Bill Text: IL HB5448 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Provides that, beginning January 1, 2024, the annual earnings, salary, or wages (based on the plan year) of a Tier 2 member or participant under the General Assembly, State Employees, State Universities, Downstate Teachers, Chicago Teachers, or Judges Article shall not exceed 90.5% of the federal Social Security Wage Base then in effect or the amount otherwise calculated under the Tier 2 provisions, whichever is greater. Makes changes to the funding formula beginning in fiscal year 2025 for the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who first become participants before January 8, 2025. Provides for participation under the State Employees Article by members of the General Assembly and judges. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5448 Detail]

Download: Illinois-2023-HB5448-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5448 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Pension Code. Provides that, beginning January 1, 2024, the annual earnings, salary, or wages (based on the plan year) of a Tier 2 member or participant under the General Assembly, State Employees, State Universities, Downstate Teachers, Chicago Teachers, or Judges Article shall not exceed 90.5% of the federal Social Security Wage Base then in effect or the amount otherwise calculated under the Tier 2 provisions, whichever is greater. Makes changes to the funding formula beginning in fiscal year 2025 for the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who first become participants before January 8, 2025. Provides for participation under the State Employees Article by members of the General Assembly and judges. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.
LRB103 34609 RPS 64449 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
HB5448 LRB103 34609 RPS 64449 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1.
Section 1-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, 2-119.1, 14-103.10, 15-111,
18-125, and 18-128.01 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,

HB5448 - 2 - LRB103 34609 RPS 64449 b
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.

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This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last

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10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsection (b-10) Beginning on
January 1, 2011, for all purposes under this Code (including

HB5448 - 5 - LRB103 34609 RPS 64449 b
without limitation the calculation of benefits and employee
contributions), the annual earnings, salary, or wages (based
on the plan year) of a member or participant to whom this
Section applies shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) one-half the annual unadjusted percentage increase (but
not less than zero) in the consumer price index-u for the 12
months ending with the September preceding each November 1,
including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning January 1, 2024, for all purposes under
this Code (including, without limitation, the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant under Article 14, 16, or 17 to whom this Section
applies shall not exceed 90.5% of the federal Social Security

HB5448 - 6 - LRB103 34609 RPS 64449 b
Wage Base then in effect or the amount determined under
subsection (b-5), whichever is greater.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written

HB5448 - 7 - LRB103 34609 RPS 64449 b
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective

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date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or

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participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with

HB5448 - 10 - LRB103 34609 RPS 64449 b
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

HB5448 - 11 - LRB103 34609 RPS 64449 b
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the

HB5448 - 12 - LRB103 34609 RPS 64449 b
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in

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lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an

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active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement

HB5448 - 15 - LRB103 34609 RPS 64449 b
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that

HB5448 - 16 - LRB103 34609 RPS 64449 b
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months

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

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salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsection (b-10) Beginning on
January 1, 2011, for all purposes under this Code (including
without limitation the calculation of benefits and employee
contributions), the annual earnings, salary, or wages (based
on the plan year) of a member or participant to whom this
Section applies shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) one-half the annual unadjusted percentage increase (but
not less than zero) in the consumer price index-u for the 12
months ending with the September preceding each November 1,
including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the

HB5448 - 19 - LRB103 34609 RPS 64449 b
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning January 1, 2024, for all purposes under
this Code (including, without limitation, the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant under Article 14, 16, or 17 to whom this Section
applies shall not exceed 90.5% of the federal Social Security
Wage Base then in effect or the amount determined under
subsection (b-5), whichever is greater.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the

HB5448 - 20 - LRB103 34609 RPS 64449 b
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).

HB5448 - 21 - LRB103 34609 RPS 64449 b
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).

HB5448 - 22 - LRB103 34609 RPS 64449 b
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to

HB5448 - 23 - LRB103 34609 RPS 64449 b
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a

HB5448 - 24 - LRB103 34609 RPS 64449 b
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the

HB5448 - 25 - LRB103 34609 RPS 64449 b
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person

HB5448 - 26 - LRB103 34609 RPS 64449 b
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that

HB5448 - 27 - LRB103 34609 RPS 64449 b
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,

HB5448 - 28 - LRB103 34609 RPS 64449 b
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.

HB5448 - 29 - LRB103 34609 RPS 64449 b
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a

HB5448 - 30 - LRB103 34609 RPS 64449 b
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable

HB5448 - 31 - LRB103 34609 RPS 64449 b
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Except as provided in subsection (b-10) Beginning on
January 1, 2011, for all purposes under this Code (including
without limitation the calculation of benefits and employee
contributions), the annual earnings, salary, or wages (based
on the plan year) of a member or participant to whom this
Section applies shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) one-half the annual unadjusted percentage increase (but
not less than zero) in the consumer price index-u for the 12
months ending with the September preceding each November 1,
including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November

HB5448 - 32 - LRB103 34609 RPS 64449 b
1 of each year.
(b-10) Beginning January 1, 2024, for all purposes under
this Code (including, without limitation, the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant under Article 14, 16, or 17 to whom this Section
applies shall not exceed 90.5% of the federal Social Security
Wage Base then in effect or the amount determined under
subsection (b-5), whichever is greater.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive

HB5448 - 33 - LRB103 34609 RPS 64449 b
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or

HB5448 - 34 - LRB103 34609 RPS 64449 b
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made

HB5448 - 35 - LRB103 34609 RPS 64449 b
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain

HB5448 - 36 - LRB103 34609 RPS 64449 b
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.

HB5448 - 37 - LRB103 34609 RPS 64449 b
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a

HB5448 - 38 - LRB103 34609 RPS 64449 b
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person

HB5448 - 39 - LRB103 34609 RPS 64449 b
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that

HB5448 - 40 - LRB103 34609 RPS 64449 b
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
5-27-22.)
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this

HB5448 - 41 - LRB103 34609 RPS 64449 b
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's

HB5448 - 42 - LRB103 34609 RPS 64449 b
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889), the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the

HB5448 - 43 - LRB103 34609 RPS 64449 b
number of months of service in that period; however, except as
provided in subsection (a-5), beginning January 1, 2011, the
highest salary for annuity purposes may not exceed $106,800,
except that that amount shall annually thereafter be increased
by the lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the
12 months ending with the September preceding each November 1.
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100. The new amount resulting
from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the Board by November 1 of each year.
(a-5) Beginning January 1, 2024, the highest salary for
annuity purposes of a person who first becomes a participant
of this System on or after January 1, 2011 may not exceed 90.5%
of the federal Social Security Wage Base then in effect or the
amount determined under subsection (a) for that class of
persons, whichever is greater.
(b) The earnings limitations of subsection (a) or (a-5),
whichever is applic
able, apply to earnings under any other
participating system under the Retirement Systems Reciprocal
Act that are considered in calculating a proportional annuity

HB5448 - 44 - LRB103 34609 RPS 64449 b
under this Article, except in the case of a person who first
became a member of this System before August 22, 1994 and has
not, on or after the effective date of this amendatory Act of
the 97th General Assembly, irrevocably elected to have those
limitations apply. The limitations of subsection (a) or (a-5),
whichever is applicable, shall apply, however, to earnings
under any other participating system under the Retirement
Systems Reciprocal Act that are considered in calculating the
proportional annuity of a person who first became a member of
this System before August 22, 1994 if, on or after the
effective date of this amendatory Act of the 97th General
Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitations
limitation to be applied to earnings under any other
participating system under the Retirement Systems Reciprocal
Act for the purpose of calculating a proportional annuity
under this Article, the participant's last day of service
shall be deemed to mean the last day of service in any
participating system from which the person has applied for a
proportional annuity under the Retirement Systems Reciprocal
Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)

HB5448 - 45 - LRB103 34609 RPS 64449 b
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the

HB5448 - 46 - LRB103 34609 RPS 64449 b
System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67, have
the amount of the retirement annuity then being paid increased
by 3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less.
In this subsection, "consumer price index-u" means the
index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of the
Department of Insurance and made available to the Board by

HB5448 - 47 - LRB103 34609 RPS 64449 b
November 1 of each year.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the

HB5448 - 48 - LRB103 34609 RPS 64449 b
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-103.10. Compensation.
(a) For periods of service prior to January 1, 1978, the
full rate of salary or wages payable to an employee for
personal services performed if he worked the full normal
working period for his position, subject to the following
maximum amounts: (1) prior to July 1, 1951, $400 per month or
$4,800 per year; (2) between July 1, 1951 and June 30, 1957
inclusive, $625 per month or $7,500 per year; (3) beginning
July 1, 1957, no limitation.
In the case of service of an employee in a position
involving part-time employment, compensation shall be
determined according to the employees' earnings record.
(b) For periods of service on and after January 1, 1978,
all remuneration for personal services performed defined as
"wages" under the Social Security Enabling Act, including that
part of such remuneration which is in excess of any maximum
limitation provided in such Act, and including any benefits
received by an employee under a sick pay plan in effect before
January 1, 1981, but excluding lump sum salary payments:

HB5448 - 49 - LRB103 34609 RPS 64449 b
(1) for vacation,
(2) for accumulated unused sick leave,
(3) upon discharge or dismissal,
(4) for approved holidays.
(c) For periods of service on or after December 16, 1978,
compensation also includes any benefits, other than lump sum
salary payments made at termination of employment, which an
employee receives or is eligible to receive under a sick pay
plan authorized by law.
(d) For periods of service after September 30, 1985,
compensation also includes any remuneration for personal
services not included as "wages" under the Social Security
Enabling Act, which is deducted for purposes of participation
in a program established pursuant to Section 125 of the
Internal Revenue Code or its successor laws.
(e) For members for which Section 1-160 applies for
periods of service on and after January 1, 2011, all
remuneration for personal services performed defined as
"wages" under the Social Security Enabling Act, excluding
remuneration that is in excess of the annual earnings, salary,
or wages of a member or participant, as provided in subsection
(b-5) or (b-10) of Section 1-160, whichever is applicable, but
including any benefits received by an employee under a sick
pay plan in effect before January 1, 1981. Compensation shall
exclude lump sum salary payments:
(1) for vacation;

HB5448 - 50 - LRB103 34609 RPS 64449 b
(2) for accumulated unused sick leave;
(3) upon discharge or dismissal; and
(4) for approved holidays.
(f) Notwithstanding the other provisions of this Section,
for service on or after July 1, 2013, "compensation" does not
include any stipend payable to an employee for service on a
board or commission.
(Source: P.A. 98-449, eff. 8-16-13.)
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings.
(a) "Earnings": Subject to Section 15-111.5, an amount
paid for personal services equal to the sum of the basic
compensation plus extra compensation for summer teaching,
overtime or other extra service. For periods for which an
employee receives service credit under subsection (c) of
Section 15-113.1 or Section 15-113.2, earnings are equal to
the basic compensation on which contributions are paid by the
employee during such periods. Compensation for employment
which is irregular, intermittent and temporary shall not be
considered earnings, unless the participant is also receiving
earnings from the employer as an employee under Section
15-107.
With respect to transition pay paid by the University of
Illinois to a person who was a participating employee employed
in the fire department of the University of Illinois's

HB5448 - 51 - LRB103 34609 RPS 64449 b
Champaign-Urbana campus immediately prior to the elimination
of that fire department:
(1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this amendatory
Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act
of the 91st General Assembly only if (i) employee
contributions under Section 15-157 have been withheld from
that transition pay or (ii) the employee pays to the
System before January 1, 2001 an amount representing
employee contributions under Section 15-157 on that
transition pay. Employee contributions under item (ii) may
be paid in a lump sum, by withholding from additional
transition pay accruing before January 1, 2001, or in any
other manner approved by the System. Upon payment of the
employee contributions on transition pay, the
corresponding employer contributions become an obligation
of the State.
(b) For a Tier 2 member, the annual earnings shall not
exceed $106,800; however, except as provided in subsection
(b-5), that amount shall annually thereafter be increased by
the lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) one half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding

HB5448 - 52 - LRB103 34609 RPS 64449 b
each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u
index u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the retirement systems and pension funds by
November 1 of each year.
(b-5) Beginning January 1, 2024, the annual earnings of a
Tier 2 member may not exceed 90.5% of the federal Social
Security Wage Base then in effect or the amount determined
under subsection (b), whichever is greater.
(c) With each submission of payroll information in the
manner prescribed by the System, the employer shall certify
that the payroll information is correct and complies with all
applicable State and federal laws.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of

HB5448 - 53 - LRB103 34609 RPS 64449 b
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a

HB5448 - 54 - LRB103 34609 RPS 64449 b
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum

HB5448 - 55 - LRB103 34609 RPS 64449 b
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889),
final average salary shall be the average monthly salary
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period; however, except as
provided in subsection (b-10), beginning January 1, 2011, the
annual salary may not exceed $106,800, except that that amount
shall annually thereafter be increased by the lesser of (i) 3%
of that amount, including all previous adjustments, or (ii)
the annual unadjusted percentage increase (but not less than
zero) in the consumer price index-u for the 12 months ending
with the September preceding each November 1. "Consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the Board by November 1st of each year.
(b-10) Beginning January 1, 2024, the annual salary of a
participant who first serves as a judge on or after January 1,

HB5448 - 56 - LRB103 34609 RPS 64449 b
2011 may not exceed 90.5% of the federal Social Security Wage
Base then in effect or the amount determined under subsection
(b-5), whichever is greater.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)

HB5448 - 57 - LRB103 34609 RPS 64449 b
(40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
Sec. 18-128.01. Amount of survivor's annuity.
(a) Upon the death of an annuitant, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity the annuitant was receiving immediately prior to
his or her death, inclusive of annual increases in the
retirement annuity to the date of death.
(b) Upon the death of an active participant, his or her
surviving spouse shall receive a survivor's annuity of 66 2/3%
of the annuity earned by the participant as of the date of his
or her death, determined without regard to whether the
participant had attained age 60 as of that time, or 7 1/2% of
the last salary of the decedent, whichever is greater.
(c) Upon the death of a participant who had terminated
service with at least 10 years of service, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity earned by the deceased participant at the date of
death.
(d) Upon the death of an annuitant, active participant, or
participant who had terminated service with at least 10 years
of service, each surviving child under the age of 18 or
disabled as defined in Section 18-128 shall be entitled to a
child's annuity in an amount equal to 5% of the decedent's
final salary, not to exceed in total for all such children the
greater of 20% of the decedent's last salary or 66 2/3% of the
annuity received or earned by the decedent as provided under

HB5448 - 58 - LRB103 34609 RPS 64449 b
subsections (a) and (b) of this Section. This child's annuity
shall be paid whether or not a survivor's annuity was elected
under Section 18-123.
(e) The changes made in the survivor's annuity provisions
by Public Act 82-306 shall apply to the survivors of a deceased
participant or annuitant whose death occurs on or after August
21, 1981.
(f) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or after
the commencement of the annuity if the deceased member died
while receiving a retirement annuity, or (2) in other cases,
on each January 1 occurring on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service
on or after the effective date of this amendatory Act of 1991,
but shall not accrue for any period prior to January 1, 1990.
(g) Notwithstanding any other provision of this Article,
the initial survivor's annuity for a survivor of a participant
who first serves as a judge after January 1, 2011 (the
effective date of Public Act 96-889) shall be in the amount of
66 2/3% of the annuity received or earned by the decedent, and
shall be increased (1) on each January 1 occurring on or after
the commencement of the annuity if the deceased participant
died while receiving a retirement annuity, or (2) in other

HB5448 - 59 - LRB103 34609 RPS 64449 b
cases, on each January 1 occurring on or after the first
anniversary of the commencement of the annuity, but in no
event prior to age 67, by an amount equal to 3% or the annual
unadjusted percentage increase in the consumer price index-u
as determined by the Public Pension Division of the Department
of Insurance under subsection (b-5) of Section 18-125,
whichever is less, of the survivor's annuity then being paid.
In this subsection, "consumer price index-u" means the
index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of the
Department of Insurance and made available to the Board by
November 1 of each year.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
Article 2.
Section 2-5. The Illinois Pension Code is amended by
changing Sections 1-103.3, 2-124, 14-131, 15-155, 16-158, and
18-131 as follows:
(40 ILCS 5/1-103.3)
(Text of Section WITHOUT the changes made by P.A. 98-599,

HB5448 - 60 - LRB103 34609 RPS 64449 b
which has been held unconstitutional)
Sec. 1-103.3. Application of 1994 amendment; funding
standard.
(a) The provisions of this amendatory Act of 1994 that
change the method of calculating, certifying, and paying the
required State contributions to the retirement systems
established under Articles 2, 14, 15, 16, and 18 shall first
apply to the State contributions required for State fiscal
year 1996.
(b) The General Assembly declares that a funding ratio
(the ratio of a retirement system's total assets to its total
actuarial liabilities) of 100% 90% is an appropriate goal for
State-funded retirement systems in Illinois, and it finds that
a funding ratio of 100% 90% is now the generally-recognized
norm throughout the nation for public employee retirement
systems that are considered to be financially secure and
funded in an appropriate and responsible manner.
(c) Every 5 years, beginning in 1999, the Commission on
Government Forecasting and Accountability, in consultation
with the affected retirement systems and the Governor's Office
of Management and Budget (formerly Bureau of the Budget),
shall consider and determine whether the 100% 90% funding
ratio adopted in subsection (b) continues to represent an
appropriate goal for State-funded retirement systems in
Illinois, and it shall report its findings and recommendations
on this subject to the Governor and the General Assembly.

HB5448 - 61 - LRB103 34609 RPS 64449 b
(Source: P.A. 93-1067, eff. 1-15-05.)
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the
contributions of participants, interest earned on investments,
and other income will meet the cost of maintaining and
administering the System on a 100% 90% funded basis by 2050 in
accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c).
(c) For State fiscal years 2025 through 2050, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 100%
of the total actuarial liabilities of the System by the end of
State fiscal year 2050. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2050 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 2012 through 2024 2045, the minimum

HB5448 - 62 - LRB103 34609 RPS 64449 b
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it

HB5448 - 63 - LRB103 34609 RPS 64449 b
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $4,157,000.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $5,220,300.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $10,454,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond

HB5448 - 64 - LRB103 34609 RPS 64449 b
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 2-134 and shall be made from the
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share
of total bond proceeds, (ii) any amounts received from the
General Revenue Fund in fiscal year 2011, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable.
Beginning in State fiscal year 2051 2046, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100% 90%
of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this

HB5448 - 65 - LRB103 34609 RPS 64449 b
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
2-134, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal

HB5448 - 66 - LRB103 34609 RPS 64449 b
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(e) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer

HB5448 - 67 - LRB103 34609 RPS 64449 b
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 100% 90% funded basis by 2050 in accordance
with actuarial recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department on
behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board, using the formula in subsection (e).
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that fiscal
year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act and
Section 1 of the State Pension Funds Continuing Appropriation
Act, if any, for the fiscal year ending on the June 30
immediately preceding the applicable November 15 certification
deadline), the estimated payroll (including all forms of
compensation) for personal services rendered by eligible
employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the

HB5448 - 68 - LRB103 34609 RPS 64449 b
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may elect
to participate in the System but have not so elected, persons
who are serving a qualifying period that is required for
participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several departments
for each pay period by warrants drawn by the State Comptroller
against their respective funds or appropriations based upon
vouchers stating the amount to be so contributed. These
amounts shall be based on the full rate certified by the Board
under Section 14-135.08 for that fiscal year. From March 5,
2004 (the effective date of Public Act 93-665) through the
payment of the final payroll from fiscal year 2004
appropriations, the several departments shall not make
contributions for the remainder of fiscal year 2004 but shall
instead make payments as required under subsection (a-1) of
Section 14.1 of the State Finance Act. The several departments
shall resume those contributions at the commencement of fiscal
year 2005.
(c-1) Notwithstanding subsection (c) of this Section, for
fiscal years 2010, 2012, and each fiscal year thereafter,
contributions by the several departments are not required to
be made for General Revenue Funds payrolls processed by the
Comptroller. Payrolls paid by the several departments from all
other State funds must continue to be processed pursuant to

HB5448 - 69 - LRB103 34609 RPS 64449 b
subsection (c) of this Section.
(c-2) For State fiscal years 2010, 2012, and each fiscal
year thereafter, on or as soon as possible after the 15th day
of each month, the Board shall submit vouchers for payment of
State contributions to the System, in a total monthly amount
of one-twelfth of the fiscal year General Revenue Fund
contribution as certified by the System pursuant to Section
14-135.08 of the Illinois Pension Code.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid
by the State.
(e) For State fiscal years 2025 through 2050, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 100%
of the total actuarial liabilities of the System by the end of
State fiscal year 2050. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2050 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 2012 through 2024 2045, the minimum

HB5448 - 70 - LRB103 34609 RPS 64449 b
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it

HB5448 - 71 - LRB103 34609 RPS 64449 b
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that (i) for State fiscal year 1998, for all purposes of this
Code and any other law of this State, the certified percentage
of the applicable employee payroll shall be 5.052% for
employees earning eligible creditable service under Section
14-110 and 6.500% for all other employees, notwithstanding any
contrary certification made under Section 14-135.08 before
July 7, 1997 (the effective date of Public Act 90-65), and (ii)
in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
and 10.8% in FY 2004.
Beginning in State fiscal year 2051 2046, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100% 90%
of the total actuarial liabilities of the System.

HB5448 - 72 - LRB103 34609 RPS 64449 b
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
14-135.08, shall not exceed an amount equal to (i) the amount
of the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section

HB5448 - 73 - LRB103 34609 RPS 64449 b
7.2 of the General Obligation Bond Act.
(f) (Blank).
(g) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(h) For purposes of determining the required State
contribution to the System for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the System's actuarially assumed rate of
return.
(i) (Blank).
(j) (Blank).
(k) For fiscal year 2012 and each fiscal year thereafter,
after the submission of all payments for eligible employees
from personal services line items paid from the General
Revenue Fund in the fiscal year have been made, the
Comptroller shall provide to the System a certification of the
sum of all expenditures in the fiscal year for personal

HB5448 - 74 - LRB103 34609 RPS 64449 b
services. Upon receipt of the certification, the System shall
determine the amount due to the System based on the full rate
certified by the Board under Section 14-135.08 for the fiscal
year in order to meet the State's obligation under this
Section. The System shall compare this amount due to the
amount received by the System for the fiscal year. If the
amount due is more than the amount received, the difference
shall be termed the "Prior Fiscal Year Shortfall" for purposes
of this Section, and the Prior Fiscal Year Shortfall shall be
satisfied under Section 1.2 of the State Pension Funds
Continuing Appropriation Act. If the amount due is less than
the amount received, the difference shall be termed the "Prior
Fiscal Year Overpayment" for purposes of this Section, and the
Prior Fiscal Year Overpayment shall be repaid by the System to
the General Revenue Fund as soon as practicable after the
certification.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
101-10, eff. 6-5-19.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of

HB5448 - 75 - LRB103 34609 RPS 64449 b
maintaining and administering the System on a 100% 90% funded
basis by 2050 in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (a-1).
(a-1) For State fiscal years 2025 through 2050, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the
end of State fiscal year 2050. In making these determinations,
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2050 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2024 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the

HB5448 - 76 - LRB103 34609 RPS 64449 b
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State

HB5448 - 77 - LRB103 34609 RPS 64449 b
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $252,064,100.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $702,514,000 and shall be made from the State Pensions Fund
and proceeds of bonds sold in fiscal year 2010 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the
System's share of total bond proceeds, (ii) any amounts
received from the General Revenue Fund in fiscal year 2010,
(iii) any reduction in bond proceeds due to the issuance of

HB5448 - 78 - LRB103 34609 RPS 64449 b
discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 15-165 and shall be made from the
State Pensions Fund and proceeds of bonds sold in fiscal year
2011 pursuant to Section 7.2 of the General Obligation Bond
Act, less (i) the pro rata share of bond sale expenses
determined by the System's share of total bond proceeds, (ii)
any amounts received from the General Revenue Fund in fiscal
year 2011, and (iii) any reduction in bond proceeds due to the
issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2051 2046, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100% 90%
of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar

HB5448 - 79 - LRB103 34609 RPS 64449 b
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
15-165, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at

HB5448 - 80 - LRB103 34609 RPS 64449 b
the rate otherwise required under this Section.
(a-2) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
15-155.2, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected

HB5448 - 81 - LRB103 34609 RPS 64449 b
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (a-2)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
As used in this subsection, "academic year" means the
12-month period beginning September 1.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income
funds, or service enterprise funds are not required to pay
such contributions on behalf of those employees. The local
auxiliary funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations

HB5448 - 82 - LRB103 34609 RPS 64449 b
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of
the actuary, and shall be expressed as a percentage of salary
for each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or
other funds, in accordance with actuarial procedures approved
by the Board. State of Illinois contributions for employers
receiving State appropriations for personal services shall be
payable from appropriations made to the employers or to the
System. The contributions for Class I community colleges
covering earnings other than those paid from trust and federal
funds, shall be payable solely from appropriations to the
Illinois Community College Board or the System for employer

HB5448 - 83 - LRB103 34609 RPS 64449 b
contributions.
(d) Beginning in State fiscal year 1996, the required
State contributions to the System shall be appropriated
directly to the System and shall be payable through vouchers
issued in accordance with subsection (c) of Section 15-165,
except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System
because of the credits earned for service rendered by the
participants during the fiscal year and expenses of
administering the System, but shall not include the principal
of or any redemption premium or interest on any bonds issued by
the Board or any expenses incurred or deposits required in
connection therewith.
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the

HB5448 - 84 - LRB103 34609 RPS 64449 b
System, the present value of the increase in benefits
resulting from the portion of the increase in earnings that is
in excess of 6%. This present value shall be computed by the
System on the basis of the actuarial assumptions and tables
used in the most recent actuarial valuation of the System that
is available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection (g), the System shall calculate
the amount of the payment and bill the employer for that
amount. The bill shall specify the calculations used to
determine the amount due. If the employer disputes the amount
of the bill, it may, within 30 days after receipt of the bill,
apply to the System in writing for a recalculation. The
application must specify in detail the grounds of the dispute
and, if the employer asserts that the calculation is subject
to subsection (h), (h-5), or (i) of this Section, must include
an affidavit setting forth and attesting to all facts within
the employer's knowledge that are pertinent to the
applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(g) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not

HB5448 - 85 - LRB103 34609 RPS 64449 b
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
When assessing payment for any amount due under this
subsection (g), the System shall include earnings, to the
extent not established by a participant under Section
15-113.11 or 15-113.12, that would have been paid to the
participant had the participant not taken (i) periods of
voluntary or involuntary furlough occurring on or after July
1, 2015 and on or before June 30, 2017 or (ii) periods of
voluntary pay reduction in lieu of furlough occurring on or
after July 1, 2015 and on or before June 30, 2017. Determining
earnings that would have been paid to a participant had the
participant not taken periods of voluntary or involuntary
furlough or periods of voluntary pay reduction shall be the
responsibility of the employer, and shall be reported in a
manner prescribed by the System.
This subsection (g) does not apply to (1) Tier 2 hybrid
plan members and (2) Tier 2 defined benefit members who first
participate under this Article on or after the implementation
date of the Optional Hybrid Plan.
(g-1) (Blank).
(h) This subsection (h) applies only to payments made or

HB5448 - 86 - LRB103 34609 RPS 64449 b
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting
from overload work, including a contract for summer teaching,
or overtime when the employer has certified to the System, and
the System has approved the certification, that: (i) in the
case of overloads (A) the overload work is for the sole purpose
of academic instruction in excess of the standard number of
instruction hours for a full-time employee occurring during
the academic year that the overload is paid and (B) the
earnings increases are equal to or less than the rate of pay
for academic instruction computed using the participant's
current salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational

HB5448 - 87 - LRB103 34609 RPS 64449 b
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in
academic rank for a tenured or tenure-track faculty position,
or (iii) a promotion that the Illinois Community College Board
has recommended in accordance with subsection (k) of this
Section. These earnings increases shall be excluded only if
the promotion is to a position that has existed and been filled
by a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(h-5) When assessing payment for any amount due under
subsection (g), the System shall exclude any earnings increase
paid in an academic year beginning on or after July 1, 2020
resulting from overload work performed in an academic year
subsequent to an academic year in which the employer was
unable to offer or allow to be conducted overload work due to
an emergency declaration limiting such activities.
(i) When assessing payment for any amount due under
subsection (g), the System shall exclude any salary increase
described in subsection (h) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or

HB5448 - 88 - LRB103 34609 RPS 64449 b
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Except as provided in subsection (h-5), any payments made or
salary increases given after June 30, 2014 shall be used in
assessing payment for any amount due under subsection (g) of
this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(j-5) For State fiscal years beginning on or after July 1,
2017, if the amount of a participant's earnings for any State
fiscal year exceeds the amount of the salary set by law for the
Governor that is in effect on July 1 of that fiscal year, the

HB5448 - 89 - LRB103 34609 RPS 64449 b
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
earnings in excess of the amount of the salary set by law for
the Governor. This amount shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is
available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculation used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after

HB5448 - 90 - LRB103 34609 RPS 64449 b
issuance of the bill. If the employer contributions are not
paid within 90 days after issuance of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after issuance of the bill. All
payments must be received within 3 years after issuance of the
bill. If the employer fails to make complete payment,
including applicable interest, within 3 years, then the System
may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the
Comptroller shall thereupon deduct the certified delinquent
amount from State funds payable to the employer and pay them
instead to the System.
This subsection (j-5) does not apply to a participant's
earnings to the extent an employer pays the employer normal
cost of such earnings.
The changes made to this subsection (j-5) by Public Act
100-624 are intended to apply retroactively to July 6, 2017
(the effective date of Public Act 100-23).
(k) The Illinois Community College Board shall adopt rules
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for
State universities by the State Universities Civil Service

HB5448 - 91 - LRB103 34609 RPS 64449 b
System. The Illinois Community College Board shall file a copy
of its findings with the System. The System shall consider the
findings of the Illinois Community College Board when making
determinations under this Section. The System shall not
exclude any earnings increases resulting from a promotion when
the promotion was not submitted by a community college.
Nothing in this subsection (k) shall require any community
college to submit any information to the Community College
Board.
(l) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(m) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;

HB5448 - 92 - LRB103 34609 RPS 64449 b
102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
5-13-22.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 100% 90% funded
basis by 2050 in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15 until November
15, 2011, the Board shall certify to the Governor the amount of
the required State contribution for the coming fiscal year.
The certification under this subsection (a-1) shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and

HB5448 - 93 - LRB103 34609 RPS 64449 b
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by Public Act 94-4.
On or before April 1, 2011, the Board shall recalculate
and recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011,
applying the changes made by Public Act 96-889 to the System's
assets and liabilities as of June 30, 2009 as though Public Act
96-889 was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed
certification of the amount of the required State contribution
to the System for the next fiscal year, along with all of the
actuarial assumptions, calculations, and data upon which that
proposed certification is based. On or before January 1 of
each year, beginning January 1, 2013, the State Actuary shall
issue a preliminary report concerning the proposed
certification and identifying, if necessary, recommended

HB5448 - 94 - LRB103 34609 RPS 64449 b
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. On or before January 15, 2013 and each January
15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The Board's certification must note
any deviations from the State Actuary's recommended changes,
the reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-10) By November 1, 2017, the Board shall recalculate
and recertify to the State Actuary, the Governor, and the
General Assembly the amount of the State contribution to the
System for State fiscal year 2018, taking into account the
changes in required State contributions made by Public Act
100-23. The State Actuary shall review the assumptions and
valuations underlying the Board's revised certification and
issue a preliminary report concerning the proposed
recertification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. The Board's final certification must note any
deviations from the State Actuary's recommended changes, the
reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following

HB5448 - 95 - LRB103 34609 RPS 64449 b
the State Actuary's recommended changes on the required State
contribution.
(a-15) On or after June 15, 2019, but no later than June
30, 2019, the Board shall recalculate and recertify to the
Governor and the General Assembly the amount of the State
contribution to the System for State fiscal year 2019, taking
into account the changes in required State contributions made
by Public Act 100-587. The recalculation shall be made using
assumptions adopted by the Board for the original fiscal year
2019 certification. The monthly voucher for the 12th month of
fiscal year 2019 shall be paid by the Comptroller after the
recertification required pursuant to this subsection is
submitted to the Governor, Comptroller, and General Assembly.
The recertification submitted to the General Assembly shall be
filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th day
of each month, or as soon thereafter as may be practicable, the
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a-1). From March 5, 2004 (the effective date of Public Act

HB5448 - 96 - LRB103 34609 RPS 64449 b
93-665) through June 30, 2004, the Board shall not submit
vouchers for the remainder of fiscal year 2004 in excess of the
fiscal year 2004 certified contribution amount determined
under this Section after taking into consideration the
transfer to the System under subsection (a) of Section 6z-61
of the State Finance Act. These vouchers shall be paid by the
State Comptroller and Treasurer by warrants drawn on the funds
appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal years 2025 through 2050, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to
100% of the total actuarial liabilities of the System by the
end of State fiscal year 2050. In making these determinations,

HB5448 - 97 - LRB103 34609 RPS 64449 b
the required State contribution shall be calculated each year
as a level percentage of payroll over the years remaining to
and including fiscal year 2050 and shall be determined under
the projected unit credit actuarial cost method.
For State fiscal years 2012 through 2024 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that

HB5448 - 98 - LRB103 34609 RPS 64449 b
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a), and notwithstanding any
contrary certification made under subsection (a-1) before May
27, 1998 (the effective date of Public Act 90-582): 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY

HB5448 - 99 - LRB103 34609 RPS 64449 b
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $738,014,500.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the Common School
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011

HB5448 - 100 - LRB103 34609 RPS 64449 b
is the amount recertified by the System on or before April 1,
2011 pursuant to subsection (a-1) of this Section and shall be
made from the proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by
the System's share of total bond proceeds, (ii) any amounts
received from the Common School Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable. This amount shall include, in
addition to the amount certified by the System, an amount
necessary to meet employer contributions required by the State
as an employer under paragraph (e) of this Section, which may
also be used by the System for contributions required by
paragraph (a) of Section 16-127.
Beginning in State fiscal year 2051 2046, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100% 90%
of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a

HB5448 - 101 - LRB103 34609 RPS 64449 b
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under subsection
(a-1), shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the

HB5448 - 102 - LRB103 34609 RPS 64449 b
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(b-4) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
16-158.3, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of

HB5448 - 103 - LRB103 34609 RPS 64449 b
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (b-4)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and
all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs
based upon that service, which, beginning July 1, 2017, shall
be at a rate, expressed as a percentage of salary, equal to the
total employer's normal cost, expressed as a percentage of
payroll, as determined by the System. Employer contributions,

HB5448 - 104 - LRB103 34609 RPS 64449 b
based on salary paid to members from federal funds, may be
forwarded by the distributing agency of the State of Illinois
to the System prior to allocation, in an amount determined in
accordance with guidelines established by such agency and the
System. Any contribution for fiscal year 2015 collected as a
result of the change made by Public Act 98-674 shall be
considered a State contribution under subsection (b-3) of this
Section.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher

HB5448 - 105 - LRB103 34609 RPS 64449 b
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from Public Act 90-582.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under

HB5448 - 106 - LRB103 34609 RPS 64449 b
Section 16-152 by Public Act 90-582 is the responsibility of
the teacher and not the teacher's employer, unless the
employer agrees, through collective bargaining or otherwise,
to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines
established by the System, the present value of the increase
in benefits resulting from the portion of the increase in
salary that is in excess of 6%. This present value shall be
computed by the System on the basis of the actuarial

HB5448 - 107 - LRB103 34609 RPS 64449 b
assumptions and tables used in the most recent actuarial
valuation of the System that is available at the time of the
computation. If a teacher's salary for the 2005-2006 school
year is used to determine final average salary under this
subsection (f), then the changes made to this subsection (f)
by Public Act 94-1057 shall apply in calculating whether the
increase in his or her salary is in excess of 6%. For the
purposes of this Section, change in employment under Section
10-21.12 of the School Code on or after June 1, 2005 shall
constitute a change in employer. The System may require the
employer to provide any pertinent information or
documentation. The changes made to this subsection (f) by
Public Act 94-1111 apply without regard to whether the teacher
was in service on or after its effective date.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(g), (g-5), (g-10), (g-15), or (h) of this Section, must
include an affidavit setting forth and attesting to all facts
within the employer's knowledge that are pertinent to the

HB5448 - 108 - LRB103 34609 RPS 64449 b
applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(f-1) (Blank).
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to
teachers under contracts or collective bargaining agreements
entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.

HB5448 - 109 - LRB103 34609 RPS 64449 b
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases
are equal to or less than the rate of pay for classroom
instruction computed on the teacher's current salary and work
schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the
district requiring the same certification or the amount
stipulated in the collective bargaining agreement for a
similar position requiring the same certification.
When assessing payment for any amount due under subsection

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(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final
average salary.
(g-5) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from overload or stipend work performed in a school
year subsequent to a school year in which the employer was
unable to offer or allow to be conducted overload or stipend
work due to an emergency declaration limiting such activities.
(g-10) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from increased instructional time that exceeded the
instructional time required during the 2019-2020 school year.
(g-15) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from teaching summer school on or after May 1, 2021
and before September 15, 2022.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any

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payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(i-5) For school years beginning on or after July 1, 2017,
if the amount of a participant's salary for any school year
exceeds the amount of the salary set for the Governor, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer

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normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
salary in excess of the amount of the salary set for the
Governor. This amount shall be computed by the System on the
basis of the actuarial assumptions and tables used in the most
recent actuarial valuation of the System that is available at
the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded

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annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(k) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff.
8-20-21; 102-813, eff. 5-13-22.)
(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to this

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System by appropriations of the amounts which, together with
the contributions of participants, net earnings on
investments, and other income, will meet the costs of
maintaining and administering this System on a 100% 90% funded
basis by 2050 in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c).
(c) For State fiscal years 2025 through 2050, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 100%
of the total actuarial liabilities of the System by the end of
State fiscal year 2050. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2050 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 2012 through 2024 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the

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required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual

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increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $29,189,400.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $35,236,800.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $78,832,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the

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total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 18-140 and shall be made from the
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share
of total bond proceeds, (ii) any amounts received from the
General Revenue Fund in fiscal year 2011, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable.
Beginning in State fiscal year 2051 2046, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100% 90%
of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.

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Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
18-140, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(d) For purposes of determining the required State

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contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(e) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 100-23, eff. 7-6-17.)
Article 3.
Section 3-5. The Illinois Pension Code is amended by
changing Sections 2-101, 2-105, 2-107, 2-117, 14-103.05,
14-104, 14-105.4, 18-101, 18-108, 18-109, and 18-110 as
follows:
(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
Sec. 2-101. Creation of system. A retirement system is

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created to provide retirement annuities, survivor's annuities
and other benefits for certain members of the General
Assembly, certain elected state officials, and their
beneficiaries.
The system shall be known as the "General Assembly
Retirement System". All its funds and property shall be a
trust separate from all other entities, maintained for the
purpose of securing payment of annuities and benefits under
this Article.
Participation in the retirement system created under this
Article is restricted to persons who became participants
before January 8, 2025. Beginning on that date, the System
shall not accept any new participants.
(Source: P.A. 83-1440.)
(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
Sec. 2-105. Member. "Member": Members of the General
Assembly of this State, including persons who enter military
service while a member of the General Assembly, and any person
serving as Governor, Lieutenant Governor, Secretary of State,
Treasurer, Comptroller, or Attorney General for the period of
service in such office.
Any person who has served for 10 or more years as Clerk or
Assistant Clerk of the House of Representatives, Secretary or
Assistant Secretary of the Senate, or any combination thereof,
may elect to become a member of this system while thenceforth

HB5448 - 121 - LRB103 34609 RPS 64449 b
engaged in such service by filing a written election with the
board. Any person so electing shall be deemed an active member
of the General Assembly for the purpose of validating and
transferring any service credits earned under any of the funds
and systems established under Articles 3 through 18 of this
Code.
Notwithstanding any other provision of this Article, a
person shall not be deemed a member for the purposes of this
Article unless he or she became a participant of the System
before January 8, 2025.
(Source: P.A. 85-1008.)
(40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
Sec. 2-107. Participant. "Participant": Any member who
elects to participate; and any former member who elects to
continue participation under Section 2-117.1, for the duration
of such continued participation. Notwithstanding any other
provision of this Article, a person shall not be deemed a
participant for the purposes of this Article unless he or she
became a participant of the System before January 8, 2025.
(Source: P.A. 86-1488.)
(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
Sec. 2-117. Participants; election not to participate or
to terminate participation Participants - Election not to
participate.

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(a) Every person who was a member on November 1, 1947, or
in military service on such date, is subject to the provisions
of this system beginning upon such date, unless prior to such
date he or she filed with the board a written notice of
election not to participate.
Every person who becomes a member after November 1, 1947,
and who is then not a participant becomes a participant
beginning upon the date of becoming a member unless, within 24
months from that date, he or she has filed with the board a
written notice of election not to participate.
(b) A member who has filed notice of an election not to
participate (and a former member who has not yet begun to
receive a retirement annuity under this Article) may become a
participant with respect to the period for which the member
elected not to participate upon filing with the board, before
April 1, 1993, a written rescission of the election not to
participate. Upon contributing an amount equal to the
contributions he or she would have made as a participant from
November 1, 1947, or the date of becoming a member, whichever
is later, to the date of becoming a participant, with interest
at the rate of 4% per annum until the contributions are paid,
the participant shall receive credit for service as a member
prior to the date of the rescission, both before and after
November 1, 1947. The required contributions shall be made
before commencement of the retirement annuity; otherwise no
credit for service prior to the date of participation shall be

HB5448 - 123 - LRB103 34609 RPS 64449 b
granted.
(c) Notwithstanding any other provision of this Article,
an active participant may irrevocably elect, in writing and in
a form and manner prescribed by the board, to terminate
participation in the System and instead participate in the
retirement system established under Article 14. Upon making
the election under this subsection (c), all credits and
creditable service shall be transferred to the retirement
system under Article 14 in accordance with Section 14-105.4
and all participation in this System is terminated.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee.
(a) Any person employed by a Department who receives
salary for personal services rendered to the Department on a
warrant issued pursuant to a payroll voucher certified by a
Department and drawn by the State Comptroller upon the State
Treasurer, including an elected official described in
subparagraph (d) of Section 14-104, shall become an employee
for purpose of membership in the Retirement System on the
first day of such employment.
A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of employment and shall begin making contributions as of the
first day of employment.

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A person entering service on or after January 1, 1984
shall, upon completion of 6 months of continuous service which
is not interrupted by a break of more than 2 months, become a
member as a condition of employment. Contributions shall begin
the first of the month after completion of the qualifying
period.
A person employed by the Chicago Metropolitan Agency for
Planning on the effective date of this amendatory Act of the
95th General Assembly who was a member of this System as an
employee of the Chicago Area Transportation Study and makes an
election under Section 14-104.13 to participate in this System
for his or her employment with the Chicago Metropolitan Agency
for Planning.
The qualifying period of 6 months of service is not
applicable to: (1) a person who has been granted credit for
service in a position covered by the State Universities
Retirement System, the Teachers' Retirement System of the
State of Illinois, the General Assembly Retirement System, or
the Judges Retirement System of Illinois unless that service
has been forfeited under the laws of those systems; (2) a
person entering service on or after July 1, 1991 in a
noncovered position; (3) a person to whom Section 14-108.2a or
14-108.2b applies; or (4) a person to whom subsection (a-5) of
this Section applies.
(a-5) A person entering service on or after December 1,
2010 shall become a member as a condition of employment and

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shall begin making contributions as of the first day of
employment. A person serving in the qualifying period on
December 1, 2010 will become a member on December 1, 2010 and
shall begin making contributions as of December 1, 2010.
(b) The term "employee" does not include the following:
(1) members of the State Legislature, and persons
electing to become members of the General Assembly
Retirement System pursuant to Section 2-105;
(2) incumbents of offices normally filled by vote of
the people;
(3) except as otherwise provided in this Section, any
person appointed by the Governor with the advice and
consent of the Senate unless that person elects to
participate in this system;
(3.1) any person serving as a commissioner of an
ethics commission created under the State Officials and
Employees Ethics Act unless that person elects to
participate in this system with respect to that service as
a commissioner;
(3.2) any person serving as a part-time employee in
any of the following positions: Legislative Inspector
General, Special Legislative Inspector General, employee
of the Office of the Legislative Inspector General,
Executive Director of the Legislative Ethics Commission,
or staff of the Legislative Ethics Commission, regardless
of whether he or she is in active service on or after July

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8, 2004 (the effective date of Public Act 93-685), unless
that person elects to participate in this System with
respect to that service; in this item (3.2), a "part-time
employee" is a person who is not required to work at least
35 hours per week;
(3.3) any person who has made an election under
Section 1-123 and who is serving either as legal counsel
in the Office of the Governor or as Chief Deputy Attorney
General;
(4) except as provided in Section 14-108.2 or
14-108.2c, any person who is covered or eligible to be
covered by the Teachers' Retirement System of the State of
Illinois, the State Universities Retirement System, or the
Judges Retirement System of Illinois;
(5) an employee of a municipality or any other
political subdivision of the State;
(6) any person who becomes an employee after June 30,
1979 as a public service employment program participant
under the Federal Comprehensive Employment and Training
Act and whose wages or fringe benefits are paid in whole or
in part by funds provided under such Act;
(7) enrollees of the Illinois Young Adult Conservation
Corps program, administered by the Department of Natural
Resources, authorized grantee pursuant to Title VIII of
the "Comprehensive Employment and Training Act of 1973",
29 USC 993, as now or hereafter amended;

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(8) enrollees and temporary staff of programs
administered by the Department of Natural Resources under
the Youth Conservation Corps Act of 1970;
(9) any person who is a member of any professional
licensing or disciplinary board created under an Act
administered by the Department of Professional Regulation
or a successor agency or created or re-created after the
effective date of this amendatory Act of 1997, and who
receives per diem compensation rather than a salary,
notwithstanding that such per diem compensation is paid by
warrant issued pursuant to a payroll voucher; such persons
have never been included in the membership of this System,
and this amendatory Act of 1987 (P.A. 84-1472) is not
intended to effect any change in the status of such
persons;
(10) any person who is a member of the Illinois Health
Care Cost Containment Council, and receives per diem
compensation rather than a salary, notwithstanding that
such per diem compensation is paid by warrant issued
pursuant to a payroll voucher; such persons have never
been included in the membership of this System, and this
amendatory Act of 1987 is not intended to effect any
change in the status of such persons;
(11) any person who is a member of the Oil and Gas
Board created by Section 1.2 of the Illinois Oil and Gas
Act, and receives per diem compensation rather than a

HB5448 - 128 - LRB103 34609 RPS 64449 b
salary, notwithstanding that such per diem compensation is
paid by warrant issued pursuant to a payroll voucher;
(12) a person employed by the State Board of Higher
Education in a position with the Illinois Century Network
as of June 30, 2004, who remains continuously employed
after that date by the Department of Central Management
Services in a position with the Illinois Century Network
and participates in the Article 15 system with respect to
that employment;
(13) any person who first becomes a member of the
Civil Service Commission on or after January 1, 2012;
(14) any person, other than the Director of Employment
Security, who first becomes a member of the Board of
Review of the Department of Employment Security on or
after January 1, 2012;
(15) any person who first becomes a member of the
Civil Service Commission on or after January 1, 2012;
(16) any person who first becomes a member of the
Illinois Liquor Control Commission on or after January 1,
2012;
(17) any person who first becomes a member of the
Secretary of State Merit Commission on or after January 1,
2012;
(18) any person who first becomes a member of the
Human Rights Commission on or after January 1, 2012 unless
he or she is eligible to participate in accordance with

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subsection (d) of this Section;
(19) any person who first becomes a member of the
State Mining Board on or after January 1, 2012;
(20) any person who first becomes a member of the
Property Tax Appeal Board on or after January 1, 2012;
(21) any person who first becomes a member of the
Illinois Racing Board on or after January 1, 2012;
(22) any person who first becomes a member of the
Illinois State Police Merit Board on or after January 1,
2012;
(23) any person who first becomes a member of the
Illinois State Toll Highway Authority on or after January
1, 2012; or
(24) any person who first becomes a member of the
Illinois State Board of Elections on or after January 1,
2012.
(c) An individual who represents or is employed as an
officer or employee of a statewide labor organization that
represents members of this System may participate in the
System and shall be deemed an employee, provided that (1) the
individual has previously earned creditable service under this
Article, (2) the individual files with the System an
irrevocable election to become a participant within 6 months
after the effective date of this amendatory Act of the 94th
General Assembly, and (3) the individual does not receive
credit for that employment under any other provisions of this

HB5448 - 130 - LRB103 34609 RPS 64449 b
Code. An employee under this subsection (c) is responsible for
paying to the System both (i) employee contributions based on
the actual compensation received for service with the labor
organization and (ii) employer contributions based on the
percentage of payroll certified by the board; all or any part
of these contributions may be paid on the employee's behalf or
picked up for tax purposes (if authorized under federal law)
by the labor organization.
A person who is an employee as defined in this subsection
(c) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection (c) for any such prior
employment for which the applicant received credit under any
other provision of this Code or during which the applicant was
on a leave of absence.
(d) A person appointed as a member of the Human Rights
Commission on or after June 1, 2019 may elect to participate in
the System and shall be deemed an employee. Service and
contributions shall begin on the first payroll period
immediately following the employee's election to participate
in the System.
A person who is an employee as described in this
subsection (d) may establish service credit for employment as

HB5448 - 131 - LRB103 34609 RPS 64449 b
a Human Rights Commissioner that occurred on or after June 1,
2019 and before establishing service under this subsection by
paying to the System for that employment the contributions
specified in paragraph (1) of subsection (a) of Section
14-133, plus regular interest from the date of service to the
date of payment.
(Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in
this Section, the contributions shall be based upon the
employee's compensation and contribution rate in effect on the
date he last became a member of the System; provided that for
all employment prior to January 1, 1969 the contribution rate
shall be that in effect for a noncovered employee on the date
he last became a member of the System. Except as otherwise
provided in this Section, contributions permitted under this
Section shall include regular interest from the date an
employee last became a member of the System to the date of
payment.
These contributions must be paid in full before retirement
either in a lump sum or in installment payments in accordance
with such rules as may be adopted by the board.
(a) Any member may make contributions as required in this

HB5448 - 132 - LRB103 34609 RPS 64449 b
Section for any period of service, subsequent to the date of
establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who, after
January 1, 1944 but prior to becoming eligible for membership,
received salary from funds of insurance companies in the
process of rehabilitation, liquidation, conservation or
dissolution, may elect to make contributions as required in
this Section for such service.
(d) Any employee who rendered service in a State office to
which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by appointment
of the Governor under the Civil Administrative Code of
Illinois and did not participate in this System may make
contributions as required in this Section for such service.
(e) Any person employed by the United States government or
any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit

HB5448 - 133 - LRB103 34609 RPS 64449 b
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership service
credit for the period from January 1, 1944 through November
15, 1946 by making the contributions required in this Section.
A person so employed on January 1, 1944 but whose employment
began after January 1, 1942 may qualify for prior service and
membership service credit under the same conditions.
(f) An employee of the Department of Labor of the State of
Illinois who performed services for and under the supervision
of that Department prior to January 1, 1944 but who was
compensated for those services directly by federal funds and
not by a warrant of the Auditor of Public Accounts paid by the
State Treasurer may establish credit for such employment by
making the contributions required in this Section. An employee
of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that
Department prior to June 1, 1963, but was compensated for
those services directly by federal funds and not paid by a
warrant of the Auditor of Public Accounts paid by the State
Treasurer, and who did not contribute to any other public
employee retirement system for such service, may establish
credit for such employment by making the contributions
required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time while
in the service of a department, file with the board a

HB5448 - 134 - LRB103 34609 RPS 64449 b
rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the waiver
had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at least
5 continuous years may establish creditable service for such
employment by making the contributions required under this
Section, provided that any credits earned by the employee in
the commission's retirement plan have been terminated.
(i) Any person who rendered full time contractual services
to the General Assembly as a member of a legislative staff may
establish service credit for up to 8 years of such services by
making the contributions required under this Section, provided
that application therefor is made not later than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, but with all of the interest calculated from the
date the employee last became a member of the System or
November 19, 1991, whichever is later, to the date of payment,
an employee may establish service credit for a period of up to
4 years spent in active military service for which he does not
qualify for credit under Section 14-105, provided that (1) he
was not dishonorably discharged from such military service,
and (2) the amount of service credit established by a member

HB5448 - 135 - LRB103 34609 RPS 64449 b
under this subsection (j), when added to the amount of
military service credit granted to the member under subsection
(b) of Section 14-105, shall not exceed 5 years. The change in
the manner of calculating interest under this subsection (j)
made by this amendatory Act of the 92nd General Assembly
applies to credit purchased by an employee on or after its
effective date and does not entitle any person to a refund of
contributions or interest already paid. In compliance with
Section 14-152.1 of this Act concerning new benefit increases,
any new benefit increase as a result of the changes to this
subsection (j) made by Public Act 95-483 is funded through the
employee contributions provided for in this subsection (j).
Any new benefit increase as a result of the changes made to
this subsection (j) by Public Act 95-483 is exempt from the
provisions of subsection (d) of Section 14-152.1.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide Appellate
Assistance Service LEAA-ILEC grant project prior to the time
that project became the State's Attorneys Appellate Service
Commission, now the Office of the State's Attorneys Appellate
Prosecutor, an agency of State government, may establish
creditable service for not more than 60 months service for
such employment by making contributions required under this
Section.
(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be

HB5448 - 136 - LRB103 34609 RPS 64449 b
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or
after January 1, 1982 and (2) any credit established by the
member for the period of leave in any other public employee
retirement system has been terminated. A member may establish
service credit under this subsection for more than one period
of authorized leave, and in that case the total period of
service credit established by the member under this subsection
may exceed one year. In determining the contributions required
for establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.
(l-5) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member
represented or was employed as an officer or employee of a
statewide labor organization that represents members of this
System. In determining the contributions required for
establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave
of absence to the date of payment.

HB5448 - 137 - LRB103 34609 RPS 64449 b
(m) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the
contributions required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. To establish credit
under this subsection, the applicant must apply to the System
by March 1, 1998.
(n) Any person who rendered contractual services to a
member of the General Assembly as a worker providing
constituent services to persons in the member's district may
establish creditable service for up to 8 years of those
contractual services by making the contributions required
under this Section. The System shall determine a full-time
salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the
applicant must apply to the System by March 1, 1998.
(o) A member who participated in the Illinois Legislative
Staff Internship Program may establish creditable service for
up to one year of that participation by making the
contribution required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. Credit may not be
established under this subsection for any period for which
service credit is established under any other provision of

HB5448 - 138 - LRB103 34609 RPS 64449 b
this Code.
(p) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for a period
of up to 8 years during which he or she was employed by the
Visually Handicapped Managers of Illinois in a vending program
operated under a contractual agreement with the Department of
Rehabilitation Services or its successor agency.
This subsection (p) applies without regard to whether the
person was in service on or after the effective date of this
amendatory Act of the 94th General Assembly. In the case of a
person who is receiving a retirement annuity on that effective
date, the increase, if any, shall begin to accrue on the first
annuity payment date following receipt by the System of the
contributions required under this subsection (p).
(q) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest, an
employee who was laid off but returned to any State employment
may establish creditable service for the period of the layoff,
provided that (1) the applicant applies for the creditable
service under this subsection (q) within 6 months after July
27, 2010 (the effective date of Public Act 96-1320), (2) the
applicant does not receive credit for that period under any
other provision of this Code, (3) at the time of the layoff,

HB5448 - 139 - LRB103 34609 RPS 64449 b
the applicant is not in an initial probationary status
consistent with the rules of the Department of Central
Management Services, and (4) the total amount of creditable
service established by the applicant under this subsection (q)
does not exceed 3 years. For service established under this
subsection (q), the required employee contribution shall be
based on the rate of compensation earned by the employee on the
date of returning to employment after the layoff and the
contribution rate then in effect, and the required interest
shall be calculated at the actuarially assumed rate from the
date of returning to employment after the layoff to the date of
payment. Funding for any new benefit increase, as defined in
Section 14-152.1 of this Act, that is created under this
subsection (q) will be provided by the employee contributions
required under this subsection (q).
(r) A member who participated in the University of
Illinois Government Public Service Internship Program (GPSI)
may establish creditable service for up to 2 years of that
participation by making the contribution required under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest. The
System shall determine a full-time salary equivalent for the
purpose of calculating the required contribution. Credit may
not be established under this subsection for any period for
which service credit is established under any other provision
of this Code.

HB5448 - 140 - LRB103 34609 RPS 64449 b
(s) A member who worked as a nurse under a contractual
agreement for the Department of Public Aid, or its successor
agency, the Department of Human Services, in the Client
Assessment Unit and was subsequently determined to be a State
employee by the United States Internal Revenue Service and the
Illinois Labor Relations Board may establish creditable
service for those contractual services by making the
contributions required under this Section. To establish credit
under this subsection, the applicant must apply to the System
by July 1, 2008.
The Department of Human Services shall pay an employer
contribution based upon an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus
interest.
In compliance with Section 14-152.1 added by Public Act
94-4, the cost of the benefits provided by Public Act 95-583
are offset by the required employee and employer
contributions.
(t) Any person who rendered contractual services on a
full-time basis to the Illinois Institute of Natural Resources
and the Illinois Department of Energy and Natural Resources
may establish creditable service for up to 4 years of those
contractual services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit plus
interest at the actuarially assumed rate from the first day of

HB5448 - 141 - LRB103 34609 RPS 64449 b
the service for which credit is being established to the date
of payment. To establish credit under this subsection (t), the
applicant must apply to the System within 6 months after July
27, 2010 (the effective date of Public Act 96-1320).
(u) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit, plus interest, a
member may establish creditable service and earnings credit
for periods of furlough beginning on or after July 1, 2008. To
receive this credit, the participant must (i) apply in writing
to the System before December 31, 2011 and (ii) not receive
compensation for the furlough period. For service established
under this subsection, the required employee contribution
shall be based on the rate of compensation earned by the
employee immediately following the date of the first furlough
day in the time period specified in this subsection (u), and
the required interest shall be calculated at the actuarially
assumed rate from the date of the furlough to the date of
payment.
(v) Any member who rendered full-time contractual services
to an Illinois Veterans Home operated by the Department of
Veterans' Affairs may establish service credit for up to 8
years of such services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit, plus
interest at the actuarially assumed rate. To establish credit

HB5448 - 142 - LRB103 34609 RPS 64449 b
under this subsection, the applicant must apply to the System
no later than 6 months after July 27, 2010 (the effective date
of Public Act 96-1320).
(w) Any member who served as a member of the General
Assembly and did not contribute to any other public employee
retirement system for such service may establish service
credit for up to 5 years of that service by making the
contributions required under this Section, plus an amount
determined by the Board to be equal to the employer's normal
cost of the benefit, plus interest at the actuarially assumed
rate.
(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
8-12-11.)
(40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
Sec. 14-105.4. Transfer of service from the General
Assembly Retirement System.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the
General Assembly Retirement System under Section 2-117.1 may
not participate in this System for the duration of such
continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a
person may transfer credits and creditable service accumulated

HB5448 - 143 - LRB103 34609 RPS 64449 b
under Section 2-117.1 to this System, upon payment to this
System of (1) the amount by which the employer and employee
contributions that would have been required if he had
participated in this System during the period for which credit
under Section 2-117.1 is being transferred, plus regular
interest, exceeds the amounts actually transferred under that
Section to this System, plus (2) regular interest thereon from
the date of such participation to the date of payment.
(c) An active participant in the General Assembly
Retirement System may elect to terminate participation in the
General Assembly Retirement System in accordance with
subsection (c) of Section 2-117. All credits and creditable
service accumulated under Article 2 shall be transferred to
this System upon payment to this System of (1) the amount by
which the employer and employee contributions that would have
been required if he or she had participated in this System
during the period for which credit is being transferred, plus
regular interest, exceeds the amounts actually transferred
under that Section to this System, plus (2) regular interest
thereon from the date of such participation to the date of
payment.
(Source: P.A. 83-430.)
(40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
Sec. 18-101. Creation of fund. A retirement system is
created to be known as the "Judges Retirement System of

HB5448 - 144 - LRB103 34609 RPS 64449 b
Illinois". It shall be a trust separate and distinct from all
other entities, maintained for the purpose of securing the
payment of annuities and benefits as prescribed herein.
Participation in the retirement system created under this
Article is restricted to persons who became participants of
the System before January 8, 2025. Beginning on that date, the
System shall not accept any new participants.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
Sec. 18-108. Judge. "Judge": Any person who receives
payment for personal services as a judge or associate judge of
a court; and any person, previously a participant, who
receives payment for personal services as the administrative
director appointed by the Supreme Court.
Notwithstanding any other provision of this Article, a
person shall not be deemed a judge for the purposes of this
Article unless he or she became a participant of the System
before January 8, 2025.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
Sec. 18-109. Eligible judge. "Eligible judge": Any judge
except one who has elected not to participate in this system.
Notwithstanding any other provision of this Article, a
person shall not be deemed an eligible judge for the purposes

HB5448 - 145 - LRB103 34609 RPS 64449 b
of this Article unless he or she became a participant of the
System before January 8, 2025.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
Sec. 18-110. Participant. "Participant": Any judge
participating in this system as specified in Sections 18-120
and 18-121.
Notwithstanding any other provision of this Article, a
person shall not be deemed a participant for the purposes of
this Article unless he or she became a participant of the
System before January 8, 2025.
(Source: P.A. 83-1440.)
Article 90.
Section 90-5. The Illinois Pension Code is amended by
changing Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169
as follows:
(40 ILCS 5/2-162)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means

HB5448 - 146 - LRB103 34609 RPS 64449 b
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null

HB5448 - 147 - LRB103 34609 RPS 64449 b
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
(40 ILCS 5/14-152.1)

HB5448 - 148 - LRB103 34609 RPS 64449 b
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, or this
amendatory Act of the 103rd General Assembly this amendatory
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this

HB5448 - 149 - LRB103 34609 RPS 64449 b
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any

HB5448 - 150 - LRB103 34609 RPS 64449 b
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
100-23, Public Act 100-587, Public Act 100-769, Public Act
101-10, Public Act 101-610, Public Act 102-16, or this
amendatory Act of the 103rd General Assembly this amendatory
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be

HB5448 - 151 - LRB103 34609 RPS 64449 b
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General

HB5448 - 152 - LRB103 34609 RPS 64449 b
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act

HB5448 - 153 - LRB103 34609 RPS 64449 b
95-910, Public Act 100-23, Public Act 100-587, Public Act
100-743, Public Act 100-769, Public Act 101-10, Public Act
101-49, Public Act 102-16, or Public Act 102-871, or this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action

HB5448 - 154 - LRB103 34609 RPS 64449 b
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
6-30-23.)
(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit
increases.

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(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include

HB5448 - 156 - LRB103 34609 RPS 64449 b
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)

HB5448 - 157 - LRB103 34609 RPS 64449 b
Section 90-90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Article 99.
Section 99-99. Effective date. This Act takes effect upon
becoming law.
HB5448 - 158 - LRB103 34609 RPS 64449 b
INDEX
Statutes amended in order of appearance
40 ILCS 5/1-160
40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/14-103.10 from Ch. 108 1/2, par. 14-103.10
40 ILCS 5/15-111 from Ch. 108 1/2, par. 15-111
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01
40 ILCS 5/1-103.3
40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131 from Ch. 108 1/2, par. 18-131
40 ILCS 5/2-101 from Ch. 108 1/2, par. 2-101
40 ILCS 5/2-105 from Ch. 108 1/2, par. 2-105
40 ILCS 5/2-107 from Ch. 108 1/2, par. 2-107
40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
40 ILCS 5/14-105.4 from Ch. 108 1/2, par. 14-105.4
40 ILCS 5/18-101 from Ch. 108 1/2, par. 18-101
40 ILCS 5/18-108 from Ch. 108 1/2, par. 18-108
40 ILCS 5/18-109 from Ch. 108 1/2, par. 18-109
HB5448 - 159 - LRB103 34609 RPS 64449 b