adjustment for that year.
15 In this subsection, "earnings limitation adjustment" means 
16the product that results from multiplying (i) the difference 
17between the federal Social Security wage base for the coming 
18calendar year and the amount calculated under subsection (b-5) 
19for that calendar year by (ii) the smoothing factor for that 
20calendar year. The earnings limitation adjustment shall be 
21determined by the Public Pension Division of the Department of 
22Insurance and made available to the boards of the retirement 
23systems and pension funds by December 1 of each year. If the 
24difference between the federal Social Security wage base for 
25the coming calendar year and the amount calculated under 
26subsection (b-5) for that calendar year is zero or less than 
 
 
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1zero, the earnings limitation adjustment shall be zero.
2 In this subsection, "smoothing factor" means:
3  (1) for calendar year 2026, 25%;
4  (2) for calendar year 2027, 50%; and
5  (3) for calendar year 2028, 75%.
6 In this subsection and subsection (b-15), "Social Security 
7wage base" means the contribution and benefit base calculated 
8for the calendar year in question by the Commissioner of 
9Social Security under Section 230 of the federal Social 
10Security Act (42 U.S.C. 430). 
11 (b-15) Beginning January 1, 2029, the annual salary may 
12not exceed the federal Social Security wage base then in 
13effect. 
14 (c) The retirement annuity for a participant who retires 
15prior to age 60 with less than 28 years of service in the 
16System shall be reduced 1/2 of 1% for each month that the 
17participant's age is under 60 years at the time the annuity 
18commences. However, for a participant who retires on or after 
19December 10, 1999 (the effective date of Public Act 91-653), 
20the percentage reduction in retirement annuity imposed under 
21this subsection shall be reduced by 5/12 of 1% for every month 
22of service in this System in excess of 20 years, and therefore 
23a participant with at least 26 years of service in this System 
24may retire at age 55 without any reduction in annuity.
25 The reduction in retirement annuity imposed by this 
26subsection shall not apply in the case of retirement on 
 
 
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1account of disability.
2 (d) Notwithstanding any other provision of this Article, 
3for a participant who first serves as a judge on or after 
4January 1, 2011 (the effective date of Public Act 96-889) and 
5who is retiring after attaining age 62, the retirement annuity 
6shall be reduced by 1/2 of 1% for each month that the 
7participant's age is under age 67 at the time the annuity 
8commences. 
9(Source: P.A. 100-201, eff. 8-18-17.)

10 (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
11 Sec. 18-128.01. Amount of survivor's annuity. 
12 (a) Upon the death of an annuitant, his or her surviving 
13spouse shall be entitled to a survivor's annuity of 66 2/3% of 
14the annuity the annuitant was receiving immediately prior to 
15his or her death, inclusive of annual increases in the 
16retirement annuity to the date of death.
17 (b) Upon the death of an active participant, his or her 
18surviving spouse shall receive a survivor's annuity of 66 2/3% 
19of the annuity earned by the participant as of the date of his 
20or her death, determined without regard to whether the 
21participant had attained age 60 as of that time, or 7 1/2% of 
22the last salary of the decedent, whichever is greater.
23 (c) Upon the death of a participant who had terminated 
24service with at least 10 years of service, his or her surviving 
25spouse shall be entitled to a survivor's annuity of 66 2/3% of 
 
 
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1the annuity earned by the deceased participant at the date of 
2death.
3 (d) Upon the death of an annuitant, active participant, or 
4participant who had terminated service with at least 10 years 
5of service, each surviving child under the age of 18 or 
6disabled as defined in Section 18-128 shall be entitled to a 
7child's annuity in an amount equal to 5% of the decedent's 
8final salary, not to exceed in total for all such children the 
9greater of 20% of the decedent's last salary or 66 2/3% of the 
10annuity received or earned by the decedent as provided under 
11subsections (a) and (b) of this Section. This child's annuity 
12shall be paid whether or not a survivor's annuity was elected 
13under Section 18-123.
14 (e) The changes made in the survivor's annuity provisions 
15by Public Act 82-306 shall apply to the survivors of a deceased 
16participant or annuitant whose death occurs on or after August 
1721, 1981. 
18 (f) Beginning January 1, 1990, every survivor's annuity 
19shall be increased (1) on each January 1 occurring on or after 
20the commencement of the annuity if the deceased member died 
21while receiving a retirement annuity, or (2) in other cases, 
22on each January 1 occurring on or after the first anniversary 
23of the commencement of the annuity, by an amount equal to 3% of 
24the current amount of the annuity, including any previous 
25increases under this Article. Such increases shall apply 
26without regard to whether the deceased member was in service 
 
 
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1on or after the effective date of this amendatory Act of 1991, 
2but shall not accrue for any period prior to January 1, 1990.
3 (g) Notwithstanding any other provision of this Article, 
4the initial survivor's annuity for a survivor of a participant 
5who first serves as a judge after January 1, 2011 (the 
6effective date of Public Act 96-889) shall be in the amount of 
766 2/3% of the annuity received or earned by the decedent, and 
8shall be increased (1) on each January 1 occurring on or after 
9the commencement of the annuity if the deceased participant 
10died while receiving a retirement annuity, or (2) in other 
11cases, on each January 1 occurring on or after the first 
12anniversary of the commencement of the annuity, but in no 
13event prior to age 67, by an amount equal to 3% or the annual 
14unadjusted percentage increase in the consumer price index-u 
15as determined by the Public Pension Division of the Department 
16of Insurance under subsection (b-5) of Section 18-125, 
17whichever is less, of the survivor's annuity then being paid. 
18 In this subsection, "consumer price index-u" means the 
19index published by the Bureau of Labor Statistics of the 
20United States Department of Labor that measures the average 
21change in prices of goods and services purchased by all urban 
22consumers, United States city average, all items, 1982-84 = 
23100. The new amount resulting from each annual adjustment 
24shall be determined by the Public Pension Division of the 
25Department of Insurance and made available to the Board by 
26November 1 of each year. 
 
 
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1(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

2
Article 2. 


3 Section 2-5. The Illinois Pension Code is amended by 
4changing Sections 1-160, 2-119.1, 15-136, and 18-125.1 as 
5follows:

6 (40 ILCS 5/1-160)
7 (Text of Section from P.A. 102-719)
8 Sec. 1-160. Provisions applicable to new hires. 
9 (a) The provisions of this Section apply to a person who, 
10on or after January 1, 2011, first becomes a member or a 
11participant under any reciprocal retirement system or pension 
12fund established under this Code, other than a retirement 
13system or pension fund established under Article 2, 3, 4, 5, 6, 
147, 15, or 18 of this Code, notwithstanding any other provision 
15of this Code to the contrary, but do not apply to any 
16self-managed plan established under this Code or to any 
17participant of the retirement plan established under Section 
1822-101; except that this Section applies to a person who 
19elected to establish alternative credits by electing in 
20writing after January 1, 2011, but before August 8, 2011, 
21under Section 7-145.1 of this Code. Notwithstanding anything 
22to the contrary in this Section, for purposes of this Section, 
23a person who is a Tier 1 regular employee as defined in Section 
 
 
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17-109.4 of this Code or who participated in a retirement 
2system under Article 15 prior to January 1, 2011 shall be 
3deemed a person who first became a member or participant prior 
4to January 1, 2011 under any retirement system or pension fund 
5subject to this Section. The changes made to this Section by 
6Public Act 98-596 are a clarification of existing law and are 
7intended to be retroactive to January 1, 2011 (the effective 
8date of Public Act 96-889), notwithstanding the provisions of 
9Section 1-103.1 of this Code.
10 This Section does not apply to a person who first becomes a 
11noncovered employee under Article 14 on or after the 
12implementation date of the plan created under Section 1-161 
13for that Article, unless that person elects under subsection 
14(b) of Section 1-161 to instead receive the benefits provided 
15under this Section and the applicable provisions of that 
16Article.
17 This Section does not apply to a person who first becomes a 
18member or participant under Article 16 on or after the 
19implementation date of the plan created under Section 1-161 
20for that Article, unless that person elects under subsection 
21(b) of Section 1-161 to instead receive the benefits provided 
22under this Section and the applicable provisions of that 
23Article.
24 This Section does not apply to a person who elects under 
25subsection (c-5) of Section 1-161 to receive the benefits 
26under Section 1-161. 
 
 
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1 This Section does not apply to a person who first becomes a 
2member or participant of an affected pension fund on or after 6 
3months after the resolution or ordinance date, as defined in 
4Section 1-162, unless that person elects under subsection (c) 
5of Section 1-162 to receive the benefits provided under this 
6Section and the applicable provisions of the Article under 
7which he or she is a member or participant. 
8 (b) "Final average salary" means, except as otherwise 
9provided in this subsection, the average monthly (or annual) 
10salary obtained by dividing the total salary or earnings 
11calculated under the Article applicable to the member or 
12participant during the 96 consecutive months (or 8 consecutive 
13years) of service within the last 120 months (or 10 years) of 
14service in which the total salary or earnings calculated under 
15the applicable Article was the highest by the number of months 
16(or years) of service in that period. For the purposes of a 
17person who first becomes a member or participant of any 
18retirement system or pension fund to which this Section 
19applies on or after January 1, 2011, in this Code, "final 
20average salary" shall be substituted for the following:
21  (1) (Blank).
22  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
23 annual salary for any 4 consecutive years within the last 
24 10 years of service immediately preceding the date of 
25 withdrawal". 
26  (3) In Article 13, "average final salary". 
 
 
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1  (4) In Article 14, "final average compensation". 
2  (5) In Article 17, "average salary". 
3  (6) In Section 22-207, "wages or salary received by 
4 him at the date of retirement or discharge". 
5 A member of the Teachers' Retirement System of the State 
6of Illinois who retires on or after June 1, 2021 and for whom 
7the 2020-2021 school year is used in the calculation of the 
8member's final average salary shall use the higher of the 
9following for the purpose of determining the member's final 
10average salary:
11  (A) the amount otherwise calculated under the first 
12 paragraph of this subsection; or
13  (B) an amount calculated by the Teachers' Retirement 
14 System of the State of Illinois using the average of the 
15 monthly (or annual) salary obtained by dividing the total 
16 salary or earnings calculated under Article 16 applicable 
17 to the member or participant during the 96 months (or 8 
18 years) of service within the last 120 months (or 10 years) 
19 of service in which the total salary or earnings 
20 calculated under the Article was the highest by the number 
21 of months (or years) of service in that period.
22 (b-5) Beginning on January 1, 2011, for all purposes under 
23this Code (including without limitation the calculation of 
24benefits and employee contributions), the annual earnings, 
25salary, or wages (based on the plan year) of a member or 
26participant to whom this Section applies shall not exceed 
 
 
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1$106,800; however, that amount shall annually thereafter be 
2increased by the lesser of (i) 3% of that amount, including all 
3previous adjustments, or (ii) one-half the annual unadjusted 
4percentage increase (but not less than zero) in the consumer 
5price index-u for the 12 months ending with the September 
6preceding each November 1, including all previous adjustments.
7 For the purposes of this Section, "consumer price index-u" 
8means the index published by the Bureau of Labor Statistics of 
9the United States Department of Labor that measures the 
10average change in prices of goods and services purchased by 
11all urban consumers, United States city average, all items, 
121982-84 = 100. The new amount resulting from each annual 
13adjustment shall be determined by the Public Pension Division 
14of the Department of Insurance and made available to the 
15boards of the retirement systems and pension funds by November 
161 of each year. 
17 (b-10) Beginning on January 1, 2024, for all purposes 
18under this Code (including, without limitation, the 
19calculation of benefits and employee contributions), the 
20annual earnings, salary, or wages (based on the plan year) of a 
21member or participant under Article 9 to whom this Section 
22applies shall include an annual earnings, salary, or wage cap 
23that tracks the Social Security wage base. Maximum annual 
24earnings, wages, or salary shall be the annual contribution 
25and benefit base established for the applicable year by the 
26Commissioner of the Social Security Administration under the 
 
 
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1federal Social Security Act. 
2 However, in no event shall the annual earnings, salary, or 
3wages for the purposes of this Article and Article 9 exceed any 
4limitation imposed on annual earnings, salary, or wages under 
5Section 1-117. Under no circumstances shall the maximum amount 
6of annual earnings, salary, or wages be greater than the 
7amount set forth in this subsection (b-10) as a result of 
8reciprocal service or any provisions regarding reciprocal 
9services, nor shall the Fund under Article 9 be required to pay 
10any refund as a result of the application of this maximum 
11annual earnings, salary, and wage cap. 
12 Nothing in this subsection (b-10) shall cause or otherwise 
13result in any retroactive adjustment of any employee 
14contributions. Nothing in this subsection (b-10) shall cause 
15or otherwise result in any retroactive adjustment of 
16disability or other payments made between January 1, 2011 and 
17January 1, 2024. 
18 (c) A member or participant is entitled to a retirement 
19annuity upon written application if he or she has attained age 
2067 (age 65, with respect to service under Article 12 that is 
21subject to this Section, for a member or participant under 
22Article 12 who first becomes a member or participant under 
23Article 12 on or after January 1, 2022 or who makes the 
24election under item (i) of subsection (d-15) of this Section) 
25and has at least 10 years of service credit and is otherwise 
26eligible under the requirements of the applicable Article. 
 
 
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1 A member or participant who has attained age 62 (age 60, 
2with respect to service under Article 12 that is subject to 
3this Section, for a member or participant under Article 12 who 
4first becomes a member or participant under Article 12 on or 
5after January 1, 2022 or who makes the election under item (i) 
6of subsection (d-15) of this Section) and has at least 10 years 
7of service credit and is otherwise eligible under the 
8requirements of the applicable Article may elect to receive 
9the lower retirement annuity provided in subsection (d) of 
10this Section. 
11 (c-5) A person who first becomes a member or a participant 
12subject to this Section on or after July 6, 2017 (the effective 
13date of Public Act 100-23), notwithstanding any other 
14provision of this Code to the contrary, is entitled to a 
15retirement annuity under Article 8 or Article 11 upon written 
16application if he or she has attained age 65 and has at least 
1710 years of service credit and is otherwise eligible under the 
18requirements of Article 8 or Article 11 of this Code, 
19whichever is applicable. 
20 (d) The retirement annuity of a member or participant who 
21is retiring after attaining age 62 (age 60, with respect to 
22service under Article 12 that is subject to this Section, for a 
23member or participant under Article 12 who first becomes a 
24member or participant under Article 12 on or after January 1, 
252022 or who makes the election under item (i) of subsection 
26(d-15) of this Section) with at least 10 years of service 
 
 
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1credit shall be reduced by one-half of 1% for each full month 
2that the member's age is under age 67 (age 65, with respect to 
3service under Article 12 that is subject to this Section, for a 
4member or participant under Article 12 who first becomes a 
5member or participant under Article 12 on or after January 1, 
62022 or who makes the election under item (i) of subsection 
7(d-15) of this Section).
8 (d-5) The retirement annuity payable under Article 8 or 
9Article 11 to an eligible person subject to subsection (c-5) 
10of this Section who is retiring at age 60 with at least 10 
11years of service credit shall be reduced by one-half of 1% for 
12each full month that the member's age is under age 65. 
13 (d-10) Each person who first became a member or 
14participant under Article 8 or Article 11 of this Code on or 
15after January 1, 2011 and prior to July 6, 2017 (the effective 
16date of Public Act 100-23) shall make an irrevocable election 
17either:
18  (i) to be eligible for the reduced retirement age 
19 provided in subsections (c-5) and (d-5) of this Section, 
20 the eligibility for which is conditioned upon the member 
21 or participant agreeing to the increases in employee 
22 contributions for age and service annuities provided in 
23 subsection (a-5) of Section 8-174 of this Code (for 
24 service under Article 8) or subsection (a-5) of Section 
25 11-170 of this Code (for service under Article 11); or 
26  (ii) to not agree to item (i) of this subsection 
 
 
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1 (d-10), in which case the member or participant shall 
2 continue to be subject to the retirement age provisions in 
3 subsections (c) and (d) of this Section and the employee 
4 contributions for age and service annuity as provided in 
5 subsection (a) of Section 8-174 of this Code (for service 
6 under Article 8) or subsection (a) of Section 11-170 of 
7 this Code (for service under Article 11). 
8 The election provided for in this subsection shall be made 
9between October 1, 2017 and November 15, 2017. A person 
10subject to this subsection who makes the required election 
11shall remain bound by that election. A person subject to this 
12subsection who fails for any reason to make the required 
13election within the time specified in this subsection shall be 
14deemed to have made the election under item (ii). 
15 (d-15) Each person who first becomes a member or 
16participant under Article 12 on or after January 1, 2011 and 
17prior to January 1, 2022 shall make an irrevocable election 
18either: 
19  (i) to be eligible for the reduced retirement age 
20 specified in subsections (c) and (d) of this Section, the 
21 eligibility for which is conditioned upon the member or 
22 participant agreeing to the increase in employee 
23 contributions for service annuities specified in 
24 subsection (b) of Section 12-150; or
25  (ii) to not agree to item (i) of this subsection 
26 (d-15), in which case the member or participant shall not 
 
 
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1 be eligible for the reduced retirement age specified in 
2 subsections (c) and (d) of this Section and shall not be 
3 subject to the increase in employee contributions for 
4 service annuities specified in subsection (b) of Section 
5 12-150. 
6 The election provided for in this subsection shall be made 
7between January 1, 2022 and April 1, 2022. A person subject to 
8this subsection who makes the required election shall remain 
9bound by that election. A person subject to this subsection 
10who fails for any reason to make the required election within 
11the time specified in this subsection shall be deemed to have 
12made the election under item (ii). 
13 (e) Except as otherwise provided in this subsection, any 
14Any retirement annuity or supplemental annuity shall be 
15subject to annual increases on the January 1 occurring either 
16on or after the attainment of age 67 (age 65, with respect to 
17service under Article 12 that is subject to this Section, for a 
18member or participant under Article 12 who first becomes a 
19member or participant under Article 12 on or after January 1, 
202022 or who makes the election under item (i) of subsection 
21(d-15); and beginning on July 6, 2017 (the effective date of 
22Public Act 100-23), age 65 with respect to service under 
23Article 8 or Article 11 for eligible persons who: (i) are 
24subject to subsection (c-5) of this Section; or (ii) made the 
25election under item (i) of subsection (d-10) of this Section) 
26or the first anniversary of the annuity start date, whichever 
 
 
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1is later. Except as otherwise provided in this subsection, 
2each Each annual increase shall be calculated at 3% or 
3one-half the annual unadjusted percentage increase (but not 
4less than zero) in the consumer price index-u for the 12 months 
5ending with the September preceding each November 1, whichever 
6is less, of the originally granted retirement annuity. If the 
7annual unadjusted percentage change in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1 is zero or there is a decrease, then the 
10annuity shall not be increased. 
11 Beginning January 1, 2026, any retirement annuity or 
12supplemental annuity of a member or participant under Article 
1314, 16, or 17 who is subject to this Section shall be subject 
14to annual increases on the January 1 occurring after the first 
15anniversary of the annuity start date. Each annual increase 
16for a member or participant of a retirement system or pension 
17fund established under Article 14, 16, or 17 who is subject to 
18this Section shall be calculated at 3% of the originally 
19granted retirement annuity. 
20 For the purposes of Section 1-103.1 of this Code, the 
21changes made to this Section by this amendatory Act of the 
22103rd General Assembly are applicable without regard to 
23whether the employee was in active service on or after the 
24effective date of this amendatory Act of the 103rd General 
25Assembly. 
26 For the purposes of Section 1-103.1 of this Code, the 
 
 
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1changes made to this Section by Public Act 102-263 are 
2applicable without regard to whether the employee was in 
3active service on or after August 6, 2021 (the effective date 
4of Public Act 102-263). 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this Section by Public Act 100-23 are 
7applicable without regard to whether the employee was in 
8active service on or after July 6, 2017 (the effective date of 
9Public Act 100-23). 
10 (f) The initial survivor's or widow's annuity of an 
11otherwise eligible survivor or widow of a retired member or 
12participant who first became a member or participant on or 
13after January 1, 2011 shall be in the amount of 66 2/3% of the 
14retired member's or participant's retirement annuity at the 
15date of death. In the case of the death of a member or 
16participant who has not retired and who first became a member 
17or participant on or after January 1, 2011, eligibility for a 
18survivor's or widow's annuity shall be determined by the 
19applicable Article of this Code. The initial benefit shall be 
2066 2/3% of the earned annuity without a reduction due to age. A 
21child's annuity of an otherwise eligible child shall be in the 
22amount prescribed under each Article if applicable. Any 
23survivor's or widow's annuity shall be increased (1) on each 
24January 1 occurring on or after the commencement of the 
25annuity if the deceased member died while receiving a 
26retirement annuity or (2) in other cases, on each January 1 
 
 
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1occurring after the first anniversary of the commencement of 
2the annuity. Each annual increase shall be calculated at 3% or 
3one-half the annual unadjusted percentage increase (but not 
4less than zero) in the consumer price index-u for the 12 months 
5ending with the September preceding each November 1, whichever 
6is less, of the originally granted survivor's annuity. If the 
7annual unadjusted percentage change in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1 is zero or there is a decrease, then the 
10annuity shall not be increased. 
11 (g) The benefits in Section 14-110 apply if the person is a 
12fire fighter in the fire protection service of a department, a 
13security employee of the Department of Corrections or the 
14Department of Juvenile Justice, or a security employee of the 
15Department of Innovation and Technology, as those terms are 
16defined in subsection (b) and subsection (c) of Section 
1714-110. A person who meets the requirements of this Section is 
18entitled to an annuity calculated under the provisions of 
19Section 14-110, in lieu of the regular or minimum retirement 
20annuity, only if the person has withdrawn from service with 
21not less than 20 years of eligible creditable service and has 
22attained age 60, regardless of whether the attainment of age 
2360 occurs while the person is still in service. 
24 (g-5) The benefits in Section 14-110 apply if the person 
25is a State policeman, investigator for the Secretary of State, 
26conservation police officer, investigator for the Department 
 
 
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1of Revenue or the Illinois Gaming Board, investigator for the 
2Office of the Attorney General, Commerce Commission police 
3officer, or arson investigator, as those terms are defined in 
4subsection (b) and subsection (c) of Section 14-110. A person 
5who meets the requirements of this Section is entitled to an 
6annuity calculated under the provisions of Section 14-110, in 
7lieu of the regular or minimum retirement annuity, only if the 
8person has withdrawn from service with not less than 20 years 
9of eligible creditable service and has attained age 55, 
10regardless of whether the attainment of age 55 occurs while 
11the person is still in service. 
12 (h) If a person who first becomes a member or a participant 
13of a retirement system or pension fund subject to this Section 
14on or after January 1, 2011 is receiving a retirement annuity 
15or retirement pension under that system or fund and becomes a 
16member or participant under any other system or fund created 
17by this Code and is employed on a full-time basis, except for 
18those members or participants exempted from the provisions of 
19this Section under subsection (a) of this Section, then the 
20person's retirement annuity or retirement pension under that 
21system or fund shall be suspended during that employment. Upon 
22termination of that employment, the person's retirement 
23annuity or retirement pension payments shall resume and be 
24recalculated if recalculation is provided for under the 
25applicable Article of this Code.
26 If a person who first becomes a member of a retirement 
 
 
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1system or pension fund subject to this Section on or after 
2January 1, 2012 and is receiving a retirement annuity or 
3retirement pension under that system or fund and accepts on a 
4contractual basis a position to provide services to a 
5governmental entity from which he or she has retired, then 
6that person's annuity or retirement pension earned as an 
7active employee of the employer shall be suspended during that 
8contractual service. A person receiving an annuity or 
9retirement pension under this Code shall notify the pension 
10fund or retirement system from which he or she is receiving an 
11annuity or retirement pension, as well as his or her 
12contractual employer, of his or her retirement status before 
13accepting contractual employment. A person who fails to submit 
14such notification shall be guilty of a Class A misdemeanor and 
15required to pay a fine of $1,000. Upon termination of that 
16contractual employment, the person's retirement annuity or 
17retirement pension payments shall resume and, if appropriate, 
18be recalculated under the applicable provisions of this Code. 
19 (i) (Blank). 
20 (j) In the case of a conflict between the provisions of 
21this Section and any other provision of this Code, the 
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
255-6-22.)

 
 
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1 (Text of Section from P.A. 102-813)
2 Sec. 1-160. Provisions applicable to new hires. 
3 (a) The provisions of this Section apply to a person who, 
4on or after January 1, 2011, first becomes a member or a 
5participant under any reciprocal retirement system or pension 
6fund established under this Code, other than a retirement 
7system or pension fund established under Article 2, 3, 4, 5, 6, 
87, 15, or 18 of this Code, notwithstanding any other provision 
9of this Code to the contrary, but do not apply to any 
10self-managed plan established under this Code or to any 
11participant of the retirement plan established under Section 
1222-101; except that this Section applies to a person who 
13elected to establish alternative credits by electing in 
14writing after January 1, 2011, but before August 8, 2011, 
15under Section 7-145.1 of this Code. Notwithstanding anything 
16to the contrary in this Section, for purposes of this Section, 
17a person who is a Tier 1 regular employee as defined in Section 
187-109.4 of this Code or who participated in a retirement 
19system under Article 15 prior to January 1, 2011 shall be 
20deemed a person who first became a member or participant prior 
21to January 1, 2011 under any retirement system or pension fund 
22subject to this Section. The changes made to this Section by 
23Public Act 98-596 are a clarification of existing law and are 
24intended to be retroactive to January 1, 2011 (the effective 
25date of Public Act 96-889), notwithstanding the provisions of 
26Section 1-103.1 of this Code.
 
 
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1 This Section does not apply to a person who first becomes a 
2noncovered employee under Article 14 on or after the 
3implementation date of the plan created under Section 1-161 
4for that Article, unless that person elects under subsection 
5(b) of Section 1-161 to instead receive the benefits provided 
6under this Section and the applicable provisions of that 
7Article.
8 This Section does not apply to a person who first becomes a 
9member or participant under Article 16 on or after the 
10implementation date of the plan created under Section 1-161 
11for that Article, unless that person elects under subsection 
12(b) of Section 1-161 to instead receive the benefits provided 
13under this Section and the applicable provisions of that 
14Article.
15 This Section does not apply to a person who elects under 
16subsection (c-5) of Section 1-161 to receive the benefits 
17under Section 1-161. 
18 This Section does not apply to a person who first becomes a 
19member or participant of an affected pension fund on or after 6 
20months after the resolution or ordinance date, as defined in 
21Section 1-162, unless that person elects under subsection (c) 
22of Section 1-162 to receive the benefits provided under this 
23Section and the applicable provisions of the Article under 
24which he or she is a member or participant. 
25 (b) "Final average salary" means, except as otherwise 
26provided in this subsection, the average monthly (or annual) 
 
 
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1salary obtained by dividing the total salary or earnings 
2calculated under the Article applicable to the member or 
3participant during the 96 consecutive months (or 8 consecutive 
4years) of service within the last 120 months (or 10 years) of 
5service in which the total salary or earnings calculated under 
6the applicable Article was the highest by the number of months 
7(or years) of service in that period. For the purposes of a 
8person who first becomes a member or participant of any 
9retirement system or pension fund to which this Section 
10applies on or after January 1, 2011, in this Code, "final 
11average salary" shall be substituted for the following:
12  (1) (Blank).
13  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
14 annual salary for any 4 consecutive years within the last 
15 10 years of service immediately preceding the date of 
16 withdrawal". 
17  (3) In Article 13, "average final salary". 
18  (4) In Article 14, "final average compensation". 
19  (5) In Article 17, "average salary". 
20  (6) In Section 22-207, "wages or salary received by 
21 him at the date of retirement or discharge". 
22 A member of the Teachers' Retirement System of the State 
23of Illinois who retires on or after June 1, 2021 and for whom 
24the 2020-2021 school year is used in the calculation of the 
25member's final average salary shall use the higher of the 
26following for the purpose of determining the member's final 
 
 
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1average salary:
2  (A) the amount otherwise calculated under the first 
3 paragraph of this subsection; or
4  (B) an amount calculated by the Teachers' Retirement 
5 System of the State of Illinois using the average of the 
6 monthly (or annual) salary obtained by dividing the total 
7 salary or earnings calculated under Article 16 applicable 
8 to the member or participant during the 96 months (or 8 
9 years) of service within the last 120 months (or 10 years) 
10 of service in which the total salary or earnings 
11 calculated under the Article was the highest by the number 
12 of months (or years) of service in that period.
13 (b-5) Beginning on January 1, 2011, for all purposes under 
14this Code (including without limitation the calculation of 
15benefits and employee contributions), the annual earnings, 
16salary, or wages (based on the plan year) of a member or 
17participant to whom this Section applies shall not exceed 
18$106,800; however, that amount shall annually thereafter be 
19increased by the lesser of (i) 3% of that amount, including all 
20previous adjustments, or (ii) one-half the annual unadjusted 
21percentage increase (but not less than zero) in the consumer 
22price index-u for the 12 months ending with the September 
23preceding each November 1, including all previous adjustments.
24 For the purposes of this Section, "consumer price index-u" 
25means the index published by the Bureau of Labor Statistics of 
26the United States Department of Labor that measures the 
 
 
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1average change in prices of goods and services purchased by 
2all urban consumers, United States city average, all items, 
31982-84 = 100. The new amount resulting from each annual 
4adjustment shall be determined by the Public Pension Division 
5of the Department of Insurance and made available to the 
6boards of the retirement systems and pension funds by November 
71 of each year. 
8 (b-10) Beginning on January 1, 2024, for all purposes 
9under this Code (including, without limitation, the 
10calculation of benefits and employee contributions), the 
11annual earnings, salary, or wages (based on the plan year) of a 
12member or participant under Article 9 to whom this Section 
13applies shall include an annual earnings, salary, or wage cap 
14that tracks the Social Security wage base. Maximum annual 
15earnings, wages, or salary shall be the annual contribution 
16and benefit base established for the applicable year by the 
17Commissioner of the Social Security Administration under the 
18federal Social Security Act. 
19 However, in no event shall the annual earnings, salary, or 
20wages for the purposes of this Article and Article 9 exceed any 
21limitation imposed on annual earnings, salary, or wages under 
22Section 1-117. Under no circumstances shall the maximum amount 
23of annual earnings, salary, or wages be greater than the 
24amount set forth in this subsection (b-10) as a result of 
25reciprocal service or any provisions regarding reciprocal 
26services, nor shall the Fund under Article 9 be required to pay 
 
 
HB4873- 89 -LRB103 35886 RPS 65971 b


1any refund as a result of the application of this maximum 
2annual earnings, salary, and wage cap. 
3 Nothing in this subsection (b-10) shall cause or otherwise 
4result in any retroactive adjustment of any employee 
5contributions. Nothing in this subsection (b-10) shall cause 
6or otherwise result in any retroactive adjustment of 
7disability or other payments made between January 1, 2011 and 
8January 1, 2024. 
9 (c) A member or participant is entitled to a retirement 
10annuity upon written application if he or she has attained age 
1167 (age 65, with respect to service under Article 12 that is 
12subject to this Section, for a member or participant under 
13Article 12 who first becomes a member or participant under 
14Article 12 on or after January 1, 2022 or who makes the 
15election under item (i) of subsection (d-15) of this Section) 
16and has at least 10 years of service credit and is otherwise 
17eligible under the requirements of the applicable Article. 
18 A member or participant who has attained age 62 (age 60, 
19with respect to service under Article 12 that is subject to 
20this Section, for a member or participant under Article 12 who 
21first becomes a member or participant under Article 12 on or 
22after January 1, 2022 or who makes the election under item (i) 
23of subsection (d-15) of this Section) and has at least 10 years 
24of service credit and is otherwise eligible under the 
25requirements of the applicable Article may elect to receive 
26the lower retirement annuity provided in subsection (d) of 
 
 
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1this Section. 
2 (c-5) A person who first becomes a member or a participant 
3subject to this Section on or after July 6, 2017 (the effective 
4date of Public Act 100-23), notwithstanding any other 
5provision of this Code to the contrary, is entitled to a 
6retirement annuity under Article 8 or Article 11 upon written 
7application if he or she has attained age 65 and has at least 
810 years of service credit and is otherwise eligible under the 
9requirements of Article 8 or Article 11 of this Code, 
10whichever is applicable. 
11 (d) The retirement annuity of a member or participant who 
12is retiring after attaining age 62 (age 60, with respect to 
13service under Article 12 that is subject to this Section, for a 
14member or participant under Article 12 who first becomes a 
15member or participant under Article 12 on or after January 1, 
162022 or who makes the election under item (i) of subsection 
17(d-15) of this Section) with at least 10 years of service 
18credit shall be reduced by one-half of 1% for each full month 
19that the member's age is under age 67 (age 65, with respect to 
20service under Article 12 that is subject to this Section, for a 
21member or participant under Article 12 who first becomes a 
22member or participant under Article 12 on or after January 1, 
232022 or who makes the election under item (i) of subsection 
24(d-15) of this Section).
25 (d-5) The retirement annuity payable under Article 8 or 
26Article 11 to an eligible person subject to subsection (c-5) 
 
 
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1of this Section who is retiring at age 60 with at least 10 
2years of service credit shall be reduced by one-half of 1% for 
3each full month that the member's age is under age 65. 
4 (d-10) Each person who first became a member or 
5participant under Article 8 or Article 11 of this Code on or 
6after January 1, 2011 and prior to July 6, 2017 (the effective 
7date of Public Act 100-23) shall make an irrevocable election 
8either:
9  (i) to be eligible for the reduced retirement age 
10 provided in subsections (c-5) and (d-5) of this Section, 
11 the eligibility for which is conditioned upon the member 
12 or participant agreeing to the increases in employee 
13 contributions for age and service annuities provided in 
14 subsection (a-5) of Section 8-174 of this Code (for 
15 service under Article 8) or subsection (a-5) of Section 
16 11-170 of this Code (for service under Article 11); or 
17  (ii) to not agree to item (i) of this subsection 
18 (d-10), in which case the member or participant shall 
19 continue to be subject to the retirement age provisions in 
20 subsections (c) and (d) of this Section and the employee 
21 contributions for age and service annuity as provided in 
22 subsection (a) of Section 8-174 of this Code (for service 
23 under Article 8) or subsection (a) of Section 11-170 of 
24 this Code (for service under Article 11). 
25 The election provided for in this subsection shall be made 
26between October 1, 2017 and November 15, 2017. A person 
 
 
HB4873- 92 -LRB103 35886 RPS 65971 b


1subject to this subsection who makes the required election 
2shall remain bound by that election. A person subject to this 
3subsection who fails for any reason to make the required 
4election within the time specified in this subsection shall be 
5deemed to have made the election under item (ii). 
6 (d-15) Each person who first becomes a member or 
7participant under Article 12 on or after January 1, 2011 and 
8prior to January 1, 2022 shall make an irrevocable election 
9either: 
10  (i) to be eligible for the reduced retirement age 
11 specified in subsections (c) and (d) of this Section, the 
12 eligibility for which is conditioned upon the member or 
13 participant agreeing to the increase in employee 
14 contributions for service annuities specified in 
15 subsection (b) of Section 12-150; or
16  (ii) to not agree to item (i) of this subsection 
17 (d-15), in which case the member or participant shall not 
18 be eligible for the reduced retirement age specified in 
19 subsections (c) and (d) of this Section and shall not be 
20 subject to the increase in employee contributions for 
21 service annuities specified in subsection (b) of Section 
22 12-150. 
23 The election provided for in this subsection shall be made 
24between January 1, 2022 and April 1, 2022. A person subject to 
25this subsection who makes the required election shall remain 
26bound by that election. A person subject to this subsection 
 
 
HB4873- 93 -LRB103 35886 RPS 65971 b


1who fails for any reason to make the required election within 
2the time specified in this subsection shall be deemed to have 
3made the election under item (ii). 
4 (e) Except as otherwise provided in this subsection, any 
5Any retirement annuity or supplemental annuity shall be 
6subject to annual increases on the January 1 occurring either 
7on or after the attainment of age 67 (age 65, with respect to 
8service under Article 12 that is subject to this Section, for a 
9member or participant under Article 12 who first becomes a 
10member or participant under Article 12 on or after January 1, 
112022 or who makes the election under item (i) of subsection 
12(d-15); and beginning on July 6, 2017 (the effective date of 
13Public Act 100-23), age 65 with respect to service under 
14Article 8 or Article 11 for eligible persons who: (i) are 
15subject to subsection (c-5) of this Section; or (ii) made the 
16election under item (i) of subsection (d-10) of this Section) 
17or the first anniversary of the annuity start date, whichever 
18is later. Except as otherwise provided in this subsection, 
19each Each annual increase shall be calculated at 3% or 
20one-half the annual unadjusted percentage increase (but not 
21less than zero) in the consumer price index-u for the 12 months 
22ending with the September preceding each November 1, whichever 
23is less, of the originally granted retirement annuity. If the 
24annual unadjusted percentage change in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1 is zero or there is a decrease, then the 
 
 
HB4873- 94 -LRB103 35886 RPS 65971 b


1annuity shall not be increased. 
2 Beginning January 1, 2026, any retirement annuity or 
3supplemental annuity of a member or participant under Article 
414, 16, or 17 who is subject to this Section shall be subject 
5to annual increases on the January 1 occurring after the first 
6anniversary of the annuity start date. Each annual increase 
7for a member or participant of a retirement system or pension 
8fund established under Article 14, 16, or 17 who is subject to 
9this Section shall be calculated at 3% of the originally 
10granted retirement annuity. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this Section by this amendatory Act of the 
13103rd General Assembly are applicable without regard to 
14whether the employee was in active service on or after the 
15effective date of this amendatory Act of the 103rd General 
16Assembly. 
17 For the purposes of Section 1-103.1 of this Code, the 
18changes made to this Section by Public Act 102-263 are 
19applicable without regard to whether the employee was in 
20active service on or after August 6, 2021 (the effective date 
21of Public Act 102-263). 
22 For the purposes of Section 1-103.1 of this Code, the 
23changes made to this Section by Public Act 100-23 are 
24applicable without regard to whether the employee was in 
25active service on or after July 6, 2017 (the effective date of 
26Public Act 100-23). 
 
 
HB4873- 95 -LRB103 35886 RPS 65971 b


1 (f) The initial survivor's or widow's annuity of an 
2otherwise eligible survivor or widow of a retired member or 
3participant who first became a member or participant on or 
4after January 1, 2011 shall be in the amount of 66 2/3% of the 
5retired member's or participant's retirement annuity at the 
6date of death. In the case of the death of a member or 
7participant who has not retired and who first became a member 
8or participant on or after January 1, 2011, eligibility for a 
9survivor's or widow's annuity shall be determined by the 
10applicable Article of this Code. The initial benefit shall be 
1166 2/3% of the earned annuity without a reduction due to age. A 
12child's annuity of an otherwise eligible child shall be in the 
13amount prescribed under each Article if applicable. Any 
14survivor's or widow's annuity shall be increased (1) on each 
15January 1 occurring on or after the commencement of the 
16annuity if the deceased member died while receiving a 
17retirement annuity or (2) in other cases, on each January 1 
18occurring after the first anniversary of the commencement of 
19the annuity. Each annual increase shall be calculated at 3% or 
20one-half the annual unadjusted percentage increase (but not 
21less than zero) in the consumer price index-u for the 12 months 
22ending with the September preceding each November 1, whichever 
23is less, of the originally granted survivor's annuity. If the 
24annual unadjusted percentage change in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1 is zero or there is a decrease, then the 
 
 
HB4873- 96 -LRB103 35886 RPS 65971 b


1annuity shall not be increased. 
2 (g) The benefits in Section 14-110 apply only if the 
3person is a State policeman, a fire fighter in the fire 
4protection service of a department, a conservation police 
5officer, an investigator for the Secretary of State, an arson 
6investigator, a Commerce Commission police officer, 
7investigator for the Department of Revenue or the Illinois 
8Gaming Board, a security employee of the Department of 
9Corrections or the Department of Juvenile Justice, or a 
10security employee of the Department of Innovation and 
11Technology, as those terms are defined in subsection (b) and 
12subsection (c) of Section 14-110. A person who meets the 
13requirements of this Section is entitled to an annuity 
14calculated under the provisions of Section 14-110, in lieu of 
15the regular or minimum retirement annuity, only if the person 
16has withdrawn from service with not less than 20 years of 
17eligible creditable service and has attained age 60, 
18regardless of whether the attainment of age 60 occurs while 
19the person is still in service. 
20 (h) If a person who first becomes a member or a participant 
21of a retirement system or pension fund subject to this Section 
22on or after January 1, 2011 is receiving a retirement annuity 
23or retirement pension under that system or fund and becomes a 
24member or participant under any other system or fund created 
25by this Code and is employed on a full-time basis, except for 
26those members or participants exempted from the provisions of 
 
 
HB4873- 97 -LRB103 35886 RPS 65971 b


1this Section under subsection (a) of this Section, then the 
2person's retirement annuity or retirement pension under that 
3system or fund shall be suspended during that employment. Upon 
4termination of that employment, the person's retirement 
5annuity or retirement pension payments shall resume and be 
6recalculated if recalculation is provided for under the 
7applicable Article of this Code.
8 If a person who first becomes a member of a retirement 
9system or pension fund subject to this Section on or after 
10January 1, 2012 and is receiving a retirement annuity or 
11retirement pension under that system or fund and accepts on a 
12contractual basis a position to provide services to a 
13governmental entity from which he or she has retired, then 
14that person's annuity or retirement pension earned as an 
15active employee of the employer shall be suspended during that 
16contractual service. A person receiving an annuity or 
17retirement pension under this Code shall notify the pension 
18fund or retirement system from which he or she is receiving an 
19annuity or retirement pension, as well as his or her 
20contractual employer, of his or her retirement status before 
21accepting contractual employment. A person who fails to submit 
22such notification shall be guilty of a Class A misdemeanor and 
23required to pay a fine of $1,000. Upon termination of that 
24contractual employment, the person's retirement annuity or 
25retirement pension payments shall resume and, if appropriate, 
26be recalculated under the applicable provisions of this Code. 
 
 
HB4873- 98 -LRB103 35886 RPS 65971 b


1 (i) (Blank). 
2 (j) In the case of a conflict between the provisions of 
3this Section and any other provision of this Code, the 
4provisions of this Section shall control.
5(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
6102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
75-13-22.)

8 (Text of Section from P.A. 102-956)
9 Sec. 1-160. Provisions applicable to new hires. 
10 (a) The provisions of this Section apply to a person who, 
11on or after January 1, 2011, first becomes a member or a 
12participant under any reciprocal retirement system or pension 
13fund established under this Code, other than a retirement 
14system or pension fund established under Article 2, 3, 4, 5, 6, 
157, 15, or 18 of this Code, notwithstanding any other provision 
16of this Code to the contrary, but do not apply to any 
17self-managed plan established under this Code or to any 
18participant of the retirement plan established under Section 
1922-101; except that this Section applies to a person who 
20elected to establish alternative credits by electing in 
21writing after January 1, 2011, but before August 8, 2011, 
22under Section 7-145.1 of this Code. Notwithstanding anything 
23to the contrary in this Section, for purposes of this Section, 
24a person who is a Tier 1 regular employee as defined in Section 
257-109.4 of this Code or who participated in a retirement 
 
 
HB4873- 99 -LRB103 35886 RPS 65971 b


1system under Article 15 prior to January 1, 2011 shall be 
2deemed a person who first became a member or participant prior 
3to January 1, 2011 under any retirement system or pension fund 
4subject to this Section. The changes made to this Section by 
5Public Act 98-596 are a clarification of existing law and are 
6intended to be retroactive to January 1, 2011 (the effective 
7date of Public Act 96-889), notwithstanding the provisions of 
8Section 1-103.1 of this Code.
9 This Section does not apply to a person who first becomes a 
10noncovered employee under Article 14 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who first becomes a 
17member or participant under Article 16 on or after the 
18implementation date of the plan created under Section 1-161 
19for that Article, unless that person elects under subsection 
20(b) of Section 1-161 to instead receive the benefits provided 
21under this Section and the applicable provisions of that 
22Article.
23 This Section does not apply to a person who elects under 
24subsection (c-5) of Section 1-161 to receive the benefits 
25under Section 1-161. 
26 This Section does not apply to a person who first becomes a 
 
 
HB4873- 100 -LRB103 35886 RPS 65971 b


1member or participant of an affected pension fund on or after 6 
2months after the resolution or ordinance date, as defined in 
3Section 1-162, unless that person elects under subsection (c) 
4of Section 1-162 to receive the benefits provided under this 
5Section and the applicable provisions of the Article under 
6which he or she is a member or participant. 
7 (b) "Final average salary" means, except as otherwise 
8provided in this subsection, the average monthly (or annual) 
9salary obtained by dividing the total salary or earnings 
10calculated under the Article applicable to the member or 
11participant during the 96 consecutive months (or 8 consecutive 
12years) of service within the last 120 months (or 10 years) of 
13service in which the total salary or earnings calculated under 
14the applicable Article was the highest by the number of months 
15(or years) of service in that period. For the purposes of a 
16person who first becomes a member or participant of any 
17retirement system or pension fund to which this Section 
18applies on or after January 1, 2011, in this Code, "final 
19average salary" shall be substituted for the following:
20  (1) (Blank).
21  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
22 annual salary for any 4 consecutive years within the last 
23 10 years of service immediately preceding the date of 
24 withdrawal". 
25  (3) In Article 13, "average final salary". 
26  (4) In Article 14, "final average compensation". 
 
 
HB4873- 101 -LRB103 35886 RPS 65971 b


1  (5) In Article 17, "average salary". 
2  (6) In Section 22-207, "wages or salary received by 
3 him at the date of retirement or discharge". 
4 A member of the Teachers' Retirement System of the State 
5of Illinois who retires on or after June 1, 2021 and for whom 
6the 2020-2021 school year is used in the calculation of the 
7member's final average salary shall use the higher of the 
8following for the purpose of determining the member's final 
9average salary:
10  (A) the amount otherwise calculated under the first 
11 paragraph of this subsection; or
12  (B) an amount calculated by the Teachers' Retirement 
13 System of the State of Illinois using the average of the 
14 monthly (or annual) salary obtained by dividing the total 
15 salary or earnings calculated under Article 16 applicable 
16 to the member or participant during the 96 months (or 8 
17 years) of service within the last 120 months (or 10 years) 
18 of service in which the total salary or earnings 
19 calculated under the Article was the highest by the number 
20 of months (or years) of service in that period.
21 (b-5) Beginning on January 1, 2011, for all purposes under 
22this Code (including without limitation the calculation of 
23benefits and employee contributions), the annual earnings, 
24salary, or wages (based on the plan year) of a member or 
25participant to whom this Section applies shall not exceed 
26$106,800; however, that amount shall annually thereafter be 
 
 
HB4873- 102 -LRB103 35886 RPS 65971 b


1increased by the lesser of (i) 3% of that amount, including all 
2previous adjustments, or (ii) one-half the annual unadjusted 
3percentage increase (but not less than zero) in the consumer 
4price index-u for the 12 months ending with the September 
5preceding each November 1, including all previous adjustments.
6 For the purposes of this Section, "consumer price index-u" 
7means the index published by the Bureau of Labor Statistics of 
8the United States Department of Labor that measures the 
9average change in prices of goods and services purchased by 
10all urban consumers, United States city average, all items, 
111982-84 = 100. The new amount resulting from each annual 
12adjustment shall be determined by the Public Pension Division 
13of the Department of Insurance and made available to the 
14boards of the retirement systems and pension funds by November 
151 of each year. 
16 (b-10) Beginning on January 1, 2024, for all purposes 
17under this Code (including, without limitation, the 
18calculation of benefits and employee contributions), the 
19annual earnings, salary, or wages (based on the plan year) of a 
20member or participant under Article 9 to whom this Section 
21applies shall include an annual earnings, salary, or wage cap 
22that tracks the Social Security wage base. Maximum annual 
23earnings, wages, or salary shall be the annual contribution 
24and benefit base established for the applicable year by the 
25Commissioner of the Social Security Administration under the 
26federal Social Security Act. 
 
 
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1 However, in no event shall the annual earnings, salary, or 
2wages for the purposes of this Article and Article 9 exceed any 
3limitation imposed on annual earnings, salary, or wages under 
4Section 1-117. Under no circumstances shall the maximum amount 
5of annual earnings, salary, or wages be greater than the 
6amount set forth in this subsection (b-10) as a result of 
7reciprocal service or any provisions regarding reciprocal 
8services, nor shall the Fund under Article 9 be required to pay 
9any refund as a result of the application of this maximum 
10annual earnings, salary, and wage cap. 
11 Nothing in this subsection (b-10) shall cause or otherwise 
12result in any retroactive adjustment of any employee 
13contributions. Nothing in this subsection (b-10) shall cause 
14or otherwise result in any retroactive adjustment of 
15disability or other payments made between January 1, 2011 and 
16January 1, 2024. 
17 (c) A member or participant is entitled to a retirement 
18annuity upon written application if he or she has attained age 
1967 (age 65, with respect to service under Article 12 that is 
20subject to this Section, for a member or participant under 
21Article 12 who first becomes a member or participant under 
22Article 12 on or after January 1, 2022 or who makes the 
23election under item (i) of subsection (d-15) of this Section) 
24and has at least 10 years of service credit and is otherwise 
25eligible under the requirements of the applicable Article. 
26 A member or participant who has attained age 62 (age 60, 
 
 
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1with respect to service under Article 12 that is subject to 
2this Section, for a member or participant under Article 12 who 
3first becomes a member or participant under Article 12 on or 
4after January 1, 2022 or who makes the election under item (i) 
5of subsection (d-15) of this Section) and has at least 10 years 
6of service credit and is otherwise eligible under the 
7requirements of the applicable Article may elect to receive 
8the lower retirement annuity provided in subsection (d) of 
9this Section. 
10 (c-5) A person who first becomes a member or a participant 
11subject to this Section on or after July 6, 2017 (the effective 
12date of Public Act 100-23), notwithstanding any other 
13provision of this Code to the contrary, is entitled to a 
14retirement annuity under Article 8 or Article 11 upon written 
15application if he or she has attained age 65 and has at least 
1610 years of service credit and is otherwise eligible under the 
17requirements of Article 8 or Article 11 of this Code, 
18whichever is applicable. 
19 (d) The retirement annuity of a member or participant who 
20is retiring after attaining age 62 (age 60, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section) with at least 10 years of service 
26credit shall be reduced by one-half of 1% for each full month 
 
 
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1that the member's age is under age 67 (age 65, with respect to 
2service under Article 12 that is subject to this Section, for a 
3member or participant under Article 12 who first becomes a 
4member or participant under Article 12 on or after January 1, 
52022 or who makes the election under item (i) of subsection 
6(d-15) of this Section).
7 (d-5) The retirement annuity payable under Article 8 or 
8Article 11 to an eligible person subject to subsection (c-5) 
9of this Section who is retiring at age 60 with at least 10 
10years of service credit shall be reduced by one-half of 1% for 
11each full month that the member's age is under age 65. 
12 (d-10) Each person who first became a member or 
13participant under Article 8 or Article 11 of this Code on or 
14after January 1, 2011 and prior to July 6, 2017 (the effective 
15date of Public Act 100-23) shall make an irrevocable election 
16either:
17  (i) to be eligible for the reduced retirement age 
18 provided in subsections (c-5) and (d-5) of this Section, 
19 the eligibility for which is conditioned upon the member 
20 or participant agreeing to the increases in employee 
21 contributions for age and service annuities provided in 
22 subsection (a-5) of Section 8-174 of this Code (for 
23 service under Article 8) or subsection (a-5) of Section 
24 11-170 of this Code (for service under Article 11); or 
25  (ii) to not agree to item (i) of this subsection 
26 (d-10), in which case the member or participant shall 
 
 
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1 continue to be subject to the retirement age provisions in 
2 subsections (c) and (d) of this Section and the employee 
3 contributions for age and service annuity as provided in 
4 subsection (a) of Section 8-174 of this Code (for service 
5 under Article 8) or subsection (a) of Section 11-170 of 
6 this Code (for service under Article 11). 
7 The election provided for in this subsection shall be made 
8between October 1, 2017 and November 15, 2017. A person 
9subject to this subsection who makes the required election 
10shall remain bound by that election. A person subject to this 
11subsection who fails for any reason to make the required 
12election within the time specified in this subsection shall be 
13deemed to have made the election under item (ii). 
14 (d-15) Each person who first becomes a member or 
15participant under Article 12 on or after January 1, 2011 and 
16prior to January 1, 2022 shall make an irrevocable election 
17either: 
18  (i) to be eligible for the reduced retirement age 
19 specified in subsections (c) and (d) of this Section, the 
20 eligibility for which is conditioned upon the member or 
21 participant agreeing to the increase in employee 
22 contributions for service annuities specified in 
23 subsection (b) of Section 12-150; or
24  (ii) to not agree to item (i) of this subsection 
25 (d-15), in which case the member or participant shall not 
26 be eligible for the reduced retirement age specified in 
 
 
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1 subsections (c) and (d) of this Section and shall not be 
2 subject to the increase in employee contributions for 
3 service annuities specified in subsection (b) of Section 
4 12-150. 
5 The election provided for in this subsection shall be made 
6between January 1, 2022 and April 1, 2022. A person subject to 
7this subsection who makes the required election shall remain 
8bound by that election. A person subject to this subsection 
9who fails for any reason to make the required election within 
10the time specified in this subsection shall be deemed to have 
11made the election under item (ii). 
12 (e) Except as otherwise provided in this subsection, any 
13Any retirement annuity or supplemental annuity shall be 
14subject to annual increases on the January 1 occurring either 
15on or after the attainment of age 67 (age 65, with respect to 
16service under Article 12 that is subject to this Section, for a 
17member or participant under Article 12 who first becomes a 
18member or participant under Article 12 on or after January 1, 
192022 or who makes the election under item (i) of subsection 
20(d-15); and beginning on July 6, 2017 (the effective date of 
21Public Act 100-23), age 65 with respect to service under 
22Article 8 or Article 11 for eligible persons who: (i) are 
23subject to subsection (c-5) of this Section; or (ii) made the 
24election under item (i) of subsection (d-10) of this Section) 
25or the first anniversary of the annuity start date, whichever 
26is later. Except as otherwise provided in this subsection, 
 
 
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1each Each annual increase shall be calculated at 3% or 
2one-half the annual unadjusted percentage increase (but not 
3less than zero) in the consumer price index-u for the 12 months 
4ending with the September preceding each November 1, whichever 
5is less, of the originally granted retirement annuity. If the 
6annual unadjusted percentage change in the consumer price 
7index-u for the 12 months ending with the September preceding 
8each November 1 is zero or there is a decrease, then the 
9annuity shall not be increased. 
10 Beginning January 1, 2026, any retirement annuity or 
11supplemental annuity of a member or participant under Article 
1214, 16, or 17 who is subject to this Section shall be subject 
13to annual increases on the January 1 occurring after the first 
14anniversary of the annuity start date. Each annual increase 
15for a member or participant of a retirement system or pension 
16fund established under Article 14, 16, or 17 who is subject to 
17this Section shall be calculated at 3% of the originally 
18granted retirement annuity. 
19 For the purposes of Section 1-103.1 of this Code, the 
20changes made to this Section by this amendatory Act of the 
21103rd General Assembly are applicable without regard to 
22whether the employee was in active service on or after the 
23effective date of this amendatory Act of the 103rd General 
24Assembly. 
25 For the purposes of Section 1-103.1 of this Code, the 
26changes made to this Section by Public Act 102-263 are 
 
 
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1applicable without regard to whether the employee was in 
2active service on or after August 6, 2021 (the effective date 
3of Public Act 102-263). 
4 For the purposes of Section 1-103.1 of this Code, the 
5changes made to this Section by Public Act 100-23 are 
6applicable without regard to whether the employee was in 
7active service on or after July 6, 2017 (the effective date of 
8Public Act 100-23). 
9 (f) The initial survivor's or widow's annuity of an 
10otherwise eligible survivor or widow of a retired member or 
11participant who first became a member or participant on or 
12after January 1, 2011 shall be in the amount of 66 2/3% of the 
13retired member's or participant's retirement annuity at the 
14date of death. In the case of the death of a member or 
15participant who has not retired and who first became a member 
16or participant on or after January 1, 2011, eligibility for a 
17survivor's or widow's annuity shall be determined by the 
18applicable Article of this Code. The initial benefit shall be 
1966 2/3% of the earned annuity without a reduction due to age. A 
20child's annuity of an otherwise eligible child shall be in the 
21amount prescribed under each Article if applicable. Any 
22survivor's or widow's annuity shall be increased (1) on each 
23January 1 occurring on or after the commencement of the 
24annuity if the deceased member died while receiving a 
25retirement annuity or (2) in other cases, on each January 1 
26occurring after the first anniversary of the commencement of 
 
 
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1the annuity. Each annual increase shall be calculated at 3% or 
2one-half the annual unadjusted percentage increase (but not 
3less than zero) in the consumer price index-u for the 12 months 
4ending with the September preceding each November 1, whichever 
5is less, of the originally granted survivor's annuity. If the 
6annual unadjusted percentage change in the consumer price 
7index-u for the 12 months ending with the September preceding 
8each November 1 is zero or there is a decrease, then the 
9annuity shall not be increased. 
10 (g) The benefits in Section 14-110 apply only if the 
11person is a State policeman, a fire fighter in the fire 
12protection service of a department, a conservation police 
13officer, an investigator for the Secretary of State, an 
14investigator for the Office of the Attorney General, an arson 
15investigator, a Commerce Commission police officer, 
16investigator for the Department of Revenue or the Illinois 
17Gaming Board, a security employee of the Department of 
18Corrections or the Department of Juvenile Justice, or a 
19security employee of the Department of Innovation and 
20Technology, as those terms are defined in subsection (b) and 
21subsection (c) of Section 14-110. A person who meets the 
22requirements of this Section is entitled to an annuity 
23calculated under the provisions of Section 14-110, in lieu of 
24the regular or minimum retirement annuity, only if the person 
25has withdrawn from service with not less than 20 years of 
26eligible creditable service and has attained age 60, 
 
 
HB4873- 111 -LRB103 35886 RPS 65971 b


1regardless of whether the attainment of age 60 occurs while 
2the person is still in service. 
3 (h) If a person who first becomes a member or a participant 
4of a retirement system or pension fund subject to this Section 
5on or after January 1, 2011 is receiving a retirement annuity 
6or retirement pension under that system or fund and becomes a 
7member or participant under any other system or fund created 
8by this Code and is employed on a full-time basis, except for 
9those members or participants exempted from the provisions of 
10this Section under subsection (a) of this Section, then the 
11person's retirement annuity or retirement pension under that 
12system or fund shall be suspended during that employment. Upon 
13termination of that employment, the person's retirement 
14annuity or retirement pension payments shall resume and be 
15recalculated if recalculation is provided for under the 
16applicable Article of this Code.
17 If a person who first becomes a member of a retirement 
18system or pension fund subject to this Section on or after 
19January 1, 2012 and is receiving a retirement annuity or 
20retirement pension under that system or fund and accepts on a 
21contractual basis a position to provide services to a 
22governmental entity from which he or she has retired, then 
23that person's annuity or retirement pension earned as an 
24active employee of the employer shall be suspended during that 
25contractual service. A person receiving an annuity or 
26retirement pension under this Code shall notify the pension 
 
 
HB4873- 112 -LRB103 35886 RPS 65971 b


1fund or retirement system from which he or she is receiving an 
2annuity or retirement pension, as well as his or her 
3contractual employer, of his or her retirement status before 
4accepting contractual employment. A person who fails to submit 
5such notification shall be guilty of a Class A misdemeanor and 
6required to pay a fine of $1,000. Upon termination of that 
7contractual employment, the person's retirement annuity or 
8retirement pension payments shall resume and, if appropriate, 
9be recalculated under the applicable provisions of this Code. 
10 (i) (Blank). 
11 (j) In the case of a conflict between the provisions of 
12this Section and any other provision of this Code, the 
13provisions of this Section shall control.
14(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
15102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
168-11-23.)

17 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
18 (Text of Section WITHOUT the changes made by P.A. 98-599, 
19which has been held unconstitutional)
20 Sec. 2-119.1. Automatic increase in retirement annuity. 
21 (a) A participant who retires after June 30, 1967, and who 
22has not received an initial increase under this Section before 
23the effective date of this amendatory Act of 1991, shall, in 
24January or July next following the first anniversary of 
25retirement, whichever occurs first, and in the same month of 
 
 
HB4873- 113 -LRB103 35886 RPS 65971 b


1each year thereafter, but in no event prior to age 60, have the 
2amount of the originally granted retirement annuity increased 
3as follows: for each year through 1971, 1 1/2%; for each year 
4from 1972 through 1979, 2%; and for 1980 and each year 
5thereafter, 3%. Annuitants who have received an initial 
6increase under this subsection prior to the effective date of 
7this amendatory Act of 1991 shall continue to receive their 
8annual increases in the same month as the initial increase.
9 (b) Beginning January 1, 1990, for eligible participants 
10who remain in service after attaining 20 years of creditable 
11service, the 3% increases provided under subsection (a) shall 
12begin to accrue on the January 1 next following the date upon 
13which the participant (1) attains age 55, or (2) attains 20 
14years of creditable service, whichever occurs later, and shall 
15continue to accrue while the participant remains in service; 
16such increases shall become payable on January 1 or July 1, 
17whichever occurs first, next following the first anniversary 
18of retirement. For any person who has service credit in the 
19System for the entire period from January 15, 1969 through 
20December 31, 1992, regardless of the date of termination of 
21service, the reference to age 55 in clause (1) of this 
22subsection (b) shall be deemed to mean age 50.
23 This subsection (b) does not apply to any person who first 
24becomes a member of the System after the effective date of this 
25amendatory Act of the 93rd General Assembly.
26 (b-5) Notwithstanding any other provision of this Article 
 
 
HB4873- 114 -LRB103 35886 RPS 65971 b


1and except as otherwise provided in this subsection, a 
2participant who first becomes a participant on or after 
3January 1, 2011 (the effective date of Public Act 96-889) 
4shall, in January or July next following the first anniversary 
5of retirement, whichever occurs first, and in the same month 
6of each year thereafter, but in no event prior to age 67, have 
7the amount of the retirement annuity then being paid increased 
8by 3% or the annual unadjusted percentage increase in the 
9Consumer Price Index for All Urban Consumers as determined by 
10the Public Pension Division of the Department of Insurance 
11under subsection (a) of Section 2-108.1, whichever is less. 
12 Notwithstanding any other provision of this Article, 
13beginning January 1, 2026, a participant who first becomes a 
14participant on or after January 1, 2011 (the effective date of 
15Public Act 96-889) shall, in January or July next following 
16the first anniversary of retirement, whichever occurs first, 
17and in the same month of each year thereafter, have the amount 
18of the retirement annuity then being paid increased by 3%. 
19 In this subsection, "consumer price index-u" means the 
20index published by the Bureau of Labor Statistics of the 
21United States Department of Labor that measures the average 
22change in prices of goods and services purchased by all urban 
23consumers, United States city average, all items, 1982-84 = 
24100. The new amount resulting from each annual adjustment 
25shall be determined by the Public Pension Division of the 
26Department of Insurance and made available to the Board by 
 
 
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1November 1 of each year. 
2 For the purposes of Section 1-103.1 of this Code, the 
3changes made to this Section by this amendatory Act of the 
4103rd General Assembly are applicable without regard to 
5whether the employee was in active service on or after the 
6effective date of this amendatory Act of the 103rd General 
7Assembly. 
8 (c) The foregoing provisions relating to automatic 
9increases are not applicable to a participant who retires 
10before having made contributions (at the rate prescribed in 
11Section 2-126) for automatic increases for less than the 
12equivalent of one full year. However, in order to be eligible 
13for the automatic increases, such a participant may make 
14arrangements to pay to the system the amount required to bring 
15the total contributions for the automatic increase to the 
16equivalent of one year's contributions based upon his or her 
17last salary.
18 (d) A participant who terminated service prior to July 1, 
191967, with at least 14 years of service is entitled to an 
20increase in retirement annuity beginning January, 1976, and to 
21additional increases in January of each year thereafter.
22 The initial increase shall be 1 1/2% of the originally 
23granted retirement annuity multiplied by the number of full 
24years that the annuitant was in receipt of such annuity prior 
25to January 1, 1972, plus 2% of the originally granted 
26retirement annuity for each year after that date. The 
 
 
HB4873- 116 -LRB103 35886 RPS 65971 b


1subsequent annual increases shall be at the rate of 2% of the 
2originally granted retirement annuity for each year through 
31979 and at the rate of 3% for 1980 and thereafter.
4 (e) Beginning January 1, 1990, all automatic annual 
5increases payable under this Section shall be calculated as a 
6percentage of the total annuity payable at the time of the 
7increase, including previous increases granted under this 
8Article.
9(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

10 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
11 Sec. 15-136. Retirement annuities; amount annuities - 
12Amount. The provisions of this Section 15-136 apply only to 
13those participants who are participating in the traditional 
14benefit package or the portable benefit package and do not 
15apply to participants who are participating in the 
16self-managed plan.
17 (a) The amount of a participant's retirement annuity, 
18expressed in the form of a single-life annuity, shall be 
19determined by whichever of the following rules is applicable 
20and provides the largest annuity:
21 Rule 1: The retirement annuity shall be 1.67% of final 
22rate of earnings for each of the first 10 years of service, 
231.90% for each of the next 10 years of service, 2.10% for each 
24year of service in excess of 20 but not exceeding 30, and 2.30% 
25for each year in excess of 30; or for persons who retire on or 
 
 
HB4873- 117 -LRB103 35886 RPS 65971 b


1after January 1, 1998, 2.2% of the final rate of earnings for 
2each year of service.
3 Rule 2: The retirement annuity shall be the sum of the 
4following, determined from amounts credited to the participant 
5in accordance with the actuarial tables and the effective rate 
6of interest in effect at the time the retirement annuity 
7begins: 
8  (i) the normal annuity which can be provided on an 
9 actuarially equivalent basis, by the accumulated normal 
10 contributions as of the date the annuity begins; 
11  (ii) an annuity from employer contributions of an 
12 amount equal to that which can be provided on an 
13 actuarially equivalent basis from the accumulated normal 
14 contributions made by the participant under Section 
15 15-113.6 and Section 15-113.7 plus 1.4 times all other 
16 accumulated normal contributions made by the participant; 
17 and 
18  (iii) the annuity that can be provided on an 
19 actuarially equivalent basis from the entire contribution 
20 made by the participant under Section 15-113.3.
21 With respect to a police officer or firefighter who 
22retires on or after August 14, 1998, the accumulated normal 
23contributions taken into account under clauses (i) and (ii) of 
24this Rule 2 shall include the additional normal contributions 
25made by the police officer or firefighter under Section 
2615-157(a).
 
 
HB4873- 118 -LRB103 35886 RPS 65971 b


1 The amount of a retirement annuity calculated under this 
2Rule 2 shall be computed solely on the basis of the 
3participant's accumulated normal contributions, as specified 
4in this Rule and defined in Section 15-116. Neither an 
5employee or employer contribution for early retirement under 
6Section 15-136.2 nor any other employer contribution shall be 
7used in the calculation of the amount of a retirement annuity 
8under this Rule 2.
9 This amendatory Act of the 91st General Assembly is a 
10clarification of existing law and applies to every participant 
11and annuitant without regard to whether status as an employee 
12terminates before the effective date of this amendatory Act.
13 This Rule 2 does not apply to a person who first becomes an 
14employee under this Article on or after July 1, 2005. 
15 Rule 3: The retirement annuity of a participant who is 
16employed at least one-half time during the period on which his 
17or her final rate of earnings is based, shall be equal to the 
18participant's years of service not to exceed 30, multiplied by 
19(1) $96 if the participant's final rate of earnings is less 
20than $3,500, (2) $108 if the final rate of earnings is at least 
21$3,500 but less than $4,500, (3) $120 if the final rate of 
22earnings is at least $4,500 but less than $5,500, (4) $132 if 
23the final rate of earnings is at least $5,500 but less than 
24$6,500, (5) $144 if the final rate of earnings is at least 
25$6,500 but less than $7,500, (6) $156 if the final rate of 
26earnings is at least $7,500 but less than $8,500, (7) $168 if 
 
 
HB4873- 119 -LRB103 35886 RPS 65971 b


1the final rate of earnings is at least $8,500 but less than 
2$9,500, and (8) $180 if the final rate of earnings is $9,500 or 
3more, except that the annuity for those persons having made an 
4election under Section 15-154(a-1) shall be calculated and 
5payable under the portable retirement benefit program pursuant 
6to the provisions of Section 15-136.4.
7 Rule 4: A participant who is at least age 50 and has 25 or 
8more years of service as a police officer or firefighter, and a 
9participant who is age 55 or over and has at least 20 but less 
10than 25 years of service as a police officer or firefighter, 
11shall be entitled to a retirement annuity of 2 1/4% of the 
12final rate of earnings for each of the first 10 years of 
13service as a police officer or firefighter, 2 1/2% for each of 
14the next 10 years of service as a police officer or 
15firefighter, and 2 3/4% for each year of service as a police 
16officer or firefighter in excess of 20. The retirement annuity 
17for all other service shall be computed under Rule 1. A Tier 2 
18member is eligible for a retirement annuity calculated under 
19Rule 4 only if that Tier 2 member meets the service 
20requirements for that benefit calculation as prescribed under 
21this Rule 4 in addition to the applicable age requirement 
22under subsection (a-10) of Section 15-135.
23 For purposes of this Rule 4, a participant's service as a 
24firefighter shall also include the following: 
25  (i) service that is performed while the person is an 
26 employee under subsection (h) of Section 15-107; and 
 
 
HB4873- 120 -LRB103 35886 RPS 65971 b


1  (ii) in the case of an individual who was a 
2 participating employee employed in the fire department of 
3 the University of Illinois's Champaign-Urbana campus 
4 immediately prior to the elimination of that fire 
5 department and who immediately after the elimination of 
6 that fire department transferred to another job with the 
7 University of Illinois, service performed as an employee 
8 of the University of Illinois in a position other than 
9 police officer or firefighter, from the date of that 
10 transfer until the employee's next termination of service 
11 with the University of Illinois.
12 (b) For a Tier 1 member, the retirement annuity provided 
13under Rules 1 and 3 above shall be reduced by 1/2 of 1% for 
14each month the participant is under age 60 at the time of 
15retirement. However, this reduction shall not apply in the 
16following cases: 
17  (1) For a disabled participant whose disability 
18 benefits have been discontinued because he or she has 
19 exhausted eligibility for disability benefits under clause 
20 (6) of Section 15-152; 
21  (2) For a participant who has at least the number of 
22 years of service required to retire at any age under 
23 subsection (a) of Section 15-135; or 
24  (3) For that portion of a retirement annuity which has 
25 been provided on account of service of the participant 
26 during periods when he or she performed the duties of a 
 
 
HB4873- 121 -LRB103 35886 RPS 65971 b


1 police officer or firefighter, if these duties were 
2 performed for at least 5 years immediately preceding the 
3 date the retirement annuity is to begin.
4 (b-5) The retirement annuity of a Tier 2 member who is 
5retiring under Rule 1 or 3 after attaining age 62 with at least 
610 years of service credit shall be reduced by 1/2 of 1% for 
7each full month that the member's age is under age 67. 
8 (c) The maximum retirement annuity provided under Rules 1, 
92, 4, and 5 shall be the lesser of (1) the annual limit of 
10benefits as specified in Section 415 of the Internal Revenue 
11Code of 1986, as such Section may be amended from time to time 
12and as such benefit limits shall be adjusted by the 
13Commissioner of Internal Revenue, and (2) 80% of final rate of 
14earnings.
15 (d) A Tier 1 member whose status as an employee terminates 
16after August 14, 1969 shall receive automatic increases in his 
17or her retirement annuity as follows:
18 Effective January 1 immediately following the date the 
19retirement annuity begins, the annuitant shall receive an 
20increase in his or her monthly retirement annuity of 0.125% of 
21the monthly retirement annuity provided under Rule 1, Rule 2, 
22Rule 3, or Rule 4 contained in this Section, multiplied by the 
23number of full months which elapsed from the date the 
24retirement annuity payments began to January 1, 1972, plus 
250.1667% of such annuity, multiplied by the number of full 
26months which elapsed from January 1, 1972, or the date the 
 
 
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1retirement annuity payments began, whichever is later, to 
2January 1, 1978, plus 0.25% of such annuity multiplied by the 
3number of full months which elapsed from January 1, 1978, or 
4the date the retirement annuity payments began, whichever is 
5later, to the effective date of the increase.
6 The annuitant shall receive an increase in his or her 
7monthly retirement annuity on each January 1 thereafter during 
8the annuitant's life of 3% of the monthly annuity provided 
9under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this 
10Section. The change made under this subsection by P.A. 81-970 
11is effective January 1, 1980 and applies to each annuitant 
12whose status as an employee terminates before or after that 
13date.
14 Beginning January 1, 1990, all automatic annual increases 
15payable under this Section shall be calculated as a percentage 
16of the total annuity payable at the time of the increase, 
17including all increases previously granted under this Article.
18 The change made in this subsection by P.A. 85-1008 is 
19effective January 26, 1988, and is applicable without regard 
20to whether status as an employee terminated before that date.
21 (d-5) Except as otherwise provided in this subsection, a A 
22retirement annuity of a Tier 2 member shall receive annual 
23increases on the January 1 occurring either on or after the 
24attainment of age 67 or the first anniversary of the annuity 
25start date, whichever is later. Each annual increase shall be 
26calculated at 3% or one half the annual unadjusted percentage 
 
 
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1increase (but not less than zero) in the consumer price 
2index-u for the 12 months ending with the September preceding 
3each November 1, whichever is less, of the originally granted 
4retirement annuity. If the annual unadjusted percentage change 
5in the consumer price index-u for the 12 months ending with the 
6September preceding each November 1 is zero or there is a 
7decrease, then the annuity shall not be increased. 
8 Beginning January 1, 2026, a retirement annuity of a Tier 
92 member shall receive annual increases on the January 1 
10occurring either on or after the first anniversary of the 
11annuity start date. Each annual increase shall be calculated 
12at 3% of the originally granted retirement annuity. 
13 (e) If, on January 1, 1987, or the date the retirement 
14annuity payment period begins, whichever is later, the sum of 
15the retirement annuity provided under Rule 1 or Rule 2 of this 
16Section and the automatic annual increases provided under the 
17preceding subsection or Section 15-136.1, amounts to less than 
18the retirement annuity which would be provided by Rule 3, the 
19retirement annuity shall be increased as of January 1, 1987, 
20or the date the retirement annuity payment period begins, 
21whichever is later, to the amount which would be provided by 
22Rule 3 of this Section. Such increased amount shall be 
23considered as the retirement annuity in determining benefits 
24provided under other Sections of this Article. This paragraph 
25applies without regard to whether status as an employee 
26terminated before the effective date of this amendatory Act of 
 
 
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11987, provided that the annuitant was employed at least 
2one-half time during the period on which the final rate of 
3earnings was based.
4 (f) A participant is entitled to such additional annuity 
5as may be provided on an actuarially equivalent basis, by any 
6accumulated additional contributions to his or her credit. 
7However, the additional contributions made by the participant 
8toward the automatic increases in annuity provided under this 
9Section shall not be taken into account in determining the 
10amount of such additional annuity.
11 (g) If, (1) by law, a function of a governmental unit, as 
12defined by Section 20-107 of this Code, is transferred in 
13whole or in part to an employer, and (2) a participant 
14transfers employment from such governmental unit to such 
15employer within 6 months after the transfer of the function, 
16and (3) the sum of (A) the annuity payable to the participant 
17under Rule 1, 2, or 3 of this Section (B) all proportional 
18annuities payable to the participant by all other retirement 
19systems covered by Article 20, and (C) the initial primary 
20insurance amount to which the participant is entitled under 
21the Social Security Act, is less than the retirement annuity 
22which would have been payable if all of the participant's 
23pension credits validated under Section 20-109 had been 
24validated under this system, a supplemental annuity equal to 
25the difference in such amounts shall be payable to the 
26participant.
 
 
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1 (h) On January 1, 1981, an annuitant who was receiving a 
2retirement annuity on or before January 1, 1971 shall have his 
3or her retirement annuity then being paid increased $1 per 
4month for each year of creditable service. On January 1, 1982, 
5an annuitant whose retirement annuity began on or before 
6January 1, 1977, shall have his or her retirement annuity then 
7being paid increased $1 per month for each year of creditable 
8service.
9 (i) On January 1, 1987, any annuitant whose retirement 
10annuity began on or before January 1, 1977, shall have the 
11monthly retirement annuity increased by an amount equal to 8¢ 
12per year of creditable service times the number of years that 
13have elapsed since the annuity began.
14 (j) The changes made to this Section by this amendatory 
15Act of the 101st General Assembly apply retroactively to 
16January 1, 2011.
17(Source: P.A. 101-610, eff. 1-1-20.)

18 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
19 Sec. 18-125.1. Automatic increase in retirement annuity. A 
20participant who retires from service after June 30, 1969, 
21shall, in January of the year next following the year in which 
22the first anniversary of retirement occurs, and in January of 
23each year thereafter, have the amount of his or her originally 
24granted retirement annuity increased as follows: for each year 
25up to and including 1971, 1 1/2%; for each year from 1972 
 
 
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1through 1979 inclusive, 2%; and for 1980 and each year 
2thereafter, 3%.
3 Notwithstanding any other provision of this Article and 
4except as otherwise provided in this Section, a retirement 
5annuity for a participant who first serves as a judge on or 
6after January 1, 2011 (the effective date of Public Act 
796-889) shall be increased in January of the year next 
8following the year in which the first anniversary of 
9retirement occurs, but in no event prior to age 67, and in 
10January of each year thereafter, by an amount equal to 3% or 
11the annual percentage increase in the consumer price index-u 
12as determined by the Public Pension Division of the Department 
13of Insurance under subsection (b-5) of Section 18-125, 
14whichever is less, of the retirement annuity then being paid. 
15 Notwithstanding any other provision of this Article, 
16beginning January 1, 2026, a retirement annuity for a 
17participant who first serves as a judge on or after January 1, 
182011 (the effective date of Public Act 96-889) shall be 
19increased in January of the year next following the year in 
20which the first anniversary of retirement occurs, and in 
21January of each year thereafter, by an amount equal to 3% of 
22the retirement annuity then being paid. 
23 In this Section, "consumer price index-u" means the index 
24published by the Bureau of Labor Statistics of the United 
25States Department of Labor that measures the average change in 
26prices of goods and services purchased by all urban consumers, 
 
 
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1United States city average, all items, 1982-84 = 100. The new 
2amount resulting from each annual adjustment shall be 
3determined by the Public Pension Division of the Department of 
4Insurance and made available to the Board by November 1 of each 
5year. 
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this Section by this amendatory Act of the 
8103rd General Assembly are applicable without regard to 
9whether the employee was in active service on or after the 
10effective date of this amendatory Act of the 103rd General 
11Assembly. 
12 This Section is not applicable to a participant who 
13retires before he or she has made contributions at the rate 
14prescribed in Section 18-133 for automatic increases for not 
15less than the equivalent of one full year, unless such a 
16participant arranges to pay the system the amount required to 
17bring the total contributions for the automatic increase to 
18the equivalent of one year's contribution based upon his or 
19her last year's salary.
20 This Section is applicable to all participants in service 
21after June 30, 1969 unless a participant has elected, prior to 
22September 1, 1969, in a written direction filed with the board 
23not to be subject to the provisions of this Section. Any 
24participant in service on or after July 1, 1992 shall have the 
25option of electing prior to April 1, 1993, in a written 
26direction filed with the board, to be covered by the 
 
 
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1provisions of the 1969 amendatory Act. Such participant shall 
2be required to make the aforesaid additional contributions 
3with compound interest at 4% per annum.
4 Any participant who has become eligible to receive the 
5maximum rate of annuity and who resumes service as a judge 
6after receiving a retirement annuity under this Article shall 
7have the amount of his or her retirement annuity increased by 
83% of the originally granted annuity amount for each year of 
9such resumed service, beginning in January of the year next 
10following the date of such resumed service, upon subsequent 
11termination of such resumed service.
12 Beginning January 1, 1990, all automatic annual increases 
13payable under this Section shall be calculated as a percentage 
14of the total annuity payable at the time of the increase, 
15including previous increases granted under this Article.
16(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

17
Article 3. 


18 Section 3-5. The Illinois Administrative Procedure Act is 
19amended by adding Section 5-45.55 as follows:

20 (5 ILCS 100/5-45.55 new)
21 Sec. 5-45.55. Emergency rulemaking; accelerated pension 
22benefit payments. To provide for the expeditious and timely 
23implementation of accelerated pension benefit payments under 
 
 
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1Articles 2 and 18 of the Illinois Pension Code, emergency 
2rules implementing the accelerated pension benefit payments 
3under Article 2 may be adopted in accordance with Section 5-45 
4by the Board of Trustees established under Article 2 of the 
5Illinois Pension Code and emergency rules implementing the 
6accelerated pension benefit payments under Article 18 may be 
7adopted in accordance with Section 5-45 by the Board of 
8Trustees established under Article 18 of the Illinois Pension 
9Code. The adoption of emergency rules authorized by Section 
105-45 and this Section is deemed to be necessary for the public 
11interest, safety, and welfare.
12 This Section is repealed one year after the effective date 
13of this amendatory Act of the 103rd General Assembly.

14 Section 3-10. The Illinois Pension Code is amended by 
15adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11, 
1618-161.5, and 18-161.6 as follows:

17 (40 ILCS 5/2-154.5 new)
18 Sec. 2-154.5. Accelerated pension benefit payment in lieu 
19of any pension benefit.
20 (a) As used in this Section:
21 "Eligible person" means a person who:
22  (1) has terminated service;
23  (2) has accrued sufficient service credit to be 
24 eligible to receive a retirement annuity under this 
 
 
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1 Article;
2  (3) has not received any retirement annuity under this 
3 Article; and
4  (4) has not made the election under Section 2-154.6.
5 "Pension benefit" means the benefits under this Article, 
6including any anticipated annual increases, that an eligible 
7person is entitled to upon attainment of the applicable 
8retirement age. "Pension benefit" also includes applicable 
9survivor's or disability benefits.
10 (b) As soon as practical after the effective date of this 
11amendatory Act of the 103rd General Assembly, the System shall 
12calculate, using actuarial tables and other assumptions 
13adopted by the Board, the present value of pension benefits 
14for each eligible person who requests that information and 
15shall offer each eligible person the opportunity to 
16irrevocably elect to receive an amount determined by the 
17System to be equal to 60% of the present value of his or her 
18pension benefits in lieu of receiving any pension benefit. The 
19offer shall specify the dollar amount that the eligible person 
20will receive if he or she so elects and shall expire when a 
21subsequent offer is made to an eligible person. An eligible 
22person is limited to one calculation and offer per calendar 
23year. The System shall make a good faith effort to contact 
24every eligible person to notify him or her of the election. 
25Until June 30, 2027, an eligible person may irrevocably elect 
26to receive an accelerated pension benefit payment in the 
 
 
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1amount that the System offers under this subsection in lieu of 
2receiving any pension benefit. A person who elects to receive 
3an accelerated pension benefit payment under this Section may 
4not elect to proceed under the Retirement Systems Reciprocal 
5Act with respect to service under this Article.
6 (c) A person's creditable service under this Article shall 
7be terminated upon the person's receipt of an accelerated 
8pension benefit payment under this Section, and no other 
9benefit shall be paid under this Article based on the 
10terminated creditable service, including any retirement, 
11survivor, or other benefit; except that to the extent that 
12participation, benefits, or premiums under the State Employees 
13Group Insurance Act of 1971 are based on the amount of service 
14credit, the terminated service credit shall be used for that 
15purpose.
16 (d) If a person who has received an accelerated pension 
17benefit payment under this Section returns to active service 
18under this Article, then:
19  (1) Any benefits under the System earned as a result 
20 of that return to active service shall be based solely on 
21 the person's creditable service arising from the return to 
22 active service.
23  (2) The accelerated pension benefit payment may not be 
24 repaid to the System, and the terminated creditable 
25 service may not under any circumstances be reinstated.
26 (e) As a condition of receiving an accelerated pension 
 
 
HB4873- 132 -LRB103 35886 RPS 65971 b


1benefit payment, the accelerated pension benefit payment must 
2be transferred into a tax qualified retirement plan or 
3account. The accelerated pension benefit payment under this 
4Section may be subject to withholding or payment of applicable 
5taxes, but to the extent permitted by federal law, a person who 
6receives an accelerated pension benefit payment under this 
7Section must direct the System to pay all of that payment as a 
8rollover into another retirement plan or account qualified 
9under the Internal Revenue Code of 1986, as amended.
10 (f) Upon receipt of a member's irrevocable election to 
11receive an accelerated pension benefit payment under this 
12Section, the System shall submit a voucher to the Comptroller 
13for payment of the member's accelerated pension benefit 
14payment. The Comptroller shall transfer the amount of the 
15voucher from the General Revenue Fund to the System, and the 
16System shall transfer the amount into the member's eligible 
17retirement plan or qualified account.
18 (g) The Board shall adopt any rules, including emergency 
19rules, necessary to implement this Section.
20 (h) No provision of this Section shall be interpreted in a 
21way that would cause the applicable System to cease to be a 
22qualified plan under the Internal Revenue Code of 1986.

23 (40 ILCS 5/2-154.6 new)
24 Sec. 2-154.6. Accelerated pension benefit payment for a 
25reduction in annual retirement annuity and survivor's annuity 
 
 
HB4873- 133 -LRB103 35886 RPS 65971 b


1increases.
2 (a) As used in this Section:
3 "Accelerated pension benefit payment" means a lump sum 
4payment equal to 70% of the difference of the present value of 
5the automatic annual increases to a Tier 1 participant's 
6retirement annuity and survivor's annuity using the formula 
7applicable to the Tier 1 participant and the present value of 
8the automatic annual increases to the Tier 1 participant's 
9retirement annuity using the formula provided under subsection 
10(b-5) and survivor's annuity using the formula provided under 
11subsection (b-6).
12 "Eligible person" means a person who:
13  (1) is a Tier 1 participant;
14  (2) has submitted an application for a retirement 
15 annuity under this Article;
16  (3) meets the age and service requirements for 
17 receiving a retirement annuity under this Article;
18  (4) has not received any retirement annuity under this 
19 Article; and
20  (5) has not made the election under Section 2-154.5.
21 (b) As soon as practical after the effective date of this 
22amendatory Act of the 103rd General Assembly and until June 
2330, 2027, the System shall implement an accelerated pension 
24benefit payment option for eligible persons. Upon the request 
25of an eligible person, the System shall calculate, using 
26actuarial tables and other assumptions adopted by the Board, 
 
 
HB4873- 134 -LRB103 35886 RPS 65971 b


1an accelerated pension benefit payment amount and shall offer 
2that eligible person the opportunity to irrevocably elect to 
3have his or her automatic annual increases in retirement 
4annuity calculated in accordance with the formula provided 
5under subsection (b-5) and any increases in survivor's annuity 
6payable to his or her survivor's annuity beneficiary 
7calculated in accordance with the formula provided under 
8subsection (b-6) in exchange for the accelerated pension 
9benefit payment. The election under this subsection must be 
10made before the eligible person receives the first payment of 
11a retirement annuity otherwise payable under this Article.
12 (b-5) Notwithstanding any other provision of law, the 
13retirement annuity of a person who made the election under 
14subsection (b) shall be subject to annual increases on the 
15January 1 occurring either on or after the attainment of age 67 
16or the first anniversary of the annuity start date, whichever 
17is later. Each annual increase shall be calculated at 1.5% of 
18the originally granted retirement annuity.
19 (b-6) Notwithstanding any other provision of law, a 
20survivor's annuity payable to a survivor's annuity beneficiary 
21of a person who made the election under subsection (b) shall be 
22subject to annual increases on the January 1 occurring on or 
23after the first anniversary of the commencement of the 
24annuity. Each annual increase shall be calculated at 1.5% of 
25the originally granted survivor's annuity.
26 (c) If a person who has received an accelerated pension 
 
 
HB4873- 135 -LRB103 35886 RPS 65971 b


1benefit payment returns to active service under this Article, 
2then:
3  (1) the calculation of any future automatic annual 
4 increase in retirement annuity shall be calculated in 
5 accordance with the formula provided under subsection 
6 (b-5); and
7  (2) the accelerated pension benefit payment may not be 
8 repaid to the System.
9 (d) As a condition of receiving an accelerated pension 
10benefit payment, the accelerated pension benefit payment must 
11be transferred into a tax qualified retirement plan or 
12account. The accelerated pension benefit payment under this 
13Section may be subject to withholding or payment of applicable 
14taxes, but to the extent permitted by federal law, a person who 
15receives an accelerated pension benefit payment under this 
16Section must direct the System to pay all of that payment as a 
17rollover into another retirement plan or account qualified 
18under the Internal Revenue Code of 1986, as amended.
19 (d-5) Upon receipt of a participant's irrevocable election 
20to receive an accelerated pension benefit payment under this 
21Section, the System shall submit a voucher to the Comptroller 
22for payment of the participant's accelerated pension benefit 
23payment. The Comptroller shall transfer the amount of the 
24voucher from the General Revenue Fund to the System, and the 
25System shall transfer the amount into the member's eligible 
26retirement plan or qualified account.
 
 
HB4873- 136 -LRB103 35886 RPS 65971 b


1 (e) The Board shall adopt any rules, including emergency 
2rules, necessary to implement this Section.
3 (f) No provision of this Section shall be interpreted in a 
4way that would cause the applicable System to cease to be a 
5qualified plan under the Internal Revenue Code of 1986.

6 (40 ILCS 5/17-156.10 new)
7 Sec. 17-156.10. Accelerated pension benefit payment in 
8lieu of any pension benefit.
9 (a) As used in this Section:
10 "Eligible person" means a person who:
11  (1) has terminated service;
12  (2) has accrued sufficient service credit to be 
13 eligible to receive a service retirement pension under 
14 this Article;
15  (3) has not received any service retirement pension 
16 under this Article; and
17  (4) has not made the election under Section 17-156.11.
18 "Pension benefit" means the benefits under this Article, 
19including any anticipated annual increases, that an eligible 
20person is entitled to upon attainment of the applicable 
21retirement age. "Pension benefit" also includes applicable 
22survivor's pensions, duty disability pensions, and disability 
23retirement pensions.
24 (b) As soon as practical after the effective date of this 
25amendatory Act of the 103rd General Assembly, the Fund shall 
 
 
HB4873- 137 -LRB103 35886 RPS 65971 b


1calculate, using actuarial tables and other assumptions 
2adopted by the Board, the present value of pension benefits 
3for each eligible person who requests that information and 
4shall offer each eligible person the opportunity to 
5irrevocably elect to receive an amount determined by the Fund 
6to be equal to 60% of the present value of his or her pension 
7benefits in lieu of receiving any pension benefit. The offer 
8shall specify the dollar amount that the eligible person will 
9receive if he or she so elects and shall expire when a 
10subsequent offer is made to an eligible person. An eligible 
11person is limited to one calculation and offer per calendar 
12year. The Fund shall make a good faith effort to contact every 
13eligible person to notify him or her of the election. Until 
14June 30, 2027, an eligible person may irrevocably elect to 
15receive an accelerated pension benefit payment in the amount 
16that the Fund offers under this subsection in lieu of 
17receiving any pension benefit. A person who elects to receive 
18an accelerated pension benefit payment under this Section may 
19not elect to proceed under the Retirement Systems Reciprocal 
20Act with respect to service under this Article.
21 (c) A person's creditable service under this Article shall 
22be terminated upon the person's receipt of an accelerated 
23pension benefit payment under this Section, and no other 
24benefit shall be paid under this Article based on the 
25terminated creditable service, including any retirement, 
26survivor, or other pension benefit; except that to the extent 
 
 
HB4873- 138 -LRB103 35886 RPS 65971 b


1that participation, benefits, or premiums under the State 
2Employees Group Insurance Act of 1971 are based on the amount 
3of service credit, the terminated service credit shall be used 
4for that purpose.
5 (d) If a person who has received an accelerated pension 
6benefit payment under this Section returns to active service 
7under this Article, then:
8  (1) Any benefits under the Fund earned as a result of 
9 that return to active service shall be based solely on the 
10 person's creditable service arising from the return to 
11 active service.
12  (2) The accelerated pension benefit payment may not be 
13 repaid to the Fund, and the terminated creditable service 
14 may not under any circumstances be reinstated.
15 (e) As a condition of receiving an accelerated pension 
16benefit payment, the accelerated pension benefit payment must 
17be transferred into a tax qualified retirement plan or 
18account. The accelerated pension benefit payment under this 
19Section may be subject to withholding or payment of applicable 
20taxes, but to the extent permitted by federal law, a person who 
21receives an accelerated pension benefit payment under this 
22Section must direct the Fund to pay all of that payment as a 
23rollover into another retirement plan or account qualified 
24under the Internal Revenue Code of 1986, as amended.
25 (f) Upon receipt of a member's irrevocable election to 
26receive an accelerated pension benefit payment under this 
 
 
HB4873- 139 -LRB103 35886 RPS 65971 b


1Section, the Fund shall submit a voucher to the Comptroller 
2for payment of the member's accelerated pension benefit 
3payment. The Comptroller shall transfer the amount of the 
4voucher from the General Revenue Fund to the Fund, and the Fund 
5shall transfer the amount into the member's eligible 
6retirement plan or qualified account.
7 (g) The Board shall adopt any rules necessary to implement 
8this Section.
9 (h) No provision of this Section shall be interpreted in a 
10way that would cause the Fund to cease to be a qualified plan 
11under the Internal Revenue Code of 1986.

12 (40 ILCS 5/17-156.11 new)
13 Sec. 17-156.11. Accelerated pension benefit payment for a 
14reduction in annual service retirement pension and survivor's 
15pension increases. 
16 (a) As used in this Section:
17 "Accelerated pension benefit payment" means a lump sum 
18payment equal to 70% of the difference of the present value of 
19the automatic annual increases to a Tier 1 member's service 
20retirement pension and survivor's pension using the formula 
21applicable to the Tier 1 member and the present value of the 
22automatic annual increases to the Tier 1 member's service 
23retirement pension using the formula provided under subsection 
24(b-5) and survivor's pension using the formula provided under 
25subsection (b-6).
 
 
HB4873- 140 -LRB103 35886 RPS 65971 b


1 "Eligible person" means a person who:
2  (1) is a Tier 1 member;
3  (2) has submitted an application for a service 
4 retirement pension under this Article;
5  (3) meets the age and service requirements for 
6 receiving a service retirement pension under this Article;
7  (4) has not received any service retirement pension 
8 under this Article; and
9  (5) has not made the election under Section 17-156.10.
10 "Tier 1 member" means a person who first became a member 
11before January 1, 2011.
12 (b) As soon as practical after the effective date of this 
13amendatory Act of the 103rd General Assembly and until June 
1430, 2027, the Fund shall implement an accelerated pension 
15benefit payment option for eligible persons. Upon the request 
16of an eligible person, the Fund shall calculate, using 
17actuarial tables and other assumptions adopted by the Board, 
18an accelerated pension benefit payment amount and shall offer 
19that eligible person the opportunity to irrevocably elect to 
20have his or her automatic annual increases in service 
21retirement pension calculated in accordance with the formula 
22provided under subsection (b-5) and any increases in 
23survivor's pension payable to his or her survivor's pension 
24beneficiary calculated in accordance with the formula provided 
25under subsection (b-6) in exchange for the accelerated pension 
26benefit payment. The election under this subsection must be 
 
 
HB4873- 141 -LRB103 35886 RPS 65971 b


1made before the eligible person receives the first payment of 
2a service retirement pension otherwise payable under this 
3Article.
4 (b-5) Notwithstanding any other provision of law, the 
5service retirement pension of a person who made the election 
6under subsection (b) shall be subject to annual increases on 
7the January 1 occurring either on or after the attainment of 
8age 67 or the first anniversary of the pension start date, 
9whichever is later. Each annual increase shall be calculated 
10at 1.5% of the originally granted service retirement pension.
11 (b-6) Notwithstanding any other provision of law, a 
12survivor's pension payable to a survivor's pension beneficiary 
13of a person who made the election under subsection (b) shall be 
14subject to annual increases on the January 1 occurring on or 
15after the first anniversary of the commencement of the 
16pension. Each annual increase shall be calculated at 1.5% of 
17the originally granted survivor's pension.
18 (c) If a person who has received an accelerated pension 
19benefit payment returns to active service under this Article, 
20then:
21  (1) the calculation of any future automatic annual 
22 increase in service retirement pension shall be calculated 
23 in accordance with the formula provided under subsection 
24 (b-5); and
25  (2) the accelerated pension benefit payment may not be 
26 repaid to the Fund.
 
 
HB4873- 142 -LRB103 35886 RPS 65971 b


1 (d) As a condition of receiving an accelerated pension 
2benefit payment, the accelerated pension benefit payment must 
3be transferred into a tax qualified retirement plan or 
4account. The accelerated pension benefit payment under this 
5Section may be subject to withholding or payment of applicable 
6taxes, but to the extent permitted by federal law, a person who 
7receives an accelerated pension benefit payment under this 
8Section must direct the Fund to pay all of that payment as a 
9rollover into another retirement plan or account qualified 
10under the Internal Revenue Code of 1986, as amended.
11 (d-5) Upon receipt of a member's irrevocable election to 
12receive an accelerated pension benefit payment under this 
13Section, the Fund shall submit a voucher to the Comptroller 
14for payment of the member's accelerated pension benefit 
15payment. The Comptroller shall transfer the amount of the 
16voucher from the General Revenue Fund to the Fund, and the Fund 
17shall transfer the amount into the member's eligible 
18retirement plan or qualified account.
19 (e) The Board shall adopt any rules, including emergency 
20rules, necessary to implement this Section.
21 (f) No provision of this Section shall be interpreted in a 
22way that would cause the Fund to cease to be a qualified plan 
23under the Internal Revenue Code of 1986.

24 (40 ILCS 5/18-161.5 new)
25 Sec. 18-161.5. Accelerated pension benefit payment in lieu 
 
 
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1of any pension benefit.
2 (a) As used in this Section:
3 "Eligible person" means a person who:
4  (1) has terminated service;
5  (2) has accrued sufficient service credit to be 
6 eligible to receive a retirement annuity under this 
7 Article;
8  (3) has not received any retirement annuity under this 
9 Article; and
10  (4) has not made the election under Section 18-161.6.
11 "Pension benefit" means the benefits under this Article, 
12including any anticipated annual increases, that an eligible 
13person is entitled to upon attainment of the applicable 
14retirement age. "Pension benefit" also includes applicable 
15survivor's or disability benefits.
16 (b) As soon as practical after the effective date of this 
17amendatory Act of the 103rd General Assembly, the System shall 
18calculate, using actuarial tables and other assumptions 
19adopted by the Board, the present value of pension benefits 
20for each eligible person who requests that information and 
21shall offer each eligible person the opportunity to 
22irrevocably elect to receive an amount determined by the 
23System to be equal to 60% of the present value of his or her 
24pension benefits in lieu of receiving any pension benefit. The 
25offer shall specify the dollar amount that the eligible person 
26will receive if he or she so elects and shall expire when a 
 
 
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1subsequent offer is made to an eligible person. An eligible 
2person is limited to one calculation and offer per calendar 
3year. The System shall make a good faith effort to contact 
4every eligible person to notify him or her of the election. 
5Until June 30, 2027, an eligible person may irrevocably elect 
6to receive an accelerated pension benefit payment in the 
7amount that the System offers under this subsection in lieu of 
8receiving any pension benefit. A person who elects to receive 
9an accelerated pension benefit payment under this Section may 
10not elect to proceed under the Retirement Systems Reciprocal 
11Act with respect to service under this Article.
12 (c) A person's creditable service under this Article shall 
13be terminated upon the person's receipt of an accelerated 
14pension benefit payment under this Section, and no other 
15benefit shall be paid under this Article based on the 
16terminated creditable service, including any retirement, 
17survivor, or other benefit; except that to the extent that 
18participation, benefits, or premiums under the State Employees 
19Group Insurance Act of 1971 are based on the amount of service 
20credit, the terminated service credit shall be used for that 
21purpose.
22 (d) If a person who has received an accelerated pension 
23benefit payment under this Section returns to active service 
24under this Article, then:
25  (1) Any benefits under the System earned as a result 
26 of that return to active service shall be based solely on 
 
 
HB4873- 145 -LRB103 35886 RPS 65971 b


1 the person's creditable service arising from the return to 
2 active service.
3  (2) The accelerated pension benefit payment may not be 
4 repaid to the System, and the terminated creditable 
5 service may not under any circumstances be reinstated.
6 (e) As a condition of receiving an accelerated pension 
7benefit payment, the accelerated pension benefit payment must 
8be transferred into a tax qualified retirement plan or 
9account. The accelerated pension benefit payment under this 
10Section may be subject to withholding or payment of applicable 
11taxes, but to the extent permitted by federal law, a person who 
12receives an accelerated pension benefit payment under this 
13Section must direct the System to pay all of that payment as a 
14rollover into another retirement plan or account qualified 
15under the Internal Revenue Code of 1986, as amended.
16 (f) Upon receipt of a member's irrevocable election to 
17receive an accelerated pension benefit payment under this 
18Section, the System shall submit a voucher to the Comptroller 
19for payment of the member's accelerated pension benefit 
20payment. The Comptroller shall transfer the amount of the 
21voucher from the General Revenue Fund to the System, and the 
22System shall transfer the amount into the member's eligible 
23retirement plan or qualified account.
24 (g) The Board shall adopt any rules, including emergency 
25rules, necessary to implement this Section.
26 (h) No provision of this Section shall be interpreted in a 
 
 
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1way that would cause the applicable System to cease to be a 
2qualified plan under the Internal Revenue Code of 1986.

3 (40 ILCS 5/18-161.6 new)
4 Sec. 18-161.6.  Accelerated pension benefit payment for a 
5reduction in annual retirement annuity and survivor's annuity 
6increases.
7 (a) As used in this Section:
8 "Accelerated pension benefit payment" means a lump sum 
9payment equal to 70% of the difference of the present value of 
10the automatic annual increases to a Tier 1 participant's 
11retirement annuity and survivor's annuity using the formula 
12applicable to the Tier 1 participant and the present value of 
13the automatic annual increases to the Tier 1 participant's 
14retirement annuity using the formula provided under subsection 
15(b-5) and survivor's annuity using the formula provided under 
16subsection (b-6).
17 "Eligible person" means a person who:
18  (1) is a Tier 1 participant;
19  (2) has submitted an application for a retirement 
20 annuity under this Article;
21  (3) meets the age and service requirements for 
22 receiving a retirement annuity under this Article;
23  (4) has not received any retirement annuity under this 
24 Article; and
25  (5) has not made the election under Section 18-161.5.
 
 
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1 "Tier 1 participant" means a person who first became a 
2participant before January 1, 2011.
3 (b) As soon as practical after the effective date of this 
4amendatory Act of the 103rd General Assembly and until June 
530, 2027, the System shall implement an accelerated pension 
6benefit payment option for eligible persons. Upon the request 
7of an eligible person, the System shall calculate, using 
8actuarial tables and other assumptions adopted by the Board, 
9an accelerated pension benefit payment amount and shall offer 
10that eligible person the opportunity to irrevocably elect to 
11have his or her automatic annual increases in retirement 
12annuity calculated in accordance with the formula provided 
13under subsection (b-5) and any increases in survivor's annuity 
14payable to his or her survivor's annuity beneficiary 
15calculated in accordance with the formula provided under 
16subsection (b-6) in exchange for the accelerated pension 
17benefit payment. The election under this subsection must be 
18made before the eligible person receives the first payment of 
19a retirement annuity otherwise payable under this Article.
20 (b-5) Notwithstanding any other provision of law, the 
21retirement annuity of a person who made the election under 
22subsection (b) shall be subject to annual increases on the 
23January 1 occurring either on or after the attainment of age 67 
24or the first anniversary of the annuity start date, whichever 
25is later. Each annual increase shall be calculated at 1.5% of 
26the originally granted retirement annuity.
 
 
HB4873- 148 -LRB103 35886 RPS 65971 b


1 (b-6) Notwithstanding any other provision of law, a 
2survivor's annuity payable to a survivor's annuity beneficiary 
3of a person who made the election under subsection (b) shall be 
4subject to annual increases on the January 1 occurring on or 
5after the first anniversary of the commencement of the 
6annuity. Each annual increase shall be calculated at 1.5% of 
7the originally granted survivor's annuity.
8 (c) If a person who has received an accelerated pension 
9benefit payment returns to active service under this Article, 
10then:
11  (1) the calculation of any future automatic annual 
12 increase in retirement annuity shall be calculated in 
13 accordance with the formula provided under subsection 
14 (b-5); and
15  (2) the accelerated pension benefit payment may not be 
16 repaid to the System.
17 (d) As a condition of receiving an accelerated pension 
18benefit payment, the accelerated pension benefit payment must 
19be transferred into a tax qualified retirement plan or 
20account. The accelerated pension benefit payment under this 
21Section may be subject to withholding or payment of applicable 
22taxes, but to the extent permitted by federal law, a person who 
23receives an accelerated pension benefit payment under this 
24Section must direct the System to pay all of that payment as a 
25rollover into another retirement plan or account qualified 
26under the Internal Revenue Code of 1986, as amended.
 
 
HB4873- 149 -LRB103 35886 RPS 65971 b


1 (d-5) Upon receipt of a participant's irrevocable election 
2to receive an accelerated pension benefit payment under this 
3Section, the System shall submit a voucher to the Comptroller 
4for payment of the participant's accelerated pension benefit 
5payment. The Comptroller shall transfer the amount of the 
6voucher from the General Revenue Fund to the System, and the 
7System shall transfer the amount into the member's eligible 
8retirement plan or qualified account.
9 (e) The Board shall adopt any rules, including emergency 
10rules, necessary to implement this Section.
11 (f) No provision of this Section shall be interpreted in a 
12way that would cause the applicable System to cease to be a 
13qualified plan under the Internal Revenue Code of 1986.

14
Article 4. 


15 Section 4-5. The Illinois Pension Code is amended by 
16adding Sections 1-168, 3-118, 4-136, and 7-142.2 as follows:

17 (40 ILCS 5/1-168 new)
18 Sec. 1-168. Deferred retirement option plan.
19 (a) In this Section:
20 "Deferred retirement option plan" or "DROP" means the plan 
21created under this Section that provides an alternative method 
22of benefit accrual in the pension fund or retirement system.
23 "DROP member" means an eligible member who makes an 
 
 
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1election to participate in the DROP no later than January 1, 
22029.
3 "Eligible member" means a participating member under a 
4pension fund or retirement system established under Article 
514, 15, 16, or 17 who, at the time of the member's election to 
6participate in the DROP:
7  (1) is otherwise eligible to retire under the 
8 applicable Article with a full and unreduced pension as 
9 determined by the retirement system or pension fund of 
10 which the member is an active member at the time of the 
11 election to participate in the DROP;
12  (2) is not in receipt of a disability or retirement 
13 annuity from the applicable retirement system or pension 
14 fund at the time of his or her election to participate in 
15 the DROP; and
16  (3) is actively employed in a position that is covered 
17 under a collective bargaining agreement.
18 (b) The DROP shall be made available to eligible members 
19no later than January 1, 2026.
20 (c) Eligible members must make their election to 
21participate in the DROP in writing with the State Treasurer in 
22a form acceptable to the State Treasurer. The State Treasurer 
23must process the election and begin crediting an account on 
24behalf of the DROP member as soon as is practicable after the 
25election has been received.
26 At the time of or prior to electing to participate in the 
 
 
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1DROP, a member must, unless otherwise provided by law, make 
2all other elections required to be made at or before the date 
3of retirement, including, but not limited to, purchase of 
4optional service, election of an accelerated pension benefit 
5payment, or any other election identified by the retirement 
6system or pension fund.
7 (d) An eligible member may participate in the DROP for a 
8period not to exceed 5 years from the date of the eligible 
9member's election.
10 (e) During the period of the DROP member's participation 
11in the DROP, the applicable pension fund or retirement system 
12shall transfer, and the State Treasurer shall credit into a 
13notional account on behalf of the DROP member, an amount equal 
14to the monthly amount of retirement annuity the DROP member 
15would otherwise be eligible to receive if the DROP member had 
16retired on the date of the election under this Section. A DROP 
17member who is entitled to a benefit from a participating 
18system under the Retirement Systems Reciprocal Act shall be 
19eligible to have the benefit the DROP member would have 
20otherwise been eligible to receive if the DROP member retired 
21on the date of the election under this Section deposited with 
22the State Treasurer in the DROP member's DROP account and 
23administered in a manner consistent with the requirements of 
24this Section. The applicable pension fund or retirement 
25system, prior to forwarding any funds to the State Treasurer, 
26shall deduct any amounts required to be deducted under State 
 
 
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1or federal law, including, but not limited to, payments 
2required under a Qualified Illinois Domestic Relations Order 
3under Section 1-119. Any automatic annual increases that would 
4have otherwise been applied to the DROP member's benefit if 
5the DROP member had elected to retire instead of participate 
6in the DROP shall accrue to the DROP member's monthly payment 
7placed into the account prior to the expiration of the DROP and 
8shall otherwise apply to the DROP member's annuity upon 
9expiration of the DROP. The account shall be held on behalf of 
10the DROP member.
11 (f) DROP members shall make contributions to the pension 
12fund or retirement system during their participation in the 
13DROP in an amount equal to the employee contributions under 
14the applicable Article that would otherwise be required if the 
15DROP member were an active participant of the pension fund or 
16retirement system. Those amounts shall be forwarded to the 
17State Treasurer and credited to the member's DROP account, 
18minus any administrative costs determined by the pension fund 
19or retirement system to be attributable to the administration 
20of the DROP benefits experienced by the pension fund or 
21retirement system.
22 (g) The amounts credited to the DROP account shall be held 
23in notional accounts by the State Treasurer. The amounts in 
24the DROP account shall not accrue interest. The State 
25Treasurer shall reduce the amounts in the DROP account on a 
26schedule set by the State Treasurer to cover all of the 
 
 
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1administrative costs of the State Treasurer that are deemed to 
2be attributable to the administration of the DROP account and 
3any duties required under this Section.
4 (h) Upon expiration or termination of the DROP member's 
5participation in the DROP, the account balance shall be paid 
6to the DROP member as a lump sum. The State Treasurer shall 
7provide options for the transfer of the account consistent 
8with its fiduciary duty and any applicable State or federal 
9law. The expiration or termination of a DROP member's 
10participation in the DROP may not occur after January 1, 2034.
11 (i) The DROP election is irrevocable, and the DROP member 
12may not, except as otherwise provided in this Section, access 
13the account prior to the date established as the last day of 
14the DROP when the DROP member made the initial election to 
15participate in the DROP. The DROP member must terminate 
16employment with the employer upon expiration of his or her 
17participation in the DROP. The DROP member's participation in 
18the DROP shall terminate prior to the expiration date:
19  (1) if the DROP member terminates employment with the 
20 employer prior to the expiration of the designated DROP 
21 period;
22  (2) if the DROP member becomes eligible for and begins 
23 collecting a disability benefit from the pension fund or 
24 retirement system; or
25  (3) upon the death of the DROP member.
26 Upon termination from the DROP, the member shall commence 
 
 
HB4873- 154 -LRB103 35886 RPS 65971 b


1his or her retirement annuity from the pension fund or 
2retirement system. After termination or expiration of a 
3member's participation in the DROP, the member may not 
4participate in employment in any way that would require the 
5member to become an active contributing member of the 
6retirement system or pension fund.
7 The State Treasurer may allow for the payment of the 
8balance of the DROP account prior to the last date of 
9participation in the DROP established by the DROP member when 
10the DROP member made the initial election to participate in 
11the DROP if (i) the member's participation in the DROP 
12terminated and (ii) the State Treasurer determines the DROP 
13member should have access to the DROP account balance due to 
14hardship or necessity as determined by the State Treasurer.
15 (j) A DROP member shall be considered in active service 
16for purposes of eligibility for death and disability benefits 
17and access to any health care benefits provided for by the 
18employer and shall retain all rights of employment as 
19established under the DROP member's collective bargaining 
20agreement.
21 The DROP member shall not accrue additional service credit 
22in the pension fund or retirement system while participating 
23in the DROP, regardless of any service accruals, future pay 
24increases, active cost of living adjustments, or promotions. 
25Additionally, the DROP member shall not be eligible to 
26purchase any optional service credit or to repay any refunds.
 
 
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1 Eligibility for a surviving spouse benefit shall be 
2determined at the time of the DROP election.
3 Any amounts due to an alternate payee under a Qualified 
4Illinois Domestic Relations Order under Section 1-119 shall be 
5calculated at the time of the DROP election and such amounts 
6shall be payable at the time of election.
7 If the DROP member's designated beneficiary predeceases 
8the DROP member and the DROP member dies before designating a 
9new beneficiary, the DROP member's DROP account shall be paid 
10to the DROP member's estate.
11 When determining if a member is owed a refund of 
12contributions due to the member's death prior to collecting an 
13amount equal to or greater than the member's contributions, 
14the proceeds of the DROP account shall be considered part of 
15the total payment made to the member or the member's estate.
16 (k) It is intended that the DROP shall not jeopardize the 
17tax qualified status of the pension fund or retirement system. 
18The State Treasurer shall have the authority to adopt rules 
19necessary or appropriate for the DROP to maintain compliance 
20with applicable federal laws and regulations. Notwithstanding 
21any other provision of this Code, all benefits provided under 
22the DROP shall be subject to the requirements and limits of the 
23Internal Revenue Code of 1986, as amended.
24 (l) The State Treasurer shall be the administrator of the 
25DROP plan created in this Section. The administration shall be 
26subject to any applicable laws, and the State Treasurer shall 
 
 
HB4873- 156 -LRB103 35886 RPS 65971 b


1administer the program in the best interest of the DROP 
2members in a way that a prudent person in a similar 
3circumstance would. The executive director of each pension 
4fund and retirement system created under Articles 14, 15, 16, 
5and 17, or the executive directors' designees, shall 
6participate in the DROP Advisory Board, which shall meet 
7quarterly. The State Treasurer, or the State Treasurer's 
8designee, shall chair the DROP Advisory Board. The State 
9Treasurer may solicit advice and information from the members 
10of the DROP Advisory Board or from the DROP Advisory Board as a 
11whole while administering the DROP. Except as otherwise 
12provided by law, the State Treasurer shall be the sole 
13decision maker governing the DROP.

14 (40 ILCS 5/3-118 new)
15 Sec. 3-118. Deferred retirement option plan.
16 (a) As used in this Section:
17 "Deferred retirement option plan" or "DROP" means a plan 
18created under this Section that provides an alternative method 
19of benefit accrual in the fund. 
20 "DROP member" means an eligible member who makes an 
21election to participate in the DROP no later than January 1, 
222029. 
23 "DROP period" means the period during which a DROP member 
24participates in the DROP. 
25 "Eligible member" means a police officer who, at the time 
 
 
HB4873- 157 -LRB103 35886 RPS 65971 b


1of electing to participate in the DROP: 
2  (1) is otherwise eligible to retire under this Article 
3 with a benefit under Section 3-111; 
4  (2) has never received a retirement annuity from the 
5 fund; 
6  (3) is in active service under this Article; and 
7  (4) is not subject to mandatory retirement under the 
8 law and will not become subject to mandatory retirement 
9 under the law during participation in the DROP. 
10 (b) The DROP shall be made available to eligible members 
11no later than January 1, 2026. 
12 (c) Eligible members must make their election to 
13participate in the DROP in writing with the fund in a form 
14acceptable to the fund. The fund must process the election and 
15begin crediting an account on behalf of the member as soon as 
16is practicable after the election has been received by the 
17fund. 
18 At the time of or prior to electing to participate in the 
19DROP, a member must, unless otherwise provided by law, make 
20all other elections required to be made at or before the date 
21of retirement, including, but not limited to, purchase of 
22optional service, conversion of any annuity benefit into an 
23up-front or lump sum payment, or any other election identified 
24by the retirement system or pension fund.
25 (d) An eligible member may participate in the DROP for a 
26period not to exceed 5 years from the date of the eligible 
 
 
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1member's election to participate.
2 (e) During the DROP period, the fund shall credit, to a 
3notional account on behalf of the DROP member, an amount equal 
4to the monthly amount of retirement annuity the DROP member 
5would otherwise be eligible to receive if the DROP member had 
6retired on the date of the election under this Section, minus 
7any amounts required to be deducted under State or federal 
8law, including, but not limited to, payments required under a 
9Qualified Illinois Domestic Relations Order under Section 
101-119. A DROP member who is entitled to a benefit from a 
11participating system under the Retirement Systems Reciprocal 
12Act shall be eligible to have the benefit the DROP member would 
13have otherwise been eligible to receive if the DROP member 
14retired on the date of the election under this Section 
15deposited with the fund in the DROP member's DROP account and 
16administered in a manner consistent with the requirements of 
17this Section. Any automatic annual increases that would have 
18otherwise been applied to the DROP member's retirement annuity 
19if the DROP member had elected to retire instead of 
20participate in the DROP shall accrue to the DROP member's 
21monthly payment credited to the account prior to the 
22expiration of the DROP and shall otherwise apply to the DROP 
23member's annuity upon expiration of the DROP. The account 
24shall be held on behalf of the DROP member. 
25 (f) DROP members shall make contributions to the fund 
26during their participation in the DROP in an amount equal to 
 
 
HB4873- 159 -LRB103 35886 RPS 65971 b


1the employee contributions that would otherwise be required if 
2the DROP member were an active participant of the fund. Those 
3amounts shall be credited to the DROP account.
4 (g) The amounts credited to the DROP account shall be held 
5in notional accounts by the fund. The amounts credited to the 
6DROP account shall not accrue interest. 
7 (h) Upon the expiration or termination of the DROP 
8member's participation in the DROP, the account balance shall 
9be paid to the DROP member as a lump sum. The fund shall 
10provide options for the transfer of the account consistent 
11with its fiduciary duty and any applicable State or federal 
12law. The expiration or termination of a DROP member's 
13participation in the DROP may not occur after January 1, 2034. 
14 (i) The DROP election is irrevocable, and the DROP member 
15may not access the account prior to termination or expiration 
16of the DROP member's participation in the DROP. The DROP 
17member must terminate employment with the employer upon 
18expiration of his or her participation in the DROP. The DROP 
19member's participation in the DROP shall terminate prior to 
20the expiration date: 
21  (1) if the DROP member terminates employment with the 
22 employer prior to the expiration of the designated DROP 
23 period; 
24  (2) if the DROP member becomes eligible for and begins 
25 collecting a disability benefit from the fund; or 
26  (3) upon the death of the DROP member. 
 
 
HB4873- 160 -LRB103 35886 RPS 65971 b


1 Upon termination or expiration of the DROP period, the 
2DROP member's retirement annuity from the fund shall commence. 
3After termination or expiration of a member's participation in 
4the DROP, the member may not participate in employment in any 
5way that would require the member to become an active 
6contributing member of the fund. 
7 (j) The DROP member shall be considered in active service 
8for purposes of eligibility for death and disability benefits 
9and shall retain all rights of employment as established under 
10the DROP member's collective bargaining agreement, if 
11applicable. 
12 While participating in the DROP, the DROP member shall not 
13accrue additional service credit, including any service 
14accruals, in the fund, and earnings paid to the DROP member 
15while participating in the DROP shall not be included in the 
16calculation of final average salary, regardless of future pay 
17increases, active cost of living adjustments, or promotions. 
18Additionally, the DROP member shall not be eligible to 
19purchase service credit under this Article. 
20 Any amounts due to an alternate payee under a Qualified 
21Illinois Domestic Relations Order under Section 1-119 shall be 
22calculated at the time of the DROP election, and such amounts 
23shall be payable at the time of election. 
24 If the DROP member's designated beneficiary predeceases 
25the DROP member and the DROP member dies before designating a 
26new beneficiary, the DROP member's DROP account shall be paid 
 
 
HB4873- 161 -LRB103 35886 RPS 65971 b


1to the DROP member's estate. 
2 When determining if a police officer is owed a refund of 
3contributions due to the police officer's death prior to 
4collecting an amount equal to or greater than the member's 
5contributions, the proceeds of the DROP account shall be 
6considered part of the total payment made to the police 
7officer or the police officer's estate.
8 (k) It is intended that the DROP shall not jeopardize the 
9tax qualified status of the fund. The board of trustees of the 
10fund shall have the authority to adopt rules necessary or 
11appropriate for the DROP to maintain compliance with 
12applicable federal laws and regulations. Notwithstanding any 
13other provision of this Article, all benefits provided under 
14the DROP shall be subject to the requirements and limits of the 
15Internal Revenue Code of 1986, as amended. 
16 (l) The costs of administering the DROP account shall be 
17the exclusive responsibility of the DROP member. The fund 
18shall pay any reasonable administrative cost of the account 
19and shall reduce the balance of the DROP account in an amount 
20determined by the fund to meet all costs of the DROP account. 
21 (m) The Board may transfer the administrative 
22responsibility of the DROP program to the State Treasurer 
23under Section 1-168 after an affirmative vote of the Board. 

24 (40 ILCS 5/4-136 new)
25 Sec. 4-136. Deferred retirement option plan.
 
 
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1 (a) As used in this Section:
2 "Deferred retirement option plan" or "DROP" means the plan 
3created under this Section that provides an alternative method 
4of benefit accrual in the fund. 
5 "DROP member" means an eligible member who makes an 
6election to participate in the DROP no later than January 1, 
72029. 
8 "DROP period" means the period during which a DROP member 
9participates in the DROP. 
10 "Eligible member" means a firefighter who, at the time of 
11electing to participate in the DROP: 
12  (1) is otherwise eligible to retire under this Article 
13 with a benefit under Section 4-109; 
14  (2) has never received a retirement annuity from the 
15 fund; 
16  (3) is in active service under this Article; and 
17  (4) is not subject to mandatory retirement under the 
18 law and will not become subject to mandatory retirement 
19 under the law during participation in the DROP. 
20 (b) The DROP shall be made available to eligible members 
21no later than January 1, 2026. 
22 (c) Eligible members must make their election to 
23participate in the DROP in writing with the fund in a form 
24acceptable to the fund. The fund must process the election and 
25begin crediting an account on behalf of the member as soon as 
26is practicable after the election has been received by the 
 
 
HB4873- 163 -LRB103 35886 RPS 65971 b


1fund. 
2 At the time of or prior to electing to participate in the 
3DROP, a member must, unless otherwise provided by law, make 
4all other elections required to be made at or before the date 
5of retirement, including, but not limited to, purchase of 
6optional service, conversion of any annuity benefit into an 
7up-front or lump sum payment, or any other election identified 
8by the retirement system or pension fund.
9 (d) An eligible member may participate in the DROP for a 
10period not to exceed 5 years from the date of the eligible 
11member's election to participate in the DROP.
12 (e) During the DROP period, the fund shall credit, to a 
13notional account on behalf of the DROP member, an amount equal 
14to the monthly amount of retirement annuity the DROP member 
15would otherwise be eligible to receive if the DROP member had 
16retired on the date of the election under this Section, minus 
17any amounts required to be deducted under State or federal 
18law, including, but not limited to, payments required under a 
19Qualified Illinois Domestic Relations Order under Section 
201-119. A DROP member who is entitled to a benefit from a 
21participating system under the Retirement Systems Reciprocal 
22Act shall be eligible to have the benefit the DROP member would 
23have otherwise been eligible to receive if the DROP member 
24retired on the date of the election under this Section 
25deposited with the fund in the DROP member's DROP account and 
26administered in a manner consistent with the requirements of 
 
 
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1this Section. Any automatic annual increases that would have 
2otherwise been applied to the DROP member's retirement annuity 
3if the DROP member had elected to retire instead of 
4participate in the DROP shall accrue to the DROP member's 
5monthly payment credited to the account prior to the 
6expiration of the DROP and shall otherwise apply to the DROP 
7member's annuity upon expiration of the DROP. The account 
8shall be held on behalf of the DROP member. 
9 (f) DROP members shall make contributions to the fund 
10during their participation in the DROP in an amount equal to 
11the employee contributions that would otherwise be required if 
12the DROP member were an active participant of the fund. Those 
13amounts shall be credited to the DROP account. 
14 (g) The amounts credited to the DROP account shall be held 
15in notional accounts by the fund. The amounts credited to the 
16DROP account shall not accrue interest. 
17 (h) Upon the expiration or termination of the DROP 
18member's participation in the DROP, the account balance shall 
19be paid to the DROP member as a lump sum. The fund shall 
20provide options for the transfer of the account consistent 
21with its fiduciary duty and any applicable State or federal 
22law. The expiration or termination of a DROP member's 
23participation in the DROP may not occur after January 1, 2034. 
24 (i) The DROP election is irrevocable, and the DROP member 
25may not access the account prior to termination or expiration 
26of the DROP member's participation in the DROP. The DROP 
 
 
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1member must terminate employment with the employer upon 
2expiration of his or her participation in the DROP. The DROP 
3member's participation in the DROP shall terminate prior to 
4the expiration date: 
5  (1) if the DROP member terminates employment with the 
6 employer prior to the expiration of the designated DROP 
7 period; 
8  (2) if the DROP member becomes eligible for and begins 
9 collecting a disability benefit from the fund; or 
10  (3) upon the death of the DROP member. 
11 Upon termination or expiration of the DROP period, the 
12DROP member's retirement annuity from the fund shall commence. 
13After termination or expiration of a member's participation in 
14the DROP, the member may not participate in employment in any 
15way that would require the member to become an active 
16contributing member of the fund. 
17 (j) The DROP member shall be considered in active service 
18for purposes of eligibility for death and disability benefits 
19and shall retain all rights of employment as established under 
20the DROP member's collective bargaining agreement, if 
21applicable. 
22 While participating in the DROP, the DROP member shall not 
23accrue additional service credit, including any service 
24accruals, in the fund, and earnings paid to the DROP member 
25while participating in the DROP shall not be included in the 
26calculation of final average salary, regardless of future pay 
 
 
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1increases, active cost of living adjustments, or promotions. 
2Additionally, the DROP member shall not be eligible to 
3purchase service credit under this Article. 
4 Any amounts due to an alternate payee under a Qualified 
5Illinois Domestic Relations Order under Section 1-119 shall be 
6calculated at the time of the DROP election, and such amounts 
7shall be payable at the time of election. 
8 If the DROP member's designated beneficiary predeceases 
9the DROP member and the DROP member dies before designating a 
10new beneficiary, the DROP member's DROP account shall be paid 
11to the DROP member's estate. 
12 When determining if a firefighter is owed a refund of 
13contributions due to the firefighter's death prior to 
14collecting an amount equal to or greater than the 
15firefighter's contributions, the proceeds of the DROP account 
16shall be considered part of the total payment made to the 
17firefighter or the firefighter's estate.
18 (k) It is intended that the DROP shall not jeopardize the 
19tax qualified status of the fund. The board of trustees of the 
20fund shall have the authority to adopt rules necessary or 
21appropriate for the DROP to maintain compliance with 
22applicable federal laws and regulations. Notwithstanding any 
23other provision of this Article, all benefits provided under 
24the DROP shall be subject to the requirements and limits of the 
25Internal Revenue Code of 1986, as amended. 
26 (l) The costs of administering the DROP account shall be 
 
 
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1the exclusive responsibility of the DROP member. The fund 
2shall pay any reasonable administrative cost of the account 
3and shall reduce the balance of the DROP account in an amount 
4determined by the fund to meet all costs of the DROP account. 
5 (m) The Board may transfer the administrative 
6responsibility of the DROP program to the State Treasurer 
7under Section 1-168 after an affirmative vote of the Board. 

8 (40 ILCS 5/7-142.2 new)
9 Sec. 7-142.2. Deferred retirement option plan.
10 (a) As used in this Section:
11 "Deferred retirement option plan" or "DROP" means the plan 
12created under this Section that provides an alternative method 
13of benefit accrual in the Fund. 
14 "DROP member" means an eligible member who makes an 
15election to participate in the DROP no later than January 1, 
162029. 
17 "DROP period" means the period during which a DROP member 
18participates in the DROP. 
19 "Eligible member" means a participating employee of the 
20Fund who, at the time of electing to participate in the DROP: 
21  (1) is otherwise eligible to retire under this Article 
22 with a benefit under Section 7-142.1; 
23  (2) has never received a retirement annuity from the 
24 Fund; 
25  (3) is in active service as a sheriff's law 
 
 
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1 enforcement employee; and 
2  (4) has terminated participation with respect to any 
3 employer other than the employer for which the member is a 
4 sheriff's law enforcement employee. 
5 (b) The DROP shall be made available to eligible members 
6no later than January 1, 2026. 
7 (c) Eligible members must make their election to 
8participate in the DROP in writing with the Fund in a form 
9acceptable to the Fund. The Fund must process the election and 
10begin crediting an account on behalf of the member as soon as 
11is practicable after the election has been received by the 
12Fund. 
13 Unless otherwise provided for by law, any election that a 
14member may elect at or before the time of retirement must be 
15made at or before the time of electing to participate in the 
16DROP, including, but not limited to, purchase of optional 
17service, election of an accelerated pension benefit payment, 
18conversion of any annuity benefit into an up-front or lump sum 
19payment, or any other elections identified by the Fund.
20 (d) An eligible member may elect to participate in the 
21DROP for a period not to exceed 5 years from the date of 
22election.
23 (e) During the DROP period, the Fund shall credit a 
24notional account on behalf of the DROP member an amount equal 
25to the monthly amount of retirement annuity the DROP member 
26would otherwise be eligible to receive had the DROP member 
 
 
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1retired on the date of the election under this Section, minus 
2any amounts required to be deducted under State or federal 
3law, including, but not limited to, payments required under a 
4Qualified Illinois Domestic Relations Order under Section 
51-119. A DROP member who is entitled to a benefit from a 
6participating system under the Retirement Systems Reciprocal 
7Act shall be eligible to have the benefit the DROP member would 
8have otherwise been eligible to receive if the DROP member 
9retired on the date of the election under this Section 
10deposited with the Fund in the DROP member's DROP account and 
11administered in a manner consistent with the requirements of 
12this Section. Any automatic annual increases that would have 
13otherwise been applied to the DROP member's retirement annuity 
14had the DROP member elected to retire instead of participate 
15in the DROP shall accrue to the DROP member's monthly payment 
16credited to the account prior to the expiration of the DROP and 
17shall otherwise apply to the DROP member's annuity upon 
18expiration of the DROP. The account shall be held on behalf of 
19the DROP member. 
20 (f) DROP members shall make contributions to the Fund 
21during their participation in the DROP in an amount equal to 
22the employee contributions under paragraph (1) of subsection 
23(a) of Section 7-173 and subsection (a) of Section 7-173.1 
24that would otherwise be required if the DROP member were an 
25active participant of the Fund. Those amounts shall be 
26credited to the general account of the Fund. Earnings paid to 
 
 
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1DROP members during their participation in the DROP shall be 
2included in the calculation of employer contributions as 
3required in Section 7-172. 
4 (g) The amounts credited to the DROP account shall be held 
5in notional accounts by the Fund. The amounts credited to the 
6DROP account shall not accrue interest. 
7 (h) Upon the expiration or termination of the DROP 
8member's participation in the DROP, the account balance shall 
9be paid to the DROP member as a lump sum. The Fund shall 
10provide options for the transfer of the account consistent 
11with its fiduciary duty and any applicable State or federal 
12law. The expiration or termination of a DROP member's 
13participation in the DROP may not occur after January 1, 2034. 
14 (i) The DROP election is irrevocable, and the DROP member 
15may not access the account prior to termination or expiration 
16of the DROP member's participation in the DROP. The DROP 
17member must terminate employment with the employer upon 
18expiration of his or her participation in the DROP. The DROP 
19member's participation in the DROP shall terminate prior to 
20the expiration date: 
21  (1) if the DROP member terminates employment with the 
22 employer prior to the expiration of the designated DROP 
23 period; 
24  (2) if the DROP member becomes eligible for and begins 
25 collecting a disability benefit from the Fund; or 
26  (3) upon the death of the DROP member. 
 
 
HB4873- 171 -LRB103 35886 RPS 65971 b


1 Upon termination or expiration of the DROP period, the 
2DROP member must separate from the service of all employers 
3under this Article for a period of not less than 60 days. Upon 
4termination of the DROP, the DROP member's retirement annuity 
5from the Fund shall commence. After termination or expiration 
6of a member's participation in the DROP, the member may not 
7participate in employment in any way that would require the 
8member to become an active contributing member of the Fund. 
9 (j) The DROP member shall be considered in active service 
10for purposes of eligibility for death and disability benefits 
11and shall retain all rights of employment as established under 
12the DROP member's collective bargaining agreement, if 
13applicable. 
14 While participating in the DROP, the DROP member shall not 
15accrue additional service credit, including any service 
16accruals, in the Fund and earnings paid to the DROP member 
17while participating in the DROP shall not be included in the 
18calculation of final rate of earnings, regardless of future 
19pay increases, active cost of living adjustments, or 
20promotions. Additionally, the DROP member shall not be 
21eligible to make additional contributions under paragraph (2) 
22of subsection (a) of Section 7-173. During the DROP period, 
23the DROP member shall not be eligible for a distribution of any 
24amounts accrued from previous contributions made under 
25paragraph (2) of subsection (a) of Section 7-173. 
26 Eligibility for a surviving spouse benefit under Section 
 
 
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17-154 shall be determined at the time of the DROP election. 
2 The pickup of employee contribution requirements in 
3Section 7-173.2 shall be applicable to amounts paid by the 
4DROP member under subsection (f). 
5 Any amounts due to an alternate payee under a Qualified 
6Illinois Domestic Relations Order under Section 1-119 shall be 
7calculated at the time of the DROP election, and such amounts 
8shall be payable at the time of election. 
9 If the DROP member's designated beneficiary predeceases 
10the DROP member and the DROP member dies before designating a 
11new beneficiary, the DROP member's DROP account shall be paid 
12to the DROP member's estate. 
13 When determining if a participating employee is owed a 
14refund of contributions due to the participating employee's 
15death prior to collecting an amount equal to or greater than 
16the participating employee's contributions, the proceeds of 
17the DROP account shall be considered part of the total payment 
18made to the participating employee or the participating 
19employee's estate.
20 (k) It is intended that the DROP shall not jeopardize the 
21tax-qualified status of the Fund. The Board shall have the 
22authority to adopt rules necessary or appropriate for the DROP 
23to maintain compliance with applicable federal laws and 
24regulations. Notwithstanding any other provision of this 
25Article, all benefits provided under the DROP shall be subject 
26to the requirements and limitations of the Internal Revenue 
 
 
HB4873- 173 -LRB103 35886 RPS 65971 b


1Code of 1986, as amended. 
2 (l) The Board may transfer the administrative 
3responsibility of the DROP program to the State Treasurer 
4under Section 1-168 after an affirmative vote of the Board. 

5
Article 5. 


6 Section 5-5. The General Obligation Bond Act is amended by 
7changing Sections 7.2 and 7.6 as follows:

8 (30 ILCS 330/7.2)
9 Sec. 7.2. State pension funding. 
10 (a) The amount of $10,000,000,000 is authorized to be used 
11for the purpose of making contributions to the designated 
12retirement systems. For the purposes of this Section, 
13"designated retirement systems" means the State Employees' 
14Retirement System of Illinois; the Teachers' Retirement System 
15of the State of Illinois; the State Universities Retirement 
16System; the Judges Retirement System of Illinois; and the 
17General Assembly Retirement System.
18 The amount of $3,466,000,000 of Bonds authorized by Public 
19Act 96-43 is authorized to be used for the purpose of making a 
20portion of the State's Fiscal Year 2010 required contributions 
21to the designated retirement systems. 
22 The amount of $4,096,348,300 of Bonds authorized by this 
23amendatory Act of the 96th General Assembly is authorized to 
 
 
HB4873- 174 -LRB103 35886 RPS 65971 b


1be used for the purpose of making a portion of the State's 
2Fiscal Year 2011 required contributions to the designated 
3retirement systems. 
4 (b) The Pension Contribution Fund is created as a special 
5fund in the State treasury Treasury.
6 The proceeds of the additional $10,000,000,000 of Bonds 
7authorized by Public Act 93-2, less the amounts authorized in 
8the Bond Sale Order to be deposited directly into the 
9capitalized interest account of the General Obligation Bond 
10Retirement and Interest Fund or otherwise directly paid out 
11for bond sale expenses under Section 8, shall be deposited 
12into the Pension Contribution Fund and used as provided in 
13this Section.
14 The proceeds of the additional $3,466,000,000 of Bonds 
15authorized by Public Act 96-43, less the amounts directly paid 
16out for bond sale expenses under Section 8, shall be deposited 
17into the Pension Contribution Fund, and the Comptroller and 
18the Treasurer shall, as soon as practical, (i) first, transfer 
19from the Pension Contribution Fund to the General Revenue Fund 
20or Common School Fund an amount equal to the amount of 
21payments, if any, made to the designated retirement systems 
22from the General Revenue Fund or Common School Fund in State 
23fiscal year 2010 and (ii) second, make transfers from the 
24Pension Contribution Fund to the designated retirement systems 
25pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131 
26of the Illinois Pension Code. 
 
 
HB4873- 175 -LRB103 35886 RPS 65971 b


1 The proceeds of the additional $4,096,348,300 of Bonds 
2authorized by this amendatory Act of the 96th General 
3Assembly, less the amounts directly paid out for bond sale 
4expenses under Section 8, shall be deposited into the Pension 
5Contribution Fund, and the Comptroller and the Treasurer 
6shall, as soon as practical, (i) first, transfer from the 
7Pension Contribution Fund to the General Revenue Fund or 
8Common School Fund an amount equal to the amount of payments, 
9if any, made to the designated retirement systems from the 
10General Revenue Fund or Common School Fund in State fiscal 
11year 2011 and (ii) second, make transfers from the Pension 
12Contribution Fund to the designated retirement systems 
13pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131 
14of the Illinois Pension Code. 
15 (c) Of the amount of Bond proceeds from the bond sale 
16authorized by Public Act 93-2 first deposited into the Pension 
17Contribution Fund, there shall be reserved for transfers under 
18this subsection the sum of $300,000,000, representing the 
19required State contributions to the designated retirement 
20systems for the last quarter of State fiscal year 2003, plus 
21the sum of $1,860,000,000, representing the required State 
22contributions to the designated retirement systems for State 
23fiscal year 2004. 
24 Upon the deposit of sufficient moneys from the bond sale 
25authorized by Public Act 93-2 into the Pension Contribution 
26Fund, the Comptroller and Treasurer shall immediately transfer 
 
 
HB4873- 176 -LRB103 35886 RPS 65971 b


1the sum of $300,000,000 from the Pension Contribution Fund to 
2the General Revenue Fund.
3 Whenever any payment of required State contributions for 
4State fiscal year 2004 is made to one of the designated 
5retirement systems, the Comptroller and Treasurer shall, as 
6soon as practicable, transfer from the Pension Contribution 
7Fund to the General Revenue Fund an amount equal to the amount 
8of that payment to the designated retirement system. Beginning 
9on the effective date of this amendatory Act of the 93rd 
10General Assembly, the transfers from the Pension Contribution 
11Fund to the General Revenue Fund shall be suspended until June 
1230, 2004, and the remaining balance in the Pension 
13Contribution Fund shall be transferred directly to the 
14designated retirement systems as provided in Section 6z-61 of 
15the State Finance Act. On and after July 1, 2004, in the event 
16that any amount is on deposit in the Pension Contribution Fund 
17from time to time, the Comptroller and Treasurer shall 
18continue to make such transfers based on fiscal year 2005 
19payments until the entire amount on deposit has been 
20transferred.
21 (d) All amounts deposited into the Pension Contribution 
22Fund, other than the amounts reserved for the transfers under 
23subsection (c) from the bond sale authorized by Public Act 
2493-2, other than amounts deposited into the Pension 
25Contribution Fund from the bond sale authorized by Public Act 
2696-43 and other than amounts deposited into the Pension 
 
 
HB4873- 177 -LRB103 35886 RPS 65971 b


1Contribution Fund from the bond sale authorized by this 
2amendatory Act of the 96th General Assembly, shall be 
3appropriated to the designated retirement systems to reduce 
4their actuarial reserve deficiencies. The amount of the 
5appropriation to each designated retirement system shall 
6constitute a portion of the total appropriation under this 
7subsection that is the same as that retirement system's 
8portion of the total actuarial reserve deficiency of the 
9systems, as most recently determined by the Governor's Office 
10of Management and Budget under Section 8.12 of the State 
11Finance Act.
12 With respect to proceeds from the bond sale authorized by 
13Public Act 93-2 only, within 15 days after any Bond proceeds in 
14excess of the amounts initially reserved under subsection (c) 
15are deposited into the Pension Contribution Fund, the 
16Governor's Office of Management and Budget shall (i) allocate 
17those proceeds among the designated retirement systems in 
18proportion to their respective actuarial reserve deficiencies, 
19as most recently determined under Section 8.12 of the State 
20Finance Act, and (ii) certify those allocations to the 
21designated retirement systems and the Comptroller.
22 Upon receiving certification of an allocation under this 
23subsection, a designated retirement system shall submit to the 
24Comptroller a voucher for the amount of its allocation. The 
25voucher shall be paid out of the amount appropriated to that 
26designated retirement system from the Pension Contribution 
 
 
HB4873- 178 -LRB103 35886 RPS 65971 b


1Fund pursuant to this subsection.
2 (e) Each fiscal year after all the bonds authorized by 
3Public Act 93-2 are retired, the Comptroller shall order and 
4the State Treasurer shall transfer the sum of $500,000,000 
5from the General Revenue Fund to the Pension Unfunded 
6Liability Reduction Fund, which shall be used to make 
7additional contributions to eligible pension funds in 
8accordance with Section 8s of the State Finance Act. 
9(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)

10 (30 ILCS 330/7.6)
11 Sec. 7.6. Income Tax Proceed Bonds.
12 (a) As used in this Act, "Income Tax Proceed Bonds" means 
13Bonds (i) authorized by Public Act 100-23 or any other Public 
14Act of the 100th or 101st General Assembly authorizing the 
15issuance of Income Tax Proceed Bonds and (ii) used for the 
16payment of unpaid obligations of the State as incurred from 
17time to time and as authorized by the General Assembly. 
18 (b) Income Tax Proceed Bonds in the amount of 
19$6,000,000,000 are hereby authorized to be used for the 
20purpose of paying vouchers incurred by the State prior to July 
211, 2017. Additional Income Tax Proceed Bonds in the amount of 
22$1,200,000,000 are hereby authorized to be used for the 
23purpose of paying vouchers incurred by the State and accruing 
24interest payable by the State prior to the date on which the 
25Income Tax Proceed Bonds are issued. 
 
 
HB4873- 179 -LRB103 35886 RPS 65971 b


1 (c) The Income Tax Bond Fund is hereby created as a special 
2fund in the State treasury. All moneys from the proceeds of the 
3sale of the Income Tax Proceed Bonds, less the amounts 
4authorized in the Bond Sale Order to be directly paid out for 
5bond sale expenses under Section 8, shall be deposited into 
6the Income Tax Bond Fund. All moneys in the Income Tax Bond 
7Fund shall be used for the purpose of paying vouchers incurred 
8by the State prior to July 1, 2017 or for paying vouchers 
9incurred by the State more than 90 days prior to the date on 
10which the Income Tax Proceed Bonds are issued. For the purpose 
11of paying such vouchers, the Comptroller has the authority to 
12transfer moneys from the Income Tax Bond Fund to general funds 
13and the Health Insurance Reserve Fund. "General funds" has the 
14meaning provided in Section 50-40 of the State Budget Law.
15 (d) Each fiscal year after all the bonds authorized under 
16this Section are retired, the Comptroller shall order and the 
17State Treasurer shall transfer the sum of $500,000,000 from 
18the General Revenue Fund to the Pension Unfunded Liability 
19Reduction Fund, which shall be used to make additional 
20contributions to eligible pension funds in accordance with 
21Section 8s of the State Finance Act. 
22(Source: P.A. 103-7, eff. 7-1-23.)

23 Section 5-10. The State Finance Act is amended by adding 
24Section 8s as follows:

 
 
HB4873- 180 -LRB103 35886 RPS 65971 b


1 (30 ILCS 105/8s new)
2 Sec. 8s. Pension Unfunded Liability Reduction Fund.
3 (a) In this Section, "eligible pension fund" means a 
4pension fund or retirement system established under Article 2, 
514, 15, 16, 17, or 18 of the Illinois Pension Code that has a 
6total actuarial liability in excess of its total actuarial 
7assets. 
8 (b) The Pension Unfunded Liability Reduction Fund is 
9created as a special fund in the State treasury. Moneys in the 
10Fund may be used only to make annual additional contributions 
11to eligible pension funds.
12 (c) Moneys in the Fund shall be disbursed every fiscal 
13year to each eligible pension fund based on the pro rata share 
14of the State's required annual contribution to that eligible 
15pension fund for that fiscal year relative to the State's 
16total required annual contribution to all eligible pension 
17funds for that fiscal year. 

18
Article 7. 


19 Section 7-5. The Illinois Pension Code is amended by 
20changing Sections 2-101, 2-105, 2-107, 2-117, 8-120, 
2114-103.05, 14-104, 14-104.14, 14-105.4, 18-101, 18-108, 
2218-109, 18-110, and 18-120 as follows: 

23 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
 
 
HB4873- 181 -LRB103 35886 RPS 65971 b


1 Sec. 2-101. Creation of system.  A retirement system is 
2created to provide retirement annuities, survivor's annuities 
3and other benefits for certain members of the General 
4Assembly, certain elected state officials, and their 
5beneficiaries. 
6 The system shall be known as the "General Assembly 
7Retirement System". All its funds and property shall be a 
8trust separate from all other entities, maintained for the 
9purpose of securing payment of annuities and benefits under 
10this Article. 
11 Participation in the retirement system created under this 
12Article is restricted to persons who became participants 
13before January 13, 2027. Beginning on that date, the System 
14shall not accept any new participants. 
15(Source: P.A. 83-1440.)

16 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
17 Sec. 2-105. Member.  "Member": Members of the General 
18Assembly of this State, including persons who enter military 
19service while a member of the General Assembly, and any person 
20serving as Governor, Lieutenant Governor, Secretary of State, 
21Treasurer, Comptroller, or Attorney General for the period of 
22service in such office. 
23 Any person who has served for 10 or more years as Clerk or 
24Assistant Clerk of the House of Representatives, Secretary or 
25Assistant Secretary of the Senate, or any combination thereof, 
 
 
HB4873- 182 -LRB103 35886 RPS 65971 b


1may elect to become a member of this system while thenceforth 
2engaged in such service by filing a written election with the 
3board. Any person so electing shall be deemed an active member 
4of the General Assembly for the purpose of validating and 
5transferring any service credits earned under any of the funds 
6and systems established under Articles 3 through 18 of this 
7Code. 
8 Notwithstanding any other provision of this Article, a 
9person shall not be deemed a member for the purposes of this 
10Article unless he or she became a participant of the System 
11before January 13, 2027. 
12(Source: P.A. 85-1008.)

13 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
14 Sec. 2-107. Participant. "Participant": Any member who 
15elects to participate; and any former member who elects to 
16continue participation under Section 2-117.1, for the duration 
17of such continued participation. Notwithstanding any other 
18provision of this Article, a person shall not be deemed a 
19participant for the purposes of this Article unless he or she 
20became a participant of the System before January 13, 2027.
21(Source: P.A. 86-1488.)

22 (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
23 Sec. 2-117. Participants; election not to participate or 
24to terminate participation Participants - Election not to 
 
 
HB4873- 183 -LRB103 35886 RPS 65971 b


1participate. 
2 (a) Every person who was a member on November 1, 1947, or 
3in military service on such date, is subject to the provisions 
4of this system beginning upon such date, unless prior to such 
5date he or she filed with the board a written notice of 
6election not to participate.
7 Every person who becomes a member after November 1, 1947, 
8and who is then not a participant becomes a participant 
9beginning upon the date of becoming a member unless, within 24 
10months from that date, he or she has filed with the board a 
11written notice of election not to participate.
12 (b) A member who has filed notice of an election not to 
13participate (and a former member who has not yet begun to 
14receive a retirement annuity under this Article) may become a 
15participant with respect to the period for which the member 
16elected not to participate upon filing with the board, before 
17April 1, 1993, a written rescission of the election not to 
18participate. Upon contributing an amount equal to the 
19contributions he or she would have made as a participant from 
20November 1, 1947, or the date of becoming a member, whichever 
21is later, to the date of becoming a participant, with interest 
22at the rate of 4% per annum until the contributions are paid, 
23the participant shall receive credit for service as a member 
24prior to the date of the rescission, both before and after 
25November 1, 1947. The required contributions shall be made 
26before commencement of the retirement annuity; otherwise no 
 
 
HB4873- 184 -LRB103 35886 RPS 65971 b


1credit for service prior to the date of participation shall be 
2granted.
3 (c) Notwithstanding any other provision of this Article, 
4an active participant may irrevocably elect, in writing and in 
5a form and manner prescribed by the board, to terminate 
6participation in the System and instead participate in the 
7retirement system established under Article 14. Upon making 
8the election under this subsection (c), all credits and 
9creditable service shall be transferred to the retirement 
10system under Article 14 in accordance with Section 14-105.4 
11and all participation in this System is terminated.
12(Source: P.A. 86-273; 87-1265.)

13 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
14 Sec. 14-103.05. Employee. 
15 (a) Any person employed by a Department who receives 
16salary for personal services rendered to the Department on a 
17warrant issued pursuant to a payroll voucher certified by a 
18Department and drawn by the State Comptroller upon the State 
19Treasurer, including an elected official described in 
20subparagraph (d) of Section 14-104, shall become an employee 
21for purpose of membership in the Retirement System on the 
22first day of such employment.
23 A person entering service on or after January 1, 1972 and 
24prior to January 1, 1984 shall become a member as a condition 
25of employment and shall begin making contributions as of the 
 
 
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1first day of employment.
2 A person entering service on or after January 1, 1984 
3shall, upon completion of 6 months of continuous service which 
4is not interrupted by a break of more than 2 months, become a 
5member as a condition of employment. Contributions shall begin 
6the first of the month after completion of the qualifying 
7period.
8 A person employed by the Chicago Metropolitan Agency for 
9Planning on the effective date of this amendatory Act of the 
1095th General Assembly who was a member of this System as an 
11employee of the Chicago Area Transportation Study and makes an 
12election under Section 14-104.13 to participate in this System 
13for his or her employment with the Chicago Metropolitan Agency 
14for Planning. 
15 The qualifying period of 6 months of service is not 
16applicable to: (1) a person who has been granted credit for 
17service in a position covered by the State Universities 
18Retirement System, the Teachers' Retirement System of the 
19State of Illinois, the General Assembly Retirement System, or 
20the Judges Retirement System of Illinois unless that service 
21has been forfeited under the laws of those systems; (2) a 
22person entering service on or after July 1, 1991 in a 
23noncovered position; (3) a person to whom Section 14-108.2a or 
2414-108.2b applies; or (4) a person to whom subsection (a-5) of 
25this Section applies.
26 (a-5) A person entering service on or after December 1, 
 
 
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12010 shall become a member as a condition of employment and 
2shall begin making contributions as of the first day of 
3employment. A person serving in the qualifying period on 
4December 1, 2010 will become a member on December 1, 2010 and 
5shall begin making contributions as of December 1, 2010. 
6 (b) The term "employee" does not include the following: 
7  (1) members of the State Legislature, and persons 
8 electing to become members of the General Assembly 
9 Retirement System pursuant to Section 2-105; 
10  (2) incumbents of offices normally filled by vote of 
11 the people; 
12  (3) except as otherwise provided in this Section, any 
13 person appointed by the Governor with the advice and 
14 consent of the Senate unless that person elects to 
15 participate in this system;
16  (3.1) any person serving as a commissioner of an 
17 ethics commission created under the State Officials and 
18 Employees Ethics Act unless that person elects to 
19 participate in this system with respect to that service as 
20 a commissioner; 
21  (3.2) any person serving as a part-time employee in 
22 any of the following positions: Legislative Inspector 
23 General, Special Legislative Inspector General, employee 
24 of the Office of the Legislative Inspector General, 
25 Executive Director of the Legislative Ethics Commission, 
26 or staff of the Legislative Ethics Commission, regardless 
 
 
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1 of whether he or she is in active service on or after July 
2 8, 2004 (the effective date of Public Act 93-685), unless 
3 that person elects to participate in this System with 
4 respect to that service; in this item (3.2), a "part-time 
5 employee" is a person who is not required to work at least 
6 35 hours per week;
7  (3.3) any person who has made an election under 
8 Section 1-123 and who is serving either as legal counsel 
9 in the Office of the Governor or as Chief Deputy Attorney 
10 General;  
11  (4) except as provided in Section 14-108.2 or 
12 14-108.2c, any person who is covered or eligible to be 
13 covered by the Teachers' Retirement System of the State of 
14 Illinois, the State Universities Retirement System, or the 
15 Judges Retirement System of Illinois; 
16  (5) an employee of a municipality or any other 
17 political subdivision of the State; 
18  (6) any person who becomes an employee after June 30, 
19 1979 as a public service employment program participant 
20 under the Federal Comprehensive Employment and Training 
21 Act and whose wages or fringe benefits are paid in whole or 
22 in part by funds provided under such Act; 
23  (7) enrollees of the Illinois Young Adult Conservation 
24 Corps program, administered by the Department of Natural 
25 Resources, authorized grantee pursuant to Title VIII of 
26 the "Comprehensive Employment and Training Act of 1973", 
 
 
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1 29 USC 993, as now or hereafter amended; 
2  (8) enrollees and temporary staff of programs 
3 administered by the Department of Natural Resources under 
4 the Youth Conservation Corps Act of 1970; 
5  (9) any person who is a member of any professional 
6 licensing or disciplinary board created under an Act 
7 administered by the Department of Professional Regulation 
8 or a successor agency or created or re-created after the 
9 effective date of this amendatory Act of 1997, and who 
10 receives per diem compensation rather than a salary, 
11 notwithstanding that such per diem compensation is paid by 
12 warrant issued pursuant to a payroll voucher; such persons 
13 have never been included in the membership of this System, 
14 and this amendatory Act of 1987 (P.A. 84-1472) is not 
15 intended to effect any change in the status of such 
16 persons; 
17  (10) any person who is a member of the Illinois Health 
18 Care Cost Containment Council, and receives per diem 
19 compensation rather than a salary, notwithstanding that 
20 such per diem compensation is paid by warrant issued 
21 pursuant to a payroll voucher; such persons have never 
22 been included in the membership of this System, and this 
23 amendatory Act of 1987 is not intended to effect any 
24 change in the status of such persons; 
25  (11) any person who is a member of the Oil and Gas 
26 Board created by Section 1.2 of the Illinois Oil and Gas 
 
 
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1 Act, and receives per diem compensation rather than a 
2 salary, notwithstanding that such per diem compensation is 
3 paid by warrant issued pursuant to a payroll voucher;
4  (12) a person employed by the State Board of Higher 
5 Education in a position with the Illinois Century Network 
6 as of June 30, 2004, who remains continuously employed 
7 after that date by the Department of Central Management 
8 Services in a position with the Illinois Century Network 
9 and participates in the Article 15 system with respect to 
10 that employment; 
11  (13) any person who first becomes a member of the 
12 Civil Service Commission on or after January 1, 2012;
13  (14) any person, other than the Director of Employment 
14 Security, who first becomes a member of the Board of 
15 Review of the Department of Employment Security on or 
16 after January 1, 2012;
17  (15) any person who first becomes a member of the 
18 Civil Service Commission on or after January 1, 2012;
19  (16) any person who first becomes a member of the 
20 Illinois Liquor Control Commission on or after January 1, 
21 2012;
22  (17) any person who first becomes a member of the 
23 Secretary of State Merit Commission on or after January 1, 
24 2012;
25  (18) any person who first becomes a member of the 
26 Human Rights Commission on or after January 1, 2012 unless 
 
 
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1 he or she is eligible to participate in accordance with 
2 subsection (d) of this Section;
3  (19) any person who first becomes a member of the 
4 State Mining Board on or after January 1, 2012;
5  (20) any person who first becomes a member of the 
6 Property Tax Appeal Board on or after January 1, 2012;
7  (21) any person who first becomes a member of the 
8 Illinois Racing Board on or after January 1, 2012;
9  (22) any person who first becomes a member of the 
10 Illinois State Police Merit Board on or after January 1, 
11 2012;
12  (23) any person who first becomes a member of the 
13 Illinois State Toll Highway Authority on or after January 
14 1, 2012; or
15  (24) any person who first becomes a member of the 
16 Illinois State Board of Elections on or after January 1, 
17 2012. 
18 (c) An individual who represents or is employed as an 
19officer or employee of a statewide labor organization that 
20represents members of this System may participate in the 
21System and shall be deemed an employee, provided that (1) the 
22individual has previously earned creditable service under this 
23Article, (2) the individual files with the System an 
24irrevocable election to become a participant within 6 months 
25after the effective date of this amendatory Act of the 94th 
26General Assembly, and (3) the individual does not receive 
 
 
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1credit for that employment under any other provisions of this 
2Code. An employee under this subsection (c) is responsible for 
3paying to the System both (i) employee contributions based on 
4the actual compensation received for service with the labor 
5organization and (ii) employer contributions based on the 
6percentage of payroll certified by the board; all or any part 
7of these contributions may be paid on the employee's behalf or 
8picked up for tax purposes (if authorized under federal law) 
9by the labor organization.
10 A person who is an employee as defined in this subsection 
11(c) may establish service credit for similar employment prior 
12to becoming an employee under this subsection by paying to the 
13System for that employment the contributions specified in this 
14subsection, plus interest at the effective rate from the date 
15of service to the date of payment. However, credit shall not be 
16granted under this subsection (c) for any such prior 
17employment for which the applicant received credit under any 
18other provision of this Code or during which the applicant was 
19on a leave of absence. 
20 (d) A person appointed as a member of the Human Rights 
21Commission on or after June 1, 2019 may elect to participate in 
22the System and shall be deemed an employee. Service and 
23contributions shall begin on the first payroll period 
24immediately following the employee's election to participate 
25in the System.
26 A person who is an employee as described in this 
 
 
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1subsection (d) may establish service credit for employment as 
2a Human Rights Commissioner that occurred on or after June 1, 
32019 and before establishing service under this subsection by 
4paying to the System for that employment the contributions 
5specified in paragraph (1) of subsection (a) of Section 
614-133, plus regular interest from the date of service to the 
7date of payment. 
8(Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)

9 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
10 Sec. 14-104. Service for which contributions permitted. 
11Contributions provided for in this Section shall cover the 
12period of service granted. Except as otherwise provided in 
13this Section, the contributions shall be based upon the 
14employee's compensation and contribution rate in effect on the 
15date he last became a member of the System; provided that for 
16all employment prior to January 1, 1969 the contribution rate 
17shall be that in effect for a noncovered employee on the date 
18he last became a member of the System. Except as otherwise 
19provided in this Section, contributions permitted under this 
20Section shall include regular interest from the date an 
21employee last became a member of the System to the date of 
22payment. 
23 These contributions must be paid in full before retirement 
24either in a lump sum or in installment payments in accordance 
25with such rules as may be adopted by the board. 
 
 
HB4873- 193 -LRB103 35886 RPS 65971 b


1 (a) Any member may make contributions as required in this 
2Section for any period of service, subsequent to the date of 
3establishment, but prior to the date of membership. 
4 (b) Any employee who had been previously excluded from 
5membership because of age at entry and subsequently became 
6eligible may elect to make contributions as required in this 
7Section for the period of service during which he was 
8ineligible. 
9 (c) An employee of the Department of Insurance who, after 
10January 1, 1944 but prior to becoming eligible for membership, 
11received salary from funds of insurance companies in the 
12process of rehabilitation, liquidation, conservation or 
13dissolution, may elect to make contributions as required in 
14this Section for such service. 
15 (d) Any employee who rendered service in a State office to 
16which he was elected, or rendered service in the elective 
17office of Clerk of the Appellate Court prior to the date he 
18became a member, may make contributions for such service as 
19required in this Section. Any member who served by appointment 
20of the Governor under the Civil Administrative Code of 
21Illinois and did not participate in this System may make 
22contributions as required in this Section for such service. 
23 (e) Any person employed by the United States government or 
24any instrumentality or agency thereof from January 1, 1942 
25through November 15, 1946 as the result of a transfer from 
26State service by executive order of the President of the 
 
 
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1United States shall be entitled to prior service credit 
2covering the period from January 1, 1942 through December 31, 
31943 as provided for in this Article and to membership service 
4credit for the period from January 1, 1944 through November 
515, 1946 by making the contributions required in this Section. 
6A person so employed on January 1, 1944 but whose employment 
7began after January 1, 1942 may qualify for prior service and 
8membership service credit under the same conditions. 
9 (f) An employee of the Department of Labor of the State of 
10Illinois who performed services for and under the supervision 
11of that Department prior to January 1, 1944 but who was 
12compensated for those services directly by federal funds and 
13not by a warrant of the Auditor of Public Accounts paid by the 
14State Treasurer may establish credit for such employment by 
15making the contributions required in this Section. An employee 
16of the Department of Agriculture of the State of Illinois, who 
17performed services for and under the supervision of that 
18Department prior to June 1, 1963, but was compensated for 
19those services directly by federal funds and not paid by a 
20warrant of the Auditor of Public Accounts paid by the State 
21Treasurer, and who did not contribute to any other public 
22employee retirement system for such service, may establish 
23credit for such employment by making the contributions 
24required in this Section. 
25 (g) Any employee who executed a waiver of membership 
26within 60 days prior to January 1, 1944 may, at any time while 
 
 
HB4873- 195 -LRB103 35886 RPS 65971 b


1in the service of a department, file with the board a 
2rescission of such waiver. Upon making the contributions 
3required by this Section, the member shall be granted the 
4creditable service that would have been received if the waiver 
5had not been executed. 
6 (h) Until May 1, 1990, an employee who was employed on a 
7full-time basis by a regional planning commission for at least 
85 continuous years may establish creditable service for such 
9employment by making the contributions required under this 
10Section, provided that any credits earned by the employee in 
11the commission's retirement plan have been terminated. 
12 (i) Any person who rendered full time contractual services 
13to the General Assembly as a member of a legislative staff may 
14establish service credit for up to 8 years of such services by 
15making the contributions required under this Section, provided 
16that application therefor is made not later than July 1, 1991. 
17 (j) By paying the contributions otherwise required under 
18this Section, plus an amount determined by the Board to be 
19equal to the employer's normal cost of the benefit plus 
20interest, but with all of the interest calculated from the 
21date the employee last became a member of the System or 
22November 19, 1991, whichever is later, to the date of payment, 
23an employee may establish service credit for a period of up to 
244 years spent in active military service for which he does not 
25qualify for credit under Section 14-105, provided that (1) he 
26was not dishonorably discharged from such military service, 
 
 
HB4873- 196 -LRB103 35886 RPS 65971 b


1and (2) the amount of service credit established by a member 
2under this subsection (j), when added to the amount of 
3military service credit granted to the member under subsection 
4(b) of Section 14-105, shall not exceed 5 years. The change in 
5the manner of calculating interest under this subsection (j) 
6made by this amendatory Act of the 92nd General Assembly 
7applies to credit purchased by an employee on or after its 
8effective date and does not entitle any person to a refund of 
9contributions or interest already paid. In compliance with 
10Section 14-152.1 of this Act concerning new benefit increases, 
11any new benefit increase as a result of the changes to this 
12subsection (j) made by Public Act 95-483 is funded through the 
13employee contributions provided for in this subsection (j). 
14Any new benefit increase as a result of the changes made to 
15this subsection (j) by Public Act 95-483 is exempt from the 
16provisions of subsection (d) of Section 14-152.1.
17 (k) An employee who was employed on a full-time basis by 
18the Illinois State's Attorneys Association Statewide Appellate 
19Assistance Service LEAA-ILEC grant project prior to the time 
20that project became the State's Attorneys Appellate Service 
21Commission, now the Office of the State's Attorneys Appellate 
22Prosecutor, an agency of State government, may establish 
23creditable service for not more than 60 months service for 
24such employment by making contributions required under this 
25Section. 
26 (l) By paying the contributions otherwise required under 
 
 
HB4873- 197 -LRB103 35886 RPS 65971 b


1this Section, plus an amount determined by the Board to be 
2equal to the employer's normal cost of the benefit plus 
3interest, a member may establish service credit for periods of 
4less than one year spent on authorized leave of absence from 
5service, provided that (1) the period of leave began on or 
6after January 1, 1982 and (2) any credit established by the 
7member for the period of leave in any other public employee 
8retirement system has been terminated. A member may establish 
9service credit under this subsection for more than one period 
10of authorized leave, and in that case the total period of 
11service credit established by the member under this subsection 
12may exceed one year. In determining the contributions required 
13for establishing service credit under this subsection, the 
14interest shall be calculated from the beginning of the leave 
15of absence to the date of payment. 
16 (l-5) By paying the contributions otherwise required under 
17this Section, plus an amount determined by the Board to be 
18equal to the employer's normal cost of the benefit plus 
19interest, a member may establish service credit for periods of 
20up to 2 years spent on authorized leave of absence from 
21service, provided that during that leave the member 
22represented or was employed as an officer or employee of a 
23statewide labor organization that represents members of this 
24System. In determining the contributions required for 
25establishing service credit under this subsection, the 
26interest shall be calculated from the beginning of the leave 
 
 
HB4873- 198 -LRB103 35886 RPS 65971 b


1of absence to the date of payment. 
2 (m) Any person who rendered contractual services to a 
3member of the General Assembly as a worker in the member's 
4district office may establish creditable service for up to 3 
5years of those contractual services by making the 
6contributions required under this Section. The System shall 
7determine a full-time salary equivalent for the purpose of 
8calculating the required contribution. To establish credit 
9under this subsection, the applicant must apply to the System 
10by March 1, 1998. 
11 (n) Any person who rendered contractual services to a 
12member of the General Assembly as a worker providing 
13constituent services to persons in the member's district may 
14establish creditable service for up to 8 years of those 
15contractual services by making the contributions required 
16under this Section. The System shall determine a full-time 
17salary equivalent for the purpose of calculating the required 
18contribution. To establish credit under this subsection, the 
19applicant must apply to the System by March 1, 1998. 
20 (o) A member who participated in the Illinois Legislative 
21Staff Internship Program may establish creditable service for 
22up to one year of that participation by making the 
23contribution required under this Section. The System shall 
24determine a full-time salary equivalent for the purpose of 
25calculating the required contribution. Credit may not be 
26established under this subsection for any period for which 
 
 
HB4873- 199 -LRB103 35886 RPS 65971 b


1service credit is established under any other provision of 
2this Code. 
3 (p) By paying the contributions otherwise required under 
4this Section, plus an amount determined by the Board to be 
5equal to the employer's normal cost of the benefit plus 
6interest, a member may establish service credit for a period 
7of up to 8 years during which he or she was employed by the 
8Visually Handicapped Managers of Illinois in a vending program 
9operated under a contractual agreement with the Department of 
10Rehabilitation Services or its successor agency. 
11 This subsection (p) applies without regard to whether the 
12person was in service on or after the effective date of this 
13amendatory Act of the 94th General Assembly. In the case of a 
14person who is receiving a retirement annuity on that effective 
15date, the increase, if any, shall begin to accrue on the first 
16annuity payment date following receipt by the System of the 
17contributions required under this subsection (p).
18 (q) By paying the required contributions under this 
19Section, plus an amount determined by the Board to be equal to 
20the employer's normal cost of the benefit plus interest, an 
21employee who was laid off but returned to any State employment 
22may establish creditable service for the period of the layoff, 
23provided that (1) the applicant applies for the creditable 
24service under this subsection (q) within 6 months after July 
2527, 2010 (the effective date of Public Act 96-1320), (2) the 
26applicant does not receive credit for that period under any 
 
 
HB4873- 200 -LRB103 35886 RPS 65971 b


1other provision of this Code, (3) at the time of the layoff, 
2the applicant is not in an initial probationary status 
3consistent with the rules of the Department of Central 
4Management Services, and (4) the total amount of creditable 
5service established by the applicant under this subsection (q) 
6does not exceed 3 years. For service established under this 
7subsection (q), the required employee contribution shall be 
8based on the rate of compensation earned by the employee on the 
9date of returning to employment after the layoff and the 
10contribution rate then in effect, and the required interest 
11shall be calculated at the actuarially assumed rate from the 
12date of returning to employment after the layoff to the date of 
13payment. Funding for any new benefit increase, as defined in 
14Section 14-152.1 of this Act, that is created under this 
15subsection (q) will be provided by the employee contributions 
16required under this subsection (q). 
17 (r) A member who participated in the University of 
18Illinois Government Public Service Internship Program (GPSI) 
19may establish creditable service for up to 2 years of that 
20participation by making the contribution required under this 
21Section, plus an amount determined by the Board to be equal to 
22the employer's normal cost of the benefit plus interest. The 
23System shall determine a full-time salary equivalent for the 
24purpose of calculating the required contribution. Credit may 
25not be established under this subsection for any period for 
26which service credit is established under any other provision 
 
 
HB4873- 201 -LRB103 35886 RPS 65971 b


1of this Code.
2 (s) A member who worked as a nurse under a contractual 
3agreement for the Department of Public Aid, or its successor 
4agency, the Department of Human Services, in the Client 
5Assessment Unit and was subsequently determined to be a State 
6employee by the United States Internal Revenue Service and the 
7Illinois Labor Relations Board may establish creditable 
8service for those contractual services by making the 
9contributions required under this Section. To establish credit 
10under this subsection, the applicant must apply to the System 
11by July 1, 2008.
12 The Department of Human Services shall pay an employer 
13contribution based upon an amount determined by the Board to 
14be equal to the employer's normal cost of the benefit, plus 
15interest.
16 In compliance with Section 14-152.1 added by Public Act 
1794-4, the cost of the benefits provided by Public Act 95-583 
18are offset by the required employee and employer 
19contributions. 
20 (t) Any person who rendered contractual services on a 
21full-time basis to the Illinois Institute of Natural Resources 
22and the Illinois Department of Energy and Natural Resources 
23may establish creditable service for up to 4 years of those 
24contractual services by making the contributions required 
25under this Section, plus an amount determined by the Board to 
26be equal to the employer's normal cost of the benefit plus 
 
 
HB4873- 202 -LRB103 35886 RPS 65971 b


1interest at the actuarially assumed rate from the first day of 
2the service for which credit is being established to the date 
3of payment. To establish credit under this subsection (t), the 
4applicant must apply to the System within 6 months after July 
527, 2010 (the effective date of Public Act 96-1320). 
6 (u) By paying the required contributions under this 
7Section, plus an amount determined by the Board to be equal to 
8the employer's normal cost of the benefit, plus interest, a 
9member may establish creditable service and earnings credit 
10for periods of furlough beginning on or after July 1, 2008. To 
11receive this credit, the participant must (i) apply in writing 
12to the System before December 31, 2011 and (ii) not receive 
13compensation for the furlough period. For service established 
14under this subsection, the required employee contribution 
15shall be based on the rate of compensation earned by the 
16employee immediately following the date of the first furlough 
17day in the time period specified in this subsection (u), and 
18the required interest shall be calculated at the actuarially 
19assumed rate from the date of the furlough to the date of 
20payment. 
21 (v) Any member who rendered full-time contractual services 
22to an Illinois Veterans Home operated by the Department of 
23Veterans' Affairs may establish service credit for up to 8 
24years of such services by making the contributions required 
25under this Section, plus an amount determined by the Board to 
26be equal to the employer's normal cost of the benefit, plus 
 
 
HB4873- 203 -LRB103 35886 RPS 65971 b


1interest at the actuarially assumed rate. To establish credit 
2under this subsection, the applicant must apply to the System 
3no later than 6 months after July 27, 2010 (the effective date 
4of Public Act 96-1320). 
5 (w) Any employee who served as a member of the General 
6Assembly and did not contribute to any other public employee 
7retirement system for such service may establish service 
8credit for up to 10 years of that service by making the 
9contributions required under this Section, plus an amount 
10determined by the Board to be equal to the employer's normal 
11cost of the benefit, plus interest at the actuarially assumed 
12rate. To establish credit under this subsection, the applicant 
13must make the contributions required under this subsection no 
14later than 10 years after making application to the System. 
15 (x) Any employee who served as a judge, as defined in 
16Section 18-108, and did not contribute to any other public 
17employee retirement system for such service may establish 
18service credit for up to 10 years of that service by making the 
19contributions required under this Section, plus an amount 
20determined by the Board to be equal to the employer's normal 
21cost of the benefit, plus interest at the actuarially assumed 
22rate. To establish credit under this subsection, the applicant 
23must make the contributions required under this subsection no 
24later than 10 years after making application to the System. 
25(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09; 
2696-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff. 
 
 
HB4873- 204 -LRB103 35886 RPS 65971 b


17-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333, 
28-12-11.)

3 (40 ILCS 5/14-104.14 new)
4 Sec. 14-104.14. Transfer of service from the Judges 
5Retirement System of Illinois. An active participant in the 
6Judges Retirement System of Illinois may elect to terminate 
7participation in the Judges Retirement System of Illinois in 
8accordance with subsection (b) of Section 18-120. All credits 
9and creditable service accumulated under Article 18 shall be 
10transferred to this System upon payment to this System of (1) 
11the amount by which the employer and employee contributions 
12that would have been required if he or she had participated in 
13this System during the period for which credit is being 
14transferred, plus regular interest, exceeds the amounts 
15actually transferred under that Section to this System, plus 
16(2) regular interest thereon from the date of such 
17participation to the date of payment.

18 (40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
19 Sec. 14-105.4. Transfer of service from the General 
20Assembly Retirement System. 
21 (a) Persons otherwise required or eligible to participate 
22in this System who elect to continue participation in the 
23General Assembly Retirement System under Section 2-117.1 may 
24not participate in this System for the duration of such 
 
 
HB4873- 205 -LRB103 35886 RPS 65971 b


1continued participation under Section 2-117.1.
2 (b) Upon terminating such continued participation, a 
3person may transfer credits and creditable service accumulated 
4under Section 2-117.1 to this System, upon payment to this 
5System of (1) the amount by which the employer and employee 
6contributions that would have been required if he had 
7participated in this System during the period for which credit 
8under Section 2-117.1 is being transferred, plus regular 
9interest, exceeds the amounts actually transferred under that 
10Section to this System, plus (2) regular interest thereon from 
11the date of such participation to the date of payment.
12 (c) An active participant in the General Assembly 
13Retirement System may elect to terminate participation in the 
14General Assembly Retirement System in accordance with 
15subsection (c) of Section 2-117. All credits and creditable 
16service accumulated under Article 2 shall be transferred to 
17this System upon payment to this System of (1) the amount by 
18which the employer and employee contributions that would have 
19been required if he or she had participated in this System 
20during the period for which credit is being transferred, plus 
21regular interest, exceeds the amounts actually transferred 
22under that Section to this System, plus (2) regular interest 
23thereon from the date of such participation to the date of 
24payment. 
25(Source: P.A. 83-430.)

 
 
HB4873- 206 -LRB103 35886 RPS 65971 b


1 (40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
2 Sec. 18-101. Creation of fund. A retirement system is 
3created to be known as the "Judges Retirement System of 
4Illinois". It shall be a trust separate and distinct from all 
5other entities, maintained for the purpose of securing the 
6payment of annuities and benefits as prescribed herein.
7 Participation in the retirement system created under this 
8Article is restricted to persons who became participants of 
9the System before January 13, 2027. Beginning on that date, 
10the System shall not accept any new participants. 
11(Source: Laws 1963, p. 161.)

12 (40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
13 Sec. 18-108. Judge. "Judge": Any person who receives 
14payment for personal services as a judge or associate judge of 
15a court; and any person, previously a participant, who 
16receives payment for personal services as the administrative 
17director appointed by the Supreme Court.
18 Notwithstanding any other provision of this Article, a 
19person shall not be deemed a judge for the purposes of this 
20Article unless he or she became a participant of the System 
21before January 13, 2027. 
22(Source: P.A. 83-1440.)

23 (40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
24 Sec. 18-109. Eligible judge. "Eligible judge": Any judge 
 
 
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1except one who has elected not to participate in this system.
2 Notwithstanding any other provision of this Article, a 
3person shall not be deemed an eligible judge for the purposes 
4of this Article unless he or she became a participant of the 
5System before January 13, 2027. 
6(Source: P.A. 83-1440.)

7 (40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
8 Sec. 18-110. Participant. "Participant": Any judge 
9participating in this system as specified in Sections 18-120 
10and 18-121.
11 Notwithstanding any other provision of this Article, a 
12person shall not be deemed a participant for the purposes of 
13this Article unless he or she became a participant of the 
14System before January 13, 2027. 
15(Source: P.A. 83-1440.)

16 (40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
17 Sec. 18-120. Employee participation; election not to 
18participate or terminate participation.  
19 (a) An eligible judge who is not a participant shall 
20become a participant beginning on the date he or she becomes an 
21eligible judge, unless the judge files with the board a 
22written notice of election not to participate within 30 days 
23of the date of being notified of the option.
24 A person electing not to participate shall thereafter be 
 
 
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1ineligible to become a participant unless the election is 
2revoked as provided in Section 18-121.
3 (b) Notwithstanding any other provision of this Article, 
4an active participant may irrevocably elect, in writing and in 
5a form and manner prescribed by the board, to terminate 
6participation in the System and instead participate in the 
7retirement system established under Article 14. Upon making 
8the election under this subsection (b), all credits and 
9creditable service shall be transferred to the retirement 
10system under Article 14 in accordance with Section 14-104.14 
11and all participation in this System is terminated. 
12(Source: P.A. 83-1440.)

13
Article 9. 


14 Section 9-5. The Illinois Pension Code is amended by 
15changing Sections 1-160 and 15-135 as follows:

16 (40 ILCS 5/1-160)
17 (Text of Section from P.A. 102-719)
18 Sec. 1-160. Provisions applicable to new hires. 
19 (a) The provisions of this Section apply to a person who, 
20on or after January 1, 2011, first becomes a member or a 
21participant under any reciprocal retirement system or pension 
22fund established under this Code, other than a retirement 
23system or pension fund established under Article 2, 3, 4, 5, 6, 
 
 
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17, 15, or 18 of this Code, notwithstanding any other provision 
2of this Code to the contrary, but do not apply to any 
3self-managed plan established under this Code or to any 
4participant of the retirement plan established under Section 
522-101; except that this Section applies to a person who 
6elected to establish alternative credits by electing in 
7writing after January 1, 2011, but before August 8, 2011, 
8under Section 7-145.1 of this Code. Notwithstanding anything 
9to the contrary in this Section, for purposes of this Section, 
10a person who is a Tier 1 regular employee as defined in Section 
117-109.4 of this Code or who participated in a retirement 
12system under Article 15 prior to January 1, 2011 shall be 
13deemed a person who first became a member or participant prior 
14to January 1, 2011 under any retirement system or pension fund 
15subject to this Section. The changes made to this Section by 
16Public Act 98-596 are a clarification of existing law and are 
17intended to be retroactive to January 1, 2011 (the effective 
18date of Public Act 96-889), notwithstanding the provisions of 
19Section 1-103.1 of this Code.
20 This Section does not apply to a person who first becomes a 
21noncovered employee under Article 14 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
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1 This Section does not apply to a person who first becomes a 
2member or participant under Article 16 on or after the 
3implementation date of the plan created under Section 1-161 
4for that Article, unless that person elects under subsection 
5(b) of Section 1-161 to instead receive the benefits provided 
6under this Section and the applicable provisions of that 
7Article.
8 This Section does not apply to a person who elects under 
9subsection (c-5) of Section 1-161 to receive the benefits 
10under Section 1-161. 
11 This Section does not apply to a person who first becomes a 
12member or participant of an affected pension fund on or after 6 
13months after the resolution or ordinance date, as defined in 
14Section 1-162, unless that person elects under subsection (c) 
15of Section 1-162 to receive the benefits provided under this 
16Section and the applicable provisions of the Article under 
17which he or she is a member or participant. 
18 (b) "Final average salary" means, except as otherwise 
19provided in this subsection, the average monthly (or annual) 
20salary obtained by dividing the total salary or earnings 
21calculated under the Article applicable to the member or 
22participant during the 96 consecutive months (or 8 consecutive 
23years) of service within the last 120 months (or 10 years) of 
24service in which the total salary or earnings calculated under 
25the applicable Article was the highest by the number of months 
26(or years) of service in that period. For the purposes of a 
 
 
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1person who first becomes a member or participant of any 
2retirement system or pension fund to which this Section 
3applies on or after January 1, 2011, in this Code, "final 
4average salary" shall be substituted for the following:
5  (1) (Blank).
6  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
7 annual salary for any 4 consecutive years within the last 
8 10 years of service immediately preceding the date of 
9 withdrawal". 
10  (3) In Article 13, "average final salary". 
11  (4) In Article 14, "final average compensation". 
12  (5) In Article 17, "average salary". 
13  (6) In Section 22-207, "wages or salary received by 
14 him at the date of retirement or discharge". 
15 A member of the Teachers' Retirement System of the State 
16of Illinois who retires on or after June 1, 2021 and for whom 
17the 2020-2021 school year is used in the calculation of the 
18member's final average salary shall use the higher of the 
19following for the purpose of determining the member's final 
20average salary:
21  (A) the amount otherwise calculated under the first 
22 paragraph of this subsection; or
23  (B) an amount calculated by the Teachers' Retirement 
24 System of the State of Illinois using the average of the 
25 monthly (or annual) salary obtained by dividing the total 
26 salary or earnings calculated under Article 16 applicable 
 
 
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1 to the member or participant during the 96 months (or 8 
2 years) of service within the last 120 months (or 10 years) 
3 of service in which the total salary or earnings 
4 calculated under the Article was the highest by the number 
5 of months (or years) of service in that period.
6 (b-5) Beginning on January 1, 2011, for all purposes under 
7this Code (including without limitation the calculation of 
8benefits and employee contributions), the annual earnings, 
9salary, or wages (based on the plan year) of a member or 
10participant to whom this Section applies shall not exceed 
11$106,800; however, that amount shall annually thereafter be 
12increased by the lesser of (i) 3% of that amount, including all 
13previous adjustments, or (ii) one-half the annual unadjusted 
14percentage increase (but not less than zero) in the consumer 
15price index-u for the 12 months ending with the September 
16preceding each November 1, including all previous adjustments.
17 For the purposes of this Section, "consumer price index-u" 
18means the index published by the Bureau of Labor Statistics of 
19the United States Department of Labor that measures the 
20average change in prices of goods and services purchased by 
21all urban consumers, United States city average, all items, 
221982-84 = 100. The new amount resulting from each annual 
23adjustment shall be determined by the Public Pension Division 
24of the Department of Insurance and made available to the 
25boards of the retirement systems and pension funds by November 
261 of each year. 
 
 
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1 (b-10) Beginning on January 1, 2024, for all purposes 
2under this Code (including, without limitation, the 
3calculation of benefits and employee contributions), the 
4annual earnings, salary, or wages (based on the plan year) of a 
5member or participant under Article 9 to whom this Section 
6applies shall include an annual earnings, salary, or wage cap 
7that tracks the Social Security wage base. Maximum annual 
8earnings, wages, or salary shall be the annual contribution 
9and benefit base established for the applicable year by the 
10Commissioner of the Social Security Administration under the 
11federal Social Security Act. 
12 However, in no event shall the annual earnings, salary, or 
13wages for the purposes of this Article and Article 9 exceed any 
14limitation imposed on annual earnings, salary, or wages under 
15Section 1-117. Under no circumstances shall the maximum amount 
16of annual earnings, salary, or wages be greater than the 
17amount set forth in this subsection (b-10) as a result of 
18reciprocal service or any provisions regarding reciprocal 
19services, nor shall the Fund under Article 9 be required to pay 
20any refund as a result of the application of this maximum 
21annual earnings, salary, and wage cap. 
22 Nothing in this subsection (b-10) shall cause or otherwise 
23result in any retroactive adjustment of any employee 
24contributions. Nothing in this subsection (b-10) shall cause 
25or otherwise result in any retroactive adjustment of 
26disability or other payments made between January 1, 2011 and 
 
 
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1January 1, 2024. 
2 (c) A member or participant is entitled to a retirement 
3annuity upon written application if he or she has attained age 
467 (age 65, with respect to service under Article 12 that is 
5subject to this Section, for a member or participant under 
6Article 12 who first becomes a member or participant under 
7Article 12 on or after January 1, 2022 or who makes the 
8election under item (i) of subsection (d-15) of this Section) 
9and has at least 10 years of service credit and is otherwise 
10eligible under the requirements of the applicable Article. 
11 A member or participant who has attained age 62 (age 60, 
12with respect to service under Article 12 that is subject to 
13this Section, for a member or participant under Article 12 who 
14first becomes a member or participant under Article 12 on or 
15after January 1, 2022 or who makes the election under item (i) 
16of subsection (d-15) of this Section) and has at least 10 years 
17of service credit and is otherwise eligible under the 
18requirements of the applicable Article may elect to receive 
19the lower retirement annuity provided in subsection (d) of 
20this Section. 
21 (c-5) A person who first becomes a member or a participant 
22subject to this Section on or after July 6, 2017 (the effective 
23date of Public Act 100-23), notwithstanding any other 
24provision of this Code to the contrary, is entitled to a 
25retirement annuity under Article 8 or Article 11 upon written 
26application if he or she has attained age 65 and has at least 
 
 
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110 years of service credit and is otherwise eligible under the 
2requirements of Article 8 or Article 11 of this Code, 
3whichever is applicable. 
4 (c-10) Notwithstanding subsection (c), beginning July 1, 
52025, a member or participant under Article 14, 16, or 17 
6subject to this Section is entitled to a retirement annuity 
7upon written application if he or she:
8  (1) has attained age 62, has at least 35 years of 
9 service credit, and is otherwise eligible under the 
10 requirements of the applicable Article; 
11  (2) has attained age 64, has at least 20 years of 
12 service credit, and is otherwise eligible under the 
13 requirements of the applicable Article; or
14  (3) has attained age 67, has at least 10 years of 
15 service credit, and is otherwise eligible under the 
16 requirements of the applicable Article. 
17 For the purposes of Section 1-103.1 of this Code, the 
18changes made to this Section by this amendatory Act of the 
19103rd General Assembly are applicable without regard to 
20whether the employee was in active service on or after the 
21effective date of this amendatory Act of the 103rd General 
22Assembly. 
23 (d) The retirement annuity of a member or participant who 
24is retiring after attaining age 62 (age 60, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
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1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section) with at least 10 years of service 
4credit shall be reduced by one-half of 1% for each full month 
5that the member's age is under age 67 (age 65, with respect to 
6service under Article 12 that is subject to this Section, for a 
7member or participant under Article 12 who first becomes a 
8member or participant under Article 12 on or after January 1, 
92022 or who makes the election under item (i) of subsection 
10(d-15) of this Section).
11 (d-5) The retirement annuity payable under Article 8 or 
12Article 11 to an eligible person subject to subsection (c-5) 
13of this Section who is retiring at age 60 with at least 10 
14years of service credit shall be reduced by one-half of 1% for 
15each full month that the member's age is under age 65. 
16 (d-10) Each person who first became a member or 
17participant under Article 8 or Article 11 of this Code on or 
18after January 1, 2011 and prior to July 6, 2017 (the effective 
19date of Public Act 100-23) shall make an irrevocable election 
20either:
21  (i) to be eligible for the reduced retirement age 
22 provided in subsections (c-5) and (d-5) of this Section, 
23 the eligibility for which is conditioned upon the member 
24 or participant agreeing to the increases in employee 
25 contributions for age and service annuities provided in 
26 subsection (a-5) of Section 8-174 of this Code (for 
 
 
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1 service under Article 8) or subsection (a-5) of Section 
2 11-170 of this Code (for service under Article 11); or 
3  (ii) to not agree to item (i) of this subsection 
4 (d-10), in which case the member or participant shall 
5 continue to be subject to the retirement age provisions in 
6 subsections (c) and (d) of this Section and the employee 
7 contributions for age and service annuity as provided in 
8 subsection (a) of Section 8-174 of this Code (for service 
9 under Article 8) or subsection (a) of Section 11-170 of 
10 this Code (for service under Article 11). 
11 The election provided for in this subsection shall be made 
12between October 1, 2017 and November 15, 2017. A person 
13subject to this subsection who makes the required election 
14shall remain bound by that election. A person subject to this 
15subsection who fails for any reason to make the required 
16election within the time specified in this subsection shall be 
17deemed to have made the election under item (ii). 
18 (d-15) Each person who first becomes a member or 
19participant under Article 12 on or after January 1, 2011 and 
20prior to January 1, 2022 shall make an irrevocable election 
21either: 
22  (i) to be eligible for the reduced retirement age 
23 specified in subsections (c) and (d) of this Section, the 
24 eligibility for which is conditioned upon the member or 
25 participant agreeing to the increase in employee 
26 contributions for service annuities specified in 
 
 
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1 subsection (b) of Section 12-150; or
2  (ii) to not agree to item (i) of this subsection 
3 (d-15), in which case the member or participant shall not 
4 be eligible for the reduced retirement age specified in 
5 subsections (c) and (d) of this Section and shall not be 
6 subject to the increase in employee contributions for 
7 service annuities specified in subsection (b) of Section 
8 12-150. 
9 The election provided for in this subsection shall be made 
10between January 1, 2022 and April 1, 2022. A person subject to 
11this subsection who makes the required election shall remain 
12bound by that election. A person subject to this subsection 
13who fails for any reason to make the required election within 
14the time specified in this subsection shall be deemed to have 
15made the election under item (ii). 
16 (e) Any retirement annuity or supplemental annuity shall 
17be subject to annual increases on the January 1 occurring 
18either on or after the attainment of age 67 (age 65, with 
19respect to service under Article 12 that is subject to this 
20Section, for a member or participant under Article 12 who 
21first becomes a member or participant under Article 12 on or 
22after January 1, 2022 or who makes the election under item (i) 
23of subsection (d-15); and beginning on July 6, 2017 (the 
24effective date of Public Act 100-23), age 65 with respect to 
25service under Article 8 or Article 11 for eligible persons 
26who: (i) are subject to subsection (c-5) of this Section; or 
 
 
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1(ii) made the election under item (i) of subsection (d-10) of 
2this Section) or the first anniversary of the annuity start 
3date, whichever is later. Each annual increase shall be 
4calculated at 3% or one-half the annual unadjusted percentage 
5increase (but not less than zero) in the consumer price 
6index-u for the 12 months ending with the September preceding 
7each November 1, whichever is less, of the originally granted 
8retirement annuity. If the annual unadjusted percentage change 
9in the consumer price index-u for the 12 months ending with the 
10September preceding each November 1 is zero or there is a 
11decrease, then the annuity shall not be increased. 
12 For the purposes of Section 1-103.1 of this Code, the 
13changes made to this Section by Public Act 102-263 are 
14applicable without regard to whether the employee was in 
15active service on or after August 6, 2021 (the effective date 
16of Public Act 102-263). 
17 For the purposes of Section 1-103.1 of this Code, the 
18changes made to this Section by Public Act 100-23 are 
19applicable without regard to whether the employee was in 
20active service on or after July 6, 2017 (the effective date of 
21Public Act 100-23). 
22 (f) The initial survivor's or widow's annuity of an 
23otherwise eligible survivor or widow of a retired member or 
24participant who first became a member or participant on or 
25after January 1, 2011 shall be in the amount of 66 2/3% of the 
26retired member's or participant's retirement annuity at the 
 
 
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1date of death. In the case of the death of a member or 
2participant who has not retired and who first became a member 
3or participant on or after January 1, 2011, eligibility for a 
4survivor's or widow's annuity shall be determined by the 
5applicable Article of this Code. The initial benefit shall be 
666 2/3% of the earned annuity without a reduction due to age. A 
7child's annuity of an otherwise eligible child shall be in the 
8amount prescribed under each Article if applicable. Any 
9survivor's or widow's annuity shall be increased (1) on each 
10January 1 occurring on or after the commencement of the 
11annuity if the deceased member died while receiving a 
12retirement annuity or (2) in other cases, on each January 1 
13occurring after the first anniversary of the commencement of 
14the annuity. Each annual increase shall be calculated at 3% or 
15one-half the annual unadjusted percentage increase (but not 
16less than zero) in the consumer price index-u for the 12 months 
17ending with the September preceding each November 1, whichever 
18is less, of the originally granted survivor's annuity. If the 
19annual unadjusted percentage change in the consumer price 
20index-u for the 12 months ending with the September preceding 
21each November 1 is zero or there is a decrease, then the 
22annuity shall not be increased. 
23 (g) The benefits in Section 14-110 apply if the person is a 
24fire fighter in the fire protection service of a department, a 
25security employee of the Department of Corrections or the 
26Department of Juvenile Justice, or a security employee of the 
 
 
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1Department of Innovation and Technology, as those terms are 
2defined in subsection (b) and subsection (c) of Section 
314-110. A person who meets the requirements of this Section is 
4entitled to an annuity calculated under the provisions of 
5Section 14-110, in lieu of the regular or minimum retirement 
6annuity, only if the person has withdrawn from service with 
7not less than 20 years of eligible creditable service and has 
8attained age 60, regardless of whether the attainment of age 
960 occurs while the person is still in service. 
10 (g-5) The benefits in Section 14-110 apply if the person 
11is a State policeman, investigator for the Secretary of State, 
12conservation police officer, investigator for the Department 
13of Revenue or the Illinois Gaming Board, investigator for the 
14Office of the Attorney General, Commerce Commission police 
15officer, or arson investigator, as those terms are defined in 
16subsection (b) and subsection (c) of Section 14-110. A person 
17who meets the requirements of this Section is entitled to an 
18annuity calculated under the provisions of Section 14-110, in 
19lieu of the regular or minimum retirement annuity, only if the 
20person has withdrawn from service with not less than 20 years 
21of eligible creditable service and has attained age 55, 
22regardless of whether the attainment of age 55 occurs while 
23the person is still in service. 
24 (h) If a person who first becomes a member or a participant 
25of a retirement system or pension fund subject to this Section 
26on or after January 1, 2011 is receiving a retirement annuity 
 
 
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1or retirement pension under that system or fund and becomes a 
2member or participant under any other system or fund created 
3by this Code and is employed on a full-time basis, except for 
4those members or participants exempted from the provisions of 
5this Section under subsection (a) of this Section, then the 
6person's retirement annuity or retirement pension under that 
7system or fund shall be suspended during that employment. Upon 
8termination of that employment, the person's retirement 
9annuity or retirement pension payments shall resume and be 
10recalculated if recalculation is provided for under the 
11applicable Article of this Code.
12 If a person who first becomes a member of a retirement 
13system or pension fund subject to this Section on or after 
14January 1, 2012 and is receiving a retirement annuity or 
15retirement pension under that system or fund and accepts on a 
16contractual basis a position to provide services to a 
17governmental entity from which he or she has retired, then 
18that person's annuity or retirement pension earned as an 
19active employee of the employer shall be suspended during that 
20contractual service. A person receiving an annuity or 
21retirement pension under this Code shall notify the pension 
22fund or retirement system from which he or she is receiving an 
23annuity or retirement pension, as well as his or her 
24contractual employer, of his or her retirement status before 
25accepting contractual employment. A person who fails to submit 
26such notification shall be guilty of a Class A misdemeanor and 
 
 
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1required to pay a fine of $1,000. Upon termination of that 
2contractual employment, the person's retirement annuity or 
3retirement pension payments shall resume and, if appropriate, 
4be recalculated under the applicable provisions of this Code. 
5 (i) (Blank). 
6 (j) In the case of a conflict between the provisions of 
7this Section and any other provision of this Code, the 
8provisions of this Section shall control.
9(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
10102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
115-6-22.)

12 (Text of Section from P.A. 102-813)
13 Sec. 1-160. Provisions applicable to new hires. 
14 (a) The provisions of this Section apply to a person who, 
15on or after January 1, 2011, first becomes a member or a 
16participant under any reciprocal retirement system or pension 
17fund established under this Code, other than a retirement 
18system or pension fund established under Article 2, 3, 4, 5, 6, 
197, 15, or 18 of this Code, notwithstanding any other provision 
20of this Code to the contrary, but do not apply to any 
21self-managed plan established under this Code or to any 
22participant of the retirement plan established under Section 
2322-101; except that this Section applies to a person who 
24elected to establish alternative credits by electing in 
25writing after January 1, 2011, but before August 8, 2011, 
 
 
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1under Section 7-145.1 of this Code. Notwithstanding anything 
2to the contrary in this Section, for purposes of this Section, 
3a person who is a Tier 1 regular employee as defined in Section 
47-109.4 of this Code or who participated in a retirement 
5system under Article 15 prior to January 1, 2011 shall be 
6deemed a person who first became a member or participant prior 
7to January 1, 2011 under any retirement system or pension fund 
8subject to this Section. The changes made to this Section by 
9Public Act 98-596 are a clarification of existing law and are 
10intended to be retroactive to January 1, 2011 (the effective 
11date of Public Act 96-889), notwithstanding the provisions of 
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a 
14noncovered employee under Article 14 on or after the 
15implementation date of the plan created under Section 1-161 
16for that Article, unless that person elects under subsection 
17(b) of Section 1-161 to instead receive the benefits provided 
18under this Section and the applicable provisions of that 
19Article.
20 This Section does not apply to a person who first becomes a 
21member or participant under Article 16 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
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1 This Section does not apply to a person who elects under 
2subsection (c-5) of Section 1-161 to receive the benefits 
3under Section 1-161. 
4 This Section does not apply to a person who first becomes a 
5member or participant of an affected pension fund on or after 6 
6months after the resolution or ordinance date, as defined in 
7Section 1-162, unless that person elects under subsection (c) 
8of Section 1-162 to receive the benefits provided under this 
9Section and the applicable provisions of the Article under 
10which he or she is a member or participant. 
11 (b) "Final average salary" means, except as otherwise 
12provided in this subsection, the average monthly (or annual) 
13salary obtained by dividing the total salary or earnings 
14calculated under the Article applicable to the member or 
15participant during the 96 consecutive months (or 8 consecutive 
16years) of service within the last 120 months (or 10 years) of 
17service in which the total salary or earnings calculated under 
18the applicable Article was the highest by the number of months 
19(or years) of service in that period. For the purposes of a 
20person who first becomes a member or participant of any 
21retirement system or pension fund to which this Section 
22applies on or after January 1, 2011, in this Code, "final 
23average salary" shall be substituted for the following:
24  (1) (Blank).
25  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
26 annual salary for any 4 consecutive years within the last 
 
 
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1 10 years of service immediately preceding the date of 
2 withdrawal". 
3  (3) In Article 13, "average final salary". 
4  (4) In Article 14, "final average compensation". 
5  (5) In Article 17, "average salary". 
6  (6) In Section 22-207, "wages or salary received by 
7 him at the date of retirement or discharge". 
8 A member of the Teachers' Retirement System of the State 
9of Illinois who retires on or after June 1, 2021 and for whom 
10the 2020-2021 school year is used in the calculation of the 
11member's final average salary shall use the higher of the 
12following for the purpose of determining the member's final 
13average salary:
14  (A) the amount otherwise calculated under the first 
15 paragraph of this subsection; or
16  (B) an amount calculated by the Teachers' Retirement 
17 System of the State of Illinois using the average of the 
18 monthly (or annual) salary obtained by dividing the total 
19 salary or earnings calculated under Article 16 applicable 
20 to the member or participant during the 96 months (or 8 
21 years) of service within the last 120 months (or 10 years) 
22 of service in which the total salary or earnings 
23 calculated under the Article was the highest by the number 
24 of months (or years) of service in that period.
25 (b-5) Beginning on January 1, 2011, for all purposes under 
26this Code (including without limitation the calculation of 
 
 
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1benefits and employee contributions), the annual earnings, 
2salary, or wages (based on the plan year) of a member or 
3participant to whom this Section applies shall not exceed 
4$106,800; however, that amount shall annually thereafter be 
5increased by the lesser of (i) 3% of that amount, including all 
6previous adjustments, or (ii) one-half the annual unadjusted 
7percentage increase (but not less than zero) in the consumer 
8price index-u for the 12 months ending with the September 
9preceding each November 1, including all previous adjustments.
10 For the purposes of this Section, "consumer price index-u" 
11means the index published by the Bureau of Labor Statistics of 
12the United States Department of Labor that measures the 
13average change in prices of goods and services purchased by 
14all urban consumers, United States city average, all items, 
151982-84 = 100. The new amount resulting from each annual 
16adjustment shall be determined by the Public Pension Division 
17of the Department of Insurance and made available to the 
18boards of the retirement systems and pension funds by November 
191 of each year. 
20 (b-10) Beginning on January 1, 2024, for all purposes 
21under this Code (including, without limitation, the 
22calculation of benefits and employee contributions), the 
23annual earnings, salary, or wages (based on the plan year) of a 
24member or participant under Article 9 to whom this Section 
25applies shall include an annual earnings, salary, or wage cap 
26that tracks the Social Security wage base. Maximum annual 
 
 
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1earnings, wages, or salary shall be the annual contribution 
2and benefit base established for the applicable year by the 
3Commissioner of the Social Security Administration under the 
4federal Social Security Act. 
5 However, in no event shall the annual earnings, salary, or 
6wages for the purposes of this Article and Article 9 exceed any 
7limitation imposed on annual earnings, salary, or wages under 
8Section 1-117. Under no circumstances shall the maximum amount 
9of annual earnings, salary, or wages be greater than the 
10amount set forth in this subsection (b-10) as a result of 
11reciprocal service or any provisions regarding reciprocal 
12services, nor shall the Fund under Article 9 be required to pay 
13any refund as a result of the application of this maximum 
14annual earnings, salary, and wage cap. 
15 Nothing in this subsection (b-10) shall cause or otherwise 
16result in any retroactive adjustment of any employee 
17contributions. Nothing in this subsection (b-10) shall cause 
18or otherwise result in any retroactive adjustment of 
19disability or other payments made between January 1, 2011 and 
20January 1, 2024. 
21 (c) A member or participant is entitled to a retirement 
22annuity upon written application if he or she has attained age 
2367 (age 65, with respect to service under Article 12 that is 
24subject to this Section, for a member or participant under 
25Article 12 who first becomes a member or participant under 
26Article 12 on or after January 1, 2022 or who makes the 
 
 
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1election under item (i) of subsection (d-15) of this Section) 
2and has at least 10 years of service credit and is otherwise 
3eligible under the requirements of the applicable Article. 
4 A member or participant who has attained age 62 (age 60, 
5with respect to service under Article 12 that is subject to 
6this Section, for a member or participant under Article 12 who 
7first becomes a member or participant under Article 12 on or 
8after January 1, 2022 or who makes the election under item (i) 
9of subsection (d-15) of this Section) and has at least 10 years 
10of service credit and is otherwise eligible under the 
11requirements of the applicable Article may elect to receive 
12the lower retirement annuity provided in subsection (d) of 
13this Section. 
14 (c-5) A person who first becomes a member or a participant 
15subject to this Section on or after July 6, 2017 (the effective 
16date of Public Act 100-23), notwithstanding any other 
17provision of this Code to the contrary, is entitled to a 
18retirement annuity under Article 8 or Article 11 upon written 
19application if he or she has attained age 65 and has at least 
2010 years of service credit and is otherwise eligible under the 
21requirements of Article 8 or Article 11 of this Code, 
22whichever is applicable. 
23 (c-10) Notwithstanding subsection (c), beginning July 1, 
242025, a member or participant under Article 14, 16, or 17 
25subject to this Section is entitled to a retirement annuity 
26upon written application if he or she:
 
 
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1  (1) has attained age 62, has at least 35 years of 
2 service credit, and is otherwise eligible under the 
3 requirements of the applicable Article; 
4  (2) has attained age 64, has at least 20 years of 
5 service credit, and is otherwise eligible under the 
6 requirements of the applicable Article; or
7  (3) has attained age 67, has at least 10 years of 
8 service credit, and is otherwise eligible under the 
9 requirements of the applicable Article. 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by this amendatory Act of the 
12103rd General Assembly are applicable without regard to 
13whether the employee was in active service on or after the 
14effective date of this amendatory Act of the 103rd General 
15Assembly. 
16 (d) The retirement annuity of a member or participant who 
17is retiring after attaining age 62 (age 60, with respect to 
18service under Article 12 that is subject to this Section, for a 
19member or participant under Article 12 who first becomes a 
20member or participant under Article 12 on or after January 1, 
212022 or who makes the election under item (i) of subsection 
22(d-15) of this Section) with at least 10 years of service 
23credit shall be reduced by one-half of 1% for each full month 
24that the member's age is under age 67 (age 65, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
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1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section).
4 (d-5) The retirement annuity payable under Article 8 or 
5Article 11 to an eligible person subject to subsection (c-5) 
6of this Section who is retiring at age 60 with at least 10 
7years of service credit shall be reduced by one-half of 1% for 
8each full month that the member's age is under age 65. 
9 (d-10) Each person who first became a member or 
10participant under Article 8 or Article 11 of this Code on or 
11after January 1, 2011 and prior to July 6, 2017 (the effective 
12date of Public Act 100-23) shall make an irrevocable election 
13either:
14  (i) to be eligible for the reduced retirement age 
15 provided in subsections (c-5) and (d-5) of this Section, 
16 the eligibility for which is conditioned upon the member 
17 or participant agreeing to the increases in employee 
18 contributions for age and service annuities provided in 
19 subsection (a-5) of Section 8-174 of this Code (for 
20 service under Article 8) or subsection (a-5) of Section 
21 11-170 of this Code (for service under Article 11); or 
22  (ii) to not agree to item (i) of this subsection 
23 (d-10), in which case the member or participant shall 
24 continue to be subject to the retirement age provisions in 
25 subsections (c) and (d) of this Section and the employee 
26 contributions for age and service annuity as provided in 
 
 
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1 subsection (a) of Section 8-174 of this Code (for service 
2 under Article 8) or subsection (a) of Section 11-170 of 
3 this Code (for service under Article 11). 
4 The election provided for in this subsection shall be made 
5between October 1, 2017 and November 15, 2017. A person 
6subject to this subsection who makes the required election 
7shall remain bound by that election. A person subject to this 
8subsection who fails for any reason to make the required 
9election within the time specified in this subsection shall be 
10deemed to have made the election under item (ii). 
11 (d-15) Each person who first becomes a member or 
12participant under Article 12 on or after January 1, 2011 and 
13prior to January 1, 2022 shall make an irrevocable election 
14either: 
15  (i) to be eligible for the reduced retirement age 
16 specified in subsections (c) and (d) of this Section, the 
17 eligibility for which is conditioned upon the member or 
18 participant agreeing to the increase in employee 
19 contributions for service annuities specified in 
20 subsection (b) of Section 12-150; or
21  (ii) to not agree to item (i) of this subsection 
22 (d-15), in which case the member or participant shall not 
23 be eligible for the reduced retirement age specified in 
24 subsections (c) and (d) of this Section and shall not be 
25 subject to the increase in employee contributions for 
26 service annuities specified in subsection (b) of Section 
 
 
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1 12-150. 
2 The election provided for in this subsection shall be made 
3between January 1, 2022 and April 1, 2022. A person subject to 
4this subsection who makes the required election shall remain 
5bound by that election. A person subject to this subsection 
6who fails for any reason to make the required election within 
7the time specified in this subsection shall be deemed to have 
8made the election under item (ii). 
9 (e) Any retirement annuity or supplemental annuity shall 
10be subject to annual increases on the January 1 occurring 
11either on or after the attainment of age 67 (age 65, with 
12respect to service under Article 12 that is subject to this 
13Section, for a member or participant under Article 12 who 
14first becomes a member or participant under Article 12 on or 
15after January 1, 2022 or who makes the election under item (i) 
16of subsection (d-15); and beginning on July 6, 2017 (the 
17effective date of Public Act 100-23), age 65 with respect to 
18service under Article 8 or Article 11 for eligible persons 
19who: (i) are subject to subsection (c-5) of this Section; or 
20(ii) made the election under item (i) of subsection (d-10) of 
21this Section) or the first anniversary of the annuity start 
22date, whichever is later. Each annual increase shall be 
23calculated at 3% or one-half the annual unadjusted percentage 
24increase (but not less than zero) in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1, whichever is less, of the originally granted 
 
 
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1retirement annuity. If the annual unadjusted percentage change 
2in the consumer price index-u for the 12 months ending with the 
3September preceding each November 1 is zero or there is a 
4decrease, then the annuity shall not be increased. 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this Section by Public Act 102-263 are 
7applicable without regard to whether the employee was in 
8active service on or after August 6, 2021 (the effective date 
9of Public Act 102-263). 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by Public Act 100-23 are 
12applicable without regard to whether the employee was in 
13active service on or after July 6, 2017 (the effective date of 
14Public Act 100-23). 
15 (f) The initial survivor's or widow's annuity of an 
16otherwise eligible survivor or widow of a retired member or 
17participant who first became a member or participant on or 
18after January 1, 2011 shall be in the amount of 66 2/3% of the 
19retired member's or participant's retirement annuity at the 
20date of death. In the case of the death of a member or 
21participant who has not retired and who first became a member 
22or participant on or after January 1, 2011, eligibility for a 
23survivor's or widow's annuity shall be determined by the 
24applicable Article of this Code. The initial benefit shall be 
2566 2/3% of the earned annuity without a reduction due to age. A 
26child's annuity of an otherwise eligible child shall be in the 
 
 
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1amount prescribed under each Article if applicable. Any 
2survivor's or widow's annuity shall be increased (1) on each 
3January 1 occurring on or after the commencement of the 
4annuity if the deceased member died while receiving a 
5retirement annuity or (2) in other cases, on each January 1 
6occurring after the first anniversary of the commencement of 
7the annuity. Each annual increase shall be calculated at 3% or 
8one-half the annual unadjusted percentage increase (but not 
9less than zero) in the consumer price index-u for the 12 months 
10ending with the September preceding each November 1, whichever 
11is less, of the originally granted survivor's annuity. If the 
12annual unadjusted percentage change in the consumer price 
13index-u for the 12 months ending with the September preceding 
14each November 1 is zero or there is a decrease, then the 
15annuity shall not be increased. 
16 (g) The benefits in Section 14-110 apply only if the 
17person is a State policeman, a fire fighter in the fire 
18protection service of a department, a conservation police 
19officer, an investigator for the Secretary of State, an arson 
20investigator, a Commerce Commission police officer, 
21investigator for the Department of Revenue or the Illinois 
22Gaming Board, a security employee of the Department of 
23Corrections or the Department of Juvenile Justice, or a 
24security employee of the Department of Innovation and 
25Technology, as those terms are defined in subsection (b) and 
26subsection (c) of Section 14-110. A person who meets the 
 
 
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1requirements of this Section is entitled to an annuity 
2calculated under the provisions of Section 14-110, in lieu of 
3the regular or minimum retirement annuity, only if the person 
4has withdrawn from service with not less than 20 years of 
5eligible creditable service and has attained age 60, 
6regardless of whether the attainment of age 60 occurs while 
7the person is still in service. 
8 (h) If a person who first becomes a member or a participant 
9of a retirement system or pension fund subject to this Section 
10on or after January 1, 2011 is receiving a retirement annuity 
11or retirement pension under that system or fund and becomes a 
12member or participant under any other system or fund created 
13by this Code and is employed on a full-time basis, except for 
14those members or participants exempted from the provisions of 
15this Section under subsection (a) of this Section, then the 
16person's retirement annuity or retirement pension under that 
17system or fund shall be suspended during that employment. Upon 
18termination of that employment, the person's retirement 
19annuity or retirement pension payments shall resume and be 
20recalculated if recalculation is provided for under the 
21applicable Article of this Code.
22 If a person who first becomes a member of a retirement 
23system or pension fund subject to this Section on or after 
24January 1, 2012 and is receiving a retirement annuity or 
25retirement pension under that system or fund and accepts on a 
26contractual basis a position to provide services to a 
 
 
HB4873- 237 -LRB103 35886 RPS 65971 b


1governmental entity from which he or she has retired, then 
2that person's annuity or retirement pension earned as an 
3active employee of the employer shall be suspended during that 
4contractual service. A person receiving an annuity or 
5retirement pension under this Code shall notify the pension 
6fund or retirement system from which he or she is receiving an 
7annuity or retirement pension, as well as his or her 
8contractual employer, of his or her retirement status before 
9accepting contractual employment. A person who fails to submit 
10such notification shall be guilty of a Class A misdemeanor and 
11required to pay a fine of $1,000. Upon termination of that 
12contractual employment, the person's retirement annuity or 
13retirement pension payments shall resume and, if appropriate, 
14be recalculated under the applicable provisions of this Code. 
15 (i) (Blank). 
16 (j) In the case of a conflict between the provisions of 
17this Section and any other provision of this Code, the 
18provisions of this Section shall control.
19(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
20102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
215-13-22.)

22 (Text of Section from P.A. 102-956)
23 Sec. 1-160. Provisions applicable to new hires. 
24 (a) The provisions of this Section apply to a person who, 
25on or after January 1, 2011, first becomes a member or a 
 
 
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1participant under any reciprocal retirement system or pension 
2fund established under this Code, other than a retirement 
3system or pension fund established under Article 2, 3, 4, 5, 6, 
47, 15, or 18 of this Code, notwithstanding any other provision 
5of this Code to the contrary, but do not apply to any 
6self-managed plan established under this Code or to any 
7participant of the retirement plan established under Section 
822-101; except that this Section applies to a person who 
9elected to establish alternative credits by electing in 
10writing after January 1, 2011, but before August 8, 2011, 
11under Section 7-145.1 of this Code. Notwithstanding anything 
12to the contrary in this Section, for purposes of this Section, 
13a person who is a Tier 1 regular employee as defined in Section 
147-109.4 of this Code or who participated in a retirement 
15system under Article 15 prior to January 1, 2011 shall be 
16deemed a person who first became a member or participant prior 
17to January 1, 2011 under any retirement system or pension fund 
18subject to this Section. The changes made to this Section by 
19Public Act 98-596 are a clarification of existing law and are 
20intended to be retroactive to January 1, 2011 (the effective 
21date of Public Act 96-889), notwithstanding the provisions of 
22Section 1-103.1 of this Code.
23 This Section does not apply to a person who first becomes a 
24noncovered employee under Article 14 on or after the 
25implementation date of the plan created under Section 1-161 
26for that Article, unless that person elects under subsection 
 
 
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1(b) of Section 1-161 to instead receive the benefits provided 
2under this Section and the applicable provisions of that 
3Article.
4 This Section does not apply to a person who first becomes a 
5member or participant under Article 16 on or after the 
6implementation date of the plan created under Section 1-161 
7for that Article, unless that person elects under subsection 
8(b) of Section 1-161 to instead receive the benefits provided 
9under this Section and the applicable provisions of that 
10Article.
11 This Section does not apply to a person who elects under 
12subsection (c-5) of Section 1-161 to receive the benefits 
13under Section 1-161. 
14 This Section does not apply to a person who first becomes a 
15member or participant of an affected pension fund on or after 6 
16months after the resolution or ordinance date, as defined in 
17Section 1-162, unless that person elects under subsection (c) 
18of Section 1-162 to receive the benefits provided under this 
19Section and the applicable provisions of the Article under 
20which he or she is a member or participant. 
21 (b) "Final average salary" means, except as otherwise 
22provided in this subsection, the average monthly (or annual) 
23salary obtained by dividing the total salary or earnings 
24calculated under the Article applicable to the member or 
25participant during the 96 consecutive months (or 8 consecutive 
26years) of service within the last 120 months (or 10 years) of 
 
 
HB4873- 240 -LRB103 35886 RPS 65971 b


1service in which the total salary or earnings calculated under 
2the applicable Article was the highest by the number of months 
3(or years) of service in that period. For the purposes of a 
4person who first becomes a member or participant of any 
5retirement system or pension fund to which this Section 
6applies on or after January 1, 2011, in this Code, "final 
7average salary" shall be substituted for the following:
8  (1) (Blank).
9  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
10 annual salary for any 4 consecutive years within the last 
11 10 years of service immediately preceding the date of 
12 withdrawal". 
13  (3) In Article 13, "average final salary". 
14  (4) In Article 14, "final average compensation". 
15  (5) In Article 17, "average salary". 
16  (6) In Section 22-207, "wages or salary received by 
17 him at the date of retirement or discharge". 
18 A member of the Teachers' Retirement System of the State 
19of Illinois who retires on or after June 1, 2021 and for whom 
20the 2020-2021 school year is used in the calculation of the 
21member's final average salary shall use the higher of the 
22following for the purpose of determining the member's final 
23average salary:
24  (A) the amount otherwise calculated under the first 
25 paragraph of this subsection; or
26  (B) an amount calculated by the Teachers' Retirement 
 
 
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1 System of the State of Illinois using the average of the 
2 monthly (or annual) salary obtained by dividing the total 
3 salary or earnings calculated under Article 16 applicable 
4 to the member or participant during the 96 months (or 8 
5 years) of service within the last 120 months (or 10 years) 
6 of service in which the total salary or earnings 
7 calculated under the Article was the highest by the number 
8 of months (or years) of service in that period.
9 (b-5) Beginning on January 1, 2011, for all purposes under 
10this Code (including without limitation the calculation of 
11benefits and employee contributions), the annual earnings, 
12salary, or wages (based on the plan year) of a member or 
13participant to whom this Section applies shall not exceed 
14$106,800; however, that amount shall annually thereafter be 
15increased by the lesser of (i) 3% of that amount, including all 
16previous adjustments, or (ii) one-half the annual unadjusted 
17percentage increase (but not less than zero) in the consumer 
18price index-u for the 12 months ending with the September 
19preceding each November 1, including all previous adjustments.
20 For the purposes of this Section, "consumer price index-u" 
21means the index published by the Bureau of Labor Statistics of 
22the United States Department of Labor that measures the 
23average change in prices of goods and services purchased by 
24all urban consumers, United States city average, all items, 
251982-84 = 100. The new amount resulting from each annual 
26adjustment shall be determined by the Public Pension Division 
 
 
HB4873- 242 -LRB103 35886 RPS 65971 b


1of the Department of Insurance and made available to the 
2boards of the retirement systems and pension funds by November 
31 of each year. 
4 (b-10) Beginning on January 1, 2024, for all purposes 
5under this Code (including, without limitation, the 
6calculation of benefits and employee contributions), the 
7annual earnings, salary, or wages (based on the plan year) of a 
8member or participant under Article 9 to whom this Section 
9applies shall include an annual earnings, salary, or wage cap 
10that tracks the Social Security wage base. Maximum annual 
11earnings, wages, or salary shall be the annual contribution 
12and benefit base established for the applicable year by the 
13Commissioner of the Social Security Administration under the 
14federal Social Security Act. 
15 However, in no event shall the annual earnings, salary, or 
16wages for the purposes of this Article and Article 9 exceed any 
17limitation imposed on annual earnings, salary, or wages under 
18Section 1-117. Under no circumstances shall the maximum amount 
19of annual earnings, salary, or wages be greater than the 
20amount set forth in this subsection (b-10) as a result of 
21reciprocal service or any provisions regarding reciprocal 
22services, nor shall the Fund under Article 9 be required to pay 
23any refund as a result of the application of this maximum 
24annual earnings, salary, and wage cap. 
25 Nothing in this subsection (b-10) shall cause or otherwise 
26result in any retroactive adjustment of any employee 
 
 
HB4873- 243 -LRB103 35886 RPS 65971 b


1contributions. Nothing in this subsection (b-10) shall cause 
2or otherwise result in any retroactive adjustment of 
3disability or other payments made between January 1, 2011 and 
4January 1, 2024. 
5 (c) A member or participant is entitled to a retirement 
6annuity upon written application if he or she has attained age 
767 (age 65, with respect to service under Article 12 that is 
8subject to this Section, for a member or participant under 
9Article 12 who first becomes a member or participant under 
10Article 12 on or after January 1, 2022 or who makes the 
11election under item (i) of subsection (d-15) of this Section) 
12and has at least 10 years of service credit and is otherwise 
13eligible under the requirements of the applicable Article. 
14 A member or participant who has attained age 62 (age 60, 
15with respect to service under Article 12 that is subject to 
16this Section, for a member or participant under Article 12 who 
17first becomes a member or participant under Article 12 on or 
18after January 1, 2022 or who makes the election under item (i) 
19of subsection (d-15) of this Section) and has at least 10 years 
20of service credit and is otherwise eligible under the 
21requirements of the applicable Article may elect to receive 
22the lower retirement annuity provided in subsection (d) of 
23this Section. 
24 (c-5) A person who first becomes a member or a participant 
25subject to this Section on or after July 6, 2017 (the effective 
26date of Public Act 100-23), notwithstanding any other 
 
 
HB4873- 244 -LRB103 35886 RPS 65971 b


1provision of this Code to the contrary, is entitled to a 
2retirement annuity under Article 8 or Article 11 upon written 
3application if he or she has attained age 65 and has at least 
410 years of service credit and is otherwise eligible under the 
5requirements of Article 8 or Article 11 of this Code, 
6whichever is applicable. 
7 (c-10) Notwithstanding subsection (c), beginning July 1, 
82025, a member or participant under Article 14, 16, or 17 
9subject to this Section is entitled to a retirement annuity 
10upon written application if he or she:
11  (1) has attained age 62, has at least 35 years of 
12 service credit, and is otherwise eligible under the 
13 requirements of the applicable Article; 
14  (2) has attained age 64, has at least 20 years of 
15 service credit, and is otherwise eligible under the 
16 requirements of the applicable Article; or
17  (3) has attained age 67, has at least 10 years of 
18 service credit, and is otherwise eligible under the 
19 requirements of the applicable Article. 
20 For the purposes of Section 1-103.1 of this Code, the 
21changes made to this Section by this amendatory Act of the 
22103rd General Assembly are applicable without regard to 
23whether the employee was in active service on or after the 
24effective date of this amendatory Act of the 103rd General 
25Assembly. 
26 (d) The retirement annuity of a member or participant who 
 
 
HB4873- 245 -LRB103 35886 RPS 65971 b


1is retiring after attaining age 62 (age 60, with respect to 
2service under Article 12 that is subject to this Section, for a 
3member or participant under Article 12 who first becomes a 
4member or participant under Article 12 on or after January 1, 
52022 or who makes the election under item (i) of subsection 
6(d-15) of this Section) with at least 10 years of service 
7credit shall be reduced by one-half of 1% for each full month 
8that the member's age is under age 67 (age 65, with respect to 
9service under Article 12 that is subject to this Section, for a 
10member or participant under Article 12 who first becomes a 
11member or participant under Article 12 on or after January 1, 
122022 or who makes the election under item (i) of subsection 
13(d-15) of this Section).
14 (d-5) The retirement annuity payable under Article 8 or 
15Article 11 to an eligible person subject to subsection (c-5) 
16of this Section who is retiring at age 60 with at least 10 
17years of service credit shall be reduced by one-half of 1% for 
18each full month that the member's age is under age 65. 
19 (d-10) Each person who first became a member or 
20participant under Article 8 or Article 11 of this Code on or 
21after January 1, 2011 and prior to July 6, 2017 (the effective 
22date of Public Act 100-23) shall make an irrevocable election 
23either:
24  (i) to be eligible for the reduced retirement age 
25 provided in subsections (c-5) and (d-5) of this Section, 
26 the eligibility for which is conditioned upon the member 
 
 
HB4873- 246 -LRB103 35886 RPS 65971 b


1 or participant agreeing to the increases in employee 
2 contributions for age and service annuities provided in 
3 subsection (a-5) of Section 8-174 of this Code (for 
4 service under Article 8) or subsection (a-5) of Section 
5 11-170 of this Code (for service under Article 11); or 
6  (ii) to not agree to item (i) of this subsection 
7 (d-10), in which case the member or participant shall 
8 continue to be subject to the retirement age provisions in 
9 subsections (c) and (d) of this Section and the employee 
10 contributions for age and service annuity as provided in 
11 subsection (a) of Section 8-174 of this Code (for service 
12 under Article 8) or subsection (a) of Section 11-170 of 
13 this Code (for service under Article 11). 
14 The election provided for in this subsection shall be made 
15between October 1, 2017 and November 15, 2017. A person 
16subject to this subsection who makes the required election 
17shall remain bound by that election. A person subject to this 
18subsection who fails for any reason to make the required 
19election within the time specified in this subsection shall be 
20deemed to have made the election under item (ii). 
21 (d-15) Each person who first becomes a member or 
22participant under Article 12 on or after January 1, 2011 and 
23prior to January 1, 2022 shall make an irrevocable election 
24either: 
25  (i) to be eligible for the reduced retirement age 
26 specified in subsections (c) and (d) of this Section, the 
 
 
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1 eligibility for which is conditioned upon the member or 
2 participant agreeing to the increase in employee 
3 contributions for service annuities specified in 
4 subsection (b) of Section 12-150; or
5  (ii) to not agree to item (i) of this subsection 
6 (d-15), in which case the member or participant shall not 
7 be eligible for the reduced retirement age specified in 
8 subsections (c) and (d) of this Section and shall not be 
9 subject to the increase in employee contributions for 
10 service annuities specified in subsection (b) of Section 
11 12-150. 
12 The election provided for in this subsection shall be made 
13between January 1, 2022 and April 1, 2022. A person subject to 
14this subsection who makes the required election shall remain 
15bound by that election. A person subject to this subsection 
16who fails for any reason to make the required election within 
17the time specified in this subsection shall be deemed to have 
18made the election under item (ii). 
19 (e) Any retirement annuity or supplemental annuity shall 
20be subject to annual increases on the January 1 occurring 
21either on or after the attainment of age 67 (age 65, with 
22respect to service under Article 12 that is subject to this 
23Section, for a member or participant under Article 12 who 
24first becomes a member or participant under Article 12 on or 
25after January 1, 2022 or who makes the election under item (i) 
26of subsection (d-15); and beginning on July 6, 2017 (the 
 
 
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1effective date of Public Act 100-23), age 65 with respect to 
2service under Article 8 or Article 11 for eligible persons 
3who: (i) are subject to subsection (c-5) of this Section; or 
4(ii) made the election under item (i) of subsection (d-10) of 
5this Section) or the first anniversary of the annuity start 
6date, whichever is later. Each annual increase shall be 
7calculated at 3% or one-half the annual unadjusted percentage 
8increase (but not less than zero) in the consumer price 
9index-u for the 12 months ending with the September preceding 
10each November 1, whichever is less, of the originally granted 
11retirement annuity. If the annual unadjusted percentage change 
12in the consumer price index-u for the 12 months ending with the 
13September preceding each November 1 is zero or there is a 
14decrease, then the annuity shall not be increased. 
15 For the purposes of Section 1-103.1 of this Code, the 
16changes made to this Section by Public Act 102-263 are 
17applicable without regard to whether the employee was in 
18active service on or after August 6, 2021 (the effective date 
19of Public Act 102-263). 
20 For the purposes of Section 1-103.1 of this Code, the 
21changes made to this Section by Public Act 100-23 are 
22applicable without regard to whether the employee was in 
23active service on or after July 6, 2017 (the effective date of 
24Public Act 100-23). 
25 (f) The initial survivor's or widow's annuity of an 
26otherwise eligible survivor or widow of a retired member or 
 
 
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1participant who first became a member or participant on or 
2after January 1, 2011 shall be in the amount of 66 2/3% of the 
3retired member's or participant's retirement annuity at the 
4date of death. In the case of the death of a member or 
5participant who has not retired and who first became a member 
6or participant on or after January 1, 2011, eligibility for a 
7survivor's or widow's annuity shall be determined by the 
8applicable Article of this Code. The initial benefit shall be 
966 2/3% of the earned annuity without a reduction due to age. A 
10child's annuity of an otherwise eligible child shall be in the 
11amount prescribed under each Article if applicable. Any 
12survivor's or widow's annuity shall be increased (1) on each 
13January 1 occurring on or after the commencement of the 
14annuity if the deceased member died while receiving a 
15retirement annuity or (2) in other cases, on each January 1 
16occurring after the first anniversary of the commencement of 
17the annuity. Each annual increase shall be calculated at 3% or 
18one-half the annual unadjusted percentage increase (but not 
19less than zero) in the consumer price index-u for the 12 months 
20ending with the September preceding each November 1, whichever 
21is less, of the originally granted survivor's annuity. If the 
22annual unadjusted percentage change in the consumer price 
23index-u for the 12 months ending with the September preceding 
24each November 1 is zero or there is a decrease, then the 
25annuity shall not be increased. 
26 (g) The benefits in Section 14-110 apply only if the 
 
 
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1person is a State policeman, a fire fighter in the fire 
2protection service of a department, a conservation police 
3officer, an investigator for the Secretary of State, an 
4investigator for the Office of the Attorney General, an arson 
5investigator, a Commerce Commission police officer, 
6investigator for the Department of Revenue or the Illinois 
7Gaming Board, a security employee of the Department of 
8Corrections or the Department of Juvenile Justice, or a 
9security employee of the Department of Innovation and 
10Technology, as those terms are defined in subsection (b) and 
11subsection (c) of Section 14-110. A person who meets the 
12requirements of this Section is entitled to an annuity 
13calculated under the provisions of Section 14-110, in lieu of 
14the regular or minimum retirement annuity, only if the person 
15has withdrawn from service with not less than 20 years of 
16eligible creditable service and has attained age 60, 
17regardless of whether the attainment of age 60 occurs while 
18the person is still in service. 
19 (h) If a person who first becomes a member or a participant 
20of a retirement system or pension fund subject to this Section 
21on or after January 1, 2011 is receiving a retirement annuity 
22or retirement pension under that system or fund and becomes a 
23member or participant under any other system or fund created 
24by this Code and is employed on a full-time basis, except for 
25those members or participants exempted from the provisions of 
26this Section under subsection (a) of this Section, then the 
 
 
HB4873- 251 -LRB103 35886 RPS 65971 b


1person's retirement annuity or retirement pension under that 
2system or fund shall be suspended during that employment. Upon 
3termination of that employment, the person's retirement 
4annuity or retirement pension payments shall resume and be 
5recalculated if recalculation is provided for under the 
6applicable Article of this Code.
7 If a person who first becomes a member of a retirement 
8system or pension fund subject to this Section on or after 
9January 1, 2012 and is receiving a retirement annuity or 
10retirement pension under that system or fund and accepts on a 
11contractual basis a position to provide services to a 
12governmental entity from which he or she has retired, then 
13that person's annuity or retirement pension earned as an 
14active employee of the employer shall be suspended during that 
15contractual service. A person receiving an annuity or 
16retirement pension under this Code shall notify the pension 
17fund or retirement system from which he or she is receiving an 
18annuity or retirement pension, as well as his or her 
19contractual employer, of his or her retirement status before 
20accepting contractual employment. A person who fails to submit 
21such notification shall be guilty of a Class A misdemeanor and 
22required to pay a fine of $1,000. Upon termination of that 
23contractual employment, the person's retirement annuity or 
24retirement pension payments shall resume and, if appropriate, 
25be recalculated under the applicable provisions of this Code. 
26 (i) (Blank). 
 
 
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1 (j) In the case of a conflict between the provisions of 
2this Section and any other provision of this Code, the 
3provisions of this Section shall control.
4(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
5102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
68-11-23.)

7 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
8 Sec. 15-135. Retirement annuities; conditions. 
9 (a) This subsection (a) applies only to a Tier 1 member. A 
10participant who retires in one of the following specified 
11years with the specified amount of service is entitled to a 
12retirement annuity at any age under the retirement program 
13applicable to the participant:
14  35 years if retirement is in 1997 or before;
15  34 years if retirement is in 1998;
16  33 years if retirement is in 1999;
17  32 years if retirement is in 2000;
18  31 years if retirement is in 2001;
19  30 years if retirement is in 2002 or later.
20 A participant with 8 or more years of service after 
21September 1, 1941, is entitled to a retirement annuity on or 
22after attainment of age 55.
23 A participant with at least 5 but less than 8 years of 
24service after September 1, 1941, is entitled to a retirement 
25annuity on or after attainment of age 62.
 
 
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1 A participant who has at least 25 years of service in this 
2system as a police officer or firefighter is entitled to a 
3retirement annuity on or after the attainment of age 50, if 
4Rule 4 of Section 15-136 is applicable to the participant.
5 (a-5) Beginning July 1, 2025, a Tier 2 member is entitled 
6to a retirement annuity upon written application if he or she: 
7  (1) has attained age 62, has at least 35 years of 
8 service credit, and is otherwise eligible under the 
9 requirements of this Article; 
10  (2) has attained age 64, has at least 20 years of 
11 service credit, and is otherwise eligible under the 
12 requirements of this Article; or
13  (3) has attained age 67, has at least 10 years of 
14 service credit, and is otherwise eligible under the 
15 requirements of this Article. 
16 For the purposes of Section 1-103.1 of this Code, the 
17changes made to this Section by this amendatory Act of the 
18103rd General Assembly are applicable without regard to 
19whether the employee was in active service on or after the 
20effective date of this amendatory Act of the 103rd General 
21Assembly. 
22 Before July 1, 2025, a A Tier 2 member is entitled to a 
23retirement annuity upon written application if he or she has 
24attained age 67 and has at least 10 years of service credit and 
25is otherwise eligible under the requirements of this Article. 
26A Tier 2 member who has attained age 62 and has at least 10 
 
 
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1years of service credit and is otherwise eligible under the 
2requirements of this Article may elect to receive the lower 
3retirement annuity provided in subsection (b-5) of Section 
415-136 of this Article. 
5 (a-10) Before July 1, 2025, a A Tier 2 member who has at 
6least 20 years of service in this system as a police officer or 
7firefighter is entitled to a retirement annuity upon written 
8application on or after the attainment of age 60 if Rule 4 of 
9Section 15-136 is applicable to the participant. Beginning 
10July 1, 2025, a Tier 2 member who has at least 20 years of 
11service in this system as a police officer or firefighter is 
12entitled to a retirement annuity upon written application on 
13or after the attainment of age 55 if Rule 4 of Section 15-136 
14is applicable to the participant. The changes made to this 
15subsection by this amendatory Act of the 101st General 
16Assembly apply retroactively to January 1, 2011. 
17 (b) The annuity payment period shall begin on the date 
18specified by the participant or the recipient of a disability 
19retirement annuity submitting a written application. For a 
20participant, the date on which the annuity payment period 
21begins shall not be prior to termination of employment or more 
22than one year before the application is received by the board; 
23however, if the participant is not an employee of an employer 
24participating in this System or in a participating system as 
25defined in Article 20 of this Code on April 1 of the calendar 
26year next following the calendar year in which the participant 
 
 
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1attains the age specified under Section 401(a)(9) of the 
2Internal Revenue Code of 1986, as amended, the annuity payment 
3period shall begin on that date regardless of whether an 
4application has been filed. For a recipient of a disability 
5retirement annuity, the date on which the annuity payment 
6period begins shall not be prior to the discontinuation of the 
7disability retirement annuity under Section 15-153.2. 
8 (c) An annuity is not payable if the amount provided under 
9Section 15-136 is less than $10 per month.
10(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)

11
Article 10. 


12 Section 10-5. The Illinois Pension Code is amended by 
13changing Sections 1-160, 15-108.2, 15-155, and 16-158.3 as 
14follows:

15 (40 ILCS 5/1-160)
16 (Text of Section from P.A. 102-719)
17 Sec. 1-160. Provisions applicable to new hires. 
18 (a) The provisions of this Section apply to a person who, 
19on or after January 1, 2011, first becomes a member or a 
20participant under any reciprocal retirement system or pension 
21fund established under this Code, other than a retirement 
22system or pension fund established under Article 2, 3, 4, 5, 6, 
237, 15, or 18 of this Code, notwithstanding any other provision 
 
 
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1of this Code to the contrary, but do not apply to any 
2self-managed plan established under this Code or to any 
3participant of the retirement plan established under Section 
422-101; except that this Section applies to a person who 
5elected to establish alternative credits by electing in 
6writing after January 1, 2011, but before August 8, 2011, 
7under Section 7-145.1 of this Code. Notwithstanding anything 
8to the contrary in this Section, for purposes of this Section, 
9a person who is a Tier 1 regular employee as defined in Section 
107-109.4 of this Code or who participated in a retirement 
11system under Article 15 prior to January 1, 2011 shall be 
12deemed a person who first became a member or participant prior 
13to January 1, 2011 under any retirement system or pension fund 
14subject to this Section. The changes made to this Section by 
15Public Act 98-596 are a clarification of existing law and are 
16intended to be retroactive to January 1, 2011 (the effective 
17date of Public Act 96-889), notwithstanding the provisions of 
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a 
20noncovered employee under Article 14 on or after the 
21implementation date of the plan created under Section 1-161 
22for that Article, unless that person elects under subsection 
23(b) of Section 1-161 to instead receive the benefits provided 
24under this Section and the applicable provisions of that 
25Article.
26 This Section does not apply to a person who first becomes a 
 
 
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1member or participant under Article 16 on or after the 
2implementation date of the plan created under Section 1-161 
3for that Article, unless that person elects under subsection 
4(b) of Section 1-161 to instead receive the benefits provided 
5under this Section and the applicable provisions of that 
6Article.
7 This Section does not apply to a person who elects under 
8subsection (c-5) of Section 1-161 to receive the benefits 
9under Section 1-161. 
10 This Section does not apply to a person who first becomes a 
11member or participant of an affected pension fund on or after 6 
12months after the resolution or ordinance date, as defined in 
13Section 1-162, unless that person elects under subsection (c) 
14of Section 1-162 to receive the benefits provided under this 
15Section and the applicable provisions of the Article under 
16which he or she is a member or participant. 
17 (b) "Final average salary" means, except as otherwise 
18provided in this subsection, the average monthly (or annual) 
19salary obtained by dividing the total salary or earnings 
20calculated under the Article applicable to the member or 
21participant during the 96 consecutive months (or 8 consecutive 
22years) of service within the last 120 months (or 10 years) of 
23service in which the total salary or earnings calculated under 
24the applicable Article was the highest by the number of months 
25(or years) of service in that period. For the purposes of a 
26person who first becomes a member or participant of any 
 
 
HB4873- 258 -LRB103 35886 RPS 65971 b


1retirement system or pension fund to which this Section 
2applies on or after January 1, 2011, in this Code, "final 
3average salary" shall be substituted for the following:
4  (1) (Blank).
5  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
6 annual salary for any 4 consecutive years within the last 
7 10 years of service immediately preceding the date of 
8 withdrawal". 
9  (3) In Article 13, "average final salary". 
10  (4) In Article 14, "final average compensation". 
11  (5) In Article 17, "average salary". 
12  (6) In Section 22-207, "wages or salary received by 
13 him at the date of retirement or discharge". 
14 A member of the Teachers' Retirement System of the State 
15of Illinois who retires on or after June 1, 2021 and for whom 
16the 2020-2021 school year is used in the calculation of the 
17member's final average salary shall use the higher of the 
18following for the purpose of determining the member's final 
19average salary:
20  (A) the amount otherwise calculated under the first 
21 paragraph of this subsection; or
22  (B) an amount calculated by the Teachers' Retirement 
23 System of the State of Illinois using the average of the 
24 monthly (or annual) salary obtained by dividing the total 
25 salary or earnings calculated under Article 16 applicable 
26 to the member or participant during the 96 months (or 8 
 
 
HB4873- 259 -LRB103 35886 RPS 65971 b


1 years) of service within the last 120 months (or 10 years) 
2 of service in which the total salary or earnings 
3 calculated under the Article was the highest by the number 
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under 
6this Code (including without limitation the calculation of 
7benefits and employee contributions), the annual earnings, 
8salary, or wages (based on the plan year) of a member or 
9participant to whom this Section applies shall not exceed 
10$106,800; however, that amount shall annually thereafter be 
11increased by the lesser of (i) 3% of that amount, including all 
12previous adjustments, or (ii) one-half the annual unadjusted 
13percentage increase (but not less than zero) in the consumer 
14price index-u for the 12 months ending with the September 
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u" 
17means the index published by the Bureau of Labor Statistics of 
18the United States Department of Labor that measures the 
19average change in prices of goods and services purchased by 
20all urban consumers, United States city average, all items, 
211982-84 = 100. The new amount resulting from each annual 
22adjustment shall be determined by the Public Pension Division 
23of the Department of Insurance and made available to the 
24boards of the retirement systems and pension funds by November 
251 of each year. 
26 (b-10) Beginning on January 1, 2024, for all purposes 
 
 
HB4873- 260 -LRB103 35886 RPS 65971 b


1under this Code (including, without limitation, the 
2calculation of benefits and employee contributions), the 
3annual earnings, salary, or wages (based on the plan year) of a 
4member or participant under Article 9 to whom this Section 
5applies shall include an annual earnings, salary, or wage cap 
6that tracks the Social Security wage base. Maximum annual 
7earnings, wages, or salary shall be the annual contribution 
8and benefit base established for the applicable year by the 
9Commissioner of the Social Security Administration under the 
10federal Social Security Act. 
11 However, in no event shall the annual earnings, salary, or 
12wages for the purposes of this Article and Article 9 exceed any 
13limitation imposed on annual earnings, salary, or wages under 
14Section 1-117. Under no circumstances shall the maximum amount 
15of annual earnings, salary, or wages be greater than the 
16amount set forth in this subsection (b-10) as a result of 
17reciprocal service or any provisions regarding reciprocal 
18services, nor shall the Fund under Article 9 be required to pay 
19any refund as a result of the application of this maximum 
20annual earnings, salary, and wage cap. 
21 Nothing in this subsection (b-10) shall cause or otherwise 
22result in any retroactive adjustment of any employee 
23contributions. Nothing in this subsection (b-10) shall cause 
24or otherwise result in any retroactive adjustment of 
25disability or other payments made between January 1, 2011 and 
26January 1, 2024. 
 
 
HB4873- 261 -LRB103 35886 RPS 65971 b


1 (c) A member or participant is entitled to a retirement 
2annuity upon written application if he or she has attained age 
367 (age 65, with respect to service under Article 12 that is 
4subject to this Section, for a member or participant under 
5Article 12 who first becomes a member or participant under 
6Article 12 on or after January 1, 2022 or who makes the 
7election under item (i) of subsection (d-15) of this Section) 
8and has at least 10 years of service credit and is otherwise 
9eligible under the requirements of the applicable Article. 
10 A member or participant who has attained age 62 (age 60, 
11with respect to service under Article 12 that is subject to 
12this Section, for a member or participant under Article 12 who 
13first becomes a member or participant under Article 12 on or 
14after January 1, 2022 or who makes the election under item (i) 
15of subsection (d-15) of this Section) and has at least 10 years 
16of service credit and is otherwise eligible under the 
17requirements of the applicable Article may elect to receive 
18the lower retirement annuity provided in subsection (d) of 
19this Section. 
20 (c-5) A person who first becomes a member or a participant 
21subject to this Section on or after July 6, 2017 (the effective 
22date of Public Act 100-23), notwithstanding any other 
23provision of this Code to the contrary, is entitled to a 
24retirement annuity under Article 8 or Article 11 upon written 
25application if he or she has attained age 65 and has at least 
2610 years of service credit and is otherwise eligible under the 
 
 
HB4873- 262 -LRB103 35886 RPS 65971 b


1requirements of Article 8 or Article 11 of this Code, 
2whichever is applicable. 
3 (d) The retirement annuity of a member or participant who 
4is retiring after attaining age 62 (age 60, with respect to 
5service under Article 12 that is subject to this Section, for a 
6member or participant under Article 12 who first becomes a 
7member or participant under Article 12 on or after January 1, 
82022 or who makes the election under item (i) of subsection 
9(d-15) of this Section) with at least 10 years of service 
10credit shall be reduced by one-half of 1% for each full month 
11that the member's age is under age 67 (age 65, with respect to 
12service under Article 12 that is subject to this Section, for a 
13member or participant under Article 12 who first becomes a 
14member or participant under Article 12 on or after January 1, 
152022 or who makes the election under item (i) of subsection 
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or 
18Article 11 to an eligible person subject to subsection (c-5) 
19of this Section who is retiring at age 60 with at least 10 
20years of service credit shall be reduced by one-half of 1% for 
21each full month that the member's age is under age 65. 
22 (d-10) Each person who first became a member or 
23participant under Article 8 or Article 11 of this Code on or 
24after January 1, 2011 and prior to July 6, 2017 (the effective 
25date of Public Act 100-23) shall make an irrevocable election 
26either:
 
 
HB4873- 263 -LRB103 35886 RPS 65971 b


1  (i) to be eligible for the reduced retirement age 
2 provided in subsections (c-5) and (d-5) of this Section, 
3 the eligibility for which is conditioned upon the member 
4 or participant agreeing to the increases in employee 
5 contributions for age and service annuities provided in 
6 subsection (a-5) of Section 8-174 of this Code (for 
7 service under Article 8) or subsection (a-5) of Section 
8 11-170 of this Code (for service under Article 11); or 
9  (ii) to not agree to item (i) of this subsection 
10 (d-10), in which case the member or participant shall 
11 continue to be subject to the retirement age provisions in 
12 subsections (c) and (d) of this Section and the employee 
13 contributions for age and service annuity as provided in 
14 subsection (a) of Section 8-174 of this Code (for service 
15 under Article 8) or subsection (a) of Section 11-170 of 
16 this Code (for service under Article 11). 
17 The election provided for in this subsection shall be made 
18between October 1, 2017 and November 15, 2017. A person 
19subject to this subsection who makes the required election 
20shall remain bound by that election. A person subject to this 
21subsection who fails for any reason to make the required 
22election within the time specified in this subsection shall be 
23deemed to have made the election under item (ii). 
24 (d-15) Each person who first becomes a member or 
25participant under Article 12 on or after January 1, 2011 and 
26prior to January 1, 2022 shall make an irrevocable election 
 
 
HB4873- 264 -LRB103 35886 RPS 65971 b


1either: 
2  (i) to be eligible for the reduced retirement age 
3 specified in subsections (c) and (d) of this Section, the 
4 eligibility for which is conditioned upon the member or 
5 participant agreeing to the increase in employee 
6 contributions for service annuities specified in 
7 subsection (b) of Section 12-150; or
8  (ii) to not agree to item (i) of this subsection 
9 (d-15), in which case the member or participant shall not 
10 be eligible for the reduced retirement age specified in 
11 subsections (c) and (d) of this Section and shall not be 
12 subject to the increase in employee contributions for 
13 service annuities specified in subsection (b) of Section 
14 12-150. 
15 The election provided for in this subsection shall be made 
16between January 1, 2022 and April 1, 2022. A person subject to 
17this subsection who makes the required election shall remain 
18bound by that election. A person subject to this subsection 
19who fails for any reason to make the required election within 
20the time specified in this subsection shall be deemed to have 
21made the election under item (ii). 
22 (e) Any retirement annuity or supplemental annuity shall 
23be subject to annual increases on the January 1 occurring 
24either on or after the attainment of age 67 (age 65, with 
25respect to service under Article 12 that is subject to this 
26Section, for a member or participant under Article 12 who 
 
 
HB4873- 265 -LRB103 35886 RPS 65971 b


1first becomes a member or participant under Article 12 on or 
2after January 1, 2022 or who makes the election under item (i) 
3of subsection (d-15); and beginning on July 6, 2017 (the 
4effective date of Public Act 100-23), age 65 with respect to 
5service under Article 8 or Article 11 for eligible persons 
6who: (i) are subject to subsection (c-5) of this Section; or 
7(ii) made the election under item (i) of subsection (d-10) of 
8this Section) or the first anniversary of the annuity start 
9date, whichever is later. Each annual increase shall be 
10calculated at 3% or one-half the annual unadjusted percentage 
11increase (but not less than zero) in the consumer price 
12index-u for the 12 months ending with the September preceding 
13each November 1, whichever is less, of the originally granted 
14retirement annuity. If the annual unadjusted percentage change 
15in the consumer price index-u for the 12 months ending with the 
16September preceding each November 1 is zero or there is a 
17decrease, then the annuity shall not be increased. 
18 For the purposes of Section 1-103.1 of this Code, the 
19changes made to this Section by Public Act 102-263 are 
20applicable without regard to whether the employee was in 
21active service on or after August 6, 2021 (the effective date 
22of Public Act 102-263). 
23 For the purposes of Section 1-103.1 of this Code, the 
24changes made to this Section by Public Act 100-23 are 
25applicable without regard to whether the employee was in 
26active service on or after July 6, 2017 (the effective date of 
 
 
HB4873- 266 -LRB103 35886 RPS 65971 b


1Public Act 100-23). 
2 (f) The initial survivor's or widow's annuity of an 
3otherwise eligible survivor or widow of a retired member or 
4participant who first became a member or participant on or 
5after January 1, 2011 shall be in the amount of 66 2/3% of the 
6retired member's or participant's retirement annuity at the 
7date of death. In the case of the death of a member or 
8participant who has not retired and who first became a member 
9or participant on or after January 1, 2011, eligibility for a 
10survivor's or widow's annuity shall be determined by the 
11applicable Article of this Code. The initial benefit shall be 
1266 2/3% of the earned annuity without a reduction due to age. A 
13child's annuity of an otherwise eligible child shall be in the 
14amount prescribed under each Article if applicable. Any 
15survivor's or widow's annuity shall be increased (1) on each 
16January 1 occurring on or after the commencement of the 
17annuity if the deceased member died while receiving a 
18retirement annuity or (2) in other cases, on each January 1 
19occurring after the first anniversary of the commencement of 
20the annuity. Each annual increase shall be calculated at 3% or 
21one-half the annual unadjusted percentage increase (but not 
22less than zero) in the consumer price index-u for the 12 months 
23ending with the September preceding each November 1, whichever 
24is less, of the originally granted survivor's annuity. If the 
25annual unadjusted percentage change in the consumer price 
26index-u for the 12 months ending with the September preceding 
 
 
HB4873- 267 -LRB103 35886 RPS 65971 b


1each November 1 is zero or there is a decrease, then the 
2annuity shall not be increased. 
3 (g) The benefits in Section 14-110 apply if the person is a 
4fire fighter in the fire protection service of a department, a 
5security employee of the Department of Corrections or the 
6Department of Juvenile Justice, or a security employee of the 
7Department of Innovation and Technology, as those terms are 
8defined in subsection (b) and subsection (c) of Section 
914-110. A person who meets the requirements of this Section is 
10entitled to an annuity calculated under the provisions of 
11Section 14-110, in lieu of the regular or minimum retirement 
12annuity, only if the person has withdrawn from service with 
13not less than 20 years of eligible creditable service and has 
14attained age 60, regardless of whether the attainment of age 
1560 occurs while the person is still in service. 
16 (g-5) The benefits in Section 14-110 apply if the person 
17is a State policeman, investigator for the Secretary of State, 
18conservation police officer, investigator for the Department 
19of Revenue or the Illinois Gaming Board, investigator for the 
20Office of the Attorney General, Commerce Commission police 
21officer, or arson investigator, as those terms are defined in 
22subsection (b) and subsection (c) of Section 14-110. A person 
23who meets the requirements of this Section is entitled to an 
24annuity calculated under the provisions of Section 14-110, in 
25lieu of the regular or minimum retirement annuity, only if the 
26person has withdrawn from service with not less than 20 years 
 
 
HB4873- 268 -LRB103 35886 RPS 65971 b


1of eligible creditable service and has attained age 55, 
2regardless of whether the attainment of age 55 occurs while 
3the person is still in service. 
4 (h) If a person who first becomes a member or a participant 
5of a retirement system or pension fund subject to this Section 
6on or after January 1, 2011 is receiving a retirement annuity 
7or retirement pension under that system or fund and becomes a 
8member or participant under any other system or fund created 
9by this Code and is employed on a full-time basis, except for 
10those members or participants exempted from the provisions of 
11this Section under subsection (a) of this Section, then the 
12person's retirement annuity or retirement pension under that 
13system or fund shall be suspended during that employment. Upon 
14termination of that employment, the person's retirement 
15annuity or retirement pension payments shall resume and be 
16recalculated if recalculation is provided for under the 
17applicable Article of this Code.
18 If a person who first becomes a member of a retirement 
19system or pension fund subject to this Section on or after 
20January 1, 2012 and is receiving a retirement annuity or 
21retirement pension under that system or fund and accepts on a 
22contractual basis a position to provide services to a 
23governmental entity from which he or she has retired, then 
24that person's annuity or retirement pension earned as an 
25active employee of the employer shall be suspended during that 
26contractual service. A person receiving an annuity or 
 
 
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1retirement pension under this Code shall notify the pension 
2fund or retirement system from which he or she is receiving an 
3annuity or retirement pension, as well as his or her 
4contractual employer, of his or her retirement status before 
5accepting contractual employment. A person who fails to submit 
6such notification shall be guilty of a Class A misdemeanor and 
7required to pay a fine of $1,000. Upon termination of that 
8contractual employment, the person's retirement annuity or 
9retirement pension payments shall resume and, if appropriate, 
10be recalculated under the applicable provisions of this Code. 
11 (i) (Blank). 
12 (j) In the case of a conflict between the provisions of 
13this Section and any other provision of this Code, the 
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
175-6-22.)

18 (Text of Section from P.A. 102-813)
19 Sec. 1-160. Provisions applicable to new hires. 
20 (a) The provisions of this Section apply to a person who, 
21on or after January 1, 2011, first becomes a member or a 
22participant under any reciprocal retirement system or pension 
23fund established under this Code, other than a retirement 
24system or pension fund established under Article 2, 3, 4, 5, 6, 
257, 15, or 18 of this Code, notwithstanding any other provision 
 
 
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1of this Code to the contrary, but do not apply to any 
2self-managed plan established under this Code or to any 
3participant of the retirement plan established under Section 
422-101; except that this Section applies to a person who 
5elected to establish alternative credits by electing in 
6writing after January 1, 2011, but before August 8, 2011, 
7under Section 7-145.1 of this Code. Notwithstanding anything 
8to the contrary in this Section, for purposes of this Section, 
9a person who is a Tier 1 regular employee as defined in Section 
107-109.4 of this Code or who participated in a retirement 
11system under Article 15 prior to January 1, 2011 shall be 
12deemed a person who first became a member or participant prior 
13to January 1, 2011 under any retirement system or pension fund 
14subject to this Section. The changes made to this Section by 
15Public Act 98-596 are a clarification of existing law and are 
16intended to be retroactive to January 1, 2011 (the effective 
17date of Public Act 96-889), notwithstanding the provisions of 
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a 
20noncovered employee under Article 14 on or after the 
21implementation date of the plan created under Section 1-161 
22for that Article, unless that person elects under subsection 
23(b) of Section 1-161 to instead receive the benefits provided 
24under this Section and the applicable provisions of that 
25Article.
26 This Section does not apply to a person who first becomes a 
 
 
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1member or participant under Article 16 on or after the 
2implementation date of the plan created under Section 1-161 
3for that Article, unless that person elects under subsection 
4(b) of Section 1-161 to instead receive the benefits provided 
5under this Section and the applicable provisions of that 
6Article.
7 This Section does not apply to a person who elects under 
8subsection (c-5) of Section 1-161 to receive the benefits 
9under Section 1-161. 
10 This Section does not apply to a person who first becomes a 
11member or participant of an affected pension fund on or after 6 
12months after the resolution or ordinance date, as defined in 
13Section 1-162, unless that person elects under subsection (c) 
14of Section 1-162 to receive the benefits provided under this 
15Section and the applicable provisions of the Article under 
16which he or she is a member or participant. 
17 (b) "Final average salary" means, except as otherwise 
18provided in this subsection, the average monthly (or annual) 
19salary obtained by dividing the total salary or earnings 
20calculated under the Article applicable to the member or 
21participant during the 96 consecutive months (or 8 consecutive 
22years) of service within the last 120 months (or 10 years) of 
23service in which the total salary or earnings calculated under 
24the applicable Article was the highest by the number of months 
25(or years) of service in that period. For the purposes of a 
26person who first becomes a member or participant of any 
 
 
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1retirement system or pension fund to which this Section 
2applies on or after January 1, 2011, in this Code, "final 
3average salary" shall be substituted for the following:
4  (1) (Blank).
5  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
6 annual salary for any 4 consecutive years within the last 
7 10 years of service immediately preceding the date of 
8 withdrawal". 
9  (3) In Article 13, "average final salary". 
10  (4) In Article 14, "final average compensation". 
11  (5) In Article 17, "average salary". 
12  (6) In Section 22-207, "wages or salary received by 
13 him at the date of retirement or discharge". 
14 A member of the Teachers' Retirement System of the State 
15of Illinois who retires on or after June 1, 2021 and for whom 
16the 2020-2021 school year is used in the calculation of the 
17member's final average salary shall use the higher of the 
18following for the purpose of determining the member's final 
19average salary:
20  (A) the amount otherwise calculated under the first 
21 paragraph of this subsection; or
22  (B) an amount calculated by the Teachers' Retirement 
23 System of the State of Illinois using the average of the 
24 monthly (or annual) salary obtained by dividing the total 
25 salary or earnings calculated under Article 16 applicable 
26 to the member or participant during the 96 months (or 8 
 
 
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1 years) of service within the last 120 months (or 10 years) 
2 of service in which the total salary or earnings 
3 calculated under the Article was the highest by the number 
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under 
6this Code (including without limitation the calculation of 
7benefits and employee contributions), the annual earnings, 
8salary, or wages (based on the plan year) of a member or 
9participant to whom this Section applies shall not exceed 
10$106,800; however, that amount shall annually thereafter be 
11increased by the lesser of (i) 3% of that amount, including all 
12previous adjustments, or (ii) one-half the annual unadjusted 
13percentage increase (but not less than zero) in the consumer 
14price index-u for the 12 months ending with the September 
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u" 
17means the index published by the Bureau of Labor Statistics of 
18the United States Department of Labor that measures the 
19average change in prices of goods and services purchased by 
20all urban consumers, United States city average, all items, 
211982-84 = 100. The new amount resulting from each annual 
22adjustment shall be determined by the Public Pension Division 
23of the Department of Insurance and made available to the 
24boards of the retirement systems and pension funds by November 
251 of each year. 
26 (b-10) Beginning on January 1, 2024, for all purposes 
 
 
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1under this Code (including, without limitation, the 
2calculation of benefits and employee contributions), the 
3annual earnings, salary, or wages (based on the plan year) of a 
4member or participant under Article 9 to whom this Section 
5applies shall include an annual earnings, salary, or wage cap 
6that tracks the Social Security wage base. Maximum annual 
7earnings, wages, or salary shall be the annual contribution 
8and benefit base established for the applicable year by the 
9Commissioner of the Social Security Administration under the 
10federal Social Security Act. 
11 However, in no event shall the annual earnings, salary, or 
12wages for the purposes of this Article and Article 9 exceed any 
13limitation imposed on annual earnings, salary, or wages under 
14Section 1-117. Under no circumstances shall the maximum amount 
15of annual earnings, salary, or wages be greater than the 
16amount set forth in this subsection (b-10) as a result of 
17reciprocal service or any provisions regarding reciprocal 
18services, nor shall the Fund under Article 9 be required to pay 
19any refund as a result of the application of this maximum 
20annual earnings, salary, and wage cap. 
21 Nothing in this subsection (b-10) shall cause or otherwise 
22result in any retroactive adjustment of any employee 
23contributions. Nothing in this subsection (b-10) shall cause 
24or otherwise result in any retroactive adjustment of 
25disability or other payments made between January 1, 2011 and 
26January 1, 2024. 
 
 
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1 (c) A member or participant is entitled to a retirement 
2annuity upon written application if he or she has attained age 
367 (age 65, with respect to service under Article 12 that is 
4subject to this Section, for a member or participant under 
5Article 12 who first becomes a member or participant under 
6Article 12 on or after January 1, 2022 or who makes the 
7election under item (i) of subsection (d-15) of this Section) 
8and has at least 10 years of service credit and is otherwise 
9eligible under the requirements of the applicable Article. 
10 A member or participant who has attained age 62 (age 60, 
11with respect to service under Article 12 that is subject to 
12this Section, for a member or participant under Article 12 who 
13first becomes a member or participant under Article 12 on or 
14after January 1, 2022 or who makes the election under item (i) 
15of subsection (d-15) of this Section) and has at least 10 years 
16of service credit and is otherwise eligible under the 
17requirements of the applicable Article may elect to receive 
18the lower retirement annuity provided in subsection (d) of 
19this Section. 
20 (c-5) A person who first becomes a member or a participant 
21subject to this Section on or after July 6, 2017 (the effective 
22date of Public Act 100-23), notwithstanding any other 
23provision of this Code to the contrary, is entitled to a 
24retirement annuity under Article 8 or Article 11 upon written 
25application if he or she has attained age 65 and has at least 
2610 years of service credit and is otherwise eligible under the 
 
 
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1requirements of Article 8 or Article 11 of this Code, 
2whichever is applicable. 
3 (d) The retirement annuity of a member or participant who 
4is retiring after attaining age 62 (age 60, with respect to 
5service under Article 12 that is subject to this Section, for a 
6member or participant under Article 12 who first becomes a 
7member or participant under Article 12 on or after January 1, 
82022 or who makes the election under item (i) of subsection 
9(d-15) of this Section) with at least 10 years of service 
10credit shall be reduced by one-half of 1% for each full month 
11that the member's age is under age 67 (age 65, with respect to 
12service under Article 12 that is subject to this Section, for a 
13member or participant under Article 12 who first becomes a 
14member or participant under Article 12 on or after January 1, 
152022 or who makes the election under item (i) of subsection 
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or 
18Article 11 to an eligible person subject to subsection (c-5) 
19of this Section who is retiring at age 60 with at least 10 
20years of service credit shall be reduced by one-half of 1% for 
21each full month that the member's age is under age 65. 
22 (d-10) Each person who first became a member or 
23participant under Article 8 or Article 11 of this Code on or 
24after January 1, 2011 and prior to July 6, 2017 (the effective 
25date of Public Act 100-23) shall make an irrevocable election 
26either:
 
 
HB4873- 277 -LRB103 35886 RPS 65971 b


1  (i) to be eligible for the reduced retirement age 
2 provided in subsections (c-5) and (d-5) of this Section, 
3 the eligibility for which is conditioned upon the member 
4 or participant agreeing to the increases in employee 
5 contributions for age and service annuities provided in 
6 subsection (a-5) of Section 8-174 of this Code (for 
7 service under Article 8) or subsection (a-5) of Section 
8 11-170 of this Code (for service under Article 11); or 
9  (ii) to not agree to item (i) of this subsection 
10 (d-10), in which case the member or participant shall 
11 continue to be subject to the retirement age provisions in 
12 subsections (c) and (d) of this Section and the employee 
13 contributions for age and service annuity as provided in 
14 subsection (a) of Section 8-174 of this Code (for service 
15 under Article 8) or subsection (a) of Section 11-170 of 
16 this Code (for service under Article 11). 
17 The election provided for in this subsection shall be made 
18between October 1, 2017 and November 15, 2017. A person 
19subject to this subsection who makes the required election 
20shall remain bound by that election. A person subject to this 
21subsection who fails for any reason to make the required 
22election within the time specified in this subsection shall be 
23deemed to have made the election under item (ii). 
24 (d-15) Each person who first becomes a member or 
25participant under Article 12 on or after January 1, 2011 and 
26prior to January 1, 2022 shall make an irrevocable election 
 
 
HB4873- 278 -LRB103 35886 RPS 65971 b


1either: 
2  (i) to be eligible for the reduced retirement age 
3 specified in subsections (c) and (d) of this Section, the 
4 eligibility for which is conditioned upon the member or 
5 participant agreeing to the increase in employee 
6 contributions for service annuities specified in 
7 subsection (b) of Section 12-150; or
8  (ii) to not agree to item (i) of this subsection 
9 (d-15), in which case the member or participant shall not 
10 be eligible for the reduced retirement age specified in 
11 subsections (c) and (d) of this Section and shall not be 
12 subject to the increase in employee contributions for 
13 service annuities specified in subsection (b) of Section 
14 12-150. 
15 The election provided for in this subsection shall be made 
16between January 1, 2022 and April 1, 2022. A person subject to 
17this subsection who makes the required election shall remain 
18bound by that election. A person subject to this subsection 
19who fails for any reason to make the required election within 
20the time specified in this subsection shall be deemed to have 
21made the election under item (ii). 
22 (e) Any retirement annuity or supplemental annuity shall 
23be subject to annual increases on the January 1 occurring 
24either on or after the attainment of age 67 (age 65, with 
25respect to service under Article 12 that is subject to this 
26Section, for a member or participant under Article 12 who 
 
 
HB4873- 279 -LRB103 35886 RPS 65971 b


1first becomes a member or participant under Article 12 on or 
2after January 1, 2022 or who makes the election under item (i) 
3of subsection (d-15); and beginning on July 6, 2017 (the 
4effective date of Public Act 100-23), age 65 with respect to 
5service under Article 8 or Article 11 for eligible persons 
6who: (i) are subject to subsection (c-5) of this Section; or 
7(ii) made the election under item (i) of subsection (d-10) of 
8this Section) or the first anniversary of the annuity start 
9date, whichever is later. Each annual increase shall be 
10calculated at 3% or one-half the annual unadjusted percentage 
11increase (but not less than zero) in the consumer price 
12index-u for the 12 months ending with the September preceding 
13each November 1, whichever is less, of the originally granted 
14retirement annuity. If the annual unadjusted percentage change 
15in the consumer price index-u for the 12 months ending with the 
16September preceding each November 1 is zero or there is a 
17decrease, then the annuity shall not be increased. 
18 For the purposes of Section 1-103.1 of this Code, the 
19changes made to this Section by Public Act 102-263 are 
20applicable without regard to whether the employee was in 
21active service on or after August 6, 2021 (the effective date 
22of Public Act 102-263). 
23 For the purposes of Section 1-103.1 of this Code, the 
24changes made to this Section by Public Act 100-23 are 
25applicable without regard to whether the employee was in 
26active service on or after July 6, 2017 (the effective date of 
 
 
HB4873- 280 -LRB103 35886 RPS 65971 b


1Public Act 100-23). 
2 (f) The initial survivor's or widow's annuity of an 
3otherwise eligible survivor or widow of a retired member or 
4participant who first became a member or participant on or 
5after January 1, 2011 shall be in the amount of 66 2/3% of the 
6retired member's or participant's retirement annuity at the 
7date of death. In the case of the death of a member or 
8participant who has not retired and who first became a member 
9or participant on or after January 1, 2011, eligibility for a 
10survivor's or widow's annuity shall be determined by the 
11applicable Article of this Code. The initial benefit shall be 
1266 2/3% of the earned annuity without a reduction due to age. A 
13child's annuity of an otherwise eligible child shall be in the 
14amount prescribed under each Article if applicable. Any 
15survivor's or widow's annuity shall be increased (1) on each 
16January 1 occurring on or after the commencement of the 
17annuity if the deceased member died while receiving a 
18retirement annuity or (2) in other cases, on each January 1 
19occurring after the first anniversary of the commencement of 
20the annuity. Each annual increase shall be calculated at 3% or 
21one-half the annual unadjusted percentage increase (but not 
22less than zero) in the consumer price index-u for the 12 months 
23ending with the September preceding each November 1, whichever 
24is less, of the originally granted survivor's annuity. If the 
25annual unadjusted percentage change in the consumer price 
26index-u for the 12 months ending with the September preceding 
 
 
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1each November 1 is zero or there is a decrease, then the 
2annuity shall not be increased. 
3 (g) The benefits in Section 14-110 apply only if the 
4person is a State policeman, a fire fighter in the fire 
5protection service of a department, a conservation police 
6officer, an investigator for the Secretary of State, an arson 
7investigator, a Commerce Commission police officer, 
8investigator for the Department of Revenue or the Illinois 
9Gaming Board, a security employee of the Department of 
10Corrections or the Department of Juvenile Justice, or a 
11security employee of the Department of Innovation and 
12Technology, as those terms are defined in subsection (b) and 
13subsection (c) of Section 14-110. A person who meets the 
14requirements of this Section is entitled to an annuity 
15calculated under the provisions of Section 14-110, in lieu of 
16the regular or minimum retirement annuity, only if the person 
17has withdrawn from service with not less than 20 years of 
18eligible creditable service and has attained age 60, 
19regardless of whether the attainment of age 60 occurs while 
20the person is still in service. 
21 (h) If a person who first becomes a member or a participant 
22of a retirement system or pension fund subject to this Section 
23on or after January 1, 2011 is receiving a retirement annuity 
24or retirement pension under that system or fund and becomes a 
25member or participant under any other system or fund created 
26by this Code and is employed on a full-time basis, except for 
 
 
HB4873- 282 -LRB103 35886 RPS 65971 b


1those members or participants exempted from the provisions of 
2this Section under subsection (a) of this Section, then the 
3person's retirement annuity or retirement pension under that 
4system or fund shall be suspended during that employment. Upon 
5termination of that employment, the person's retirement 
6annuity or retirement pension payments shall resume and be 
7recalculated if recalculation is provided for under the 
8applicable Article of this Code.
9 If a person who first becomes a member of a retirement 
10system or pension fund subject to this Section on or after 
11January 1, 2012 and is receiving a retirement annuity or 
12retirement pension under that system or fund and accepts on a 
13contractual basis a position to provide services to a 
14governmental entity from which he or she has retired, then 
15that person's annuity or retirement pension earned as an 
16active employee of the employer shall be suspended during that 
17contractual service. A person receiving an annuity or 
18retirement pension under this Code shall notify the pension 
19fund or retirement system from which he or she is receiving an 
20annuity or retirement pension, as well as his or her 
21contractual employer, of his or her retirement status before 
22accepting contractual employment. A person who fails to submit 
23such notification shall be guilty of a Class A misdemeanor and 
24required to pay a fine of $1,000. Upon termination of that 
25contractual employment, the person's retirement annuity or 
26retirement pension payments shall resume and, if appropriate, 
 
 
HB4873- 283 -LRB103 35886 RPS 65971 b


1be recalculated under the applicable provisions of this Code. 
2 (i) (Blank). 
3 (j) In the case of a conflict between the provisions of 
4this Section and any other provision of this Code, the 
5provisions of this Section shall control.
6(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
7102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
85-13-22.)

9 (Text of Section from P.A. 102-956)
10 Sec. 1-160. Provisions applicable to new hires. 
11 (a) The provisions of this Section apply to a person who, 
12on or after January 1, 2011, first becomes a member or a 
13participant under any reciprocal retirement system or pension 
14fund established under this Code, other than a retirement 
15system or pension fund established under Article 2, 3, 4, 5, 6, 
167, 15, or 18 of this Code, notwithstanding any other provision 
17of this Code to the contrary, but do not apply to any 
18self-managed plan established under this Code or to any 
19participant of the retirement plan established under Section 
2022-101; except that this Section applies to a person who 
21elected to establish alternative credits by electing in 
22writing after January 1, 2011, but before August 8, 2011, 
23under Section 7-145.1 of this Code. Notwithstanding anything 
24to the contrary in this Section, for purposes of this Section, 
25a person who is a Tier 1 regular employee as defined in Section 
 
 
HB4873- 284 -LRB103 35886 RPS 65971 b


17-109.4 of this Code or who participated in a retirement 
2system under Article 15 prior to January 1, 2011 shall be 
3deemed a person who first became a member or participant prior 
4to January 1, 2011 under any retirement system or pension fund 
5subject to this Section. The changes made to this Section by 
6Public Act 98-596 are a clarification of existing law and are 
7intended to be retroactive to January 1, 2011 (the effective 
8date of Public Act 96-889), notwithstanding the provisions of 
9Section 1-103.1 of this Code.
10 This Section does not apply to a person who first becomes a 
11noncovered employee under Article 14 on or after the 
12implementation date of the plan created under Section 1-161 
13for that Article, unless that person elects under subsection 
14(b) of Section 1-161 to instead receive the benefits provided 
15under this Section and the applicable provisions of that 
16Article.
17 This Section does not apply to a person who first becomes a 
18member or participant under Article 16 on or after the 
19implementation date of the plan created under Section 1-161 
20for that Article, unless that person elects under subsection 
21(b) of Section 1-161 to instead receive the benefits provided 
22under this Section and the applicable provisions of that 
23Article.
24 This Section does not apply to a person who elects under 
25subsection (c-5) of Section 1-161 to receive the benefits 
26under Section 1-161. 
 
 
HB4873- 285 -LRB103 35886 RPS 65971 b


1 This Section does not apply to a person who first becomes a 
2member or participant of an affected pension fund on or after 6 
3months after the resolution or ordinance date, as defined in 
4Section 1-162, unless that person elects under subsection (c) 
5of Section 1-162 to receive the benefits provided under this 
6Section and the applicable provisions of the Article under 
7which he or she is a member or participant. 
8 (b) "Final average salary" means, except as otherwise 
9provided in this subsection, the average monthly (or annual) 
10salary obtained by dividing the total salary or earnings 
11calculated under the Article applicable to the member or 
12participant during the 96 consecutive months (or 8 consecutive 
13years) of service within the last 120 months (or 10 years) of 
14service in which the total salary or earnings calculated under 
15the applicable Article was the highest by the number of months 
16(or years) of service in that period. For the purposes of a 
17person who first becomes a member or participant of any 
18retirement system or pension fund to which this Section 
19applies on or after January 1, 2011, in this Code, "final 
20average salary" shall be substituted for the following:
21  (1) (Blank).
22  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
23 annual salary for any 4 consecutive years within the last 
24 10 years of service immediately preceding the date of 
25 withdrawal". 
26  (3) In Article 13, "average final salary". 
 
 
HB4873- 286 -LRB103 35886 RPS 65971 b


1  (4) In Article 14, "final average compensation". 
2  (5) In Article 17, "average salary". 
3  (6) In Section 22-207, "wages or salary received by 
4 him at the date of retirement or discharge". 
5 A member of the Teachers' Retirement System of the State 
6of Illinois who retires on or after June 1, 2021 and for whom 
7the 2020-2021 school year is used in the calculation of the 
8member's final average salary shall use the higher of the 
9following for the purpose of determining the member's final 
10average salary:
11  (A) the amount otherwise calculated under the first 
12 paragraph of this subsection; or
13  (B) an amount calculated by the Teachers' Retirement 
14 System of the State of Illinois using the average of the 
15 monthly (or annual) salary obtained by dividing the total 
16 salary or earnings calculated under Article 16 applicable 
17 to the member or participant during the 96 months (or 8 
18 years) of service within the last 120 months (or 10 years) 
19 of service in which the total salary or earnings 
20 calculated under the Article was the highest by the number 
21 of months (or years) of service in that period.
22 (b-5) Beginning on January 1, 2011, for all purposes under 
23this Code (including without limitation the calculation of 
24benefits and employee contributions), the annual earnings, 
25salary, or wages (based on the plan year) of a member or 
26participant to whom this Section applies shall not exceed 
 
 
HB4873- 287 -LRB103 35886 RPS 65971 b


1$106,800; however, that amount shall annually thereafter be 
2increased by the lesser of (i) 3% of that amount, including all 
3previous adjustments, or (ii) one-half the annual unadjusted 
4percentage increase (but not less than zero) in the consumer 
5price index-u for the 12 months ending with the September 
6preceding each November 1, including all previous adjustments.
7 For the purposes of this Section, "consumer price index-u" 
8means the index published by the Bureau of Labor Statistics of 
9the United States Department of Labor that measures the 
10average change in prices of goods and services purchased by 
11all urban consumers, United States city average, all items, 
121982-84 = 100. The new amount resulting from each annual 
13adjustment shall be determined by the Public Pension Division 
14of the Department of Insurance and made available to the 
15boards of the retirement systems and pension funds by November 
161 of each year. 
17 (b-10) Beginning on January 1, 2024, for all purposes 
18under this Code (including, without limitation, the 
19calculation of benefits and employee contributions), the 
20annual earnings, salary, or wages (based on the plan year) of a 
21member or participant under Article 9 to whom this Section 
22applies shall include an annual earnings, salary, or wage cap 
23that tracks the Social Security wage base. Maximum annual 
24earnings, wages, or salary shall be the annual contribution 
25and benefit base established for the applicable year by the 
26Commissioner of the Social Security Administration under the 
 
 
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1federal Social Security Act. 
2 However, in no event shall the annual earnings, salary, or 
3wages for the purposes of this Article and Article 9 exceed any 
4limitation imposed on annual earnings, salary, or wages under 
5Section 1-117. Under no circumstances shall the maximum amount 
6of annual earnings, salary, or wages be greater than the 
7amount set forth in this subsection (b-10) as a result of 
8reciprocal service or any provisions regarding reciprocal 
9services, nor shall the Fund under Article 9 be required to pay 
10any refund as a result of the application of this maximum 
11annual earnings, salary, and wage cap. 
12 Nothing in this subsection (b-10) shall cause or otherwise 
13result in any retroactive adjustment of any employee 
14contributions. Nothing in this subsection (b-10) shall cause 
15or otherwise result in any retroactive adjustment of 
16disability or other payments made between January 1, 2011 and 
17January 1, 2024. 
18 (c) A member or participant is entitled to a retirement 
19annuity upon written application if he or she has attained age 
2067 (age 65, with respect to service under Article 12 that is 
21subject to this Section, for a member or participant under 
22Article 12 who first becomes a member or participant under 
23Article 12 on or after January 1, 2022 or who makes the 
24election under item (i) of subsection (d-15) of this Section) 
25and has at least 10 years of service credit and is otherwise 
26eligible under the requirements of the applicable Article. 
 
 
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1 A member or participant who has attained age 62 (age 60, 
2with respect to service under Article 12 that is subject to 
3this Section, for a member or participant under Article 12 who 
4first becomes a member or participant under Article 12 on or 
5after January 1, 2022 or who makes the election under item (i) 
6of subsection (d-15) of this Section) and has at least 10 years 
7of service credit and is otherwise eligible under the 
8requirements of the applicable Article may elect to receive 
9the lower retirement annuity provided in subsection (d) of 
10this Section. 
11 (c-5) A person who first becomes a member or a participant 
12subject to this Section on or after July 6, 2017 (the effective 
13date of Public Act 100-23), notwithstanding any other 
14provision of this Code to the contrary, is entitled to a 
15retirement annuity under Article 8 or Article 11 upon written 
16application if he or she has attained age 65 and has at least 
1710 years of service credit and is otherwise eligible under the 
18requirements of Article 8 or Article 11 of this Code, 
19whichever is applicable. 
20 (d) The retirement annuity of a member or participant who 
21is retiring after attaining age 62 (age 60, with respect to 
22service under Article 12 that is subject to this Section, for a 
23member or participant under Article 12 who first becomes a 
24member or participant under Article 12 on or after January 1, 
252022 or who makes the election under item (i) of subsection 
26(d-15) of this Section) with at least 10 years of service 
 
 
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1credit shall be reduced by one-half of 1% for each full month 
2that the member's age is under age 67 (age 65, with respect to 
3service under Article 12 that is subject to this Section, for a 
4member or participant under Article 12 who first becomes a 
5member or participant under Article 12 on or after January 1, 
62022 or who makes the election under item (i) of subsection 
7(d-15) of this Section).
8 (d-5) The retirement annuity payable under Article 8 or 
9Article 11 to an eligible person subject to subsection (c-5) 
10of this Section who is retiring at age 60 with at least 10 
11years of service credit shall be reduced by one-half of 1% for 
12each full month that the member's age is under age 65. 
13 (d-10) Each person who first became a member or 
14participant under Article 8 or Article 11 of this Code on or 
15after January 1, 2011 and prior to July 6, 2017 (the effective 
16date of Public Act 100-23) shall make an irrevocable election 
17either:
18  (i) to be eligible for the reduced retirement age 
19 provided in subsections (c-5) and (d-5) of this Section, 
20 the eligibility for which is conditioned upon the member 
21 or participant agreeing to the increases in employee 
22 contributions for age and service annuities provided in 
23 subsection (a-5) of Section 8-174 of this Code (for 
24 service under Article 8) or subsection (a-5) of Section 
25 11-170 of this Code (for service under Article 11); or 
26  (ii) to not agree to item (i) of this subsection 
 
 
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1 (d-10), in which case the member or participant shall 
2 continue to be subject to the retirement age provisions in 
3 subsections (c) and (d) of this Section and the employee 
4 contributions for age and service annuity as provided in 
5 subsection (a) of Section 8-174 of this Code (for service 
6 under Article 8) or subsection (a) of Section 11-170 of 
7 this Code (for service under Article 11). 
8 The election provided for in this subsection shall be made 
9between October 1, 2017 and November 15, 2017. A person 
10subject to this subsection who makes the required election 
11shall remain bound by that election. A person subject to this 
12subsection who fails for any reason to make the required 
13election within the time specified in this subsection shall be 
14deemed to have made the election under item (ii). 
15 (d-15) Each person who first becomes a member or 
16participant under Article 12 on or after January 1, 2011 and 
17prior to January 1, 2022 shall make an irrevocable election 
18either: 
19  (i) to be eligible for the reduced retirement age 
20 specified in subsections (c) and (d) of this Section, the 
21 eligibility for which is conditioned upon the member or 
22 participant agreeing to the increase in employee 
23 contributions for service annuities specified in 
24 subsection (b) of Section 12-150; or
25  (ii) to not agree to item (i) of this subsection 
26 (d-15), in which case the member or participant shall not 
 
 
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1 be eligible for the reduced retirement age specified in 
2 subsections (c) and (d) of this Section and shall not be 
3 subject to the increase in employee contributions for 
4 service annuities specified in subsection (b) of Section 
5 12-150. 
6 The election provided for in this subsection shall be made 
7between January 1, 2022 and April 1, 2022. A person subject to 
8this subsection who makes the required election shall remain 
9bound by that election. A person subject to this subsection 
10who fails for any reason to make the required election within 
11the time specified in this subsection shall be deemed to have 
12made the election under item (ii). 
13 (e) Any retirement annuity or supplemental annuity shall 
14be subject to annual increases on the January 1 occurring 
15either on or after the attainment of age 67 (age 65, with 
16respect to service under Article 12 that is subject to this 
17Section, for a member or participant under Article 12 who 
18first becomes a member or participant under Article 12 on or 
19after January 1, 2022 or who makes the election under item (i) 
20of subsection (d-15); and beginning on July 6, 2017 (the 
21effective date of Public Act 100-23), age 65 with respect to 
22service under Article 8 or Article 11 for eligible persons 
23who: (i) are subject to subsection (c-5) of this Section; or 
24(ii) made the election under item (i) of subsection (d-10) of 
25this Section) or the first anniversary of the annuity start 
26date, whichever is later. Each annual increase shall be 
 
 
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1calculated at 3% or one-half the annual unadjusted percentage 
2increase (but not less than zero) in the consumer price 
3index-u for the 12 months ending with the September preceding 
4each November 1, whichever is less, of the originally granted 
5retirement annuity. If the annual unadjusted percentage change 
6in the consumer price index-u for the 12 months ending with the 
7September preceding each November 1 is zero or there is a 
8decrease, then the annuity shall not be increased. 
9 For the purposes of Section 1-103.1 of this Code, the 
10changes made to this Section by Public Act 102-263 are 
11applicable without regard to whether the employee was in 
12active service on or after August 6, 2021 (the effective date 
13of Public Act 102-263). 
14 For the purposes of Section 1-103.1 of this Code, the 
15changes made to this Section by Public Act 100-23 are 
16applicable without regard to whether the employee was in 
17active service on or after July 6, 2017 (the effective date of 
18Public Act 100-23). 
19 (f) The initial survivor's or widow's annuity of an 
20otherwise eligible survivor or widow of a retired member or 
21participant who first became a member or participant on or 
22after January 1, 2011 shall be in the amount of 66 2/3% of the 
23retired member's or participant's retirement annuity at the 
24date of death. In the case of the death of a member or 
25participant who has not retired and who first became a member 
26or participant on or after January 1, 2011, eligibility for a 
 
 
HB4873- 294 -LRB103 35886 RPS 65971 b


1survivor's or widow's annuity shall be determined by the 
2applicable Article of this Code. The initial benefit shall be 
366 2/3% of the earned annuity without a reduction due to age. A 
4child's annuity of an otherwise eligible child shall be in the 
5amount prescribed under each Article if applicable. Any 
6survivor's or widow's annuity shall be increased (1) on each 
7January 1 occurring on or after the commencement of the 
8annuity if the deceased member died while receiving a 
9retirement annuity or (2) in other cases, on each January 1 
10occurring after the first anniversary of the commencement of 
11the annuity. Each annual increase shall be calculated at 3% or 
12one-half the annual unadjusted percentage increase (but not 
13less than zero) in the consumer price index-u for the 12 months 
14ending with the September preceding each November 1, whichever 
15is less, of the originally granted survivor's annuity. If the 
16annual unadjusted percentage change in the consumer price 
17index-u for the 12 months ending with the September preceding 
18each November 1 is zero or there is a decrease, then the 
19annuity shall not be increased. 
20 (g) The benefits in Section 14-110 apply only if the 
21person is a State policeman, a fire fighter in the fire 
22protection service of a department, a conservation police 
23officer, an investigator for the Secretary of State, an 
24investigator for the Office of the Attorney General, an arson 
25investigator, a Commerce Commission police officer, 
26investigator for the Department of Revenue or the Illinois 
 
 
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1Gaming Board, a security employee of the Department of 
2Corrections or the Department of Juvenile Justice, or a 
3security employee of the Department of Innovation and 
4Technology, as those terms are defined in subsection (b) and 
5subsection (c) of Section 14-110. A person who meets the 
6requirements of this Section is entitled to an annuity 
7calculated under the provisions of Section 14-110, in lieu of 
8the regular or minimum retirement annuity, only if the person 
9has withdrawn from service with not less than 20 years of 
10eligible creditable service and has attained age 60, 
11regardless of whether the attainment of age 60 occurs while 
12the person is still in service. 
13 (h) If a person who first becomes a member or a participant 
14of a retirement system or pension fund subject to this Section 
15on or after January 1, 2011 is receiving a retirement annuity 
16or retirement pension under that system or fund and becomes a 
17member or participant under any other system or fund created 
18by this Code and is employed on a full-time basis, except for 
19those members or participants exempted from the provisions of 
20this Section under subsection (a) of this Section, then the 
21person's retirement annuity or retirement pension under that 
22system or fund shall be suspended during that employment. Upon 
23termination of that employment, the person's retirement 
24annuity or retirement pension payments shall resume and be 
25recalculated if recalculation is provided for under the 
26applicable Article of this Code.
 
 
HB4873- 296 -LRB103 35886 RPS 65971 b


1 If a person who first becomes a member of a retirement 
2system or pension fund subject to this Section on or after 
3January 1, 2012 and is receiving a retirement annuity or 
4retirement pension under that system or fund and accepts on a 
5contractual basis a position to provide services to a 
6governmental entity from which he or she has retired, then 
7that person's annuity or retirement pension earned as an 
8active employee of the employer shall be suspended during that 
9contractual service. A person receiving an annuity or 
10retirement pension under this Code shall notify the pension 
11fund or retirement system from which he or she is receiving an 
12annuity or retirement pension, as well as his or her 
13contractual employer, of his or her retirement status before 
14accepting contractual employment. A person who fails to submit 
15such notification shall be guilty of a Class A misdemeanor and 
16required to pay a fine of $1,000. Upon termination of that 
17contractual employment, the person's retirement annuity or 
18retirement pension payments shall resume and, if appropriate, 
19be recalculated under the applicable provisions of this Code. 
20 (i) (Blank). 
21 (j) In the case of a conflict between the provisions of 
22this Section and any other provision of this Code, the 
23provisions of this Section shall control.
24(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
25102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
268-11-23.)

 
 
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1 (40 ILCS 5/15-108.2)
2 Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person 
3who first becomes a participant under this Article on or after 
4January 1, 2011 and before the implementation date, as defined 
5under subsection (a) of Section 1-161, determined by the 
6Board, other than a person in the self-managed plan 
7established under Section 15-158.2 or a person who makes the 
8election under subsection (c) of Section 1-161, unless the 
9person is otherwise a Tier 1 member. The changes made to this 
10Section by this amendatory Act of the 98th General Assembly 
11are a correction of existing law and are intended to be 
12retroactive to the effective date of Public Act 96-889, 
13notwithstanding the provisions of Section 1-103.1 of this 
14Code.
15(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)

16 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
17 Sec. 15-155. Employer contributions. 
18 (a) The State of Illinois shall make contributions by 
19appropriations of amounts which, together with the other 
20employer contributions from trust, federal, and other funds, 
21employee contributions, income from investments, and other 
22income of this System, will be sufficient to meet the cost of 
23maintaining and administering the System on a 90% funded basis 
24in accordance with actuarial recommendations.
 
 
HB4873- 298 -LRB103 35886 RPS 65971 b


1 The Board shall determine the amount of State 
2contributions required for each fiscal year on the basis of 
3the actuarial tables and other assumptions adopted by the 
4Board and the recommendations of the actuary, using the 
5formula in subsection (a-1).
6 (a-1) For State fiscal years 2012 through 2045, the 
7minimum contribution to the System to be made by the State for 
8each fiscal year shall be an amount determined by the System to 
9be sufficient to bring the total assets of the System up to 90% 
10of the total actuarial liabilities of the System by the end of 
11State fiscal year 2045. In making these determinations, the 
12required State contribution shall be calculated each year as a 
13level percentage of payroll over the years remaining to and 
14including fiscal year 2045 and shall be determined under the 
15projected unit credit actuarial cost method.
16 For each of State fiscal years 2018, 2019, and 2020, the 
17State shall make an additional contribution to the System 
18equal to 2% of the total payroll of each employee who is deemed 
19to have elected the benefits under Section 1-161 or who has 
20made the election under subsection (c) of Section 1-161. 
21 A change in an actuarial or investment assumption that 
22increases or decreases the required State contribution and 
23first applies in State fiscal year 2018 or thereafter shall be 
24implemented in equal annual amounts over a 5-year period 
25beginning in the State fiscal year in which the actuarial 
26change first applies to the required State contribution.
 
 
HB4873- 299 -LRB103 35886 RPS 65971 b


1 A change in an actuarial or investment assumption that 
2increases or decreases the required State contribution and 
3first applied to the State contribution in fiscal year 2014, 
42015, 2016, or 2017 shall be implemented:
5  (i) as already applied in State fiscal years before 
6 2018; and
7  (ii) in the portion of the 5-year period beginning in 
8 the State fiscal year in which the actuarial change first 
9 applied that occurs in State fiscal year 2018 or 
10 thereafter, by calculating the change in equal annual 
11 amounts over that 5-year period and then implementing it 
12 at the resulting annual rate in each of the remaining 
13 fiscal years in that 5-year period.
14 For State fiscal years 1996 through 2005, the State 
15contribution to the System, as a percentage of the applicable 
16employee payroll, shall be increased in equal annual 
17increments so that by State fiscal year 2011, the State is 
18contributing at the rate required under this Section.
19 Notwithstanding any other provision of this Article, the 
20total required State contribution for State fiscal year 2006 
21is $166,641,900. 
22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2007 
24is $252,064,100. 
25 For each of State fiscal years 2008 through 2009, the 
26State contribution to the System, as a percentage of the 
 
 
HB4873- 300 -LRB103 35886 RPS 65971 b


1applicable employee payroll, shall be increased in equal 
2annual increments from the required State contribution for 
3State fiscal year 2007, so that by State fiscal year 2011, the 
4State is contributing at the rate otherwise required under 
5this Section. 
6 Notwithstanding any other provision of this Article, the 
7total required State contribution for State fiscal year 2010 
8is $702,514,000 and shall be made from the State Pensions Fund 
9and proceeds of bonds sold in fiscal year 2010 pursuant to 
10Section 7.2 of the General Obligation Bond Act, less (i) the 
11pro rata share of bond sale expenses determined by the 
12System's share of total bond proceeds, (ii) any amounts 
13received from the General Revenue Fund in fiscal year 2010, 
14(iii) any reduction in bond proceeds due to the issuance of 
15discounted bonds, if applicable. 
16 Notwithstanding any other provision of this Article, the 
17total required State contribution for State fiscal year 2011 
18is the amount recertified by the System on or before April 1, 
192011 pursuant to Section 15-165 and shall be made from the 
20State Pensions Fund and proceeds of bonds sold in fiscal year 
212011 pursuant to Section 7.2 of the General Obligation Bond 
22Act, less (i) the pro rata share of bond sale expenses 
23determined by the System's share of total bond proceeds, (ii) 
24any amounts received from the General Revenue Fund in fiscal 
25year 2011, and (iii) any reduction in bond proceeds due to the 
26issuance of discounted bonds, if applicable. 
 
 
HB4873- 301 -LRB103 35886 RPS 65971 b


1 Beginning in State fiscal year 2046, the minimum State 
2contribution for each fiscal year shall be the amount needed 
3to maintain the total assets of the System at 90% of the total 
4actuarial liabilities of the System.
5 Amounts received by the System pursuant to Section 25 of 
6the Budget Stabilization Act or Section 8.12 of the State 
7Finance Act in any fiscal year do not reduce and do not 
8constitute payment of any portion of the minimum State 
9contribution required under this Article in that fiscal year. 
10Such amounts shall not reduce, and shall not be included in the 
11calculation of, the required State contributions under this 
12Article in any future year until the System has reached a 
13funding ratio of at least 90%. A reference in this Article to 
14the "required State contribution" or any substantially similar 
15term does not include or apply to any amounts payable to the 
16System under Section 25 of the Budget Stabilization Act.
17 Notwithstanding any other provision of this Section, the 
18required State contribution for State fiscal year 2005 and for 
19fiscal year 2008 and each fiscal year thereafter, as 
20calculated under this Section and certified under Section 
2115-165, shall not exceed an amount equal to (i) the amount of 
22the required State contribution that would have been 
23calculated under this Section for that fiscal year if the 
24System had not received any payments under subsection (d) of 
25Section 7.2 of the General Obligation Bond Act, minus (ii) the 
26portion of the State's total debt service payments for that 
 
 
HB4873- 302 -LRB103 35886 RPS 65971 b


1fiscal year on the bonds issued in fiscal year 2003 for the 
2purposes of that Section 7.2, as determined and certified by 
3the Comptroller, that is the same as the System's portion of 
4the total moneys distributed under subsection (d) of Section 
57.2 of the General Obligation Bond Act. In determining this 
6maximum for State fiscal years 2008 through 2010, however, the 
7amount referred to in item (i) shall be increased, as a 
8percentage of the applicable employee payroll, in equal 
9increments calculated from the sum of the required State 
10contribution for State fiscal year 2007 plus the applicable 
11portion of the State's total debt service payments for fiscal 
12year 2007 on the bonds issued in fiscal year 2003 for the 
13purposes of Section 7.2 of the General Obligation Bond Act, so 
14that, by State fiscal year 2011, the State is contributing at 
15the rate otherwise required under this Section.
16 (a-2) (Blank). Beginning in fiscal year 2018, each 
17employer under this Article shall pay to the System a required 
18contribution determined as a percentage of projected payroll 
19and sufficient to produce an annual amount equal to:
20  (i) for each of fiscal years 2018, 2019, and 2020, the 
21 defined benefit normal cost of the defined benefit plan, 
22 less the employee contribution, for each employee of that 
23 employer who has elected or who is deemed to have elected 
24 the benefits under Section 1-161 or who has made the 
25 election under subsection (c) of Section 1-161; for fiscal 
26 year 2021 and each fiscal year thereafter, the defined 
 
 
HB4873- 303 -LRB103 35886 RPS 65971 b


1 benefit normal cost of the defined benefit plan, less the 
2 employee contribution, plus 2%, for each employee of that 
3 employer who has elected or who is deemed to have elected 
4 the benefits under Section 1-161 or who has made the 
5 election under subsection (c) of Section 1-161; plus
6  (ii) the amount required for that fiscal year to 
7 amortize any unfunded actuarial accrued liability 
8 associated with the present value of liabilities 
9 attributable to the employer's account under Section 
10 15-155.2, determined as a level percentage of payroll over 
11 a 30-year rolling amortization period.
12 In determining contributions required under item (i) of 
13this subsection, the System shall determine an aggregate rate 
14for all employers, expressed as a percentage of projected 
15payroll. 
16 In determining the contributions required under item (ii) 
17of this subsection, the amount shall be computed by the System 
18on the basis of the actuarial assumptions and tables used in 
19the most recent actuarial valuation of the System that is 
20available at the time of the computation. 
21 The contributions required under this subsection (a-2) 
22shall be paid by an employer concurrently with that employer's 
23payroll payment period. The State, as the actual employer of 
24an employee, shall make the required contributions under this 
25subsection. 
26 As used in this subsection, "academic year" means the 
 
 
HB4873- 304 -LRB103 35886 RPS 65971 b


112-month period beginning September 1. 
2 (b) If an employee is paid from trust or federal funds, the 
3employer shall pay to the Board contributions from those funds 
4which are sufficient to cover the accruing normal costs on 
5behalf of the employee. However, universities having employees 
6who are compensated out of local auxiliary funds, income 
7funds, or service enterprise funds are not required to pay 
8such contributions on behalf of those employees. The local 
9auxiliary funds, income funds, and service enterprise funds of 
10universities shall not be considered trust funds for the 
11purpose of this Article, but funds of alumni associations, 
12foundations, and athletic associations which are affiliated 
13with the universities included as employers under this Article 
14and other employers which do not receive State appropriations 
15are considered to be trust funds for the purpose of this 
16Article.
17 (b-1) The City of Urbana and the City of Champaign shall 
18each make employer contributions to this System for their 
19respective firefighter employees who participate in this 
20System pursuant to subsection (h) of Section 15-107. The rate 
21of contributions to be made by those municipalities shall be 
22determined annually by the Board on the basis of the actuarial 
23assumptions adopted by the Board and the recommendations of 
24the actuary, and shall be expressed as a percentage of salary 
25for each such employee. The Board shall certify the rate to the 
26affected municipalities as soon as may be practical. The 
 
 
HB4873- 305 -LRB103 35886 RPS 65971 b


1employer contributions required under this subsection shall be 
2remitted by the municipality to the System at the same time and 
3in the same manner as employee contributions.
4 (c) Through State fiscal year 1995: The total employer 
5contribution shall be apportioned among the various funds of 
6the State and other employers, whether trust, federal, or 
7other funds, in accordance with actuarial procedures approved 
8by the Board. State of Illinois contributions for employers 
9receiving State appropriations for personal services shall be 
10payable from appropriations made to the employers or to the 
11System. The contributions for Class I community colleges 
12covering earnings other than those paid from trust and federal 
13funds, shall be payable solely from appropriations to the 
14Illinois Community College Board or the System for employer 
15contributions.
16 (d) Beginning in State fiscal year 1996, the required 
17State contributions to the System shall be appropriated 
18directly to the System and shall be payable through vouchers 
19issued in accordance with subsection (c) of Section 15-165, 
20except as provided in subsection (g).
21 (e) The State Comptroller shall draw warrants payable to 
22the System upon proper certification by the System or by the 
23employer in accordance with the appropriation laws and this 
24Code.
25 (f) Normal costs under this Section means liability for 
26pensions and other benefits which accrues to the System 
 
 
HB4873- 306 -LRB103 35886 RPS 65971 b


1because of the credits earned for service rendered by the 
2participants during the fiscal year and expenses of 
3administering the System, but shall not include the principal 
4of or any redemption premium or interest on any bonds issued by 
5the Board or any expenses incurred or deposits required in 
6connection therewith.
7 (g) If the amount of a participant's earnings for any 
8academic year used to determine the final rate of earnings, 
9determined on a full-time equivalent basis, exceeds the amount 
10of his or her earnings with the same employer for the previous 
11academic year, determined on a full-time equivalent basis, by 
12more than 6%, the participant's employer shall pay to the 
13System, in addition to all other payments required under this 
14Section and in accordance with guidelines established by the 
15System, the present value of the increase in benefits 
16resulting from the portion of the increase in earnings that is 
17in excess of 6%. This present value shall be computed by the 
18System on the basis of the actuarial assumptions and tables 
19used in the most recent actuarial valuation of the System that 
20is available at the time of the computation. The System may 
21require the employer to provide any pertinent information or 
22documentation.
23 Whenever it determines that a payment is or may be 
24required under this subsection (g), the System shall calculate 
25the amount of the payment and bill the employer for that 
26amount. The bill shall specify the calculations used to 
 
 
HB4873- 307 -LRB103 35886 RPS 65971 b


1determine the amount due. If the employer disputes the amount 
2of the bill, it may, within 30 days after receipt of the bill, 
3apply to the System in writing for a recalculation. The 
4application must specify in detail the grounds of the dispute 
5and, if the employer asserts that the calculation is subject 
6to subsection (h), (h-5), or (i) of this Section, must include 
7an affidavit setting forth and attesting to all facts within 
8the employer's knowledge that are pertinent to the 
9applicability of that subsection. Upon receiving a timely 
10application for recalculation, the System shall review the 
11application and, if appropriate, recalculate the amount due. 
12 The employer contributions required under this subsection 
13(g) may be paid in the form of a lump sum within 90 days after 
14receipt of the bill. If the employer contributions are not 
15paid within 90 days after receipt of the bill, then interest 
16will be charged at a rate equal to the System's annual 
17actuarially assumed rate of return on investment compounded 
18annually from the 91st day after receipt of the bill. Payments 
19must be concluded within 3 years after the employer's receipt 
20of the bill.
21 When assessing payment for any amount due under this 
22subsection (g), the System shall include earnings, to the 
23extent not established by a participant under Section 
2415-113.11 or 15-113.12, that would have been paid to the 
25participant had the participant not taken (i) periods of 
26voluntary or involuntary furlough occurring on or after July 
 
 
HB4873- 308 -LRB103 35886 RPS 65971 b


11, 2015 and on or before June 30, 2017 or (ii) periods of 
2voluntary pay reduction in lieu of furlough occurring on or 
3after July 1, 2015 and on or before June 30, 2017. Determining 
4earnings that would have been paid to a participant had the 
5participant not taken periods of voluntary or involuntary 
6furlough or periods of voluntary pay reduction shall be the 
7responsibility of the employer, and shall be reported in a 
8manner prescribed by the System.
9 This subsection (g) does not apply to (1) Tier 2 hybrid 
10plan members and (2) Tier 2 defined benefit members who first 
11participate under this Article on or after the implementation 
12date of the Optional Hybrid Plan. 
13 (g-1) (Blank).
14 (h) This subsection (h) applies only to payments made or 
15salary increases given on or after June 1, 2005 but before July 
161, 2011. The changes made by Public Act 94-1057 shall not 
17require the System to refund any payments received before July 
1831, 2006 (the effective date of Public Act 94-1057).
19 When assessing payment for any amount due under subsection 
20(g), the System shall exclude earnings increases paid to 
21participants under contracts or collective bargaining 
22agreements entered into, amended, or renewed before June 1, 
232005. 
24 When assessing payment for any amount due under subsection 
25(g), the System shall exclude earnings increases paid to a 
26participant at a time when the participant is 10 or more years 
 
 
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1from retirement eligibility under Section 15-135. 
2 When assessing payment for any amount due under subsection 
3(g), the System shall exclude earnings increases resulting 
4from overload work, including a contract for summer teaching, 
5or overtime when the employer has certified to the System, and 
6the System has approved the certification, that: (i) in the 
7case of overloads (A) the overload work is for the sole purpose 
8of academic instruction in excess of the standard number of 
9instruction hours for a full-time employee occurring during 
10the academic year that the overload is paid and (B) the 
11earnings increases are equal to or less than the rate of pay 
12for academic instruction computed using the participant's 
13current salary rate and work schedule; and (ii) in the case of 
14overtime, the overtime was necessary for the educational 
15mission.
16 When assessing payment for any amount due under subsection 
17(g), the System shall exclude any earnings increase resulting 
18from (i) a promotion for which the employee moves from one 
19classification to a higher classification under the State 
20Universities Civil Service System, (ii) a promotion in 
21academic rank for a tenured or tenure-track faculty position, 
22or (iii) a promotion that the Illinois Community College Board 
23has recommended in accordance with subsection (k) of this 
24Section. These earnings increases shall be excluded only if 
25the promotion is to a position that has existed and been filled 
26by a member for no less than one complete academic year and the 
 
 
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1earnings increase as a result of the promotion is an increase 
2that results in an amount no greater than the average salary 
3paid for other similar positions.
4 (h-5) When assessing payment for any amount due under 
5subsection (g), the System shall exclude any earnings increase 
6paid in an academic year beginning on or after July 1, 2020 
7resulting from overload work performed in an academic year 
8subsequent to an academic year in which the employer was 
9unable to offer or allow to be conducted overload work due to 
10an emergency declaration limiting such activities. 
11 (i) When assessing payment for any amount due under 
12subsection (g), the System shall exclude any salary increase 
13described in subsection (h) of this Section given on or after 
14July 1, 2011 but before July 1, 2014 under a contract or 
15collective bargaining agreement entered into, amended, or 
16renewed on or after June 1, 2005 but before July 1, 2011. 
17Except as provided in subsection (h-5), any payments made or 
18salary increases given after June 30, 2014 shall be used in 
19assessing payment for any amount due under subsection (g) of 
20this Section. 
21 (j) The System shall prepare a report and file copies of 
22the report with the Governor and the General Assembly by 
23January 1, 2007 that contains all of the following 
24information:
25  (1) The number of recalculations required by the 
26 changes made to this Section by Public Act 94-1057 for 
 
 
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1 each employer.
2  (2) The dollar amount by which each employer's 
3 contribution to the System was changed due to 
4 recalculations required by Public Act 94-1057.
5  (3) The total amount the System received from each 
6 employer as a result of the changes made to this Section by 
7 Public Act 94-4.
8  (4) The increase in the required State contribution 
9 resulting from the changes made to this Section by Public 
10 Act 94-1057.
11 (j-5) For State fiscal years beginning on or after July 1, 
122017, if the amount of a participant's earnings for any State 
13fiscal year exceeds the amount of the salary set by law for the 
14Governor that is in effect on July 1 of that fiscal year, the 
15participant's employer shall pay to the System, in addition to 
16all other payments required under this Section and in 
17accordance with guidelines established by the System, an 
18amount determined by the System to be equal to the employer 
19normal cost, as established by the System and expressed as a 
20total percentage of payroll, multiplied by the amount of 
21earnings in excess of the amount of the salary set by law for 
22the Governor. This amount shall be computed by the System on 
23the basis of the actuarial assumptions and tables used in the 
24most recent actuarial valuation of the System that is 
25available at the time of the computation. The System may 
26require the employer to provide any pertinent information or 
 
 
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1documentation.
2 Whenever it determines that a payment is or may be 
3required under this subsection, the System shall calculate the 
4amount of the payment and bill the employer for that amount. 
5The bill shall specify the calculation used to determine the 
6amount due. If the employer disputes the amount of the bill, it 
7may, within 30 days after receipt of the bill, apply to the 
8System in writing for a recalculation. The application must 
9specify in detail the grounds of the dispute. Upon receiving a 
10timely application for recalculation, the System shall review 
11the application and, if appropriate, recalculate the amount 
12due. 
13 The employer contributions required under this subsection 
14may be paid in the form of a lump sum within 90 days after 
15issuance of the bill. If the employer contributions are not 
16paid within 90 days after issuance of the bill, then interest 
17will be charged at a rate equal to the System's annual 
18actuarially assumed rate of return on investment compounded 
19annually from the 91st day after issuance of the bill. All 
20payments must be received within 3 years after issuance of the 
21bill. If the employer fails to make complete payment, 
22including applicable interest, within 3 years, then the System 
23may, after giving notice to the employer, certify the 
24delinquent amount to the State Comptroller, and the 
25Comptroller shall thereupon deduct the certified delinquent 
26amount from State funds payable to the employer and pay them 
 
 
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1instead to the System. 
2 This subsection (j-5) does not apply to a participant's 
3earnings to the extent an employer pays the employer normal 
4cost of such earnings. 
5 The changes made to this subsection (j-5) by Public Act 
6100-624 are intended to apply retroactively to July 6, 2017 
7(the effective date of Public Act 100-23). 
8 (k) The Illinois Community College Board shall adopt rules 
9for recommending lists of promotional positions submitted to 
10the Board by community colleges and for reviewing the 
11promotional lists on an annual basis. When recommending 
12promotional lists, the Board shall consider the similarity of 
13the positions submitted to those positions recognized for 
14State universities by the State Universities Civil Service 
15System. The Illinois Community College Board shall file a copy 
16of its findings with the System. The System shall consider the 
17findings of the Illinois Community College Board when making 
18determinations under this Section. The System shall not 
19exclude any earnings increases resulting from a promotion when 
20the promotion was not submitted by a community college. 
21Nothing in this subsection (k) shall require any community 
22college to submit any information to the Community College 
23Board. 
24 (l) For purposes of determining the required State 
25contribution to the System, the value of the System's assets 
26shall be equal to the actuarial value of the System's assets, 
 
 
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1which shall be calculated as follows:
2 As of June 30, 2008, the actuarial value of the System's 
3assets shall be equal to the market value of the assets as of 
4that date. In determining the actuarial value of the System's 
5assets for fiscal years after June 30, 2008, any actuarial 
6gains or losses from investment return incurred in a fiscal 
7year shall be recognized in equal annual amounts over the 
85-year period following that fiscal year. 
9 (m) For purposes of determining the required State 
10contribution to the system for a particular year, the 
11actuarial value of assets shall be assumed to earn a rate of 
12return equal to the system's actuarially assumed rate of 
13return. 
14(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
15102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 
165-13-22.)

17 (40 ILCS 5/16-158.3)
18 Sec. 16-158.3. Individual employer accounts.
19 (a) The System shall create and maintain an individual 
20account for each employer for the purposes of determining 
21employer contributions under subsection (b-4) of Section 
2216-158. Each employer's account shall be notionally charged 
23with the liabilities attributable to that employer and 
24credited with the assets attributable to that employer. 
25 (b) Beginning with fiscal year 2018, the System shall 
 
 
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1assign notional liabilities to each employer's account, equal 
2to the amount of the employer contributions required to be 
3made by the employer pursuant to items (i) and (ii) of 
4subsection (b-4) of Section 16-158, plus any unfunded 
5actuarial accrued liability associated with the defined 
6benefits attributable to the employer's employees who first 
7became members on or after the implementation date and the 
8employer's employees who made the election under subsection 
9(c-5) of Section 1-161.
10 (c) Beginning with fiscal year 2018, the System shall 
11assign notional assets to each employer's account equal to the 
12amounts of employer contributions made pursuant to items (i) 
13and (ii) of subsection (b-4) of Section 16-158.
14(Source: P.A. 100-23, eff. 7-6-17.)

15 (40 ILCS 5/1-161 rep.)
16 (40 ILCS 5/1-162 rep.)
17 (40 ILCS 5/15-155.2 rep.)
18 Section 10-10. The Illinois Pension Code is amended by 
19repealing Sections 1-161, 1-162, and 15-155.2.

20
Article 11. 


21 Section 11-5. The Illinois Pension Code is amended by 
22changing Sections 1-160 and 14-110 as follows:

 
 
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1 (40 ILCS 5/1-160)
2 (Text of Section from P.A. 102-719)
3 Sec. 1-160. Provisions applicable to new hires. 
4 (a) The provisions of this Section apply to a person who, 
5on or after January 1, 2011, first becomes a member or a 
6participant under any reciprocal retirement system or pension 
7fund established under this Code, other than a retirement 
8system or pension fund established under Article 2, 3, 4, 5, 6, 
97, 15, or 18 of this Code, notwithstanding any other provision 
10of this Code to the contrary, but do not apply to any 
11self-managed plan established under this Code or to any 
12participant of the retirement plan established under Section 
1322-101; except that this Section applies to a person who 
14elected to establish alternative credits by electing in 
15writing after January 1, 2011, but before August 8, 2011, 
16under Section 7-145.1 of this Code. Notwithstanding anything 
17to the contrary in this Section, for purposes of this Section, 
18a person who is a Tier 1 regular employee as defined in Section 
197-109.4 of this Code or who participated in a retirement 
20system under Article 15 prior to January 1, 2011 shall be 
21deemed a person who first became a member or participant prior 
22to January 1, 2011 under any retirement system or pension fund 
23subject to this Section. The changes made to this Section by 
24Public Act 98-596 are a clarification of existing law and are 
25intended to be retroactive to January 1, 2011 (the effective 
26date of Public Act 96-889), notwithstanding the provisions of 
 
 
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1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a 
3noncovered employee under Article 14 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who first becomes a 
10member or participant under Article 16 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who elects under 
17subsection (c-5) of Section 1-161 to receive the benefits 
18under Section 1-161. 
19 This Section does not apply to a person who first becomes a 
20member or participant of an affected pension fund on or after 6 
21months after the resolution or ordinance date, as defined in 
22Section 1-162, unless that person elects under subsection (c) 
23of Section 1-162 to receive the benefits provided under this 
24Section and the applicable provisions of the Article under 
25which he or she is a member or participant. 
26 (b) "Final average salary" means, except as otherwise 
 
 
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1provided in this subsection, the average monthly (or annual) 
2salary obtained by dividing the total salary or earnings 
3calculated under the Article applicable to the member or 
4participant during the 96 consecutive months (or 8 consecutive 
5years) of service within the last 120 months (or 10 years) of 
6service in which the total salary or earnings calculated under 
7the applicable Article was the highest by the number of months 
8(or years) of service in that period. For the purposes of a 
9person who first becomes a member or participant of any 
10retirement system or pension fund to which this Section 
11applies on or after January 1, 2011, in this Code, "final 
12average salary" shall be substituted for the following:
13  (1) (Blank).
14  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
15 annual salary for any 4 consecutive years within the last 
16 10 years of service immediately preceding the date of 
17 withdrawal". 
18  (3) In Article 13, "average final salary". 
19  (4) In Article 14, "final average compensation". 
20  (5) In Article 17, "average salary". 
21  (6) In Section 22-207, "wages or salary received by 
22 him at the date of retirement or discharge". 
23 A member of the Teachers' Retirement System of the State 
24of Illinois who retires on or after June 1, 2021 and for whom 
25the 2020-2021 school year is used in the calculation of the 
26member's final average salary shall use the higher of the 
 
 
HB4873- 319 -LRB103 35886 RPS 65971 b


1following for the purpose of determining the member's final 
2average salary:
3  (A) the amount otherwise calculated under the first 
4 paragraph of this subsection; or
5  (B) an amount calculated by the Teachers' Retirement 
6 System of the State of Illinois using the average of the 
7 monthly (or annual) salary obtained by dividing the total 
8 salary or earnings calculated under Article 16 applicable 
9 to the member or participant during the 96 months (or 8 
10 years) of service within the last 120 months (or 10 years) 
11 of service in which the total salary or earnings 
12 calculated under the Article was the highest by the number 
13 of months (or years) of service in that period.
14 (b-5) Beginning on January 1, 2011, for all purposes under 
15this Code (including without limitation the calculation of 
16benefits and employee contributions), the annual earnings, 
17salary, or wages (based on the plan year) of a member or 
18participant to whom this Section applies shall not exceed 
19$106,800; however, that amount shall annually thereafter be 
20increased by the lesser of (i) 3% of that amount, including all 
21previous adjustments, or (ii) one-half the annual unadjusted 
22percentage increase (but not less than zero) in the consumer 
23price index-u for the 12 months ending with the September 
24preceding each November 1, including all previous adjustments.
25 For the purposes of this Section, "consumer price index-u" 
26means the index published by the Bureau of Labor Statistics of 
 
 
HB4873- 320 -LRB103 35886 RPS 65971 b


1the United States Department of Labor that measures the 
2average change in prices of goods and services purchased by 
3all urban consumers, United States city average, all items, 
41982-84 = 100. The new amount resulting from each annual 
5adjustment shall be determined by the Public Pension Division 
6of the Department of Insurance and made available to the 
7boards of the retirement systems and pension funds by November 
81 of each year. 
9 (b-10) Beginning on January 1, 2024, for all purposes 
10under this Code (including, without limitation, the 
11calculation of benefits and employee contributions), the 
12annual earnings, salary, or wages (based on the plan year) of a 
13member or participant under Article 9 to whom this Section 
14applies shall include an annual earnings, salary, or wage cap 
15that tracks the Social Security wage base. Maximum annual 
16earnings, wages, or salary shall be the annual contribution 
17and benefit base established for the applicable year by the 
18Commissioner of the Social Security Administration under the 
19federal Social Security Act. 
20 However, in no event shall the annual earnings, salary, or 
21wages for the purposes of this Article and Article 9 exceed any 
22limitation imposed on annual earnings, salary, or wages under 
23Section 1-117. Under no circumstances shall the maximum amount 
24of annual earnings, salary, or wages be greater than the 
25amount set forth in this subsection (b-10) as a result of 
26reciprocal service or any provisions regarding reciprocal 
 
 
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1services, nor shall the Fund under Article 9 be required to pay 
2any refund as a result of the application of this maximum 
3annual earnings, salary, and wage cap. 
4 Nothing in this subsection (b-10) shall cause or otherwise 
5result in any retroactive adjustment of any employee 
6contributions. Nothing in this subsection (b-10) shall cause 
7or otherwise result in any retroactive adjustment of 
8disability or other payments made between January 1, 2011 and 
9January 1, 2024. 
10 (c) A member or participant is entitled to a retirement 
11annuity upon written application if he or she has attained age 
1267 (age 65, with respect to service under Article 12 that is 
13subject to this Section, for a member or participant under 
14Article 12 who first becomes a member or participant under 
15Article 12 on or after January 1, 2022 or who makes the 
16election under item (i) of subsection (d-15) of this Section) 
17and has at least 10 years of service credit and is otherwise 
18eligible under the requirements of the applicable Article. 
19 A member or participant who has attained age 62 (age 60, 
20with respect to service under Article 12 that is subject to 
21this Section, for a member or participant under Article 12 who 
22first becomes a member or participant under Article 12 on or 
23after January 1, 2022 or who makes the election under item (i) 
24of subsection (d-15) of this Section) and has at least 10 years 
25of service credit and is otherwise eligible under the 
26requirements of the applicable Article may elect to receive 
 
 
HB4873- 322 -LRB103 35886 RPS 65971 b


1the lower retirement annuity provided in subsection (d) of 
2this Section. 
3 (c-5) A person who first becomes a member or a participant 
4subject to this Section on or after July 6, 2017 (the effective 
5date of Public Act 100-23), notwithstanding any other 
6provision of this Code to the contrary, is entitled to a 
7retirement annuity under Article 8 or Article 11 upon written 
8application if he or she has attained age 65 and has at least 
910 years of service credit and is otherwise eligible under the 
10requirements of Article 8 or Article 11 of this Code, 
11whichever is applicable. 
12 (d) The retirement annuity of a member or participant who 
13is retiring after attaining age 62 (age 60, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section) with at least 10 years of service 
19credit shall be reduced by one-half of 1% for each full month 
20that the member's age is under age 67 (age 65, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section).
26 (d-5) The retirement annuity payable under Article 8 or 
 
 
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1Article 11 to an eligible person subject to subsection (c-5) 
2of this Section who is retiring at age 60 with at least 10 
3years of service credit shall be reduced by one-half of 1% for 
4each full month that the member's age is under age 65. 
5 (d-10) Each person who first became a member or 
6participant under Article 8 or Article 11 of this Code on or 
7after January 1, 2011 and prior to July 6, 2017 (the effective 
8date of Public Act 100-23) shall make an irrevocable election 
9either:
10  (i) to be eligible for the reduced retirement age 
11 provided in subsections (c-5) and (d-5) of this Section, 
12 the eligibility for which is conditioned upon the member 
13 or participant agreeing to the increases in employee 
14 contributions for age and service annuities provided in 
15 subsection (a-5) of Section 8-174 of this Code (for 
16 service under Article 8) or subsection (a-5) of Section 
17 11-170 of this Code (for service under Article 11); or 
18  (ii) to not agree to item (i) of this subsection 
19 (d-10), in which case the member or participant shall 
20 continue to be subject to the retirement age provisions in 
21 subsections (c) and (d) of this Section and the employee 
22 contributions for age and service annuity as provided in 
23 subsection (a) of Section 8-174 of this Code (for service 
24 under Article 8) or subsection (a) of Section 11-170 of 
25 this Code (for service under Article 11). 
26 The election provided for in this subsection shall be made 
 
 
HB4873- 324 -LRB103 35886 RPS 65971 b


1between October 1, 2017 and November 15, 2017. A person 
2subject to this subsection who makes the required election 
3shall remain bound by that election. A person subject to this 
4subsection who fails for any reason to make the required 
5election within the time specified in this subsection shall be 
6deemed to have made the election under item (ii). 
7 (d-15) Each person who first becomes a member or 
8participant under Article 12 on or after January 1, 2011 and 
9prior to January 1, 2022 shall make an irrevocable election 
10either: 
11  (i) to be eligible for the reduced retirement age 
12 specified in subsections (c) and (d) of this Section, the 
13 eligibility for which is conditioned upon the member or 
14 participant agreeing to the increase in employee 
15 contributions for service annuities specified in 
16 subsection (b) of Section 12-150; or
17  (ii) to not agree to item (i) of this subsection 
18 (d-15), in which case the member or participant shall not 
19 be eligible for the reduced retirement age specified in 
20 subsections (c) and (d) of this Section and shall not be 
21 subject to the increase in employee contributions for 
22 service annuities specified in subsection (b) of Section 
23 12-150. 
24 The election provided for in this subsection shall be made 
25between January 1, 2022 and April 1, 2022. A person subject to 
26this subsection who makes the required election shall remain 
 
 
HB4873- 325 -LRB103 35886 RPS 65971 b


1bound by that election. A person subject to this subsection 
2who fails for any reason to make the required election within 
3the time specified in this subsection shall be deemed to have 
4made the election under item (ii). 
5 (e) Any retirement annuity or supplemental annuity shall 
6be subject to annual increases on the January 1 occurring 
7either on or after the attainment of age 67 (age 65, with 
8respect to service under Article 12 that is subject to this 
9Section, for a member or participant under Article 12 who 
10first becomes a member or participant under Article 12 on or 
11after January 1, 2022 or who makes the election under item (i) 
12of subsection (d-15); and beginning on July 6, 2017 (the 
13effective date of Public Act 100-23), age 65 with respect to 
14service under Article 8 or Article 11 for eligible persons 
15who: (i) are subject to subsection (c-5) of this Section; or 
16(ii) made the election under item (i) of subsection (d-10) of 
17this Section) or the first anniversary of the annuity start 
18date, whichever is later. Each annual increase shall be 
19calculated at 3% or one-half the annual unadjusted percentage 
20increase (but not less than zero) in the consumer price 
21index-u for the 12 months ending with the September preceding 
22each November 1, whichever is less, of the originally granted 
23retirement annuity. If the annual unadjusted percentage change 
24in the consumer price index-u for the 12 months ending with the 
25September preceding each November 1 is zero or there is a 
26decrease, then the annuity shall not be increased. 
 
 
HB4873- 326 -LRB103 35886 RPS 65971 b


1 For the purposes of Section 1-103.1 of this Code, the 
2changes made to this Section by Public Act 102-263 are 
3applicable without regard to whether the employee was in 
4active service on or after August 6, 2021 (the effective date 
5of Public Act 102-263). 
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this Section by Public Act 100-23 are 
8applicable without regard to whether the employee was in 
9active service on or after July 6, 2017 (the effective date of 
10Public Act 100-23). 
11 (f) The initial survivor's or widow's annuity of an 
12otherwise eligible survivor or widow of a retired member or 
13participant who first became a member or participant on or 
14after January 1, 2011 shall be in the amount of 66 2/3% of the 
15retired member's or participant's retirement annuity at the 
16date of death. In the case of the death of a member or 
17participant who has not retired and who first became a member 
18or participant on or after January 1, 2011, eligibility for a 
19survivor's or widow's annuity shall be determined by the 
20applicable Article of this Code. The initial benefit shall be 
2166 2/3% of the earned annuity without a reduction due to age. A 
22child's annuity of an otherwise eligible child shall be in the 
23amount prescribed under each Article if applicable. Any 
24survivor's or widow's annuity shall be increased (1) on each 
25January 1 occurring on or after the commencement of the 
26annuity if the deceased member died while receiving a 
 
 
HB4873- 327 -LRB103 35886 RPS 65971 b


1retirement annuity or (2) in other cases, on each January 1 
2occurring after the first anniversary of the commencement of 
3the annuity. Each annual increase shall be calculated at 3% or 
4one-half the annual unadjusted percentage increase (but not 
5less than zero) in the consumer price index-u for the 12 months 
6ending with the September preceding each November 1, whichever 
7is less, of the originally granted survivor's annuity. If the 
8annual unadjusted percentage change in the consumer price 
9index-u for the 12 months ending with the September preceding 
10each November 1 is zero or there is a decrease, then the 
11annuity shall not be increased. 
12 (g) The benefits in Section 14-110 apply if the person is a 
13fire fighter in the fire protection service of a department, a 
14security employee of the Department of Corrections or the 
15Department of Juvenile Justice, or a security employee of the 
16Department of Innovation and Technology, as those terms are 
17defined in subsection (b) and subsection (c) of Section 
1814-110. A person who meets the requirements of this Section is 
19entitled to an annuity calculated under the provisions of 
20Section 14-110, in lieu of the regular or minimum retirement 
21annuity, only if the person has withdrawn from service with 
22not less than 20 years of eligible creditable service and has 
23attained age 60, regardless of whether the attainment of age 
2460 occurs while the person is still in service. 
25 (g-1) The benefits in Section 14-110 apply if the person 
26is a security employee of the Department of Corrections or the 
 
 
HB4873- 328 -LRB103 35886 RPS 65971 b


1Department of Juvenile Justice, a security employee of the 
2Department of Human Services, or an investigator for the 
3Department of the Lottery, as those terms are defined in 
4subsection (b) and subsection (c) of Section 14-110. A person 
5who meets the requirements of this Section is entitled to an 
6annuity calculated under the provisions of Section 14-110, in 
7lieu of the regular or minimum retirement annuity, only if the 
8person has withdrawn from service with not less than 20 years 
9of eligible creditable service and has attained age 55, 
10regardless of whether the attainment of age 55 occurs while 
11the person is still in service. 
12 (g-5) The benefits in Section 14-110 apply if the person 
13is a State policeman, investigator for the Secretary of State, 
14conservation police officer, investigator for the Department 
15of Revenue or the Illinois Gaming Board, investigator for the 
16Office of the Attorney General, Commerce Commission police 
17officer, or arson investigator, as those terms are defined in 
18subsection (b) and subsection (c) of Section 14-110. A person 
19who meets the requirements of this Section is entitled to an 
20annuity calculated under the provisions of Section 14-110, in 
21lieu of the regular or minimum retirement annuity, only if the 
22person has withdrawn from service with not less than 20 years 
23of eligible creditable service and has attained age 55, 
24regardless of whether the attainment of age 55 occurs while 
25the person is still in service. 
26 (h) If a person who first becomes a member or a participant 
 
 
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1of a retirement system or pension fund subject to this Section 
2on or after January 1, 2011 is receiving a retirement annuity 
3or retirement pension under that system or fund and becomes a 
4member or participant under any other system or fund created 
5by this Code and is employed on a full-time basis, except for 
6those members or participants exempted from the provisions of 
7this Section under subsection (a) of this Section, then the 
8person's retirement annuity or retirement pension under that 
9system or fund shall be suspended during that employment. Upon 
10termination of that employment, the person's retirement 
11annuity or retirement pension payments shall resume and be 
12recalculated if recalculation is provided for under the 
13applicable Article of this Code.
14 If a person who first becomes a member of a retirement 
15system or pension fund subject to this Section on or after 
16January 1, 2012 and is receiving a retirement annuity or 
17retirement pension under that system or fund and accepts on a 
18contractual basis a position to provide services to a 
19governmental entity from which he or she has retired, then 
20that person's annuity or retirement pension earned as an 
21active employee of the employer shall be suspended during that 
22contractual service. A person receiving an annuity or 
23retirement pension under this Code shall notify the pension 
24fund or retirement system from which he or she is receiving an 
25annuity or retirement pension, as well as his or her 
26contractual employer, of his or her retirement status before 
 
 
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1accepting contractual employment. A person who fails to submit 
2such notification shall be guilty of a Class A misdemeanor and 
3required to pay a fine of $1,000. Upon termination of that 
4contractual employment, the person's retirement annuity or 
5retirement pension payments shall resume and, if appropriate, 
6be recalculated under the applicable provisions of this Code. 
7 (i) (Blank). 
8 (j) In the case of a conflict between the provisions of 
9this Section and any other provision of this Code, the 
10provisions of this Section shall control.
11(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
12102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
135-6-22.)

14 (Text of Section from P.A. 102-813)
15 Sec. 1-160. Provisions applicable to new hires. 
16 (a) The provisions of this Section apply to a person who, 
17on or after January 1, 2011, first becomes a member or a 
18participant under any reciprocal retirement system or pension 
19fund established under this Code, other than a retirement 
20system or pension fund established under Article 2, 3, 4, 5, 6, 
217, 15, or 18 of this Code, notwithstanding any other provision 
22of this Code to the contrary, but do not apply to any 
23self-managed plan established under this Code or to any 
24participant of the retirement plan established under Section 
2522-101; except that this Section applies to a person who 
 
 
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1elected to establish alternative credits by electing in 
2writing after January 1, 2011, but before August 8, 2011, 
3under Section 7-145.1 of this Code. Notwithstanding anything 
4to the contrary in this Section, for purposes of this Section, 
5a person who is a Tier 1 regular employee as defined in Section 
67-109.4 of this Code or who participated in a retirement 
7system under Article 15 prior to January 1, 2011 shall be 
8deemed a person who first became a member or participant prior 
9to January 1, 2011 under any retirement system or pension fund 
10subject to this Section. The changes made to this Section by 
11Public Act 98-596 are a clarification of existing law and are 
12intended to be retroactive to January 1, 2011 (the effective 
13date of Public Act 96-889), notwithstanding the provisions of 
14Section 1-103.1 of this Code.
15 This Section does not apply to a person who first becomes a 
16noncovered employee under Article 14 on or after the 
17implementation date of the plan created under Section 1-161 
18for that Article, unless that person elects under subsection 
19(b) of Section 1-161 to instead receive the benefits provided 
20under this Section and the applicable provisions of that 
21Article.
22 This Section does not apply to a person who first becomes a 
23member or participant under Article 16 on or after the 
24implementation date of the plan created under Section 1-161 
25for that Article, unless that person elects under subsection 
26(b) of Section 1-161 to instead receive the benefits provided 
 
 
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1under this Section and the applicable provisions of that 
2Article.
3 This Section does not apply to a person who elects under 
4subsection (c-5) of Section 1-161 to receive the benefits 
5under Section 1-161. 
6 This Section does not apply to a person who first becomes a 
7member or participant of an affected pension fund on or after 6 
8months after the resolution or ordinance date, as defined in 
9Section 1-162, unless that person elects under subsection (c) 
10of Section 1-162 to receive the benefits provided under this 
11Section and the applicable provisions of the Article under 
12which he or she is a member or participant. 
13 (b) "Final average salary" means, except as otherwise 
14provided in this subsection, the average monthly (or annual) 
15salary obtained by dividing the total salary or earnings 
16calculated under the Article applicable to the member or 
17participant during the 96 consecutive months (or 8 consecutive 
18years) of service within the last 120 months (or 10 years) of 
19service in which the total salary or earnings calculated under 
20the applicable Article was the highest by the number of months 
21(or years) of service in that period. For the purposes of a 
22person who first becomes a member or participant of any 
23retirement system or pension fund to which this Section 
24applies on or after January 1, 2011, in this Code, "final 
25average salary" shall be substituted for the following:
26  (1) (Blank).
 
 
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1  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
2 annual salary for any 4 consecutive years within the last 
3 10 years of service immediately preceding the date of 
4 withdrawal". 
5  (3) In Article 13, "average final salary". 
6  (4) In Article 14, "final average compensation". 
7  (5) In Article 17, "average salary". 
8  (6) In Section 22-207, "wages or salary received by 
9 him at the date of retirement or discharge". 
10 A member of the Teachers' Retirement System of the State 
11of Illinois who retires on or after June 1, 2021 and for whom 
12the 2020-2021 school year is used in the calculation of the 
13member's final average salary shall use the higher of the 
14following for the purpose of determining the member's final 
15average salary:
16  (A) the amount otherwise calculated under the first 
17 paragraph of this subsection; or
18  (B) an amount calculated by the Teachers' Retirement 
19 System of the State of Illinois using the average of the 
20 monthly (or annual) salary obtained by dividing the total 
21 salary or earnings calculated under Article 16 applicable 
22 to the member or participant during the 96 months (or 8 
23 years) of service within the last 120 months (or 10 years) 
24 of service in which the total salary or earnings 
25 calculated under the Article was the highest by the number 
26 of months (or years) of service in that period.
 
 
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1 (b-5) Beginning on January 1, 2011, for all purposes under 
2this Code (including without limitation the calculation of 
3benefits and employee contributions), the annual earnings, 
4salary, or wages (based on the plan year) of a member or 
5participant to whom this Section applies shall not exceed 
6$106,800; however, that amount shall annually thereafter be 
7increased by the lesser of (i) 3% of that amount, including all 
8previous adjustments, or (ii) one-half the annual unadjusted 
9percentage increase (but not less than zero) in the consumer 
10price index-u for the 12 months ending with the September 
11preceding each November 1, including all previous adjustments.
12 For the purposes of this Section, "consumer price index-u" 
13means the index published by the Bureau of Labor Statistics of 
14the United States Department of Labor that measures the 
15average change in prices of goods and services purchased by 
16all urban consumers, United States city average, all items, 
171982-84 = 100. The new amount resulting from each annual 
18adjustment shall be determined by the Public Pension Division 
19of the Department of Insurance and made available to the 
20boards of the retirement systems and pension funds by November 
211 of each year. 
22 (b-10) Beginning on January 1, 2024, for all purposes 
23under this Code (including, without limitation, the 
24calculation of benefits and employee contributions), the 
25annual earnings, salary, or wages (based on the plan year) of a 
26member or participant under Article 9 to whom this Section 
 
 
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1applies shall include an annual earnings, salary, or wage cap 
2that tracks the Social Security wage base. Maximum annual 
3earnings, wages, or salary shall be the annual contribution 
4and benefit base established for the applicable year by the 
5Commissioner of the Social Security Administration under the 
6federal Social Security Act. 
7 However, in no event shall the annual earnings, salary, or 
8wages for the purposes of this Article and Article 9 exceed any 
9limitation imposed on annual earnings, salary, or wages under 
10Section 1-117. Under no circumstances shall the maximum amount 
11of annual earnings, salary, or wages be greater than the 
12amount set forth in this subsection (b-10) as a result of 
13reciprocal service or any provisions regarding reciprocal 
14services, nor shall the Fund under Article 9 be required to pay 
15any refund as a result of the application of this maximum 
16annual earnings, salary, and wage cap. 
17 Nothing in this subsection (b-10) shall cause or otherwise 
18result in any retroactive adjustment of any employee 
19contributions. Nothing in this subsection (b-10) shall cause 
20or otherwise result in any retroactive adjustment of 
21disability or other payments made between January 1, 2011 and 
22January 1, 2024. 
23 (c) A member or participant is entitled to a retirement 
24annuity upon written application if he or she has attained age 
2567 (age 65, with respect to service under Article 12 that is 
26subject to this Section, for a member or participant under 
 
 
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1Article 12 who first becomes a member or participant under 
2Article 12 on or after January 1, 2022 or who makes the 
3election under item (i) of subsection (d-15) of this Section) 
4and has at least 10 years of service credit and is otherwise 
5eligible under the requirements of the applicable Article. 
6 A member or participant who has attained age 62 (age 60, 
7with respect to service under Article 12 that is subject to 
8this Section, for a member or participant under Article 12 who 
9first becomes a member or participant under Article 12 on or 
10after January 1, 2022 or who makes the election under item (i) 
11of subsection (d-15) of this Section) and has at least 10 years 
12of service credit and is otherwise eligible under the 
13requirements of the applicable Article may elect to receive 
14the lower retirement annuity provided in subsection (d) of 
15this Section. 
16 (c-5) A person who first becomes a member or a participant 
17subject to this Section on or after July 6, 2017 (the effective 
18date of Public Act 100-23), notwithstanding any other 
19provision of this Code to the contrary, is entitled to a 
20retirement annuity under Article 8 or Article 11 upon written 
21application if he or she has attained age 65 and has at least 
2210 years of service credit and is otherwise eligible under the 
23requirements of Article 8 or Article 11 of this Code, 
24whichever is applicable. 
25 (d) The retirement annuity of a member or participant who 
26is retiring after attaining age 62 (age 60, with respect to 
 
 
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1service under Article 12 that is subject to this Section, for a 
2member or participant under Article 12 who first becomes a 
3member or participant under Article 12 on or after January 1, 
42022 or who makes the election under item (i) of subsection 
5(d-15) of this Section) with at least 10 years of service 
6credit shall be reduced by one-half of 1% for each full month 
7that the member's age is under age 67 (age 65, with respect to 
8service under Article 12 that is subject to this Section, for a 
9member or participant under Article 12 who first becomes a 
10member or participant under Article 12 on or after January 1, 
112022 or who makes the election under item (i) of subsection 
12(d-15) of this Section).
13 (d-5) The retirement annuity payable under Article 8 or 
14Article 11 to an eligible person subject to subsection (c-5) 
15of this Section who is retiring at age 60 with at least 10 
16years of service credit shall be reduced by one-half of 1% for 
17each full month that the member's age is under age 65. 
18 (d-10) Each person who first became a member or 
19participant under Article 8 or Article 11 of this Code on or 
20after January 1, 2011 and prior to July 6, 2017 (the effective 
21date of Public Act 100-23) shall make an irrevocable election 
22either:
23  (i) to be eligible for the reduced retirement age 
24 provided in subsections (c-5) and (d-5) of this Section, 
25 the eligibility for which is conditioned upon the member 
26 or participant agreeing to the increases in employee 
 
 
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1 contributions for age and service annuities provided in 
2 subsection (a-5) of Section 8-174 of this Code (for 
3 service under Article 8) or subsection (a-5) of Section 
4 11-170 of this Code (for service under Article 11); or 
5  (ii) to not agree to item (i) of this subsection 
6 (d-10), in which case the member or participant shall 
7 continue to be subject to the retirement age provisions in 
8 subsections (c) and (d) of this Section and the employee 
9 contributions for age and service annuity as provided in 
10 subsection (a) of Section 8-174 of this Code (for service 
11 under Article 8) or subsection (a) of Section 11-170 of 
12 this Code (for service under Article 11). 
13 The election provided for in this subsection shall be made 
14between October 1, 2017 and November 15, 2017. A person 
15subject to this subsection who makes the required election 
16shall remain bound by that election. A person subject to this 
17subsection who fails for any reason to make the required 
18election within the time specified in this subsection shall be 
19deemed to have made the election under item (ii). 
20 (d-15) Each person who first becomes a member or 
21participant under Article 12 on or after January 1, 2011 and 
22prior to January 1, 2022 shall make an irrevocable election 
23either: 
24  (i) to be eligible for the reduced retirement age 
25 specified in subsections (c) and (d) of this Section, the 
26 eligibility for which is conditioned upon the member or 
 
 
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1 participant agreeing to the increase in employee 
2 contributions for service annuities specified in 
3 subsection (b) of Section 12-150; or
4  (ii) to not agree to item (i) of this subsection 
5 (d-15), in which case the member or participant shall not 
6 be eligible for the reduced retirement age specified in 
7 subsections (c) and (d) of this Section and shall not be 
8 subject to the increase in employee contributions for 
9 service annuities specified in subsection (b) of Section 
10 12-150. 
11 The election provided for in this subsection shall be made 
12between January 1, 2022 and April 1, 2022. A person subject to 
13this subsection who makes the required election shall remain 
14bound by that election. A person subject to this subsection 
15who fails for any reason to make the required election within 
16the time specified in this subsection shall be deemed to have 
17made the election under item (ii). 
18 (e) Any retirement annuity or supplemental annuity shall 
19be subject to annual increases on the January 1 occurring 
20either on or after the attainment of age 67 (age 65, with 
21respect to service under Article 12 that is subject to this 
22Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15); and beginning on July 6, 2017 (the 
26effective date of Public Act 100-23), age 65 with respect to 
 
 
HB4873- 340 -LRB103 35886 RPS 65971 b


1service under Article 8 or Article 11 for eligible persons 
2who: (i) are subject to subsection (c-5) of this Section; or 
3(ii) made the election under item (i) of subsection (d-10) of 
4this Section) or the first anniversary of the annuity start 
5date, whichever is later. Each annual increase shall be 
6calculated at 3% or one-half the annual unadjusted percentage 
7increase (but not less than zero) in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1, whichever is less, of the originally granted 
10retirement annuity. If the annual unadjusted percentage change 
11in the consumer price index-u for the 12 months ending with the 
12September preceding each November 1 is zero or there is a 
13decrease, then the annuity shall not be increased. 
14 For the purposes of Section 1-103.1 of this Code, the 
15changes made to this Section by Public Act 102-263 are 
16applicable without regard to whether the employee was in 
17active service on or after August 6, 2021 (the effective date 
18of Public Act 102-263). 
19 For the purposes of Section 1-103.1 of this Code, the 
20changes made to this Section by Public Act 100-23 are 
21applicable without regard to whether the employee was in 
22active service on or after July 6, 2017 (the effective date of 
23Public Act 100-23). 
24 (f) The initial survivor's or widow's annuity of an 
25otherwise eligible survivor or widow of a retired member or 
26participant who first became a member or participant on or 
 
 
HB4873- 341 -LRB103 35886 RPS 65971 b


1after January 1, 2011 shall be in the amount of 66 2/3% of the 
2retired member's or participant's retirement annuity at the 
3date of death. In the case of the death of a member or 
4participant who has not retired and who first became a member 
5or participant on or after January 1, 2011, eligibility for a 
6survivor's or widow's annuity shall be determined by the 
7applicable Article of this Code. The initial benefit shall be 
866 2/3% of the earned annuity without a reduction due to age. A 
9child's annuity of an otherwise eligible child shall be in the 
10amount prescribed under each Article if applicable. Any 
11survivor's or widow's annuity shall be increased (1) on each 
12January 1 occurring on or after the commencement of the 
13annuity if the deceased member died while receiving a 
14retirement annuity or (2) in other cases, on each January 1 
15occurring after the first anniversary of the commencement of 
16the annuity. Each annual increase shall be calculated at 3% or 
17one-half the annual unadjusted percentage increase (but not 
18less than zero) in the consumer price index-u for the 12 months 
19ending with the September preceding each November 1, whichever 
20is less, of the originally granted survivor's annuity. If the 
21annual unadjusted percentage change in the consumer price 
22index-u for the 12 months ending with the September preceding 
23each November 1 is zero or there is a decrease, then the 
24annuity shall not be increased. 
25 (g) The benefits in Section 14-110 apply only if the 
26person is a State policeman, a fire fighter in the fire 
 
 
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1protection service of a department, a conservation police 
2officer, an investigator for the Secretary of State, an arson 
3investigator, a Commerce Commission police officer, 
4investigator for the Department of Revenue or the Illinois 
5Gaming Board, a security employee of the Department of 
6Corrections or the Department of Juvenile Justice, or a 
7security employee of the Department of Innovation and 
8Technology, as those terms are defined in subsection (b) and 
9subsection (c) of Section 14-110. A person who meets the 
10requirements of this Section is entitled to an annuity 
11calculated under the provisions of Section 14-110, in lieu of 
12the regular or minimum retirement annuity, only if the person 
13has withdrawn from service with not less than 20 years of 
14eligible creditable service and has attained age 60, 
15regardless of whether the attainment of age 60 occurs while 
16the person is still in service. 
17 (g-1) The benefits in Section 14-110 apply if the person 
18is a security employee of the Department of Corrections or the 
19Department of Juvenile Justice, a security employee of the 
20Department of Human Services, or an investigator for the 
21Department of the Lottery, as those terms are defined in 
22subsection (b) and subsection (c) of Section 14-110. A person 
23who meets the requirements of this Section is entitled to an 
24annuity calculated under the provisions of Section 14-110, in 
25lieu of the regular or minimum retirement annuity, only if the 
26person has withdrawn from service with not less than 20 years 
 
 
HB4873- 343 -LRB103 35886 RPS 65971 b


1of eligible creditable service and has attained age 55, 
2regardless of whether the attainment of age 55 occurs while 
3the person is still in service. 
4 (h) If a person who first becomes a member or a participant 
5of a retirement system or pension fund subject to this Section 
6on or after January 1, 2011 is receiving a retirement annuity 
7or retirement pension under that system or fund and becomes a 
8member or participant under any other system or fund created 
9by this Code and is employed on a full-time basis, except for 
10those members or participants exempted from the provisions of 
11this Section under subsection (a) of this Section, then the 
12person's retirement annuity or retirement pension under that 
13system or fund shall be suspended during that employment. Upon 
14termination of that employment, the person's retirement 
15annuity or retirement pension payments shall resume and be 
16recalculated if recalculation is provided for under the 
17applicable Article of this Code.
18 If a person who first becomes a member of a retirement 
19system or pension fund subject to this Section on or after 
20January 1, 2012 and is receiving a retirement annuity or 
21retirement pension under that system or fund and accepts on a 
22contractual basis a position to provide services to a 
23governmental entity from which he or she has retired, then 
24that person's annuity or retirement pension earned as an 
25active employee of the employer shall be suspended during that 
26contractual service. A person receiving an annuity or 
 
 
HB4873- 344 -LRB103 35886 RPS 65971 b


1retirement pension under this Code shall notify the pension 
2fund or retirement system from which he or she is receiving an 
3annuity or retirement pension, as well as his or her 
4contractual employer, of his or her retirement status before 
5accepting contractual employment. A person who fails to submit 
6such notification shall be guilty of a Class A misdemeanor and 
7required to pay a fine of $1,000. Upon termination of that 
8contractual employment, the person's retirement annuity or 
9retirement pension payments shall resume and, if appropriate, 
10be recalculated under the applicable provisions of this Code. 
11 (i) (Blank). 
12 (j) In the case of a conflict between the provisions of 
13this Section and any other provision of this Code, the 
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
175-13-22.)

18 (Text of Section from P.A. 102-956)
19 Sec. 1-160. Provisions applicable to new hires. 
20 (a) The provisions of this Section apply to a person who, 
21on or after January 1, 2011, first becomes a member or a 
22participant under any reciprocal retirement system or pension 
23fund established under this Code, other than a retirement 
24system or pension fund established under Article 2, 3, 4, 5, 6, 
257, 15, or 18 of this Code, notwithstanding any other provision 
 
 
HB4873- 345 -LRB103 35886 RPS 65971 b


1of this Code to the contrary, but do not apply to any 
2self-managed plan established under this Code or to any 
3participant of the retirement plan established under Section 
422-101; except that this Section applies to a person who 
5elected to establish alternative credits by electing in 
6writing after January 1, 2011, but before August 8, 2011, 
7under Section 7-145.1 of this Code. Notwithstanding anything 
8to the contrary in this Section, for purposes of this Section, 
9a person who is a Tier 1 regular employee as defined in Section 
107-109.4 of this Code or who participated in a retirement 
11system under Article 15 prior to January 1, 2011 shall be 
12deemed a person who first became a member or participant prior 
13to January 1, 2011 under any retirement system or pension fund 
14subject to this Section. The changes made to this Section by 
15Public Act 98-596 are a clarification of existing law and are 
16intended to be retroactive to January 1, 2011 (the effective 
17date of Public Act 96-889), notwithstanding the provisions of 
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a 
20noncovered employee under Article 14 on or after the 
21implementation date of the plan created under Section 1-161 
22for that Article, unless that person elects under subsection 
23(b) of Section 1-161 to instead receive the benefits provided 
24under this Section and the applicable provisions of that 
25Article.
26 This Section does not apply to a person who first becomes a 
 
 
HB4873- 346 -LRB103 35886 RPS 65971 b


1member or participant under Article 16 on or after the 
2implementation date of the plan created under Section 1-161 
3for that Article, unless that person elects under subsection 
4(b) of Section 1-161 to instead receive the benefits provided 
5under this Section and the applicable provisions of that 
6Article.
7 This Section does not apply to a person who elects under 
8subsection (c-5) of Section 1-161 to receive the benefits 
9under Section 1-161. 
10 This Section does not apply to a person who first becomes a 
11member or participant of an affected pension fund on or after 6 
12months after the resolution or ordinance date, as defined in 
13Section 1-162, unless that person elects under subsection (c) 
14of Section 1-162 to receive the benefits provided under this 
15Section and the applicable provisions of the Article under 
16which he or she is a member or participant. 
17 (b) "Final average salary" means, except as otherwise 
18provided in this subsection, the average monthly (or annual) 
19salary obtained by dividing the total salary or earnings 
20calculated under the Article applicable to the member or 
21participant during the 96 consecutive months (or 8 consecutive 
22years) of service within the last 120 months (or 10 years) of 
23service in which the total salary or earnings calculated under 
24the applicable Article was the highest by the number of months 
25(or years) of service in that period. For the purposes of a 
26person who first becomes a member or participant of any 
 
 
HB4873- 347 -LRB103 35886 RPS 65971 b


1retirement system or pension fund to which this Section 
2applies on or after January 1, 2011, in this Code, "final 
3average salary" shall be substituted for the following:
4  (1) (Blank).
5  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
6 annual salary for any 4 consecutive years within the last 
7 10 years of service immediately preceding the date of 
8 withdrawal". 
9  (3) In Article 13, "average final salary". 
10  (4) In Article 14, "final average compensation". 
11  (5) In Article 17, "average salary". 
12  (6) In Section 22-207, "wages or salary received by 
13 him at the date of retirement or discharge". 
14 A member of the Teachers' Retirement System of the State 
15of Illinois who retires on or after June 1, 2021 and for whom 
16the 2020-2021 school year is used in the calculation of the 
17member's final average salary shall use the higher of the 
18following for the purpose of determining the member's final 
19average salary:
20  (A) the amount otherwise calculated under the first 
21 paragraph of this subsection; or
22  (B) an amount calculated by the Teachers' Retirement 
23 System of the State of Illinois using the average of the 
24 monthly (or annual) salary obtained by dividing the total 
25 salary or earnings calculated under Article 16 applicable 
26 to the member or participant during the 96 months (or 8 
 
 
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1 years) of service within the last 120 months (or 10 years) 
2 of service in which the total salary or earnings 
3 calculated under the Article was the highest by the number 
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under 
6this Code (including without limitation the calculation of 
7benefits and employee contributions), the annual earnings, 
8salary, or wages (based on the plan year) of a member or 
9participant to whom this Section applies shall not exceed 
10$106,800; however, that amount shall annually thereafter be 
11increased by the lesser of (i) 3% of that amount, including all 
12previous adjustments, or (ii) one-half the annual unadjusted 
13percentage increase (but not less than zero) in the consumer 
14price index-u for the 12 months ending with the September 
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u" 
17means the index published by the Bureau of Labor Statistics of 
18the United States Department of Labor that measures the 
19average change in prices of goods and services purchased by 
20all urban consumers, United States city average, all items, 
211982-84 = 100. The new amount resulting from each annual 
22adjustment shall be determined by the Public Pension Division 
23of the Department of Insurance and made available to the 
24boards of the retirement systems and pension funds by November 
251 of each year. 
26 (b-10) Beginning on January 1, 2024, for all purposes 
 
 
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1under this Code (including, without limitation, the 
2calculation of benefits and employee contributions), the 
3annual earnings, salary, or wages (based on the plan year) of a 
4member or participant under Article 9 to whom this Section 
5applies shall include an annual earnings, salary, or wage cap 
6that tracks the Social Security wage base. Maximum annual 
7earnings, wages, or salary shall be the annual contribution 
8and benefit base established for the applicable year by the 
9Commissioner of the Social Security Administration under the 
10federal Social Security Act. 
11 However, in no event shall the annual earnings, salary, or 
12wages for the purposes of this Article and Article 9 exceed any 
13limitation imposed on annual earnings, salary, or wages under 
14Section 1-117. Under no circumstances shall the maximum amount 
15of annual earnings, salary, or wages be greater than the 
16amount set forth in this subsection (b-10) as a result of 
17reciprocal service or any provisions regarding reciprocal 
18services, nor shall the Fund under Article 9 be required to pay 
19any refund as a result of the application of this maximum 
20annual earnings, salary, and wage cap. 
21 Nothing in this subsection (b-10) shall cause or otherwise 
22result in any retroactive adjustment of any employee 
23contributions. Nothing in this subsection (b-10) shall cause 
24or otherwise result in any retroactive adjustment of 
25disability or other payments made between January 1, 2011 and 
26January 1, 2024. 
 
 
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1 (c) A member or participant is entitled to a retirement 
2annuity upon written application if he or she has attained age 
367 (age 65, with respect to service under Article 12 that is 
4subject to this Section, for a member or participant under 
5Article 12 who first becomes a member or participant under 
6Article 12 on or after January 1, 2022 or who makes the 
7election under item (i) of subsection (d-15) of this Section) 
8and has at least 10 years of service credit and is otherwise 
9eligible under the requirements of the applicable Article. 
10 A member or participant who has attained age 62 (age 60, 
11with respect to service under Article 12 that is subject to 
12this Section, for a member or participant under Article 12 who 
13first becomes a member or participant under Article 12 on or 
14after January 1, 2022 or who makes the election under item (i) 
15of subsection (d-15) of this Section) and has at least 10 years 
16of service credit and is otherwise eligible under the 
17requirements of the applicable Article may elect to receive 
18the lower retirement annuity provided in subsection (d) of 
19this Section. 
20 (c-5) A person who first becomes a member or a participant 
21subject to this Section on or after July 6, 2017 (the effective 
22date of Public Act 100-23), notwithstanding any other 
23provision of this Code to the contrary, is entitled to a 
24retirement annuity under Article 8 or Article 11 upon written 
25application if he or she has attained age 65 and has at least 
2610 years of service credit and is otherwise eligible under the 
 
 
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1requirements of Article 8 or Article 11 of this Code, 
2whichever is applicable. 
3 (d) The retirement annuity of a member or participant who 
4is retiring after attaining age 62 (age 60, with respect to 
5service under Article 12 that is subject to this Section, for a 
6member or participant under Article 12 who first becomes a 
7member or participant under Article 12 on or after January 1, 
82022 or who makes the election under item (i) of subsection 
9(d-15) of this Section) with at least 10 years of service 
10credit shall be reduced by one-half of 1% for each full month 
11that the member's age is under age 67 (age 65, with respect to 
12service under Article 12 that is subject to this Section, for a 
13member or participant under Article 12 who first becomes a 
14member or participant under Article 12 on or after January 1, 
152022 or who makes the election under item (i) of subsection 
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or 
18Article 11 to an eligible person subject to subsection (c-5) 
19of this Section who is retiring at age 60 with at least 10 
20years of service credit shall be reduced by one-half of 1% for 
21each full month that the member's age is under age 65. 
22 (d-10) Each person who first became a member or 
23participant under Article 8 or Article 11 of this Code on or 
24after January 1, 2011 and prior to July 6, 2017 (the effective 
25date of Public Act 100-23) shall make an irrevocable election 
26either:
 
 
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1  (i) to be eligible for the reduced retirement age 
2 provided in subsections (c-5) and (d-5) of this Section, 
3 the eligibility for which is conditioned upon the member 
4 or participant agreeing to the increases in employee 
5 contributions for age and service annuities provided in 
6 subsection (a-5) of Section 8-174 of this Code (for 
7 service under Article 8) or subsection (a-5) of Section 
8 11-170 of this Code (for service under Article 11); or 
9  (ii) to not agree to item (i) of this subsection 
10 (d-10), in which case the member or participant shall 
11 continue to be subject to the retirement age provisions in 
12 subsections (c) and (d) of this Section and the employee 
13 contributions for age and service annuity as provided in 
14 subsection (a) of Section 8-174 of this Code (for service 
15 under Article 8) or subsection (a) of Section 11-170 of 
16 this Code (for service under Article 11). 
17 The election provided for in this subsection shall be made 
18between October 1, 2017 and November 15, 2017. A person 
19subject to this subsection who makes the required election 
20shall remain bound by that election. A person subject to this 
21subsection who fails for any reason to make the required 
22election within the time specified in this subsection shall be 
23deemed to have made the election under item (ii). 
24 (d-15) Each person who first becomes a member or 
25participant under Article 12 on or after January 1, 2011 and 
26prior to January 1, 2022 shall make an irrevocable election 
 
 
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1either: 
2  (i) to be eligible for the reduced retirement age 
3 specified in subsections (c) and (d) of this Section, the 
4 eligibility for which is conditioned upon the member or 
5 participant agreeing to the increase in employee 
6 contributions for service annuities specified in 
7 subsection (b) of Section 12-150; or
8  (ii) to not agree to item (i) of this subsection 
9 (d-15), in which case the member or participant shall not 
10 be eligible for the reduced retirement age specified in 
11 subsections (c) and (d) of this Section and shall not be 
12 subject to the increase in employee contributions for 
13 service annuities specified in subsection (b) of Section 
14 12-150. 
15 The election provided for in this subsection shall be made 
16between January 1, 2022 and April 1, 2022. A person subject to 
17this subsection who makes the required election shall remain 
18bound by that election. A person subject to this subsection 
19who fails for any reason to make the required election within 
20the time specified in this subsection shall be deemed to have 
21made the election under item (ii). 
22 (e) Any retirement annuity or supplemental annuity shall 
23be subject to annual increases on the January 1 occurring 
24either on or after the attainment of age 67 (age 65, with 
25respect to service under Article 12 that is subject to this 
26Section, for a member or participant under Article 12 who 
 
 
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1first becomes a member or participant under Article 12 on or 
2after January 1, 2022 or who makes the election under item (i) 
3of subsection (d-15); and beginning on July 6, 2017 (the 
4effective date of Public Act 100-23), age 65 with respect to 
5service under Article 8 or Article 11 for eligible persons 
6who: (i) are subject to subsection (c-5) of this Section; or 
7(ii) made the election under item (i) of subsection (d-10) of 
8this Section) or the first anniversary of the annuity start 
9date, whichever is later. Each annual increase shall be 
10calculated at 3% or one-half the annual unadjusted percentage 
11increase (but not less than zero) in the consumer price 
12index-u for the 12 months ending with the September preceding 
13each November 1, whichever is less, of the originally granted 
14retirement annuity. If the annual unadjusted percentage change 
15in the consumer price index-u for the 12 months ending with the 
16September preceding each November 1 is zero or there is a 
17decrease, then the annuity shall not be increased. 
18 For the purposes of Section 1-103.1 of this Code, the 
19changes made to this Section by Public Act 102-263 are 
20applicable without regard to whether the employee was in 
21active service on or after August 6, 2021 (the effective date 
22of Public Act 102-263). 
23 For the purposes of Section 1-103.1 of this Code, the 
24changes made to this Section by Public Act 100-23 are 
25applicable without regard to whether the employee was in 
26active service on or after July 6, 2017 (the effective date of 
 
 
HB4873- 355 -LRB103 35886 RPS 65971 b


1Public Act 100-23). 
2 (f) The initial survivor's or widow's annuity of an 
3otherwise eligible survivor or widow of a retired member or 
4participant who first became a member or participant on or 
5after January 1, 2011 shall be in the amount of 66 2/3% of the 
6retired member's or participant's retirement annuity at the 
7date of death. In the case of the death of a member or 
8participant who has not retired and who first became a member 
9or participant on or after January 1, 2011, eligibility for a 
10survivor's or widow's annuity shall be determined by the 
11applicable Article of this Code. The initial benefit shall be 
1266 2/3% of the earned annuity without a reduction due to age. A 
13child's annuity of an otherwise eligible child shall be in the 
14amount prescribed under each Article if applicable. Any 
15survivor's or widow's annuity shall be increased (1) on each 
16January 1 occurring on or after the commencement of the 
17annuity if the deceased member died while receiving a 
18retirement annuity or (2) in other cases, on each January 1 
19occurring after the first anniversary of the commencement of 
20the annuity. Each annual increase shall be calculated at 3% or 
21one-half the annual unadjusted percentage increase (but not 
22less than zero) in the consumer price index-u for the 12 months 
23ending with the September preceding each November 1, whichever 
24is less, of the originally granted survivor's annuity. If the 
25annual unadjusted percentage change in the consumer price 
26index-u for the 12 months ending with the September preceding 
 
 
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1each November 1 is zero or there is a decrease, then the 
2annuity shall not be increased. 
3 (g) The benefits in Section 14-110 apply only if the 
4person is a State policeman, a fire fighter in the fire 
5protection service of a department, a conservation police 
6officer, an investigator for the Secretary of State, an 
7investigator for the Office of the Attorney General, an arson 
8investigator, a Commerce Commission police officer, 
9investigator for the Department of Revenue or the Illinois 
10Gaming Board, a security employee of the Department of 
11Corrections or the Department of Juvenile Justice, or a 
12security employee of the Department of Innovation and 
13Technology, as those terms are defined in subsection (b) and 
14subsection (c) of Section 14-110. A person who meets the 
15requirements of this Section is entitled to an annuity 
16calculated under the provisions of Section 14-110, in lieu of 
17the regular or minimum retirement annuity, only if the person 
18has withdrawn from service with not less than 20 years of 
19eligible creditable service and has attained age 60, 
20regardless of whether the attainment of age 60 occurs while 
21the person is still in service. 
22 (g-1) The benefits in Section 14-110 apply if the person 
23is a security employee of the Department of Corrections or the 
24Department of Juvenile Justice, a security employee of the 
25Department of Human Services, or an investigator for the 
26Department of the Lottery, as those terms are defined in 
 
 
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1subsection (b) and subsection (c) of Section 14-110. A person 
2who meets the requirements of this Section is entitled to an 
3annuity calculated under the provisions of Section 14-110, in 
4lieu of the regular or minimum retirement annuity, only if the 
5person has withdrawn from service with not less than 20 years 
6of eligible creditable service and has attained age 55, 
7regardless of whether the attainment of age 55 occurs while 
8the person is still in service. 
9 (h) If a person who first becomes a member or a participant 
10of a retirement system or pension fund subject to this Section 
11on or after January 1, 2011 is receiving a retirement annuity 
12or retirement pension under that system or fund and becomes a 
13member or participant under any other system or fund created 
14by this Code and is employed on a full-time basis, except for 
15those members or participants exempted from the provisions of 
16this Section under subsection (a) of this Section, then the 
17person's retirement annuity or retirement pension under that 
18system or fund shall be suspended during that employment. Upon 
19termination of that employment, the person's retirement 
20annuity or retirement pension payments shall resume and be 
21recalculated if recalculation is provided for under the 
22applicable Article of this Code.
23 If a person who first becomes a member of a retirement 
24system or pension fund subject to this Section on or after 
25January 1, 2012 and is receiving a retirement annuity or 
26retirement pension under that system or fund and accepts on a 
 
 
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1contractual basis a position to provide services to a 
2governmental entity from which he or she has retired, then 
3that person's annuity or retirement pension earned as an 
4active employee of the employer shall be suspended during that 
5contractual service. A person receiving an annuity or 
6retirement pension under this Code shall notify the pension 
7fund or retirement system from which he or she is receiving an 
8annuity or retirement pension, as well as his or her 
9contractual employer, of his or her retirement status before 
10accepting contractual employment. A person who fails to submit 
11such notification shall be guilty of a Class A misdemeanor and 
12required to pay a fine of $1,000. Upon termination of that 
13contractual employment, the person's retirement annuity or 
14retirement pension payments shall resume and, if appropriate, 
15be recalculated under the applicable provisions of this Code. 
16 (i) (Blank). 
17 (j) In the case of a conflict between the provisions of 
18this Section and any other provision of this Code, the 
19provisions of this Section shall control.
20(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
21102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
228-11-23.)

23 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
24 (Text of Section from P.A. 102-813 and 103-34)
25 Sec. 14-110. Alternative retirement annuity. 
 
 
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1 (a) Any member who has withdrawn from service with not 
2less than 20 years of eligible creditable service and has 
3attained age 55, and any member who has withdrawn from service 
4with not less than 25 years of eligible creditable service and 
5has attained age 50, regardless of whether the attainment of 
6either of the specified ages occurs while the member is still 
7in service, shall be entitled to receive at the option of the 
8member, in lieu of the regular or minimum retirement annuity, 
9a retirement annuity computed as follows:
10  (i) for periods of service as a noncovered employee: 
11 if retirement occurs on or after January 1, 2001, 3% of 
12 final average compensation for each year of creditable 
13 service; if retirement occurs before January 1, 2001, 2 
14 1/4% of final average compensation for each of the first 
15 10 years of creditable service, 2 1/2% for each year above 
16 10 years to and including 20 years of creditable service, 
17 and 2 3/4% for each year of creditable service above 20 
18 years; and
19  (ii) for periods of eligible creditable service as a 
20 covered employee: if retirement occurs on or after January 
21 1, 2001, 2.5% of final average compensation for each year 
22 of creditable service; if retirement occurs before January 
23 1, 2001, 1.67% of final average compensation for each of 
24 the first 10 years of such service, 1.90% for each of the 
25 next 10 years of such service, 2.10% for each year of such 
26 service in excess of 20 but not exceeding 30, and 2.30% for 
 
 
HB4873- 360 -LRB103 35886 RPS 65971 b


1 each year in excess of 30.
2 Such annuity shall be subject to a maximum of 75% of final 
3average compensation if retirement occurs before January 1, 
42001 or to a maximum of 80% of final average compensation if 
5retirement occurs on or after January 1, 2001.
6 These rates shall not be applicable to any service 
7performed by a member as a covered employee which is not 
8eligible creditable service. Service as a covered employee 
9which is not eligible creditable service shall be subject to 
10the rates and provisions of Section 14-108.
11 (b) For the purpose of this Section, "eligible creditable 
12service" means creditable service resulting from service in 
13one or more of the following positions:
14  (1) State policeman;
15  (2) fire fighter in the fire protection service of a 
16 department;
17  (3) air pilot;
18  (4) special agent;
19  (5) investigator for the Secretary of State;
20  (6) conservation police officer;
21  (7) investigator for the Department of Revenue or the 
22 Illinois Gaming Board;
23  (8) security employee of the Department of Human 
24 Services;
25  (9) Central Management Services security police 
26 officer;
 
 
HB4873- 361 -LRB103 35886 RPS 65971 b


1  (10) security employee of the Department of 
2 Corrections or the Department of Juvenile Justice;
3  (11) dangerous drugs investigator;
4  (12) investigator for the Illinois State Police;
5  (13) investigator for the Office of the Attorney 
6 General;
7  (14) controlled substance inspector;
8  (15) investigator for the Office of the State's 
9 Attorneys Appellate Prosecutor;
10  (16) Commerce Commission police officer;
11  (17) arson investigator;
12  (18) State highway maintenance worker;
13  (19) security employee of the Department of Innovation 
14 and Technology; or 
15  (20) transferred employee; or . 
16  (21) investigator for the Department of the Lottery. 
17 A person employed in one of the positions specified in 
18this subsection is entitled to eligible creditable service for 
19service credit earned under this Article while undergoing the 
20basic police training course approved by the Illinois Law 
21Enforcement Training Standards Board, if completion of that 
22training is required of persons serving in that position. For 
23the purposes of this Code, service during the required basic 
24police training course shall be deemed performance of the 
25duties of the specified position, even though the person is 
26not a sworn peace officer at the time of the training.
 
 
HB4873- 362 -LRB103 35886 RPS 65971 b


1 A person under paragraph (20) is entitled to eligible 
2creditable service for service credit earned under this 
3Article on and after his or her transfer by Executive Order No. 
42003-10, Executive Order No. 2004-2, or Executive Order No. 
52016-1. 
6 (c) For the purposes of this Section:
7  (1) The term "State policeman" includes any title or 
8 position in the Illinois State Police that is held by an 
9 individual employed under the Illinois State Police Act.
10  (2) The term "fire fighter in the fire protection 
11 service of a department" includes all officers in such 
12 fire protection service including fire chiefs and 
13 assistant fire chiefs.
14  (3) The term "air pilot" includes any employee whose 
15 official job description on file in the Department of 
16 Central Management Services, or in the department by which 
17 he is employed if that department is not covered by the 
18 Personnel Code, states that his principal duty is the 
19 operation of aircraft, and who possesses a pilot's 
20 license; however, the change in this definition made by 
21 Public Act 83-842 shall not operate to exclude any 
22 noncovered employee who was an "air pilot" for the 
23 purposes of this Section on January 1, 1984.
24  (4) The term "special agent" means any person who by 
25 reason of employment by the Division of Narcotic Control, 
26 the Bureau of Investigation or, after July 1, 1977, the 
 
 
HB4873- 363 -LRB103 35886 RPS 65971 b


1 Division of Criminal Investigation, the Division of 
2 Internal Investigation, the Division of Operations, the 
3 Division of Patrol, or any other Division or 
4 organizational entity in the Illinois State Police is 
5 vested by law with duties to maintain public order, 
6 investigate violations of the criminal law of this State, 
7 enforce the laws of this State, make arrests and recover 
8 property. The term "special agent" includes any title or 
9 position in the Illinois State Police that is held by an 
10 individual employed under the Illinois State Police Act.
11  (5) The term "investigator for the Secretary of State" 
12 means any person employed by the Office of the Secretary 
13 of State and vested with such investigative duties as 
14 render him ineligible for coverage under the Social 
15 Security Act by reason of Sections 218(d)(5)(A), 
16 218(d)(8)(D) and 218(l)(1) of that Act.
17  A person who became employed as an investigator for 
18 the Secretary of State between January 1, 1967 and 
19 December 31, 1975, and who has served as such until 
20 attainment of age 60, either continuously or with a single 
21 break in service of not more than 3 years duration, which 
22 break terminated before January 1, 1976, shall be entitled 
23 to have his retirement annuity calculated in accordance 
24 with subsection (a), notwithstanding that he has less than 
25 20 years of credit for such service.
26  (6) The term "Conservation Police Officer" means any 
 
 
HB4873- 364 -LRB103 35886 RPS 65971 b


1 person employed by the Division of Law Enforcement of the 
2 Department of Natural Resources and vested with such law 
3 enforcement duties as render him ineligible for coverage 
4 under the Social Security Act by reason of Sections 
5 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
6 term "Conservation Police Officer" includes the positions 
7 of Chief Conservation Police Administrator and Assistant 
8 Conservation Police Administrator.
9  (7) The term "investigator for the Department of 
10 Revenue" means any person employed by the Department of 
11 Revenue and vested with such investigative duties as 
12 render him ineligible for coverage under the Social 
13 Security Act by reason of Sections 218(d)(5)(A), 
14 218(d)(8)(D) and 218(l)(1) of that Act.
15  The term "investigator for the Illinois Gaming Board" 
16 means any person employed as such by the Illinois Gaming 
17 Board and vested with such peace officer duties as render 
18 the person ineligible for coverage under the Social 
19 Security Act by reason of Sections 218(d)(5)(A), 
20 218(d)(8)(D), and 218(l)(1) of that Act. 
21  (8) The term "security employee of the Department of 
22 Human Services" means any person employed by the 
23 Department of Human Services who (i) is employed at the 
24 Chester Mental Health Center and has daily contact with 
25 the residents thereof, (ii) is employed within a security 
26 unit at a facility operated by the Department and has 
 
 
HB4873- 365 -LRB103 35886 RPS 65971 b


1 daily contact with the residents of the security unit, 
2 (iii) is employed at a facility operated by the Department 
3 that includes a security unit and is regularly scheduled 
4 to work at least 50% of his or her working hours within 
5 that security unit, or (iv) is a mental health police 
6 officer. "Mental health police officer" means any person 
7 employed by the Department of Human Services in a position 
8 pertaining to the Department's mental health and 
9 developmental disabilities functions who is vested with 
10 such law enforcement duties as render the person 
11 ineligible for coverage under the Social Security Act by 
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
13 218(l)(1) of that Act. "Security unit" means that portion 
14 of a facility that is devoted to the care, containment, 
15 and treatment of persons committed to the Department of 
16 Human Services as sexually violent persons, persons unfit 
17 to stand trial, or persons not guilty by reason of 
18 insanity. With respect to past employment, references to 
19 the Department of Human Services include its predecessor, 
20 the Department of Mental Health and Developmental 
21 Disabilities.
22  The changes made to this subdivision (c)(8) by Public 
23 Act 92-14 apply to persons who retire on or after January 
24 1, 2001, notwithstanding Section 1-103.1.
25  (9) "Central Management Services security police 
26 officer" means any person employed by the Department of 
 
 
HB4873- 366 -LRB103 35886 RPS 65971 b


1 Central Management Services who is vested with such law 
2 enforcement duties as render him ineligible for coverage 
3 under the Social Security Act by reason of Sections 
4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
5  (10) For a member who first became an employee under 
6 this Article before July 1, 2005, the term "security 
7 employee of the Department of Corrections or the 
8 Department of Juvenile Justice" means any employee of the 
9 Department of Corrections or the Department of Juvenile 
10 Justice or the former Department of Personnel, and any 
11 member or employee of the Prisoner Review Board, who has 
12 daily contact with inmates or youth by working within a 
13 correctional facility or Juvenile facility operated by the 
14 Department of Juvenile Justice or who is a parole officer 
15 or an employee who has direct contact with committed 
16 persons in the performance of his or her job duties. For a 
17 member who first becomes an employee under this Article on 
18 or after July 1, 2005, the term means an employee of the 
19 Department of Corrections or the Department of Juvenile 
20 Justice who is any of the following: (i) officially 
21 headquartered at a correctional facility or Juvenile 
22 facility operated by the Department of Juvenile Justice, 
23 (ii) a parole officer, (iii) a member of the apprehension 
24 unit, (iv) a member of the intelligence unit, (v) a member 
25 of the sort team, or (vi) an investigator.
26  (11) The term "dangerous drugs investigator" means any 
 
 
HB4873- 367 -LRB103 35886 RPS 65971 b


1 person who is employed as such by the Department of Human 
2 Services.
3  (12) The term "investigator for the Illinois State 
4 Police" means a person employed by the Illinois State 
5 Police who is vested under Section 4 of the Narcotic 
6 Control Division Abolition Act with such law enforcement 
7 powers as render him ineligible for coverage under the 
8 Social Security Act by reason of Sections 218(d)(5)(A), 
9 218(d)(8)(D) and 218(l)(1) of that Act.
10  (13) "Investigator for the Office of the Attorney 
11 General" means any person who is employed as such by the 
12 Office of the Attorney General and is vested with such 
13 investigative duties as render him ineligible for coverage 
14 under the Social Security Act by reason of Sections 
15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
16 the period before January 1, 1989, the term includes all 
17 persons who were employed as investigators by the Office 
18 of the Attorney General, without regard to social security 
19 status.
20  (14) "Controlled substance inspector" means any person 
21 who is employed as such by the Department of Professional 
22 Regulation and is vested with such law enforcement duties 
23 as render him ineligible for coverage under the Social 
24 Security Act by reason of Sections 218(d)(5)(A), 
25 218(d)(8)(D) and 218(l)(1) of that Act. The term 
26 "controlled substance inspector" includes the Program 
 
 
HB4873- 368 -LRB103 35886 RPS 65971 b


1 Executive of Enforcement and the Assistant Program 
2 Executive of Enforcement.
3  (15) The term "investigator for the Office of the 
4 State's Attorneys Appellate Prosecutor" means a person 
5 employed in that capacity on a full-time basis under the 
6 authority of Section 7.06 of the State's Attorneys 
7 Appellate Prosecutor's Act.
8  (16) "Commerce Commission police officer" means any 
9 person employed by the Illinois Commerce Commission who is 
10 vested with such law enforcement duties as render him 
11 ineligible for coverage under the Social Security Act by 
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
13 218(l)(1) of that Act.
14  (17) "Arson investigator" means any person who is 
15 employed as such by the Office of the State Fire Marshal 
16 and is vested with such law enforcement duties as render 
17 the person ineligible for coverage under the Social 
18 Security Act by reason of Sections 218(d)(5)(A), 
19 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
20 employed as an arson investigator on January 1, 1995 and 
21 is no longer in service but not yet receiving a retirement 
22 annuity may convert his or her creditable service for 
23 employment as an arson investigator into eligible 
24 creditable service by paying to the System the difference 
25 between the employee contributions actually paid for that 
26 service and the amounts that would have been contributed 
 
 
HB4873- 369 -LRB103 35886 RPS 65971 b


1 if the applicant were contributing at the rate applicable 
2 to persons with the same social security status earning 
3 eligible creditable service on the date of application.
4  (18) The term "State highway maintenance worker" means 
5 a person who is either of the following:
6   (i) A person employed on a full-time basis by the 
7 Illinois Department of Transportation in the position 
8 of highway maintainer, highway maintenance lead 
9 worker, highway maintenance lead/lead worker, heavy 
10 construction equipment operator, power shovel 
11 operator, or bridge mechanic; and whose principal 
12 responsibility is to perform, on the roadway, the 
13 actual maintenance necessary to keep the highways that 
14 form a part of the State highway system in serviceable 
15 condition for vehicular traffic.
16   (ii) A person employed on a full-time basis by the 
17 Illinois State Toll Highway Authority in the position 
18 of equipment operator/laborer H-4, equipment 
19 operator/laborer H-6, welder H-4, welder H-6, 
20 mechanical/electrical H-4, mechanical/electrical H-6, 
21 water/sewer H-4, water/sewer H-6, sign maker/hanger 
22 H-4, sign maker/hanger H-6, roadway lighting H-4, 
23 roadway lighting H-6, structural H-4, structural H-6, 
24 painter H-4, or painter H-6; and whose principal 
25 responsibility is to perform, on the roadway, the 
26 actual maintenance necessary to keep the Authority's 
 
 
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1 tollways in serviceable condition for vehicular 
2 traffic.
3  (19) The term "security employee of the Department of 
4 Innovation and Technology" means a person who was a 
5 security employee of the Department of Corrections or the 
6 Department of Juvenile Justice, was transferred to the 
7 Department of Innovation and Technology pursuant to 
8 Executive Order 2016-01, and continues to perform similar 
9 job functions under that Department. 
10  (20) "Transferred employee" means an employee who was 
11 transferred to the Department of Central Management 
12 Services by Executive Order No. 2003-10 or Executive Order 
13 No. 2004-2 or transferred to the Department of Innovation 
14 and Technology by Executive Order No. 2016-1, or both, and 
15 was entitled to eligible creditable service for services 
16 immediately preceding the transfer. 
17  (21) The term "investigator for the Department of the 
18 Lottery" means any person employed by the Department of 
19 the Lottery and who is vested with such investigative 
20 duties which render him or her ineligible for coverage 
21 under the Social Security Act by reason of Sections 
22 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An 
23 investigator for the Department of the Lottery who 
24 qualifies under this Section shall earn eligible 
25 creditable service and be required to make contributions 
26 at the rate specified in paragraph (3) of subsection (a) 
 
 
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1 of Section 14-133 for all periods of service as an 
2 investigator for the Department of the Lottery. 
3 (d) A security employee of the Department of Corrections 
4or the Department of Juvenile Justice, a security employee of 
5the Department of Human Services who is not a mental health 
6police officer, and a security employee of the Department of 
7Innovation and Technology shall not be eligible for the 
8alternative retirement annuity provided by this Section unless 
9he or she meets the following minimum age and service 
10requirements at the time of retirement:
11  (i) 25 years of eligible creditable service and age 
12 55; or
13  (ii) beginning January 1, 1987, 25 years of eligible 
14 creditable service and age 54, or 24 years of eligible 
15 creditable service and age 55; or
16  (iii) beginning January 1, 1988, 25 years of eligible 
17 creditable service and age 53, or 23 years of eligible 
18 creditable service and age 55; or
19  (iv) beginning January 1, 1989, 25 years of eligible 
20 creditable service and age 52, or 22 years of eligible 
21 creditable service and age 55; or
22  (v) beginning January 1, 1990, 25 years of eligible 
23 creditable service and age 51, or 21 years of eligible 
24 creditable service and age 55; or
25  (vi) beginning January 1, 1991, 25 years of eligible 
26 creditable service and age 50, or 20 years of eligible 
 
 
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1 creditable service and age 55.
2 Persons who have service credit under Article 16 of this 
3Code for service as a security employee of the Department of 
4Corrections or the Department of Juvenile Justice, or the 
5Department of Human Services in a position requiring 
6certification as a teacher may count such service toward 
7establishing their eligibility under the service requirements 
8of this Section; but such service may be used only for 
9establishing such eligibility, and not for the purpose of 
10increasing or calculating any benefit.
11 (e) If a member enters military service while working in a 
12position in which eligible creditable service may be earned, 
13and returns to State service in the same or another such 
14position, and fulfills in all other respects the conditions 
15prescribed in this Article for credit for military service, 
16such military service shall be credited as eligible creditable 
17service for the purposes of the retirement annuity prescribed 
18in this Section.
19 (f) For purposes of calculating retirement annuities under 
20this Section, periods of service rendered after December 31, 
211968 and before October 1, 1975 as a covered employee in the 
22position of special agent, conservation police officer, mental 
23health police officer, or investigator for the Secretary of 
24State, shall be deemed to have been service as a noncovered 
25employee, provided that the employee pays to the System prior 
26to retirement an amount equal to (1) the difference between 
 
 
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1the employee contributions that would have been required for 
2such service as a noncovered employee, and the amount of 
3employee contributions actually paid, plus (2) if payment is 
4made after July 31, 1987, regular interest on the amount 
5specified in item (1) from the date of service to the date of 
6payment.
7 For purposes of calculating retirement annuities under 
8this Section, periods of service rendered after December 31, 
91968 and before January 1, 1982 as a covered employee in the 
10position of investigator for the Department of Revenue shall 
11be deemed to have been service as a noncovered employee, 
12provided that the employee pays to the System prior to 
13retirement an amount equal to (1) the difference between the 
14employee contributions that would have been required for such 
15service as a noncovered employee, and the amount of employee 
16contributions actually paid, plus (2) if payment is made after 
17January 1, 1990, regular interest on the amount specified in 
18item (1) from the date of service to the date of payment.
19 (g) A State policeman may elect, not later than January 1, 
201990, to establish eligible creditable service for up to 10 
21years of his service as a policeman under Article 3, by filing 
22a written election with the Board, accompanied by payment of 
23an amount to be determined by the Board, equal to (i) the 
24difference between the amount of employee and employer 
25contributions transferred to the System under Section 3-110.5, 
26and the amounts that would have been contributed had such 
 
 
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1contributions been made at the rates applicable to State 
2policemen, plus (ii) interest thereon at the effective rate 
3for each year, compounded annually, from the date of service 
4to the date of payment.
5 Subject to the limitation in subsection (i), a State 
6policeman may elect, not later than July 1, 1993, to establish 
7eligible creditable service for up to 10 years of his service 
8as a member of the County Police Department under Article 9, by 
9filing a written election with the Board, accompanied by 
10payment of an amount to be determined by the Board, equal to 
11(i) the difference between the amount of employee and employer 
12contributions transferred to the System under Section 9-121.10 
13and the amounts that would have been contributed had those 
14contributions been made at the rates applicable to State 
15policemen, plus (ii) interest thereon at the effective rate 
16for each year, compounded annually, from the date of service 
17to the date of payment.
18 (h) Subject to the limitation in subsection (i), a State 
19policeman or investigator for the Secretary of State may elect 
20to establish eligible creditable service for up to 12 years of 
21his service as a policeman under Article 5, by filing a written 
22election with the Board on or before January 31, 1992, and 
23paying to the System by January 31, 1994 an amount to be 
24determined by the Board, equal to (i) the difference between 
25the amount of employee and employer contributions transferred 
26to the System under Section 5-236, and the amounts that would 
 
 
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1have been contributed had such contributions been made at the 
2rates applicable to State policemen, plus (ii) interest 
3thereon at the effective rate for each year, compounded 
4annually, from the date of service to the date of payment.
5 Subject to the limitation in subsection (i), a State 
6policeman, conservation police officer, or investigator for 
7the Secretary of State may elect to establish eligible 
8creditable service for up to 10 years of service as a sheriff's 
9law enforcement employee under Article 7, by filing a written 
10election with the Board on or before January 31, 1993, and 
11paying to the System by January 31, 1994 an amount to be 
12determined by the Board, equal to (i) the difference between 
13the amount of employee and employer contributions transferred 
14to the System under Section 7-139.7, and the amounts that 
15would have been contributed had such contributions been made 
16at the rates applicable to State policemen, plus (ii) interest 
17thereon at the effective rate for each year, compounded 
18annually, from the date of service to the date of payment.
19 Subject to the limitation in subsection (i), a State 
20policeman, conservation police officer, or investigator for 
21the Secretary of State may elect to establish eligible 
22creditable service for up to 5 years of service as a police 
23officer under Article 3, a policeman under Article 5, a 
24sheriff's law enforcement employee under Article 7, a member 
25of the county police department under Article 9, or a police 
26officer under Article 15 by filing a written election with the 
 
 
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1Board and paying to the System an amount to be determined by 
2the Board, equal to (i) the difference between the amount of 
3employee and employer contributions transferred to the System 
4under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
5and the amounts that would have been contributed had such 
6contributions been made at the rates applicable to State 
7policemen, plus (ii) interest thereon at the effective rate 
8for each year, compounded annually, from the date of service 
9to the date of payment.
10 Subject to the limitation in subsection (i), an 
11investigator for the Office of the Attorney General, or an 
12investigator for the Department of Revenue, may elect to 
13establish eligible creditable service for up to 5 years of 
14service as a police officer under Article 3, a policeman under 
15Article 5, a sheriff's law enforcement employee under Article 
167, or a member of the county police department under Article 9 
17by filing a written election with the Board within 6 months 
18after August 25, 2009 (the effective date of Public Act 
1996-745) and paying to the System an amount to be determined by 
20the Board, equal to (i) the difference between the amount of 
21employee and employer contributions transferred to the System 
22under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
23amounts that would have been contributed had such 
24contributions been made at the rates applicable to State 
25policemen, plus (ii) interest thereon at the actuarially 
26assumed rate for each year, compounded annually, from the date 
 
 
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1of service to the date of payment.
2 Subject to the limitation in subsection (i), a State 
3policeman, conservation police officer, investigator for the 
4Office of the Attorney General, an investigator for the 
5Department of Revenue, or investigator for the Secretary of 
6State may elect to establish eligible creditable service for 
7up to 5 years of service as a person employed by a 
8participating municipality to perform police duties, or law 
9enforcement officer employed on a full-time basis by a forest 
10preserve district under Article 7, a county corrections 
11officer, or a court services officer under Article 9, by 
12filing a written election with the Board within 6 months after 
13August 25, 2009 (the effective date of Public Act 96-745) and 
14paying to the System an amount to be determined by the Board, 
15equal to (i) the difference between the amount of employee and 
16employer contributions transferred to the System under 
17Sections 7-139.8 and 9-121.10 and the amounts that would have 
18been contributed had such contributions been made at the rates 
19applicable to State policemen, plus (ii) interest thereon at 
20the actuarially assumed rate for each year, compounded 
21annually, from the date of service to the date of payment.
22 Subject to the limitation in subsection (i), a State 
23policeman, arson investigator, or Commerce Commission police 
24officer may elect to establish eligible creditable service for 
25up to 5 years of service as a person employed by a 
26participating municipality to perform police duties under 
 
 
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1Article 7, a county corrections officer, a court services 
2officer under Article 9, or a firefighter under Article 4 by 
3filing a written election with the Board within 6 months after 
4July 30, 2021 (the effective date of Public Act 102-210) and 
5paying to the System an amount to be determined by the Board 
6equal to (i) the difference between the amount of employee and 
7employer contributions transferred to the System under 
8Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
9would have been contributed had such contributions been made 
10at the rates applicable to State policemen, plus (ii) interest 
11thereon at the actuarially assumed rate for each year, 
12compounded annually, from the date of service to the date of 
13payment. 
14 Subject to the limitation in subsection (i), a 
15conservation police officer may elect to establish eligible 
16creditable service for up to 5 years of service as a person 
17employed by a participating municipality to perform police 
18duties under Article 7, a county corrections officer, or a 
19court services officer under Article 9 by filing a written 
20election with the Board within 6 months after July 30, 2021 
21(the effective date of Public Act 102-210) and paying to the 
22System an amount to be determined by the Board equal to (i) the 
23difference between the amount of employee and employer 
24contributions transferred to the System under Sections 7-139.8 
25and 9-121.10 and the amounts that would have been contributed 
26had such contributions been made at the rates applicable to 
 
 
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1State policemen, plus (ii) interest thereon at the actuarially 
2assumed rate for each year, compounded annually, from the date 
3of service to the date of payment. 
4 Notwithstanding the limitation in subsection (i), a State 
5policeman or conservation police officer may elect to convert 
6service credit earned under this Article to eligible 
7creditable service, as defined by this Section, by filing a 
8written election with the board within 6 months after July 30, 
92021 (the effective date of Public Act 102-210) and paying to 
10the System an amount to be determined by the Board equal to (i) 
11the difference between the amount of employee contributions 
12originally paid for that service and the amounts that would 
13have been contributed had such contributions been made at the 
14rates applicable to State policemen, plus (ii) the difference 
15between the employer's normal cost of the credit prior to the 
16conversion authorized by Public Act 102-210 and the employer's 
17normal cost of the credit converted in accordance with Public 
18Act 102-210, plus (iii) interest thereon at the actuarially 
19assumed rate for each year, compounded annually, from the date 
20of service to the date of payment. 
21 Subject to the limitation in subsection (i), a security 
22employee of the Department of Human Services who is subject to 
23subsection (g-1) of Section 1-160 may elect to convert up to 12 
24years of service credit established before the effective date 
25of this amendatory Act of the 103rd General Assembly as a 
26security employee of the Department of Human Services to 
 
 
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1eligible creditable service by filing a written election with 
2the Board no later than 2 years after the effective date of 
3this amendatory Act of the 103rd General Assembly, accompanied 
4by payment of an amount, to be determined by the Board, equal 
5to (i) the difference between the amount of the employee 
6contributions actually paid for that service and the amount of 
7the employee contributions that would have been paid had the 
8employee contributions been made as a covered employee serving 
9in a position in which eligible creditable service, as defined 
10in this Section, may be earned, plus (ii) interest thereon at 
11the effective rate for each year, compounded annually, from 
12the date of service to the date of payment. 
13 (i) The total amount of eligible creditable service 
14established by any person under subsections (g), (h), (j), 
15(k), (l), (l-5), and (o) of this Section shall not exceed 12 
16years.
17 (j) Subject to the limitation in subsection (i), an 
18investigator for the Office of the State's Attorneys Appellate 
19Prosecutor or a controlled substance inspector may elect to 
20establish eligible creditable service for up to 10 years of 
21his service as a policeman under Article 3 or a sheriff's law 
22enforcement employee under Article 7, by filing a written 
23election with the Board, accompanied by payment of an amount 
24to be determined by the Board, equal to (1) the difference 
25between the amount of employee and employer contributions 
26transferred to the System under Section 3-110.6 or 7-139.8, 
 
 
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1and the amounts that would have been contributed had such 
2contributions been made at the rates applicable to State 
3policemen, plus (2) interest thereon at the effective rate for 
4each year, compounded annually, from the date of service to 
5the date of payment.
6 (k) Subject to the limitation in subsection (i) of this 
7Section, an alternative formula employee may elect to 
8establish eligible creditable service for periods spent as a 
9full-time law enforcement officer or full-time corrections 
10officer employed by the federal government or by a state or 
11local government located outside of Illinois, for which credit 
12is not held in any other public employee pension fund or 
13retirement system. To obtain this credit, the applicant must 
14file a written application with the Board by March 31, 1998, 
15accompanied by evidence of eligibility acceptable to the Board 
16and payment of an amount to be determined by the Board, equal 
17to (1) employee contributions for the credit being 
18established, based upon the applicant's salary on the first 
19day as an alternative formula employee after the employment 
20for which credit is being established and the rates then 
21applicable to alternative formula employees, plus (2) an 
22amount determined by the Board to be the employer's normal 
23cost of the benefits accrued for the credit being established, 
24plus (3) regular interest on the amounts in items (1) and (2) 
25from the first day as an alternative formula employee after 
26the employment for which credit is being established to the 
 
 
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1date of payment.
2 (l) Subject to the limitation in subsection (i), a 
3security employee of the Department of Corrections may elect, 
4not later than July 1, 1998, to establish eligible creditable 
5service for up to 10 years of his or her service as a policeman 
6under Article 3, by filing a written election with the Board, 
7accompanied by payment of an amount to be determined by the 
8Board, equal to (i) the difference between the amount of 
9employee and employer contributions transferred to the System 
10under Section 3-110.5, and the amounts that would have been 
11contributed had such contributions been made at the rates 
12applicable to security employees of the Department of 
13Corrections, plus (ii) interest thereon at the effective rate 
14for each year, compounded annually, from the date of service 
15to the date of payment.
16 (l-5) Subject to the limitation in subsection (i) of this 
17Section, a State policeman may elect to establish eligible 
18creditable service for up to 5 years of service as a full-time 
19law enforcement officer employed by the federal government or 
20by a state or local government located outside of Illinois for 
21which credit is not held in any other public employee pension 
22fund or retirement system. To obtain this credit, the 
23applicant must file a written application with the Board no 
24later than 3 years after January 1, 2020 (the effective date of 
25Public Act 101-610), accompanied by evidence of eligibility 
26acceptable to the Board and payment of an amount to be 
 
 
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1determined by the Board, equal to (1) employee contributions 
2for the credit being established, based upon the applicant's 
3salary on the first day as an alternative formula employee 
4after the employment for which credit is being established and 
5the rates then applicable to alternative formula employees, 
6plus (2) an amount determined by the Board to be the employer's 
7normal cost of the benefits accrued for the credit being 
8established, plus (3) regular interest on the amounts in items 
9(1) and (2) from the first day as an alternative formula 
10employee after the employment for which credit is being 
11established to the date of payment. 
12 (m) The amendatory changes to this Section made by Public 
13Act 94-696 apply only to: (1) security employees of the 
14Department of Juvenile Justice employed by the Department of 
15Corrections before June 1, 2006 (the effective date of Public 
16Act 94-696) and transferred to the Department of Juvenile 
17Justice by Public Act 94-696; and (2) persons employed by the 
18Department of Juvenile Justice on or after June 1, 2006 (the 
19effective date of Public Act 94-696) who are required by 
20subsection (b) of Section 3-2.5-15 of the Unified Code of 
21Corrections to have any bachelor's or advanced degree from an 
22accredited college or university or, in the case of persons 
23who provide vocational training, who are required to have 
24adequate knowledge in the skill for which they are providing 
25the vocational training. 
26 Beginning with the pay period that immediately follows the 
 
 
HB4873- 384 -LRB103 35886 RPS 65971 b


1effective date of this amendatory Act of the 103rd General 
2Assembly, the bachelor's or advanced degree requirement of 
3subsection (b) of Section 3-2.5-15 of the Unified Code of 
4Corrections shall no longer determine the eligibility to earn 
5eligible creditable service for a person employed by the 
6Department of Juvenile Justice.
7 An employee may elect to convert into eligible creditable 
8service his or her creditable service earned with the 
9Department of Juvenile Justice while employed in a position 
10that required the employee to do any one or more of the 
11following: (1) participate or assist in the rehabilitative and 
12vocational training of delinquent youths; (2) supervise the 
13daily activities and assume direct and continuing 
14responsibility for the youth's security, welfare, and 
15development; or (3) participate in the personal rehabilitation 
16of delinquent youth by training, supervising, and assisting 
17lower-level personnel. To convert that creditable service to 
18eligible creditable service, the employee must pay to the 
19System the difference between the employee contributions 
20actually paid for that service and the amounts that would have 
21been contributed if the applicant were contributing at the 
22rate applicable to persons with the same Social Security 
23status earning eligible creditable service on the date of 
24application. 
25 (n) A person employed in a position under subsection (b) 
26of this Section who has purchased service credit under 
 
 
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1subsection (j) of Section 14-104 or subsection (b) of Section 
214-105 in any other capacity under this Article may convert up 
3to 5 years of that service credit into service credit covered 
4under this Section by paying to the Fund an amount equal to (1) 
5the additional employee contribution required under Section 
614-133, plus (2) the additional employer contribution required 
7under Section 14-131, plus (3) interest on items (1) and (2) at 
8the actuarially assumed rate from the date of the service to 
9the date of payment. 
10 (o) Subject to the limitation in subsection (i), a 
11conservation police officer, investigator for the Secretary of 
12State, Commerce Commission police officer, investigator for 
13the Department of Revenue or the Illinois Gaming Board, or 
14arson investigator subject to subsection (g) of Section 1-160 
15may elect to convert up to 8 years of service credit 
16established before January 1, 2020 (the effective date of 
17Public Act 101-610) as a conservation police officer, 
18investigator for the Secretary of State, Commerce Commission 
19police officer, investigator for the Department of Revenue or 
20the Illinois Gaming Board, or arson investigator under this 
21Article into eligible creditable service by filing a written 
22election with the Board no later than one year after January 1, 
232020 (the effective date of Public Act 101-610), accompanied 
24by payment of an amount to be determined by the Board equal to 
25(i) the difference between the amount of the employee 
26contributions actually paid for that service and the amount of 
 
 
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1the employee contributions that would have been paid had the 
2employee contributions been made as a noncovered employee 
3serving in a position in which eligible creditable service, as 
4defined in this Section, may be earned, plus (ii) interest 
5thereon at the effective rate for each year, compounded 
6annually, from the date of service to the date of payment.
7(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
8102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)

9 (Text of Section from P.A. 102-856 and 103-34)
10 Sec. 14-110. Alternative retirement annuity. 
11 (a) Any member who has withdrawn from service with not 
12less than 20 years of eligible creditable service and has 
13attained age 55, and any member who has withdrawn from service 
14with not less than 25 years of eligible creditable service and 
15has attained age 50, regardless of whether the attainment of 
16either of the specified ages occurs while the member is still 
17in service, shall be entitled to receive at the option of the 
18member, in lieu of the regular or minimum retirement annuity, 
19a retirement annuity computed as follows:
20  (i) for periods of service as a noncovered employee: 
21 if retirement occurs on or after January 1, 2001, 3% of 
22 final average compensation for each year of creditable 
23 service; if retirement occurs before January 1, 2001, 2 
24 1/4% of final average compensation for each of the first 
25 10 years of creditable service, 2 1/2% for each year above 
 
 
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1 10 years to and including 20 years of creditable service, 
2 and 2 3/4% for each year of creditable service above 20 
3 years; and
4  (ii) for periods of eligible creditable service as a 
5 covered employee: if retirement occurs on or after January 
6 1, 2001, 2.5% of final average compensation for each year 
7 of creditable service; if retirement occurs before January 
8 1, 2001, 1.67% of final average compensation for each of 
9 the first 10 years of such service, 1.90% for each of the 
10 next 10 years of such service, 2.10% for each year of such 
11 service in excess of 20 but not exceeding 30, and 2.30% for 
12 each year in excess of 30.
13 Such annuity shall be subject to a maximum of 75% of final 
14average compensation if retirement occurs before January 1, 
152001 or to a maximum of 80% of final average compensation if 
16retirement occurs on or after January 1, 2001.
17 These rates shall not be applicable to any service 
18performed by a member as a covered employee which is not 
19eligible creditable service. Service as a covered employee 
20which is not eligible creditable service shall be subject to 
21the rates and provisions of Section 14-108.
22 (b) For the purpose of this Section, "eligible creditable 
23service" means creditable service resulting from service in 
24one or more of the following positions:
25  (1) State policeman;
26  (2) fire fighter in the fire protection service of a 
 
 
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1 department;
2  (3) air pilot;
3  (4) special agent;
4  (5) investigator for the Secretary of State;
5  (6) conservation police officer;
6  (7) investigator for the Department of Revenue or the 
7 Illinois Gaming Board;
8  (8) security employee of the Department of Human 
9 Services;
10  (9) Central Management Services security police 
11 officer;
12  (10) security employee of the Department of 
13 Corrections or the Department of Juvenile Justice;
14  (11) dangerous drugs investigator;
15  (12) investigator for the Illinois State Police;
16  (13) investigator for the Office of the Attorney 
17 General;
18  (14) controlled substance inspector;
19  (15) investigator for the Office of the State's 
20 Attorneys Appellate Prosecutor;
21  (16) Commerce Commission police officer;
22  (17) arson investigator;
23  (18) State highway maintenance worker;
24  (19) security employee of the Department of Innovation 
25 and Technology; or 
26  (20) transferred employee; or . 
 
 
HB4873- 389 -LRB103 35886 RPS 65971 b


1  (21) investigator for the Department of the Lottery. 
2 A person employed in one of the positions specified in 
3this subsection is entitled to eligible creditable service for 
4service credit earned under this Article while undergoing the 
5basic police training course approved by the Illinois Law 
6Enforcement Training Standards Board, if completion of that 
7training is required of persons serving in that position. For 
8the purposes of this Code, service during the required basic 
9police training course shall be deemed performance of the 
10duties of the specified position, even though the person is 
11not a sworn peace officer at the time of the training.
12 A person under paragraph (20) is entitled to eligible 
13creditable service for service credit earned under this 
14Article on and after his or her transfer by Executive Order No. 
152003-10, Executive Order No. 2004-2, or Executive Order No. 
162016-1. 
17 (c) For the purposes of this Section:
18  (1) The term "State policeman" includes any title or 
19 position in the Illinois State Police that is held by an 
20 individual employed under the Illinois State Police Act.
21  (2) The term "fire fighter in the fire protection 
22 service of a department" includes all officers in such 
23 fire protection service including fire chiefs and 
24 assistant fire chiefs.
25  (3) The term "air pilot" includes any employee whose 
26 official job description on file in the Department of 
 
 
HB4873- 390 -LRB103 35886 RPS 65971 b


1 Central Management Services, or in the department by which 
2 he is employed if that department is not covered by the 
3 Personnel Code, states that his principal duty is the 
4 operation of aircraft, and who possesses a pilot's 
5 license; however, the change in this definition made by 
6 Public Act 83-842 shall not operate to exclude any 
7 noncovered employee who was an "air pilot" for the 
8 purposes of this Section on January 1, 1984.
9  (4) The term "special agent" means any person who by 
10 reason of employment by the Division of Narcotic Control, 
11 the Bureau of Investigation or, after July 1, 1977, the 
12 Division of Criminal Investigation, the Division of 
13 Internal Investigation, the Division of Operations, the 
14 Division of Patrol, or any other Division or 
15 organizational entity in the Illinois State Police is 
16 vested by law with duties to maintain public order, 
17 investigate violations of the criminal law of this State, 
18 enforce the laws of this State, make arrests and recover 
19 property. The term "special agent" includes any title or 
20 position in the Illinois State Police that is held by an 
21 individual employed under the Illinois State Police Act.
22  (5) The term "investigator for the Secretary of State" 
23 means any person employed by the Office of the Secretary 
24 of State and vested with such investigative duties as 
25 render him ineligible for coverage under the Social 
26 Security Act by reason of Sections 218(d)(5)(A), 
 
 
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1 218(d)(8)(D) and 218(l)(1) of that Act.
2  A person who became employed as an investigator for 
3 the Secretary of State between January 1, 1967 and 
4 December 31, 1975, and who has served as such until 
5 attainment of age 60, either continuously or with a single 
6 break in service of not more than 3 years duration, which 
7 break terminated before January 1, 1976, shall be entitled 
8 to have his retirement annuity calculated in accordance 
9 with subsection (a), notwithstanding that he has less than 
10 20 years of credit for such service.
11  (6) The term "Conservation Police Officer" means any 
12 person employed by the Division of Law Enforcement of the 
13 Department of Natural Resources and vested with such law 
14 enforcement duties as render him ineligible for coverage 
15 under the Social Security Act by reason of Sections 
16 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
17 term "Conservation Police Officer" includes the positions 
18 of Chief Conservation Police Administrator and Assistant 
19 Conservation Police Administrator.
20  (7) The term "investigator for the Department of 
21 Revenue" means any person employed by the Department of 
22 Revenue and vested with such investigative duties as 
23 render him ineligible for coverage under the Social 
24 Security Act by reason of Sections 218(d)(5)(A), 
25 218(d)(8)(D) and 218(l)(1) of that Act.
26  The term "investigator for the Illinois Gaming Board" 
 
 
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1 means any person employed as such by the Illinois Gaming 
2 Board and vested with such peace officer duties as render 
3 the person ineligible for coverage under the Social 
4 Security Act by reason of Sections 218(d)(5)(A), 
5 218(d)(8)(D), and 218(l)(1) of that Act. 
6  (8) The term "security employee of the Department of 
7 Human Services" means any person employed by the 
8 Department of Human Services who (i) is employed at the 
9 Chester Mental Health Center and has daily contact with 
10 the residents thereof, (ii) is employed within a security 
11 unit at a facility operated by the Department and has 
12 daily contact with the residents of the security unit, 
13 (iii) is employed at a facility operated by the Department 
14 that includes a security unit and is regularly scheduled 
15 to work at least 50% of his or her working hours within 
16 that security unit, or (iv) is a mental health police 
17 officer. "Mental health police officer" means any person 
18 employed by the Department of Human Services in a position 
19 pertaining to the Department's mental health and 
20 developmental disabilities functions who is vested with 
21 such law enforcement duties as render the person 
22 ineligible for coverage under the Social Security Act by 
23 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
24 218(l)(1) of that Act. "Security unit" means that portion 
25 of a facility that is devoted to the care, containment, 
26 and treatment of persons committed to the Department of 
 
 
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1 Human Services as sexually violent persons, persons unfit 
2 to stand trial, or persons not guilty by reason of 
3 insanity. With respect to past employment, references to 
4 the Department of Human Services include its predecessor, 
5 the Department of Mental Health and Developmental 
6 Disabilities.
7  The changes made to this subdivision (c)(8) by Public 
8 Act 92-14 apply to persons who retire on or after January 
9 1, 2001, notwithstanding Section 1-103.1.
10  (9) "Central Management Services security police 
11 officer" means any person employed by the Department of 
12 Central Management Services who is vested with such law 
13 enforcement duties as render him ineligible for coverage 
14 under the Social Security Act by reason of Sections 
15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
16  (10) For a member who first became an employee under 
17 this Article before July 1, 2005, the term "security 
18 employee of the Department of Corrections or the 
19 Department of Juvenile Justice" means any employee of the 
20 Department of Corrections or the Department of Juvenile 
21 Justice or the former Department of Personnel, and any 
22 member or employee of the Prisoner Review Board, who has 
23 daily contact with inmates or youth by working within a 
24 correctional facility or Juvenile facility operated by the 
25 Department of Juvenile Justice or who is a parole officer 
26 or an employee who has direct contact with committed 
 
 
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1 persons in the performance of his or her job duties. For a 
2 member who first becomes an employee under this Article on 
3 or after July 1, 2005, the term means an employee of the 
4 Department of Corrections or the Department of Juvenile 
5 Justice who is any of the following: (i) officially 
6 headquartered at a correctional facility or Juvenile 
7 facility operated by the Department of Juvenile Justice, 
8 (ii) a parole officer, (iii) a member of the apprehension 
9 unit, (iv) a member of the intelligence unit, (v) a member 
10 of the sort team, or (vi) an investigator.
11  (11) The term "dangerous drugs investigator" means any 
12 person who is employed as such by the Department of Human 
13 Services.
14  (12) The term "investigator for the Illinois State 
15 Police" means a person employed by the Illinois State 
16 Police who is vested under Section 4 of the Narcotic 
17 Control Division Abolition Act with such law enforcement 
18 powers as render him ineligible for coverage under the 
19 Social Security Act by reason of Sections 218(d)(5)(A), 
20 218(d)(8)(D) and 218(l)(1) of that Act.
21  (13) "Investigator for the Office of the Attorney 
22 General" means any person who is employed as such by the 
23 Office of the Attorney General and is vested with such 
24 investigative duties as render him ineligible for coverage 
25 under the Social Security Act by reason of Sections 
26 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
 
 
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1 the period before January 1, 1989, the term includes all 
2 persons who were employed as investigators by the Office 
3 of the Attorney General, without regard to social security 
4 status.
5  (14) "Controlled substance inspector" means any person 
6 who is employed as such by the Department of Professional 
7 Regulation and is vested with such law enforcement duties 
8 as render him ineligible for coverage under the Social 
9 Security Act by reason of Sections 218(d)(5)(A), 
10 218(d)(8)(D) and 218(l)(1) of that Act. The term 
11 "controlled substance inspector" includes the Program 
12 Executive of Enforcement and the Assistant Program 
13 Executive of Enforcement.
14  (15) The term "investigator for the Office of the 
15 State's Attorneys Appellate Prosecutor" means a person 
16 employed in that capacity on a full-time basis under the 
17 authority of Section 7.06 of the State's Attorneys 
18 Appellate Prosecutor's Act.
19  (16) "Commerce Commission police officer" means any 
20 person employed by the Illinois Commerce Commission who is 
21 vested with such law enforcement duties as render him 
22 ineligible for coverage under the Social Security Act by 
23 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
24 218(l)(1) of that Act.
25  (17) "Arson investigator" means any person who is 
26 employed as such by the Office of the State Fire Marshal 
 
 
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1 and is vested with such law enforcement duties as render 
2 the person ineligible for coverage under the Social 
3 Security Act by reason of Sections 218(d)(5)(A), 
4 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
5 employed as an arson investigator on January 1, 1995 and 
6 is no longer in service but not yet receiving a retirement 
7 annuity may convert his or her creditable service for 
8 employment as an arson investigator into eligible 
9 creditable service by paying to the System the difference 
10 between the employee contributions actually paid for that 
11 service and the amounts that would have been contributed 
12 if the applicant were contributing at the rate applicable 
13 to persons with the same social security status earning 
14 eligible creditable service on the date of application.
15  (18) The term "State highway maintenance worker" means 
16 a person who is either of the following:
17   (i) A person employed on a full-time basis by the 
18 Illinois Department of Transportation in the position 
19 of highway maintainer, highway maintenance lead 
20 worker, highway maintenance lead/lead worker, heavy 
21 construction equipment operator, power shovel 
22 operator, or bridge mechanic; and whose principal 
23 responsibility is to perform, on the roadway, the 
24 actual maintenance necessary to keep the highways that 
25 form a part of the State highway system in serviceable 
26 condition for vehicular traffic.
 
 
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1   (ii) A person employed on a full-time basis by the 
2 Illinois State Toll Highway Authority in the position 
3 of equipment operator/laborer H-4, equipment 
4 operator/laborer H-6, welder H-4, welder H-6, 
5 mechanical/electrical H-4, mechanical/electrical H-6, 
6 water/sewer H-4, water/sewer H-6, sign maker/hanger 
7 H-4, sign maker/hanger H-6, roadway lighting H-4, 
8 roadway lighting H-6, structural H-4, structural H-6, 
9 painter H-4, or painter H-6; and whose principal 
10 responsibility is to perform, on the roadway, the 
11 actual maintenance necessary to keep the Authority's 
12 tollways in serviceable condition for vehicular 
13 traffic.
14  (19) The term "security employee of the Department of 
15 Innovation and Technology" means a person who was a 
16 security employee of the Department of Corrections or the 
17 Department of Juvenile Justice, was transferred to the 
18 Department of Innovation and Technology pursuant to 
19 Executive Order 2016-01, and continues to perform similar 
20 job functions under that Department. 
21  (20) "Transferred employee" means an employee who was 
22 transferred to the Department of Central Management 
23 Services by Executive Order No. 2003-10 or Executive Order 
24 No. 2004-2 or transferred to the Department of Innovation 
25 and Technology by Executive Order No. 2016-1, or both, and 
26 was entitled to eligible creditable service for services 
 
 
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1 immediately preceding the transfer. 
2  (21) The term "investigator for the Department of the 
3 Lottery" means any person employed by the Department of 
4 the Lottery and who is vested with such investigative 
5 duties which render him or her ineligible for coverage 
6 under the Social Security Act by reason of Sections 
7 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An 
8 investigator for the Department of the Lottery who 
9 qualifies under this Section shall earn eligible 
10 creditable service and be required to make contributions 
11 at the rate specified in paragraph (3) of subsection (a) 
12 of Section 14-133 for all periods of service as an 
13 investigator for the Department of the Lottery. 
14 (d) A security employee of the Department of Corrections 
15or the Department of Juvenile Justice, a security employee of 
16the Department of Human Services who is not a mental health 
17police officer, and a security employee of the Department of 
18Innovation and Technology shall not be eligible for the 
19alternative retirement annuity provided by this Section unless 
20he or she meets the following minimum age and service 
21requirements at the time of retirement:
22  (i) 25 years of eligible creditable service and age 
23 55; or
24  (ii) beginning January 1, 1987, 25 years of eligible 
25 creditable service and age 54, or 24 years of eligible 
26 creditable service and age 55; or
 
 
HB4873- 399 -LRB103 35886 RPS 65971 b


1  (iii) beginning January 1, 1988, 25 years of eligible 
2 creditable service and age 53, or 23 years of eligible 
3 creditable service and age 55; or
4  (iv) beginning January 1, 1989, 25 years of eligible 
5 creditable service and age 52, or 22 years of eligible 
6 creditable service and age 55; or
7  (v) beginning January 1, 1990, 25 years of eligible 
8 creditable service and age 51, or 21 years of eligible 
9 creditable service and age 55; or
10  (vi) beginning January 1, 1991, 25 years of eligible 
11 creditable service and age 50, or 20 years of eligible 
12 creditable service and age 55.
13 Persons who have service credit under Article 16 of this 
14Code for service as a security employee of the Department of 
15Corrections or the Department of Juvenile Justice, or the 
16Department of Human Services in a position requiring 
17certification as a teacher may count such service toward 
18establishing their eligibility under the service requirements 
19of this Section; but such service may be used only for 
20establishing such eligibility, and not for the purpose of 
21increasing or calculating any benefit.
22 (e) If a member enters military service while working in a 
23position in which eligible creditable service may be earned, 
24and returns to State service in the same or another such 
25position, and fulfills in all other respects the conditions 
26prescribed in this Article for credit for military service, 
 
 
HB4873- 400 -LRB103 35886 RPS 65971 b


1such military service shall be credited as eligible creditable 
2service for the purposes of the retirement annuity prescribed 
3in this Section.
4 (f) For purposes of calculating retirement annuities under 
5this Section, periods of service rendered after December 31, 
61968 and before October 1, 1975 as a covered employee in the 
7position of special agent, conservation police officer, mental 
8health police officer, or investigator for the Secretary of 
9State, shall be deemed to have been service as a noncovered 
10employee, provided that the employee pays to the System prior 
11to retirement an amount equal to (1) the difference between 
12the employee contributions that would have been required for 
13such service as a noncovered employee, and the amount of 
14employee contributions actually paid, plus (2) if payment is 
15made after July 31, 1987, regular interest on the amount 
16specified in item (1) from the date of service to the date of 
17payment.
18 For purposes of calculating retirement annuities under 
19this Section, periods of service rendered after December 31, 
201968 and before January 1, 1982 as a covered employee in the 
21position of investigator for the Department of Revenue shall 
22be deemed to have been service as a noncovered employee, 
23provided that the employee pays to the System prior to 
24retirement an amount equal to (1) the difference between the 
25employee contributions that would have been required for such 
26service as a noncovered employee, and the amount of employee 
 
 
HB4873- 401 -LRB103 35886 RPS 65971 b


1contributions actually paid, plus (2) if payment is made after 
2January 1, 1990, regular interest on the amount specified in 
3item (1) from the date of service to the date of payment.
4 (g) A State policeman may elect, not later than January 1, 
51990, to establish eligible creditable service for up to 10 
6years of his service as a policeman under Article 3, by filing 
7a written election with the Board, accompanied by payment of 
8an amount to be determined by the Board, equal to (i) the 
9difference between the amount of employee and employer 
10contributions transferred to the System under Section 3-110.5, 
11and the amounts that would have been contributed had such 
12contributions been made at the rates applicable to State 
13policemen, plus (ii) interest thereon at the effective rate 
14for each year, compounded annually, from the date of service 
15to the date of payment.
16 Subject to the limitation in subsection (i), a State 
17policeman may elect, not later than July 1, 1993, to establish 
18eligible creditable service for up to 10 years of his service 
19as a member of the County Police Department under Article 9, by 
20filing a written election with the Board, accompanied by 
21payment of an amount to be determined by the Board, equal to 
22(i) the difference between the amount of employee and employer 
23contributions transferred to the System under Section 9-121.10 
24and the amounts that would have been contributed had those 
25contributions been made at the rates applicable to State 
26policemen, plus (ii) interest thereon at the effective rate 
 
 
HB4873- 402 -LRB103 35886 RPS 65971 b


1for each year, compounded annually, from the date of service 
2to the date of payment.
3 (h) Subject to the limitation in subsection (i), a State 
4policeman or investigator for the Secretary of State may elect 
5to establish eligible creditable service for up to 12 years of 
6his service as a policeman under Article 5, by filing a written 
7election with the Board on or before January 31, 1992, and 
8paying to the System by January 31, 1994 an amount to be 
9determined by the Board, equal to (i) the difference between 
10the amount of employee and employer contributions transferred 
11to the System under Section 5-236, and the amounts that would 
12have been contributed had such contributions been made at the 
13rates applicable to State policemen, plus (ii) interest 
14thereon at the effective rate for each year, compounded 
15annually, from the date of service to the date of payment.
16 Subject to the limitation in subsection (i), a State 
17policeman, conservation police officer, or investigator for 
18the Secretary of State may elect to establish eligible 
19creditable service for up to 10 years of service as a sheriff's 
20law enforcement employee under Article 7, by filing a written 
21election with the Board on or before January 31, 1993, and 
22paying to the System by January 31, 1994 an amount to be 
23determined by the Board, equal to (i) the difference between 
24the amount of employee and employer contributions transferred 
25to the System under Section 7-139.7, and the amounts that 
26would have been contributed had such contributions been made 
 
 
HB4873- 403 -LRB103 35886 RPS 65971 b


1at the rates applicable to State policemen, plus (ii) interest 
2thereon at the effective rate for each year, compounded 
3annually, from the date of service to the date of payment.
4 Subject to the limitation in subsection (i), a State 
5policeman, conservation police officer, or investigator for 
6the Secretary of State may elect to establish eligible 
7creditable service for up to 5 years of service as a police 
8officer under Article 3, a policeman under Article 5, a 
9sheriff's law enforcement employee under Article 7, a member 
10of the county police department under Article 9, or a police 
11officer under Article 15 by filing a written election with the 
12Board and paying to the System an amount to be determined by 
13the Board, equal to (i) the difference between the amount of 
14employee and employer contributions transferred to the System 
15under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
16and the amounts that would have been contributed had such 
17contributions been made at the rates applicable to State 
18policemen, plus (ii) interest thereon at the effective rate 
19for each year, compounded annually, from the date of service 
20to the date of payment.
21 Subject to the limitation in subsection (i), an 
22investigator for the Office of the Attorney General, or an 
23investigator for the Department of Revenue, may elect to 
24establish eligible creditable service for up to 5 years of 
25service as a police officer under Article 3, a policeman under 
26Article 5, a sheriff's law enforcement employee under Article 
 
 
HB4873- 404 -LRB103 35886 RPS 65971 b


17, or a member of the county police department under Article 9 
2by filing a written election with the Board within 6 months 
3after August 25, 2009 (the effective date of Public Act 
496-745) and paying to the System an amount to be determined by 
5the Board, equal to (i) the difference between the amount of 
6employee and employer contributions transferred to the System 
7under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
8amounts that would have been contributed had such 
9contributions been made at the rates applicable to State 
10policemen, plus (ii) interest thereon at the actuarially 
11assumed rate for each year, compounded annually, from the date 
12of service to the date of payment.
13 Subject to the limitation in subsection (i), a State 
14policeman, conservation police officer, investigator for the 
15Office of the Attorney General, an investigator for the 
16Department of Revenue, or investigator for the Secretary of 
17State may elect to establish eligible creditable service for 
18up to 5 years of service as a person employed by a 
19participating municipality to perform police duties, or law 
20enforcement officer employed on a full-time basis by a forest 
21preserve district under Article 7, a county corrections 
22officer, or a court services officer under Article 9, by 
23filing a written election with the Board within 6 months after 
24August 25, 2009 (the effective date of Public Act 96-745) and 
25paying to the System an amount to be determined by the Board, 
26equal to (i) the difference between the amount of employee and 
 
 
HB4873- 405 -LRB103 35886 RPS 65971 b


1employer contributions transferred to the System under 
2Sections 7-139.8 and 9-121.10 and the amounts that would have 
3been contributed had such contributions been made at the rates 
4applicable to State policemen, plus (ii) interest thereon at 
5the actuarially assumed rate for each year, compounded 
6annually, from the date of service to the date of payment.
7 Subject to the limitation in subsection (i), a State 
8policeman, arson investigator, or Commerce Commission police 
9officer may elect to establish eligible creditable service for 
10up to 5 years of service as a person employed by a 
11participating municipality to perform police duties under 
12Article 7, a county corrections officer, a court services 
13officer under Article 9, or a firefighter under Article 4 by 
14filing a written election with the Board within 6 months after 
15July 30, 2021 (the effective date of Public Act 102-210) and 
16paying to the System an amount to be determined by the Board 
17equal to (i) the difference between the amount of employee and 
18employer contributions transferred to the System under 
19Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
20would have been contributed had such contributions been made 
21at the rates applicable to State policemen, plus (ii) interest 
22thereon at the actuarially assumed rate for each year, 
23compounded annually, from the date of service to the date of 
24payment. 
25 Subject to the limitation in subsection (i), a 
26conservation police officer may elect to establish eligible 
 
 
HB4873- 406 -LRB103 35886 RPS 65971 b


1creditable service for up to 5 years of service as a person 
2employed by a participating municipality to perform police 
3duties under Article 7, a county corrections officer, or a 
4court services officer under Article 9 by filing a written 
5election with the Board within 6 months after July 30, 2021 
6(the effective date of Public Act 102-210) and paying to the 
7System an amount to be determined by the Board equal to (i) the 
8difference between the amount of employee and employer 
9contributions transferred to the System under Sections 7-139.8 
10and 9-121.10 and the amounts that would have been contributed 
11had such contributions been made at the rates applicable to 
12State policemen, plus (ii) interest thereon at the actuarially 
13assumed rate for each year, compounded annually, from the date 
14of service to the date of payment. 
15 Subject to the limitation in subsection (i), an 
16investigator for the Department of Revenue, investigator for 
17the Illinois Gaming Board, investigator for the Secretary of 
18State, or arson investigator may elect to establish eligible 
19creditable service for up to 5 years of service as a person 
20employed by a participating municipality to perform police 
21duties under Article 7, a county corrections officer, a court 
22services officer under Article 9, or a firefighter under 
23Article 4 by filing a written election with the Board within 6 
24months after the effective date of this amendatory Act of the 
25102nd General Assembly and paying to the System an amount to be 
26determined by the Board equal to (i) the difference between 
 
 
HB4873- 407 -LRB103 35886 RPS 65971 b


1the amount of employee and employer contributions transferred 
2to the System under Sections 4-108.8, 7-139.8, and 9-121.10 
3and the amounts that would have been contributed had such 
4contributions been made at the rates applicable to State 
5policemen, plus (ii) interest thereon at the actuarially 
6assumed rate for each year, compounded annually, from the date 
7of service to the date of payment. 
8 Notwithstanding the limitation in subsection (i), a State 
9policeman or conservation police officer may elect to convert 
10service credit earned under this Article to eligible 
11creditable service, as defined by this Section, by filing a 
12written election with the board within 6 months after July 30, 
132021 (the effective date of Public Act 102-210) and paying to 
14the System an amount to be determined by the Board equal to (i) 
15the difference between the amount of employee contributions 
16originally paid for that service and the amounts that would 
17have been contributed had such contributions been made at the 
18rates applicable to State policemen, plus (ii) the difference 
19between the employer's normal cost of the credit prior to the 
20conversion authorized by Public Act 102-210 and the employer's 
21normal cost of the credit converted in accordance with Public 
22Act 102-210, plus (iii) interest thereon at the actuarially 
23assumed rate for each year, compounded annually, from the date 
24of service to the date of payment. 
25 Notwithstanding the limitation in subsection (i), an 
26investigator for the Department of Revenue, investigator for 
 
 
HB4873- 408 -LRB103 35886 RPS 65971 b


1the Illinois Gaming Board, investigator for the Secretary of 
2State, or arson investigator may elect to convert service 
3credit earned under this Article to eligible creditable 
4service, as defined by this Section, by filing a written 
5election with the Board within 6 months after the effective 
6date of this amendatory Act of the 102nd General Assembly and 
7paying to the System an amount to be determined by the Board 
8equal to (i) the difference between the amount of employee 
9contributions originally paid for that service and the amounts 
10that would have been contributed had such contributions been 
11made at the rates applicable to investigators for the 
12Department of Revenue, investigators for the Illinois Gaming 
13Board, investigators for the Secretary of State, or arson 
14investigators, plus (ii) the difference between the employer's 
15normal cost of the credit prior to the conversion authorized 
16by this amendatory Act of the 102nd General Assembly and the 
17employer's normal cost of the credit converted in accordance 
18with this amendatory Act of the 102nd General Assembly, plus 
19(iii) interest thereon at the actuarially assumed rate for 
20each year, compounded annually, from the date of service to 
21the date of payment. 
22 Subject to the limitation in subsection (i), a security 
23employee of the Department of Human Services who is subject to 
24subsection (g-1) of Section 1-160 may elect to convert up to 12 
25years of service credit established before the effective date 
26of this amendatory Act of the 103rd General Assembly as a 
 
 
HB4873- 409 -LRB103 35886 RPS 65971 b


1security employee of the Department of Human Services to 
2eligible creditable service by filing a written election with 
3the Board no later than 2 years after the effective date of 
4this amendatory Act of the 103rd General Assembly, accompanied 
5by payment of an amount, to be determined by the Board, equal 
6to (i) the difference between the amount of the employee 
7contributions actually paid for that service and the amount of 
8the employee contributions that would have been paid had the 
9employee contributions been made as a covered employee serving 
10in a position in which eligible creditable service, as defined 
11in this Section, may be earned, plus (ii) interest thereon at 
12the effective rate for each year, compounded annually, from 
13the date of service to the date of payment. 
14 (i) The total amount of eligible creditable service 
15established by any person under subsections (g), (h), (j), 
16(k), (l), (l-5), and (o) of this Section shall not exceed 12 
17years.
18 (j) Subject to the limitation in subsection (i), an 
19investigator for the Office of the State's Attorneys Appellate 
20Prosecutor or a controlled substance inspector may elect to 
21establish eligible creditable service for up to 10 years of 
22his service as a policeman under Article 3 or a sheriff's law 
23enforcement employee under Article 7, by filing a written 
24election with the Board, accompanied by payment of an amount 
25to be determined by the Board, equal to (1) the difference 
26between the amount of employee and employer contributions 
 
 
HB4873- 410 -LRB103 35886 RPS 65971 b


1transferred to the System under Section 3-110.6 or 7-139.8, 
2and the amounts that would have been contributed had such 
3contributions been made at the rates applicable to State 
4policemen, plus (2) interest thereon at the effective rate for 
5each year, compounded annually, from the date of service to 
6the date of payment.
7 (k) Subject to the limitation in subsection (i) of this 
8Section, an alternative formula employee may elect to 
9establish eligible creditable service for periods spent as a 
10full-time law enforcement officer or full-time corrections 
11officer employed by the federal government or by a state or 
12local government located outside of Illinois, for which credit 
13is not held in any other public employee pension fund or 
14retirement system. To obtain this credit, the applicant must 
15file a written application with the Board by March 31, 1998, 
16accompanied by evidence of eligibility acceptable to the Board 
17and payment of an amount to be determined by the Board, equal 
18to (1) employee contributions for the credit being 
19established, based upon the applicant's salary on the first 
20day as an alternative formula employee after the employment 
21for which credit is being established and the rates then 
22applicable to alternative formula employees, plus (2) an 
23amount determined by the Board to be the employer's normal 
24cost of the benefits accrued for the credit being established, 
25plus (3) regular interest on the amounts in items (1) and (2) 
26from the first day as an alternative formula employee after 
 
 
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1the employment for which credit is being established to the 
2date of payment.
3 (l) Subject to the limitation in subsection (i), a 
4security employee of the Department of Corrections may elect, 
5not later than July 1, 1998, to establish eligible creditable 
6service for up to 10 years of his or her service as a policeman 
7under Article 3, by filing a written election with the Board, 
8accompanied by payment of an amount to be determined by the 
9Board, equal to (i) the difference between the amount of 
10employee and employer contributions transferred to the System 
11under Section 3-110.5, and the amounts that would have been 
12contributed had such contributions been made at the rates 
13applicable to security employees of the Department of 
14Corrections, plus (ii) interest thereon at the effective rate 
15for each year, compounded annually, from the date of service 
16to the date of payment.
17 (l-5) Subject to the limitation in subsection (i) of this 
18Section, a State policeman may elect to establish eligible 
19creditable service for up to 5 years of service as a full-time 
20law enforcement officer employed by the federal government or 
21by a state or local government located outside of Illinois for 
22which credit is not held in any other public employee pension 
23fund or retirement system. To obtain this credit, the 
24applicant must file a written application with the Board no 
25later than 3 years after January 1, 2020 (the effective date of 
26Public Act 101-610), accompanied by evidence of eligibility 
 
 
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1acceptable to the Board and payment of an amount to be 
2determined by the Board, equal to (1) employee contributions 
3for the credit being established, based upon the applicant's 
4salary on the first day as an alternative formula employee 
5after the employment for which credit is being established and 
6the rates then applicable to alternative formula employees, 
7plus (2) an amount determined by the Board to be the employer's 
8normal cost of the benefits accrued for the credit being 
9established, plus (3) regular interest on the amounts in items 
10(1) and (2) from the first day as an alternative formula 
11employee after the employment for which credit is being 
12established to the date of payment. 
13 (m) The amendatory changes to this Section made by Public 
14Act 94-696 apply only to: (1) security employees of the 
15Department of Juvenile Justice employed by the Department of 
16Corrections before June 1, 2006 (the effective date of Public 
17Act 94-696) and transferred to the Department of Juvenile 
18Justice by Public Act 94-696; and (2) persons employed by the 
19Department of Juvenile Justice on or after June 1, 2006 (the 
20effective date of Public Act 94-696) who are required by 
21subsection (b) of Section 3-2.5-15 of the Unified Code of 
22Corrections to have any bachelor's or advanced degree from an 
23accredited college or university or, in the case of persons 
24who provide vocational training, who are required to have 
25adequate knowledge in the skill for which they are providing 
26the vocational training. 
 
 
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1 Beginning with the pay period that immediately follows the 
2effective date of this amendatory Act of the 103rd General 
3Assembly, the bachelor's or advanced degree requirement of 
4subsection (b) of Section 3-2.5-15 of the Unified Code of 
5Corrections shall no longer determine the eligibility to earn 
6eligible creditable service for a person employed by the 
7Department of Juvenile Justice.
8 An employee may elect to convert into eligible creditable 
9service his or her creditable service earned with the 
10Department of Juvenile Justice while employed in a position 
11that required the employee to do any one or more of the 
12following: (1) participate or assist in the rehabilitative and 
13vocational training of delinquent youths; (2) supervise the 
14daily activities and assume direct and continuing 
15responsibility for the youth's security, welfare, and 
16development; or (3) participate in the personal rehabilitation 
17of delinquent youth by training, supervising, and assisting 
18lower-level personnel. To convert that creditable service to 
19eligible creditable service, the employee must pay to the 
20System the difference between the employee contributions 
21actually paid for that service and the amounts that would have 
22been contributed if the applicant were contributing at the 
23rate applicable to persons with the same Social Security 
24status earning eligible creditable service on the date of 
25application. 
26 (n) A person employed in a position under subsection (b) 
 
 
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1of this Section who has purchased service credit under 
2subsection (j) of Section 14-104 or subsection (b) of Section 
314-105 in any other capacity under this Article may convert up 
4to 5 years of that service credit into service credit covered 
5under this Section by paying to the Fund an amount equal to (1) 
6the additional employee contribution required under Section 
714-133, plus (2) the additional employer contribution required 
8under Section 14-131, plus (3) interest on items (1) and (2) at 
9the actuarially assumed rate from the date of the service to 
10the date of payment. 
11 (o) Subject to the limitation in subsection (i), a 
12conservation police officer, investigator for the Secretary of 
13State, Commerce Commission police officer, investigator for 
14the Department of Revenue or the Illinois Gaming Board, or 
15arson investigator subject to subsection (g) of Section 1-160 
16may elect to convert up to 8 years of service credit 
17established before January 1, 2020 (the effective date of 
18Public Act 101-610) as a conservation police officer, 
19investigator for the Secretary of State, Commerce Commission 
20police officer, investigator for the Department of Revenue or 
21the Illinois Gaming Board, or arson investigator under this 
22Article into eligible creditable service by filing a written 
23election with the Board no later than one year after January 1, 
242020 (the effective date of Public Act 101-610), accompanied 
25by payment of an amount to be determined by the Board equal to 
26(i) the difference between the amount of the employee 
 
 
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1contributions actually paid for that service and the amount of 
2the employee contributions that would have been paid had the 
3employee contributions been made as a noncovered employee 
4serving in a position in which eligible creditable service, as 
5defined in this Section, may be earned, plus (ii) interest 
6thereon at the effective rate for each year, compounded 
7annually, from the date of service to the date of payment.
8(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
9102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)

10 (Text of Section from P.A. 102-956 and 103-34)
11 Sec. 14-110. Alternative retirement annuity. 
12 (a) Any member who has withdrawn from service with not 
13less than 20 years of eligible creditable service and has 
14attained age 55, and any member who has withdrawn from service 
15with not less than 25 years of eligible creditable service and 
16has attained age 50, regardless of whether the attainment of 
17either of the specified ages occurs while the member is still 
18in service, shall be entitled to receive at the option of the 
19member, in lieu of the regular or minimum retirement annuity, 
20a retirement annuity computed as follows:
21  (i) for periods of service as a noncovered employee: 
22 if retirement occurs on or after January 1, 2001, 3% of 
23 final average compensation for each year of creditable 
24 service; if retirement occurs before January 1, 2001, 2 
25 1/4% of final average compensation for each of the first 
 
 
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1 10 years of creditable service, 2 1/2% for each year above 
2 10 years to and including 20 years of creditable service, 
3 and 2 3/4% for each year of creditable service above 20 
4 years; and
5  (ii) for periods of eligible creditable service as a 
6 covered employee: if retirement occurs on or after January 
7 1, 2001, 2.5% of final average compensation for each year 
8 of creditable service; if retirement occurs before January 
9 1, 2001, 1.67% of final average compensation for each of 
10 the first 10 years of such service, 1.90% for each of the 
11 next 10 years of such service, 2.10% for each year of such 
12 service in excess of 20 but not exceeding 30, and 2.30% for 
13 each year in excess of 30.
14 Such annuity shall be subject to a maximum of 75% of final 
15average compensation if retirement occurs before January 1, 
162001 or to a maximum of 80% of final average compensation if 
17retirement occurs on or after January 1, 2001.
18 These rates shall not be applicable to any service 
19performed by a member as a covered employee which is not 
20eligible creditable service. Service as a covered employee 
21which is not eligible creditable service shall be subject to 
22the rates and provisions of Section 14-108.
23 (b) For the purpose of this Section, "eligible creditable 
24service" means creditable service resulting from service in 
25one or more of the following positions:
26  (1) State policeman;
 
 
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1  (2) fire fighter in the fire protection service of a 
2 department;
3  (3) air pilot;
4  (4) special agent;
5  (5) investigator for the Secretary of State;
6  (6) conservation police officer;
7  (7) investigator for the Department of Revenue or the 
8 Illinois Gaming Board;
9  (8) security employee of the Department of Human 
10 Services;
11  (9) Central Management Services security police 
12 officer;
13  (10) security employee of the Department of 
14 Corrections or the Department of Juvenile Justice;
15  (11) dangerous drugs investigator;
16  (12) investigator for the Illinois State Police;
17  (13) investigator for the Office of the Attorney 
18 General;
19  (14) controlled substance inspector;
20  (15) investigator for the Office of the State's 
21 Attorneys Appellate Prosecutor;
22  (16) Commerce Commission police officer;
23  (17) arson investigator;
24  (18) State highway maintenance worker;
25  (19) security employee of the Department of Innovation 
26 and Technology; or 
 
 
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1  (20) transferred employee; or .
2  (21) investigator for the Department of the Lottery. 
3 A person employed in one of the positions specified in 
4this subsection is entitled to eligible creditable service for 
5service credit earned under this Article while undergoing the 
6basic police training course approved by the Illinois Law 
7Enforcement Training Standards Board, if completion of that 
8training is required of persons serving in that position. For 
9the purposes of this Code, service during the required basic 
10police training course shall be deemed performance of the 
11duties of the specified position, even though the person is 
12not a sworn peace officer at the time of the training.
13 A person under paragraph (20) is entitled to eligible 
14creditable service for service credit earned under this 
15Article on and after his or her transfer by Executive Order No. 
162003-10, Executive Order No. 2004-2, or Executive Order No. 
172016-1. 
18 (c) For the purposes of this Section:
19  (1) The term "State policeman" includes any title or 
20 position in the Illinois State Police that is held by an 
21 individual employed under the Illinois State Police Act.
22  (2) The term "fire fighter in the fire protection 
23 service of a department" includes all officers in such 
24 fire protection service including fire chiefs and 
25 assistant fire chiefs.
26  (3) The term "air pilot" includes any employee whose 
 
 
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1 official job description on file in the Department of 
2 Central Management Services, or in the department by which 
3 he is employed if that department is not covered by the 
4 Personnel Code, states that his principal duty is the 
5 operation of aircraft, and who possesses a pilot's 
6 license; however, the change in this definition made by 
7 Public Act 83-842 shall not operate to exclude any 
8 noncovered employee who was an "air pilot" for the 
9 purposes of this Section on January 1, 1984.
10  (4) The term "special agent" means any person who by 
11 reason of employment by the Division of Narcotic Control, 
12 the Bureau of Investigation or, after July 1, 1977, the 
13 Division of Criminal Investigation, the Division of 
14 Internal Investigation, the Division of Operations, the 
15 Division of Patrol, or any other Division or 
16 organizational entity in the Illinois State Police is 
17 vested by law with duties to maintain public order, 
18 investigate violations of the criminal law of this State, 
19 enforce the laws of this State, make arrests and recover 
20 property. The term "special agent" includes any title or 
21 position in the Illinois State Police that is held by an 
22 individual employed under the Illinois State Police Act.
23  (5) The term "investigator for the Secretary of State" 
24 means any person employed by the Office of the Secretary 
25 of State and vested with such investigative duties as 
26 render him ineligible for coverage under the Social 
 
 
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1 Security Act by reason of Sections 218(d)(5)(A), 
2 218(d)(8)(D) and 218(l)(1) of that Act.
3  A person who became employed as an investigator for 
4 the Secretary of State between January 1, 1967 and 
5 December 31, 1975, and who has served as such until 
6 attainment of age 60, either continuously or with a single 
7 break in service of not more than 3 years duration, which 
8 break terminated before January 1, 1976, shall be entitled 
9 to have his retirement annuity calculated in accordance 
10 with subsection (a), notwithstanding that he has less than 
11 20 years of credit for such service.
12  (6) The term "Conservation Police Officer" means any 
13 person employed by the Division of Law Enforcement of the 
14 Department of Natural Resources and vested with such law 
15 enforcement duties as render him ineligible for coverage 
16 under the Social Security Act by reason of Sections 
17 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
18 term "Conservation Police Officer" includes the positions 
19 of Chief Conservation Police Administrator and Assistant 
20 Conservation Police Administrator.
21  (7) The term "investigator for the Department of 
22 Revenue" means any person employed by the Department of 
23 Revenue and vested with such investigative duties as 
24 render him ineligible for coverage under the Social 
25 Security Act by reason of Sections 218(d)(5)(A), 
26 218(d)(8)(D) and 218(l)(1) of that Act.
 
 
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1  The term "investigator for the Illinois Gaming Board" 
2 means any person employed as such by the Illinois Gaming 
3 Board and vested with such peace officer duties as render 
4 the person ineligible for coverage under the Social 
5 Security Act by reason of Sections 218(d)(5)(A), 
6 218(d)(8)(D), and 218(l)(1) of that Act. 
7  (8) The term "security employee of the Department of 
8 Human Services" means any person employed by the 
9 Department of Human Services who (i) is employed at the 
10 Chester Mental Health Center and has daily contact with 
11 the residents thereof, (ii) is employed within a security 
12 unit at a facility operated by the Department and has 
13 daily contact with the residents of the security unit, 
14 (iii) is employed at a facility operated by the Department 
15 that includes a security unit and is regularly scheduled 
16 to work at least 50% of his or her working hours within 
17 that security unit, or (iv) is a mental health police 
18 officer. "Mental health police officer" means any person 
19 employed by the Department of Human Services in a position 
20 pertaining to the Department's mental health and 
21 developmental disabilities functions who is vested with 
22 such law enforcement duties as render the person 
23 ineligible for coverage under the Social Security Act by 
24 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
25 218(l)(1) of that Act. "Security unit" means that portion 
26 of a facility that is devoted to the care, containment, 
 
 
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1 and treatment of persons committed to the Department of 
2 Human Services as sexually violent persons, persons unfit 
3 to stand trial, or persons not guilty by reason of 
4 insanity. With respect to past employment, references to 
5 the Department of Human Services include its predecessor, 
6 the Department of Mental Health and Developmental 
7 Disabilities.
8  The changes made to this subdivision (c)(8) by Public 
9 Act 92-14 apply to persons who retire on or after January 
10 1, 2001, notwithstanding Section 1-103.1.
11  (9) "Central Management Services security police 
12 officer" means any person employed by the Department of 
13 Central Management Services who is vested with such law 
14 enforcement duties as render him ineligible for coverage 
15 under the Social Security Act by reason of Sections 
16 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
17  (10) For a member who first became an employee under 
18 this Article before July 1, 2005, the term "security 
19 employee of the Department of Corrections or the 
20 Department of Juvenile Justice" means any employee of the 
21 Department of Corrections or the Department of Juvenile 
22 Justice or the former Department of Personnel, and any 
23 member or employee of the Prisoner Review Board, who has 
24 daily contact with inmates or youth by working within a 
25 correctional facility or Juvenile facility operated by the 
26 Department of Juvenile Justice or who is a parole officer 
 
 
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1 or an employee who has direct contact with committed 
2 persons in the performance of his or her job duties. For a 
3 member who first becomes an employee under this Article on 
4 or after July 1, 2005, the term means an employee of the 
5 Department of Corrections or the Department of Juvenile 
6 Justice who is any of the following: (i) officially 
7 headquartered at a correctional facility or Juvenile 
8 facility operated by the Department of Juvenile Justice, 
9 (ii) a parole officer, (iii) a member of the apprehension 
10 unit, (iv) a member of the intelligence unit, (v) a member 
11 of the sort team, or (vi) an investigator.
12  (11) The term "dangerous drugs investigator" means any 
13 person who is employed as such by the Department of Human 
14 Services.
15  (12) The term "investigator for the Illinois State 
16 Police" means a person employed by the Illinois State 
17 Police who is vested under Section 4 of the Narcotic 
18 Control Division Abolition Act with such law enforcement 
19 powers as render him ineligible for coverage under the 
20 Social Security Act by reason of Sections 218(d)(5)(A), 
21 218(d)(8)(D) and 218(l)(1) of that Act.
22  (13) "Investigator for the Office of the Attorney 
23 General" means any person who is employed as such by the 
24 Office of the Attorney General and is vested with such 
25 investigative duties as render him ineligible for coverage 
26 under the Social Security Act by reason of Sections 
 
 
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1 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
2 the period before January 1, 1989, the term includes all 
3 persons who were employed as investigators by the Office 
4 of the Attorney General, without regard to social security 
5 status.
6  (14) "Controlled substance inspector" means any person 
7 who is employed as such by the Department of Professional 
8 Regulation and is vested with such law enforcement duties 
9 as render him ineligible for coverage under the Social 
10 Security Act by reason of Sections 218(d)(5)(A), 
11 218(d)(8)(D) and 218(l)(1) of that Act. The term 
12 "controlled substance inspector" includes the Program 
13 Executive of Enforcement and the Assistant Program 
14 Executive of Enforcement.
15  (15) The term "investigator for the Office of the 
16 State's Attorneys Appellate Prosecutor" means a person 
17 employed in that capacity on a full-time basis under the 
18 authority of Section 7.06 of the State's Attorneys 
19 Appellate Prosecutor's Act.
20  (16) "Commerce Commission police officer" means any 
21 person employed by the Illinois Commerce Commission who is 
22 vested with such law enforcement duties as render him 
23 ineligible for coverage under the Social Security Act by 
24 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
25 218(l)(1) of that Act.
26  (17) "Arson investigator" means any person who is 
 
 
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1 employed as such by the Office of the State Fire Marshal 
2 and is vested with such law enforcement duties as render 
3 the person ineligible for coverage under the Social 
4 Security Act by reason of Sections 218(d)(5)(A), 
5 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
6 employed as an arson investigator on January 1, 1995 and 
7 is no longer in service but not yet receiving a retirement 
8 annuity may convert his or her creditable service for 
9 employment as an arson investigator into eligible 
10 creditable service by paying to the System the difference 
11 between the employee contributions actually paid for that 
12 service and the amounts that would have been contributed 
13 if the applicant were contributing at the rate applicable 
14 to persons with the same social security status earning 
15 eligible creditable service on the date of application.
16  (18) The term "State highway maintenance worker" means 
17 a person who is either of the following:
18   (i) A person employed on a full-time basis by the 
19 Illinois Department of Transportation in the position 
20 of highway maintainer, highway maintenance lead 
21 worker, highway maintenance lead/lead worker, heavy 
22 construction equipment operator, power shovel 
23 operator, or bridge mechanic; and whose principal 
24 responsibility is to perform, on the roadway, the 
25 actual maintenance necessary to keep the highways that 
26 form a part of the State highway system in serviceable 
 
 
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1 condition for vehicular traffic.
2   (ii) A person employed on a full-time basis by the 
3 Illinois State Toll Highway Authority in the position 
4 of equipment operator/laborer H-4, equipment 
5 operator/laborer H-6, welder H-4, welder H-6, 
6 mechanical/electrical H-4, mechanical/electrical H-6, 
7 water/sewer H-4, water/sewer H-6, sign maker/hanger 
8 H-4, sign maker/hanger H-6, roadway lighting H-4, 
9 roadway lighting H-6, structural H-4, structural H-6, 
10 painter H-4, or painter H-6; and whose principal 
11 responsibility is to perform, on the roadway, the 
12 actual maintenance necessary to keep the Authority's 
13 tollways in serviceable condition for vehicular 
14 traffic.
15  (19) The term "security employee of the Department of 
16 Innovation and Technology" means a person who was a 
17 security employee of the Department of Corrections or the 
18 Department of Juvenile Justice, was transferred to the 
19 Department of Innovation and Technology pursuant to 
20 Executive Order 2016-01, and continues to perform similar 
21 job functions under that Department. 
22  (20) "Transferred employee" means an employee who was 
23 transferred to the Department of Central Management 
24 Services by Executive Order No. 2003-10 or Executive Order 
25 No. 2004-2 or transferred to the Department of Innovation 
26 and Technology by Executive Order No. 2016-1, or both, and 
 
 
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1 was entitled to eligible creditable service for services 
2 immediately preceding the transfer. 
3  (21) The term "investigator for the Department of the 
4 Lottery" means any person employed by the Department of 
5 the Lottery and who is vested with such investigative 
6 duties which render him or her ineligible for coverage 
7 under the Social Security Act by reason of Sections 
8 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An 
9 investigator for the Department of the Lottery who 
10 qualifies under this Section shall earn eligible 
11 creditable service and be required to make contributions 
12 at the rate specified in paragraph (3) of subsection (a) 
13 of Section 14-133 for all periods of service as an 
14 investigator for the Department of the Lottery. 
15 (d) A security employee of the Department of Corrections 
16or the Department of Juvenile Justice, a security employee of 
17the Department of Human Services who is not a mental health 
18police officer, and a security employee of the Department of 
19Innovation and Technology shall not be eligible for the 
20alternative retirement annuity provided by this Section unless 
21he or she meets the following minimum age and service 
22requirements at the time of retirement:
23  (i) 25 years of eligible creditable service and age 
24 55; or
25  (ii) beginning January 1, 1987, 25 years of eligible 
26 creditable service and age 54, or 24 years of eligible 
 
 
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1 creditable service and age 55; or
2  (iii) beginning January 1, 1988, 25 years of eligible 
3 creditable service and age 53, or 23 years of eligible 
4 creditable service and age 55; or
5  (iv) beginning January 1, 1989, 25 years of eligible 
6 creditable service and age 52, or 22 years of eligible 
7 creditable service and age 55; or
8  (v) beginning January 1, 1990, 25 years of eligible 
9 creditable service and age 51, or 21 years of eligible 
10 creditable service and age 55; or
11  (vi) beginning January 1, 1991, 25 years of eligible 
12 creditable service and age 50, or 20 years of eligible 
13 creditable service and age 55.
14 Persons who have service credit under Article 16 of this 
15Code for service as a security employee of the Department of 
16Corrections or the Department of Juvenile Justice, or the 
17Department of Human Services in a position requiring 
18certification as a teacher may count such service toward 
19establishing their eligibility under the service requirements 
20of this Section; but such service may be used only for 
21establishing such eligibility, and not for the purpose of 
22increasing or calculating any benefit.
23 (e) If a member enters military service while working in a 
24position in which eligible creditable service may be earned, 
25and returns to State service in the same or another such 
26position, and fulfills in all other respects the conditions 
 
 
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1prescribed in this Article for credit for military service, 
2such military service shall be credited as eligible creditable 
3service for the purposes of the retirement annuity prescribed 
4in this Section.
5 (f) For purposes of calculating retirement annuities under 
6this Section, periods of service rendered after December 31, 
71968 and before October 1, 1975 as a covered employee in the 
8position of special agent, conservation police officer, mental 
9health police officer, or investigator for the Secretary of 
10State, shall be deemed to have been service as a noncovered 
11employee, provided that the employee pays to the System prior 
12to retirement an amount equal to (1) the difference between 
13the employee contributions that would have been required for 
14such service as a noncovered employee, and the amount of 
15employee contributions actually paid, plus (2) if payment is 
16made after July 31, 1987, regular interest on the amount 
17specified in item (1) from the date of service to the date of 
18payment.
19 For purposes of calculating retirement annuities under 
20this Section, periods of service rendered after December 31, 
211968 and before January 1, 1982 as a covered employee in the 
22position of investigator for the Department of Revenue shall 
23be deemed to have been service as a noncovered employee, 
24provided that the employee pays to the System prior to 
25retirement an amount equal to (1) the difference between the 
26employee contributions that would have been required for such 
 
 
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1service as a noncovered employee, and the amount of employee 
2contributions actually paid, plus (2) if payment is made after 
3January 1, 1990, regular interest on the amount specified in 
4item (1) from the date of service to the date of payment.
5 (g) A State policeman may elect, not later than January 1, 
61990, to establish eligible creditable service for up to 10 
7years of his service as a policeman under Article 3, by filing 
8a written election with the Board, accompanied by payment of 
9an amount to be determined by the Board, equal to (i) the 
10difference between the amount of employee and employer 
11contributions transferred to the System under Section 3-110.5, 
12and the amounts that would have been contributed had such 
13contributions been made at the rates applicable to State 
14policemen, plus (ii) interest thereon at the effective rate 
15for each year, compounded annually, from the date of service 
16to the date of payment.
17 Subject to the limitation in subsection (i), a State 
18policeman may elect, not later than July 1, 1993, to establish 
19eligible creditable service for up to 10 years of his service 
20as a member of the County Police Department under Article 9, by 
21filing a written election with the Board, accompanied by 
22payment of an amount to be determined by the Board, equal to 
23(i) the difference between the amount of employee and employer 
24contributions transferred to the System under Section 9-121.10 
25and the amounts that would have been contributed had those 
26contributions been made at the rates applicable to State 
 
 
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1policemen, plus (ii) interest thereon at the effective rate 
2for each year, compounded annually, from the date of service 
3to the date of payment.
4 (h) Subject to the limitation in subsection (i), a State 
5policeman or investigator for the Secretary of State may elect 
6to establish eligible creditable service for up to 12 years of 
7his service as a policeman under Article 5, by filing a written 
8election with the Board on or before January 31, 1992, and 
9paying to the System by January 31, 1994 an amount to be 
10determined by the Board, equal to (i) the difference between 
11the amount of employee and employer contributions transferred 
12to the System under Section 5-236, and the amounts that would 
13have been contributed had such contributions been made at the 
14rates applicable to State policemen, plus (ii) interest 
15thereon at the effective rate for each year, compounded 
16annually, from the date of service to the date of payment.
17 Subject to the limitation in subsection (i), a State 
18policeman, conservation police officer, or investigator for 
19the Secretary of State may elect to establish eligible 
20creditable service for up to 10 years of service as a sheriff's 
21law enforcement employee under Article 7, by filing a written 
22election with the Board on or before January 31, 1993, and 
23paying to the System by January 31, 1994 an amount to be 
24determined by the Board, equal to (i) the difference between 
25the amount of employee and employer contributions transferred 
26to the System under Section 7-139.7, and the amounts that 
 
 
HB4873- 432 -LRB103 35886 RPS 65971 b


1would have been contributed had such contributions been made 
2at the rates applicable to State policemen, plus (ii) interest 
3thereon at the effective rate for each year, compounded 
4annually, from the date of service to the date of payment.
5 Subject to the limitation in subsection (i), a State 
6policeman, conservation police officer, or investigator for 
7the Secretary of State may elect to establish eligible 
8creditable service for up to 5 years of service as a police 
9officer under Article 3, a policeman under Article 5, a 
10sheriff's law enforcement employee under Article 7, a member 
11of the county police department under Article 9, or a police 
12officer under Article 15 by filing a written election with the 
13Board and paying to the System an amount to be determined by 
14the Board, equal to (i) the difference between the amount of 
15employee and employer contributions transferred to the System 
16under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
17and the amounts that would have been contributed had such 
18contributions been made at the rates applicable to State 
19policemen, plus (ii) interest thereon at the effective rate 
20for each year, compounded annually, from the date of service 
21to the date of payment.
22 Subject to the limitation in subsection (i), an 
23investigator for the Office of the Attorney General, or an 
24investigator for the Department of Revenue, may elect to 
25establish eligible creditable service for up to 5 years of 
26service as a police officer under Article 3, a policeman under 
 
 
HB4873- 433 -LRB103 35886 RPS 65971 b


1Article 5, a sheriff's law enforcement employee under Article 
27, or a member of the county police department under Article 9 
3by filing a written election with the Board within 6 months 
4after August 25, 2009 (the effective date of Public Act 
596-745) and paying to the System an amount to be determined by 
6the Board, equal to (i) the difference between the amount of 
7employee and employer contributions transferred to the System 
8under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
9amounts that would have been contributed had such 
10contributions been made at the rates applicable to State 
11policemen, plus (ii) interest thereon at the actuarially 
12assumed rate for each year, compounded annually, from the date 
13of service to the date of payment.
14 Subject to the limitation in subsection (i), a State 
15policeman, conservation police officer, investigator for the 
16Office of the Attorney General, an investigator for the 
17Department of Revenue, or investigator for the Secretary of 
18State may elect to establish eligible creditable service for 
19up to 5 years of service as a person employed by a 
20participating municipality to perform police duties, or law 
21enforcement officer employed on a full-time basis by a forest 
22preserve district under Article 7, a county corrections 
23officer, or a court services officer under Article 9, by 
24filing a written election with the Board within 6 months after 
25August 25, 2009 (the effective date of Public Act 96-745) and 
26paying to the System an amount to be determined by the Board, 
 
 
HB4873- 434 -LRB103 35886 RPS 65971 b


1equal to (i) the difference between the amount of employee and 
2employer contributions transferred to the System under 
3Sections 7-139.8 and 9-121.10 and the amounts that would have 
4been contributed had such contributions been made at the rates 
5applicable to State policemen, plus (ii) interest thereon at 
6the actuarially assumed rate for each year, compounded 
7annually, from the date of service to the date of payment.
8 Subject to the limitation in subsection (i), a State 
9policeman, arson investigator, or Commerce Commission police 
10officer may elect to establish eligible creditable service for 
11up to 5 years of service as a person employed by a 
12participating municipality to perform police duties under 
13Article 7, a county corrections officer, a court services 
14officer under Article 9, or a firefighter under Article 4 by 
15filing a written election with the Board within 6 months after 
16July 30, 2021 (the effective date of Public Act 102-210) and 
17paying to the System an amount to be determined by the Board 
18equal to (i) the difference between the amount of employee and 
19employer contributions transferred to the System under 
20Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
21would have been contributed had such contributions been made 
22at the rates applicable to State policemen, plus (ii) interest 
23thereon at the actuarially assumed rate for each year, 
24compounded annually, from the date of service to the date of 
25payment. 
26 Subject to the limitation in subsection (i), a 
 
 
HB4873- 435 -LRB103 35886 RPS 65971 b


1conservation police officer may elect to establish eligible 
2creditable service for up to 5 years of service as a person 
3employed by a participating municipality to perform police 
4duties under Article 7, a county corrections officer, or a 
5court services officer under Article 9 by filing a written 
6election with the Board within 6 months after July 30, 2021 
7(the effective date of Public Act 102-210) and paying to the 
8System an amount to be determined by the Board equal to (i) the 
9difference between the amount of employee and employer 
10contributions transferred to the System under Sections 7-139.8 
11and 9-121.10 and the amounts that would have been contributed 
12had such contributions been made at the rates applicable to 
13State policemen, plus (ii) interest thereon at the actuarially 
14assumed rate for each year, compounded annually, from the date 
15of service to the date of payment. 
16 Notwithstanding the limitation in subsection (i), a State 
17policeman or conservation police officer may elect to convert 
18service credit earned under this Article to eligible 
19creditable service, as defined by this Section, by filing a 
20written election with the board within 6 months after July 30, 
212021 (the effective date of Public Act 102-210) and paying to 
22the System an amount to be determined by the Board equal to (i) 
23the difference between the amount of employee contributions 
24originally paid for that service and the amounts that would 
25have been contributed had such contributions been made at the 
26rates applicable to State policemen, plus (ii) the difference 
 
 
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1between the employer's normal cost of the credit prior to the 
2conversion authorized by Public Act 102-210 and the employer's 
3normal cost of the credit converted in accordance with Public 
4Act 102-210, plus (iii) interest thereon at the actuarially 
5assumed rate for each year, compounded annually, from the date 
6of service to the date of payment. 
7 Subject to the limitation in subsection (i), a security 
8employee of the Department of Human Services who is subject to 
9subsection (g-1) of Section 1-160 may elect to convert up to 12 
10years of service credit established before the effective date 
11of this amendatory Act of the 103rd General Assembly as a 
12security employee of the Department of Human Services to 
13eligible creditable service by filing a written election with 
14the Board no later than 2 years after the effective date of 
15this amendatory Act of the 103rd General Assembly, accompanied 
16by payment of an amount, to be determined by the Board, equal 
17to (i) the difference between the amount of the employee 
18contributions actually paid for that service and the amount of 
19the employee contributions that would have been paid had the 
20employee contributions been made as a covered employee serving 
21in a position in which eligible creditable service, as defined 
22in this Section, may be earned, plus (ii) interest thereon at 
23the effective rate for each year, compounded annually, from 
24the date of service to the date of payment. 
25 (i) The total amount of eligible creditable service 
26established by any person under subsections (g), (h), (j), 
 
 
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1(k), (l), (l-5), (o), and (p) of this Section shall not exceed 
212 years.
3 (j) Subject to the limitation in subsection (i), an 
4investigator for the Office of the State's Attorneys Appellate 
5Prosecutor or a controlled substance inspector may elect to 
6establish eligible creditable service for up to 10 years of 
7his service as a policeman under Article 3 or a sheriff's law 
8enforcement employee under Article 7, by filing a written 
9election with the Board, accompanied by payment of an amount 
10to be determined by the Board, equal to (1) the difference 
11between the amount of employee and employer contributions 
12transferred to the System under Section 3-110.6 or 7-139.8, 
13and the amounts that would have been contributed had such 
14contributions been made at the rates applicable to State 
15policemen, plus (2) interest thereon at the effective rate for 
16each year, compounded annually, from the date of service to 
17the date of payment.
18 (k) Subject to the limitation in subsection (i) of this 
19Section, an alternative formula employee may elect to 
20establish eligible creditable service for periods spent as a 
21full-time law enforcement officer or full-time corrections 
22officer employed by the federal government or by a state or 
23local government located outside of Illinois, for which credit 
24is not held in any other public employee pension fund or 
25retirement system. To obtain this credit, the applicant must 
26file a written application with the Board by March 31, 1998, 
 
 
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1accompanied by evidence of eligibility acceptable to the Board 
2and payment of an amount to be determined by the Board, equal 
3to (1) employee contributions for the credit being 
4established, based upon the applicant's salary on the first 
5day as an alternative formula employee after the employment 
6for which credit is being established and the rates then 
7applicable to alternative formula employees, plus (2) an 
8amount determined by the Board to be the employer's normal 
9cost of the benefits accrued for the credit being established, 
10plus (3) regular interest on the amounts in items (1) and (2) 
11from the first day as an alternative formula employee after 
12the employment for which credit is being established to the 
13date of payment.
14 (l) Subject to the limitation in subsection (i), a 
15security employee of the Department of Corrections may elect, 
16not later than July 1, 1998, to establish eligible creditable 
17service for up to 10 years of his or her service as a policeman 
18under Article 3, by filing a written election with the Board, 
19accompanied by payment of an amount to be determined by the 
20Board, equal to (i) the difference between the amount of 
21employee and employer contributions transferred to the System 
22under Section 3-110.5, and the amounts that would have been 
23contributed had such contributions been made at the rates 
24applicable to security employees of the Department of 
25Corrections, plus (ii) interest thereon at the effective rate 
26for each year, compounded annually, from the date of service 
 
 
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1to the date of payment.
2 (l-5) Subject to the limitation in subsection (i) of this 
3Section, a State policeman may elect to establish eligible 
4creditable service for up to 5 years of service as a full-time 
5law enforcement officer employed by the federal government or 
6by a state or local government located outside of Illinois for 
7which credit is not held in any other public employee pension 
8fund or retirement system. To obtain this credit, the 
9applicant must file a written application with the Board no 
10later than 3 years after January 1, 2020 (the effective date of 
11Public Act 101-610), accompanied by evidence of eligibility 
12acceptable to the Board and payment of an amount to be 
13determined by the Board, equal to (1) employee contributions 
14for the credit being established, based upon the applicant's 
15salary on the first day as an alternative formula employee 
16after the employment for which credit is being established and 
17the rates then applicable to alternative formula employees, 
18plus (2) an amount determined by the Board to be the employer's 
19normal cost of the benefits accrued for the credit being 
20established, plus (3) regular interest on the amounts in items 
21(1) and (2) from the first day as an alternative formula 
22employee after the employment for which credit is being 
23established to the date of payment. 
24 (m) The amendatory changes to this Section made by Public 
25Act 94-696 apply only to: (1) security employees of the 
26Department of Juvenile Justice employed by the Department of 
 
 
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1Corrections before June 1, 2006 (the effective date of Public 
2Act 94-696) and transferred to the Department of Juvenile 
3Justice by Public Act 94-696; and (2) persons employed by the 
4Department of Juvenile Justice on or after June 1, 2006 (the 
5effective date of Public Act 94-696) who are required by 
6subsection (b) of Section 3-2.5-15 of the Unified Code of 
7Corrections to have any bachelor's or advanced degree from an 
8accredited college or university or, in the case of persons 
9who provide vocational training, who are required to have 
10adequate knowledge in the skill for which they are providing 
11the vocational training. 
12 Beginning with the pay period that immediately follows the 
13effective date of this amendatory Act of the 103rd General 
14Assembly, the bachelor's or advanced degree requirement of 
15subsection (b) of Section 3-2.5-15 of the Unified Code of 
16Corrections shall no longer determine the eligibility to earn 
17eligible creditable service for a person employed by the 
18Department of Juvenile Justice.
19 An employee may elect to convert into eligible creditable 
20service his or her creditable service earned with the 
21Department of Juvenile Justice while employed in a position 
22that required the employee to do any one or more of the 
23following: (1) participate or assist in the rehabilitative and 
24vocational training of delinquent youths; (2) supervise the 
25daily activities and assume direct and continuing 
26responsibility for the youth's security, welfare, and 
 
 
HB4873- 441 -LRB103 35886 RPS 65971 b


1development; or (3) participate in the personal rehabilitation 
2of delinquent youth by training, supervising, and assisting 
3lower-level personnel. To convert that creditable service to 
4eligible creditable service, the employee must pay to the 
5System the difference between the employee contributions 
6actually paid for that service and the amounts that would have 
7been contributed if the applicant were contributing at the 
8rate applicable to persons with the same Social Security 
9status earning eligible creditable service on the date of 
10application. 
11 (n) A person employed in a position under subsection (b) 
12of this Section who has purchased service credit under 
13subsection (j) of Section 14-104 or subsection (b) of Section 
1414-105 in any other capacity under this Article may convert up 
15to 5 years of that service credit into service credit covered 
16under this Section by paying to the Fund an amount equal to (1) 
17the additional employee contribution required under Section 
1814-133, plus (2) the additional employer contribution required 
19under Section 14-131, plus (3) interest on items (1) and (2) at 
20the actuarially assumed rate from the date of the service to 
21the date of payment. 
22 (o) Subject to the limitation in subsection (i), a 
23conservation police officer, investigator for the Secretary of 
24State, Commerce Commission police officer, investigator for 
25the Department of Revenue or the Illinois Gaming Board, or 
26arson investigator subject to subsection (g) of Section 1-160 
 
 
HB4873- 442 -LRB103 35886 RPS 65971 b


1may elect to convert up to 8 years of service credit 
2established before January 1, 2020 (the effective date of 
3Public Act 101-610) as a conservation police officer, 
4investigator for the Secretary of State, Commerce Commission 
5police officer, investigator for the Department of Revenue or 
6the Illinois Gaming Board, or arson investigator under this 
7Article into eligible creditable service by filing a written 
8election with the Board no later than one year after January 1, 
92020 (the effective date of Public Act 101-610), accompanied 
10by payment of an amount to be determined by the Board equal to 
11(i) the difference between the amount of the employee 
12contributions actually paid for that service and the amount of 
13the employee contributions that would have been paid had the 
14employee contributions been made as a noncovered employee 
15serving in a position in which eligible creditable service, as 
16defined in this Section, may be earned, plus (ii) interest 
17thereon at the effective rate for each year, compounded 
18annually, from the date of service to the date of payment.
19 (p) Subject to the limitation in subsection (i), an 
20investigator for the Office of the Attorney General subject to 
21subsection (g) of Section 1-160 may elect to convert up to 8 
22years of service credit established before the effective date 
23of this amendatory Act of the 102nd General Assembly as an 
24investigator for the Office of the Attorney General under this 
25Article into eligible creditable service by filing a written 
26election with the Board no later than one year after the 
 
 
HB4873- 443 -LRB103 35886 RPS 65971 b


1effective date of this amendatory Act of the 102nd General 
2Assembly, accompanied by payment of an amount to be determined 
3by the Board equal to (i) the difference between the amount of 
4the employee contributions actually paid for that service and 
5the amount of the employee contributions that would have been 
6paid had the employee contributions been made as a noncovered 
7employee serving in a position in which eligible creditable 
8service, as defined in this Section, may be earned, plus (ii) 
9interest thereon at the effective rate for each year, 
10compounded annually, from the date of service to the date of 
11payment. 
12(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
13102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)

14
Article 12. 


15 Section 12-5. The Illinois Pension Code is amended by 
16adding Sections 3-144.3 and 4-138.15 as follows:

17 (40 ILCS 5/3-144.3 new)
18 Sec. 3-144.3. Retirement Systems Reciprocal Act. The 
19Retirement Systems Reciprocal Act, Article 20 of this Code, is 
20adopted and made a part of this Article, but only with respect 
21to a person who, on or after the effective date of this 
22amendatory Act of the 103rd General Assembly, is entitled 
23under this Article or through a participating system under the 
 
 
HB4873- 444 -LRB103 35886 RPS 65971 b


1Retirement Systems Reciprocal Act, as defined in Section 
220-108, to begin receiving a retirement annuity or survivor's 
3annuity (as those terms are defined in Article 20) and who 
4elects to proceed under the Retirement Systems Reciprocal Act.

5 (40 ILCS 5/4-138.15 new)
6 Sec. 4-138.15. Retirement Systems Reciprocal Act. The 
7Retirement Systems Reciprocal Act, Article 20 of this Code, is 
8adopted and made a part of this Article, but only with respect 
9to a person who, on or after the effective date of this 
10amendatory Act of the 103rd General Assembly, is entitled 
11under this Article or through a participating system under the 
12Retirement Systems Reciprocal Act, as defined in Section 
1320-108, to begin receiving a retirement annuity or survivor's 
14annuity (as those terms are defined in Article 20) and who 
15elects to proceed under the Retirement Systems Reciprocal Act.

16
Article 90. 


17 Section 90-5. The Illinois Pension Code is amended by 
18changing Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169 
19as follows:

20 (40 ILCS 5/2-162)
21 Sec. 2-162. Application and expiration of new benefit 
22increases.
 
 
HB4873- 445 -LRB103 35886 RPS 65971 b


1 (a) As used in this Section, "new benefit increase" means 
2an increase in the amount of any benefit provided under this 
3Article, or an expansion of the conditions of eligibility for 
4any benefit under this Article, that results from an amendment 
5to this Code that takes effect after the effective date of this 
6amendatory Act of the 94th General Assembly. "New benefit 
7increase", however, does not include any benefit increase 
8resulting from the changes made to this Article by this 
9amendatory Act of the 103rd General Assembly. 
10 (b) Notwithstanding any other provision of this Code or 
11any subsequent amendment to this Code, every new benefit 
12increase is subject to this Section and shall be deemed to be 
13granted only in conformance with and contingent upon 
14compliance with the provisions of this Section. 
15 (c) The Public Act enacting a new benefit increase must 
16identify and provide for payment to the System of additional 
17funding at least sufficient to fund the resulting annual 
18increase in cost to the System as it accrues.
19 Every new benefit increase is contingent upon the General 
20Assembly providing the additional funding required under this 
21subsection. The Commission on Government Forecasting and 
22Accountability shall analyze whether adequate additional 
23funding has been provided for the new benefit increase and 
24shall report its analysis to the Public Pension Division of 
25the Department of Insurance. A new benefit increase created by 
26a Public Act that does not include the additional funding 
 
 
HB4873- 446 -LRB103 35886 RPS 65971 b


1required under this subsection is null and void. If the Public 
2Pension Division determines that the additional funding 
3provided for a new benefit increase under this subsection is 
4or has become inadequate, it may so certify to the Governor and 
5the State Comptroller and, in the absence of corrective action 
6by the General Assembly, the new benefit increase shall expire 
7at the end of the fiscal year in which the certification is 
8made. 
9 (d) Every new benefit increase shall expire 5 years after 
10its effective date or on such earlier date as may be specified 
11in the language enacting the new benefit increase or provided 
12under subsection (c). This does not prevent the General 
13Assembly from extending or re-creating a new benefit increase 
14by law.
15 (e) Except as otherwise provided in the language creating 
16the new benefit increase, a new benefit increase that expires 
17under this Section continues to apply to persons who applied 
18and qualified for the affected benefit while the new benefit 
19increase was in effect and to the affected beneficiaries and 
20alternate payees of such persons, but does not apply to any 
21other person, including without limitation a person who 
22continues in service after the expiration date and did not 
23apply and qualify for the affected benefit while the new 
24benefit increase was in effect.
25(Source: P.A. 103-426, eff. 8-4-23.)

 
 
HB4873- 447 -LRB103 35886 RPS 65971 b


1 (40 ILCS 5/14-152.1)
2 Sec. 14-152.1. Application and expiration of new benefit 
3increases.
4 (a) As used in this Section, "new benefit increase" means 
5an increase in the amount of any benefit provided under this 
6Article, or an expansion of the conditions of eligibility for 
7any benefit under this Article, that results from an amendment 
8to this Code that takes effect after June 1, 2005 (the 
9effective date of Public Act 94-4). "New benefit increase", 
10however, does not include any benefit increase resulting from 
11the changes made to Article 1 or this Article by Public Act 
1296-37, Public Act 100-23, Public Act 100-587, Public Act 
13100-611, Public Act 101-10, Public Act 101-610, Public Act 
14102-210, Public Act 102-856, Public Act 102-956, or this 
15amendatory Act of the 103rd General Assembly this amendatory 
16Act of the 102nd General Assembly. 
17 (b) Notwithstanding any other provision of this Code or 
18any subsequent amendment to this Code, every new benefit 
19increase is subject to this Section and shall be deemed to be 
20granted only in conformance with and contingent upon 
21compliance with the provisions of this Section. 
22 (c) The Public Act enacting a new benefit increase must 
23identify and provide for payment to the System of additional 
24funding at least sufficient to fund the resulting annual 
25increase in cost to the System as it accrues.
26 Every new benefit increase is contingent upon the General 
 
 
HB4873- 448 -LRB103 35886 RPS 65971 b


1Assembly providing the additional funding required under this 
2subsection. The Commission on Government Forecasting and 
3Accountability shall analyze whether adequate additional 
4funding has been provided for the new benefit increase and 
5shall report its analysis to the Public Pension Division of 
6the Department of Insurance. A new benefit increase created by 
7a Public Act that does not include the additional funding 
8required under this subsection is null and void. If the Public 
9Pension Division determines that the additional funding 
10provided for a new benefit increase under this subsection is 
11or has become inadequate, it may so certify to the Governor and 
12the State Comptroller and, in the absence of corrective action 
13by the General Assembly, the new benefit increase shall expire 
14at the end of the fiscal year in which the certification is 
15made. 
16 (d) Every new benefit increase shall expire 5 years after 
17its effective date or on such earlier date as may be specified 
18in the language enacting the new benefit increase or provided 
19under subsection (c). This does not prevent the General 
20Assembly from extending or re-creating a new benefit increase 
21by law.
22 (e) Except as otherwise provided in the language creating 
23the new benefit increase, a new benefit increase that expires 
24under this Section continues to apply to persons who applied 
25and qualified for the affected benefit while the new benefit 
26increase was in effect and to the affected beneficiaries and 
 
 
HB4873- 449 -LRB103 35886 RPS 65971 b


1alternate payees of such persons, but does not apply to any 
2other person, including, without limitation, a person who 
3continues in service after the expiration date and did not 
4apply and qualify for the affected benefit while the new 
5benefit increase was in effect.
6(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
7101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. 
81-1-23; 102-956, eff. 5-27-22.)

9 (40 ILCS 5/15-198)
10 Sec. 15-198. Application and expiration of new benefit 
11increases.
12 (a) As used in this Section, "new benefit increase" means 
13an increase in the amount of any benefit provided under this 
14Article, or an expansion of the conditions of eligibility for 
15any benefit under this Article, that results from an amendment 
16to this Code that takes effect after June 1, 2005 (the 
17effective date of Public Act 94-4). "New benefit increase", 
18however, does not include any benefit increase resulting from 
19the changes made to Article 1 or this Article by Public Act 
20100-23, Public Act 100-587, Public Act 100-769, Public Act 
21101-10, Public Act 101-610, Public Act 102-16, Public Act 
22103-80, Public Act 103-548, or this amendatory Act of the 
23103rd General Assembly or this amendatory Act of the 103rd 
24General Assembly.
25 (b) Notwithstanding any other provision of this Code or 
 
 
HB4873- 450 -LRB103 35886 RPS 65971 b


1any subsequent amendment to this Code, every new benefit 
2increase is subject to this Section and shall be deemed to be 
3granted only in conformance with and contingent upon 
4compliance with the provisions of this Section. 
5 (c) The Public Act enacting a new benefit increase must 
6identify and provide for payment to the System of additional 
7funding at least sufficient to fund the resulting annual 
8increase in cost to the System as it accrues.
9 Every new benefit increase is contingent upon the General 
10Assembly providing the additional funding required under this 
11subsection. The Commission on Government Forecasting and 
12Accountability shall analyze whether adequate additional 
13funding has been provided for the new benefit increase and 
14shall report its analysis to the Public Pension Division of 
15the Department of Insurance. A new benefit increase created by 
16a Public Act that does not include the additional funding 
17required under this subsection is null and void. If the Public 
18Pension Division determines that the additional funding 
19provided for a new benefit increase under this subsection is 
20or has become inadequate, it may so certify to the Governor and 
21the State Comptroller and, in the absence of corrective action 
22by the General Assembly, the new benefit increase shall expire 
23at the end of the fiscal year in which the certification is 
24made. 
25 (d) Every new benefit increase shall expire 5 years after 
26its effective date or on such earlier date as may be specified 
 
 
HB4873- 451 -LRB103 35886 RPS 65971 b


1in the language enacting the new benefit increase or provided 
2under subsection (c). This does not prevent the General 
3Assembly from extending or re-creating a new benefit increase 
4by law.
5 (e) Except as otherwise provided in the language creating 
6the new benefit increase, a new benefit increase that expires 
7under this Section continues to apply to persons who applied 
8and qualified for the affected benefit while the new benefit 
9increase was in effect and to the affected beneficiaries and 
10alternate payees of such persons, but does not apply to any 
11other person, including, without limitation, a person who 
12continues in service after the expiration date and did not 
13apply and qualify for the affected benefit while the new 
14benefit increase was in effect.
15(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23; 
16103-548, eff. 8-11-23; revised 8-31-23.)

17 (40 ILCS 5/16-203)
18 Sec. 16-203. Application and expiration of new benefit 
19increases.
20 (a) As used in this Section, "new benefit increase" means 
21an increase in the amount of any benefit provided under this 
22Article, or an expansion of the conditions of eligibility for 
23any benefit under this Article, that results from an amendment 
24to this Code that takes effect after June 1, 2005 (the 
25effective date of Public Act 94-4). "New benefit increase", 
 
 
HB4873- 452 -LRB103 35886 RPS 65971 b


1however, does not include any benefit increase resulting from 
2the changes made to Article 1 or this Article by Public Act 
395-910, Public Act 100-23, Public Act 100-587, Public Act 
4100-743, Public Act 100-769, Public Act 101-10, Public Act 
5101-49, Public Act 102-16, or Public Act 102-871, or this 
6amendatory Act of the 103rd General Assembly.
7 (b) Notwithstanding any other provision of this Code or 
8any subsequent amendment to this Code, every new benefit 
9increase is subject to this Section and shall be deemed to be 
10granted only in conformance with and contingent upon 
11compliance with the provisions of this Section. 
12 (c) The Public Act enacting a new benefit increase must 
13identify and provide for payment to the System of additional 
14funding at least sufficient to fund the resulting annual 
15increase in cost to the System as it accrues.
16 Every new benefit increase is contingent upon the General 
17Assembly providing the additional funding required under this 
18subsection. The Commission on Government Forecasting and 
19Accountability shall analyze whether adequate additional 
20funding has been provided for the new benefit increase and 
21shall report its analysis to the Public Pension Division of 
22the Department of Insurance. A new benefit increase created by 
23a Public Act that does not include the additional funding 
24required under this subsection is null and void. If the Public 
25Pension Division determines that the additional funding 
26provided for a new benefit increase under this subsection is 
 
 
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1or has become inadequate, it may so certify to the Governor and 
2the State Comptroller and, in the absence of corrective action 
3by the General Assembly, the new benefit increase shall expire 
4at the end of the fiscal year in which the certification is 
5made. 
6 (d) Every new benefit increase shall expire 5 years after 
7its effective date or on such earlier date as may be specified 
8in the language enacting the new benefit increase or provided 
9under subsection (c). This does not prevent the General 
10Assembly from extending or re-creating a new benefit increase 
11by law.
12 (e) Except as otherwise provided in the language creating 
13the new benefit increase, a new benefit increase that expires 
14under this Section continues to apply to persons who applied 
15and qualified for the affected benefit while the new benefit 
16increase was in effect and to the affected beneficiaries and 
17alternate payees of such persons, but does not apply to any 
18other person, including, without limitation, a person who 
19continues in service after the expiration date and did not 
20apply and qualify for the affected benefit while the new 
21benefit increase was in effect.
22(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
23102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. 
246-30-23.)

25 (40 ILCS 5/18-169)
 
 
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1 Sec. 18-169. Application and expiration of new benefit 
2increases.
3 (a) As used in this Section, "new benefit increase" means 
4an increase in the amount of any benefit provided under this 
5Article, or an expansion of the conditions of eligibility for 
6any benefit under this Article, that results from an amendment 
7to this Code that takes effect after the effective date of this 
8amendatory Act of the 94th General Assembly. "New benefit 
9increase", however, does not include any benefit increase 
10resulting from the changes made to this Article by this 
11amendatory Act of the 103rd General Assembly. 
12 (b) Notwithstanding any other provision of this Code or 
13any subsequent amendment to this Code, every new benefit 
14increase is subject to this Section and shall be deemed to be 
15granted only in conformance with and contingent upon 
16compliance with the provisions of this Section. 
17 (c) The Public Act enacting a new benefit increase must 
18identify and provide for payment to the System of additional 
19funding at least sufficient to fund the resulting annual 
20increase in cost to the System as it accrues.
21 Every new benefit increase is contingent upon the General 
22Assembly providing the additional funding required under this 
23subsection. The Commission on Government Forecasting and 
24Accountability shall analyze whether adequate additional 
25funding has been provided for the new benefit increase and 
26shall report its analysis to the Public Pension Division of 
 
 
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1the Department of Insurance. A new benefit increase created by 
2a Public Act that does not include the additional funding 
3required under this subsection is null and void. If the Public 
4Pension Division determines that the additional funding 
5provided for a new benefit increase under this subsection is 
6or has become inadequate, it may so certify to the Governor and 
7the State Comptroller and, in the absence of corrective action 
8by the General Assembly, the new benefit increase shall expire 
9at the end of the fiscal year in which the certification is 
10made. 
11 (d) Every new benefit increase shall expire 5 years after 
12its effective date or on such earlier date as may be specified 
13in the language enacting the new benefit increase or provided 
14under subsection (c). This does not prevent the General 
15Assembly from extending or re-creating a new benefit increase 
16by law.
17 (e) Except as otherwise provided in the language creating 
18the new benefit increase, a new benefit increase that expires 
19under this Section continues to apply to persons who applied 
20and qualified for the affected benefit while the new benefit 
21increase was in effect and to the affected beneficiaries and 
22alternate payees of such persons, but does not apply to any 
23other person, including without limitation a person who 
24continues in service after the expiration date and did not 
25apply and qualify for the affected benefit while the new 
26benefit increase was in effect.
 
 
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1(Source: P.A. 103-426, eff. 8-4-23.)

2 Section 90-90. The State Mandates Act is amended by adding 
3Section 8.48 as follows:

4 (30 ILCS 805/8.48 new)
5 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and 
68 of this Act, no reimbursement by the State is required for 
7the implementation of any mandate created by this amendatory 
8Act of the 103rd General Assembly.

9
Article 99. 


10 Section 99-99. Effective date. This Act takes effect July 
111, 2025.
 
 
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1
INDEX

2
Statutes amended in order of appearance

3 40 ILCS 5/1-160
4 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.1
5 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
6 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
7 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-125
9 40 ILCS 5/18-128.01from Ch. 108 1/2, par. 18-128.01
10 40 ILCS 5/1-160
11 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
12 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
13 40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
14 5 ILCS 100/5-45.55 new
15 40 ILCS 5/2-154.5 new
16 40 ILCS 5/2-154.6 new
17 40 ILCS 5/17-156.10 new
18 40 ILCS 5/17-156.11 new
19 40 ILCS 5/18-161.5 new
20 40 ILCS 5/18-161.6 new
21 40 ILCS 5/1-168 new
22 40 ILCS 5/3-118 new
23 40 ILCS 5/4-136 new
24 40 ILCS 5/7-142.2 new
25 30 ILCS 330/7.2
 
 
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1 30 ILCS 330/7.6
2 30 ILCS 105/8s new
3 40 ILCS 5/2-101from Ch. 108 1/2, par. 2-101
4 40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
5 40 ILCS 5/2-107from Ch. 108 1/2, par. 2-107
6 40 ILCS 5/2-117from Ch. 108 1/2, par. 2-117
7 40 ILCS 5/14-103.05from Ch. 108 1/2, par. 14-103.05
8 40 ILCS 5/14-104from Ch. 108 1/2, par. 14-104
9 40 ILCS 5/14-104.14 new
10 40 ILCS 5/14-105.4from Ch. 108 1/2, par. 14-105.4
11 40 ILCS 5/18-101from Ch. 108 1/2, par. 18-101
12 40 ILCS 5/18-108from Ch. 108 1/2, par. 18-108
13 40 ILCS 5/18-109from Ch. 108 1/2, par. 18-109
14 40 ILCS 5/18-110from Ch. 108 1/2, par. 18-110
15 40 ILCS 5/18-120from Ch. 108 1/2, par. 18-120
16 40 ILCS 5/1-160
17 40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
18 40 ILCS 5/1-160
19 40 ILCS 5/15-108.2
20 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
21 40 ILCS 5/16-158.3
22 40 ILCS 5/1-161 rep.
23 40 ILCS 5/1-162 rep.
24 40 ILCS 5/15-155.2 rep.
25 40 ILCS 5/1-160
26 40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110
 
 
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