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
 
HB5448LRB103 34609 RPS 64449 b


1 AN ACT concerning public employee benefits.

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

4
Article 1. 


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

8 (40 ILCS 5/1-160)
9 (Text of Section from P.A. 102-719)
10 Sec. 1-160. Provisions applicable to new hires. 
11 (a) The provisions of this Section apply to a person who, 
12on or after January 1, 2011, first becomes a member or a 
13participant under any reciprocal retirement system or pension 
14fund established under this Code, other than a retirement 
15system or pension fund established under Article 2, 3, 4, 5, 6, 
167, 15, or 18 of this Code, notwithstanding any other provision 
17of this Code to the contrary, but do not apply to any 
18self-managed plan established under this Code or to any 
19participant of the retirement plan established under Section 
2022-101; except that this Section applies to a person who 
21elected to establish alternative credits by electing in 
22writing after January 1, 2011, but before August 8, 2011, 
 
 
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1under Section 7-145.1 of this Code. Notwithstanding anything 
2to the contrary in this Section, for purposes of this Section, 
3a person who is a Tier 1 regular employee as defined in Section 
47-109.4 of this Code or who participated in a retirement 
5system under Article 15 prior to January 1, 2011 shall be 
6deemed a person who first became a member or participant prior 
7to January 1, 2011 under any retirement system or pension fund 
8subject to this Section. The changes made to this Section by 
9Public Act 98-596 are a clarification of existing law and are 
10intended to be retroactive to January 1, 2011 (the effective 
11date of Public Act 96-889), notwithstanding the provisions of 
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a 
14noncovered employee under Article 14 on or after the 
15implementation date of the plan created under Section 1-161 
16for that Article, unless that person elects under subsection 
17(b) of Section 1-161 to instead receive the benefits provided 
18under this Section and the applicable provisions of that 
19Article.
20 This Section does not apply to a person who first becomes a 
21member or participant under Article 16 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
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1 This Section does not apply to a person who elects under 
2subsection (c-5) of Section 1-161 to receive the benefits 
3under Section 1-161. 
4 This Section does not apply to a person who first becomes a 
5member or participant of an affected pension fund on or after 6 
6months after the resolution or ordinance date, as defined in 
7Section 1-162, unless that person elects under subsection (c) 
8of Section 1-162 to receive the benefits provided under this 
9Section and the applicable provisions of the Article under 
10which he or she is a member or participant. 
11 (b) "Final average salary" means, except as otherwise 
12provided in this subsection, the average monthly (or annual) 
13salary obtained by dividing the total salary or earnings 
14calculated under the Article applicable to the member or 
15participant during the 96 consecutive months (or 8 consecutive 
16years) of service within the last 120 months (or 10 years) of 
17service in which the total salary or earnings calculated under 
18the applicable Article was the highest by the number of months 
19(or years) of service in that period. For the purposes of a 
20person who first becomes a member or participant of any 
21retirement system or pension fund to which this Section 
22applies on or after January 1, 2011, in this Code, "final 
23average salary" shall be substituted for the following:
24  (1) (Blank).
25  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
26 annual salary for any 4 consecutive years within the last 
 
 
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1 10 years of service immediately preceding the date of 
2 withdrawal". 
3  (3) In Article 13, "average final salary". 
4  (4) In Article 14, "final average compensation". 
5  (5) In Article 17, "average salary". 
6  (6) In Section 22-207, "wages or salary received by 
7 him at the date of retirement or discharge". 
8 A member of the Teachers' Retirement System of the State 
9of Illinois who retires on or after June 1, 2021 and for whom 
10the 2020-2021 school year is used in the calculation of the 
11member's final average salary shall use the higher of the 
12following for the purpose of determining the member's final 
13average salary:
14  (A) the amount otherwise calculated under the first 
15 paragraph of this subsection; or
16  (B) an amount calculated by the Teachers' Retirement 
17 System of the State of Illinois using the average of the 
18 monthly (or annual) salary obtained by dividing the total 
19 salary or earnings calculated under Article 16 applicable 
20 to the member or participant during the 96 months (or 8 
21 years) of service within the last 120 months (or 10 years) 
22 of service in which the total salary or earnings 
23 calculated under the Article was the highest by the number 
24 of months (or years) of service in that period.
25 (b-5) Except as provided in subsection (b-10) Beginning on 
26January 1, 2011, for all purposes under this Code (including 
 
 
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1without limitation the calculation of benefits and employee 
2contributions), the annual earnings, salary, or wages (based 
3on the plan year) of a member or participant to whom this 
4Section applies shall not exceed $106,800; however, that 
5amount shall annually thereafter be increased by the lesser of 
6(i) 3% of that amount, including all previous adjustments, or 
7(ii) one-half the annual unadjusted percentage increase (but 
8not less than zero) in the consumer price index-u for the 12 
9months ending with the September preceding each November 1, 
10including all previous adjustments.
11 For the purposes of this Section, "consumer price index-u" 
12means the index published by the Bureau of Labor Statistics of 
13the United States Department of Labor that measures the 
14average change in prices of goods and services purchased by 
15all urban consumers, United States city average, all items, 
161982-84 = 100. The new amount resulting from each annual 
17adjustment shall be determined by the Public Pension Division 
18of the Department of Insurance and made available to the 
19boards of the retirement systems and pension funds by November 
201 of each year. 
21 (b-10) Beginning January 1, 2024, for all purposes under 
22this Code (including, without limitation, the calculation of 
23benefits and employee contributions), the annual earnings, 
24salary, or wages (based on the plan year) of a member or 
25participant under Article 14, 16, or 17 to whom this Section 
26applies shall not exceed 90.5% of the federal Social Security 
 
 
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1Wage Base then in effect or the amount determined under 
2subsection (b-5), whichever is greater.
3 (c) A member or participant is entitled to a retirement 
4annuity upon written application if he or she has attained age 
567 (age 65, with respect to service under Article 12 that is 
6subject to this Section, for a member or participant under 
7Article 12 who first becomes a member or participant under 
8Article 12 on or after January 1, 2022 or who makes the 
9election under item (i) of subsection (d-15) of this Section) 
10and has at least 10 years of service credit and is otherwise 
11eligible under the requirements of the applicable Article. 
12 A member or participant who has attained age 62 (age 60, 
13with respect to service under Article 12 that is subject to 
14this Section, for a member or participant under Article 12 who 
15first becomes a member or participant under Article 12 on or 
16after January 1, 2022 or who makes the election under item (i) 
17of subsection (d-15) of this Section) and has at least 10 years 
18of service credit and is otherwise eligible under the 
19requirements of the applicable Article may elect to receive 
20the lower retirement annuity provided in subsection (d) of 
21this Section. 
22 (c-5) A person who first becomes a member or a participant 
23subject to this Section on or after July 6, 2017 (the effective 
24date of Public Act 100-23), notwithstanding any other 
25provision of this Code to the contrary, is entitled to a 
26retirement annuity under Article 8 or Article 11 upon written 
 
 
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1application if he or she has attained age 65 and has at least 
210 years of service credit and is otherwise eligible under the 
3requirements of Article 8 or Article 11 of this Code, 
4whichever is applicable. 
5 (d) The retirement annuity of a member or participant who 
6is retiring after attaining age 62 (age 60, with respect to 
7service under Article 12 that is subject to this Section, for a 
8member or participant under Article 12 who first becomes a 
9member or participant under Article 12 on or after January 1, 
102022 or who makes the election under item (i) of subsection 
11(d-15) of this Section) with at least 10 years of service 
12credit shall be reduced by one-half of 1% for each full month 
13that the member's age is under age 67 (age 65, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section).
19 (d-5) The retirement annuity payable under Article 8 or 
20Article 11 to an eligible person subject to subsection (c-5) 
21of this Section who is retiring at age 60 with at least 10 
22years of service credit shall be reduced by one-half of 1% for 
23each full month that the member's age is under age 65. 
24 (d-10) Each person who first became a member or 
25participant under Article 8 or Article 11 of this Code on or 
26after January 1, 2011 and prior to July 6, 2017 (the effective 
 
 
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1date of Public Act 100-23) shall make an irrevocable election 
2either:
3  (i) to be eligible for the reduced retirement age 
4 provided in subsections (c-5) and (d-5) of this Section, 
5 the eligibility for which is conditioned upon the member 
6 or participant agreeing to the increases in employee 
7 contributions for age and service annuities provided in 
8 subsection (a-5) of Section 8-174 of this Code (for 
9 service under Article 8) or subsection (a-5) of Section 
10 11-170 of this Code (for service under Article 11); or 
11  (ii) to not agree to item (i) of this subsection 
12 (d-10), in which case the member or participant shall 
13 continue to be subject to the retirement age provisions in 
14 subsections (c) and (d) of this Section and the employee 
15 contributions for age and service annuity as provided in 
16 subsection (a) of Section 8-174 of this Code (for service 
17 under Article 8) or subsection (a) of Section 11-170 of 
18 this Code (for service under Article 11). 
19 The election provided for in this subsection shall be made 
20between October 1, 2017 and November 15, 2017. A person 
21subject to this subsection who makes the required election 
22shall remain bound by that election. A person subject to this 
23subsection who fails for any reason to make the required 
24election within the time specified in this subsection shall be 
25deemed to have made the election under item (ii). 
26 (d-15) Each person who first becomes a member or 
 
 
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1participant under Article 12 on or after January 1, 2011 and 
2prior to January 1, 2022 shall make an irrevocable election 
3either: 
4  (i) to be eligible for the reduced retirement age 
5 specified in subsections (c) and (d) of this Section, the 
6 eligibility for which is conditioned upon the member or 
7 participant agreeing to the increase in employee 
8 contributions for service annuities specified in 
9 subsection (b) of Section 12-150; or
10  (ii) to not agree to item (i) of this subsection 
11 (d-15), in which case the member or participant shall not 
12 be eligible for the reduced retirement age specified in 
13 subsections (c) and (d) of this Section and shall not be 
14 subject to the increase in employee contributions for 
15 service annuities specified in subsection (b) of Section 
16 12-150. 
17 The election provided for in this subsection shall be made 
18between January 1, 2022 and April 1, 2022. A person subject to 
19this subsection who makes the required election shall remain 
20bound by that election. A person subject to this subsection 
21who fails for any reason to make the required election within 
22the time specified in this subsection shall be deemed to have 
23made the election under item (ii). 
24 (e) Any retirement annuity or supplemental annuity shall 
25be subject to annual increases on the January 1 occurring 
26either on or after the attainment of age 67 (age 65, with 
 
 
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1respect to service under Article 12 that is subject to this 
2Section, for a member or participant under Article 12 who 
3first becomes a member or participant under Article 12 on or 
4after January 1, 2022 or who makes the election under item (i) 
5of subsection (d-15); and beginning on July 6, 2017 (the 
6effective date of Public Act 100-23), age 65 with respect to 
7service under Article 8 or Article 11 for eligible persons 
8who: (i) are subject to subsection (c-5) of this Section; or 
9(ii) made the election under item (i) of subsection (d-10) of 
10this Section) or the first anniversary of the annuity start 
11date, whichever is later. Each annual increase shall be 
12calculated at 3% or one-half the annual unadjusted percentage 
13increase (but not less than zero) in the consumer price 
14index-u for the 12 months ending with the September preceding 
15each November 1, whichever is less, of the originally granted 
16retirement annuity. If the annual unadjusted percentage change 
17in the consumer price index-u for the 12 months ending with the 
18September preceding each November 1 is zero or there is a 
19decrease, then the annuity shall not be increased. 
20 For the purposes of Section 1-103.1 of this Code, the 
21changes made to this Section by Public Act 102-263 are 
22applicable without regard to whether the employee was in 
23active service on or after August 6, 2021 (the effective date 
24of Public Act 102-263). 
25 For the purposes of Section 1-103.1 of this Code, the 
26changes made to this Section by Public Act 100-23 are 
 
 
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1applicable without regard to whether the employee was in 
2active service on or after July 6, 2017 (the effective date of 
3Public Act 100-23). 
4 (f) The initial survivor's or widow's annuity of an 
5otherwise eligible survivor or widow of a retired member or 
6participant who first became a member or participant on or 
7after January 1, 2011 shall be in the amount of 66 2/3% of the 
8retired member's or participant's retirement annuity at the 
9date of death. In the case of the death of a member or 
10participant who has not retired and who first became a member 
11or participant on or after January 1, 2011, eligibility for a 
12survivor's or widow's annuity shall be determined by the 
13applicable Article of this Code. The initial benefit shall be 
1466 2/3% of the earned annuity without a reduction due to age. A 
15child's annuity of an otherwise eligible child shall be in the 
16amount prescribed under each Article if applicable. Any 
17survivor's or widow's annuity shall be increased (1) on each 
18January 1 occurring on or after the commencement of the 
19annuity if the deceased member died while receiving a 
20retirement annuity or (2) in other cases, on each January 1 
21occurring after the first anniversary of the commencement of 
22the annuity. Each annual increase shall be calculated at 3% or 
23one-half the annual unadjusted percentage increase (but not 
24less than zero) in the consumer price index-u for the 12 months 
25ending with the September preceding each November 1, whichever 
26is less, of the originally granted survivor's annuity. If the 
 
 
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1annual unadjusted percentage change in the consumer price 
2index-u for the 12 months ending with the September preceding 
3each November 1 is zero or there is a decrease, then the 
4annuity shall not be increased. 
5 (g) The benefits in Section 14-110 apply if the person is a 
6fire fighter in the fire protection service of a department, a 
7security employee of the Department of Corrections or the 
8Department of Juvenile Justice, or a security employee of the 
9Department of Innovation and Technology, as those terms are 
10defined in subsection (b) and subsection (c) of Section 
1114-110. A person who meets the requirements of this Section is 
12entitled to an annuity calculated under the provisions of 
13Section 14-110, in lieu of the regular or minimum retirement 
14annuity, only if the person has withdrawn from service with 
15not less than 20 years of eligible creditable service and has 
16attained age 60, regardless of whether the attainment of age 
1760 occurs while the person is still in service. 
18 (g-5) The benefits in Section 14-110 apply if the person 
19is a State policeman, investigator for the Secretary of State, 
20conservation police officer, investigator for the Department 
21of Revenue or the Illinois Gaming Board, investigator for the 
22Office of the Attorney General, Commerce Commission police 
23officer, or arson investigator, as those terms are defined in 
24subsection (b) and subsection (c) of Section 14-110. A person 
25who meets the requirements of this Section is entitled to an 
26annuity calculated under the provisions of Section 14-110, in 
 
 
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1lieu of the regular or minimum retirement annuity, only if the 
2person has withdrawn from service with not less than 20 years 
3of eligible creditable service and has attained age 55, 
4regardless of whether the attainment of age 55 occurs while 
5the person is still in service. 
6 (h) If a person who first becomes a member or a participant 
7of a retirement system or pension fund subject to this Section 
8on or after January 1, 2011 is receiving a retirement annuity 
9or retirement pension under that system or fund and becomes a 
10member or participant under any other system or fund created 
11by this Code and is employed on a full-time basis, except for 
12those members or participants exempted from the provisions of 
13this Section under subsection (a) of this Section, then the 
14person's retirement annuity or retirement pension under that 
15system or fund shall be suspended during that employment. Upon 
16termination of that employment, the person's retirement 
17annuity or retirement pension payments shall resume and be 
18recalculated if recalculation is provided for under the 
19applicable Article of this Code.
20 If a person who first becomes a member of a retirement 
21system or pension fund subject to this Section on or after 
22January 1, 2012 and is receiving a retirement annuity or 
23retirement pension under that system or fund and accepts on a 
24contractual basis a position to provide services to a 
25governmental entity from which he or she has retired, then 
26that person's annuity or retirement pension earned as an 
 
 
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1active employee of the employer shall be suspended during that 
2contractual service. A person receiving an annuity or 
3retirement pension under this Code shall notify the pension 
4fund or retirement system from which he or she is receiving an 
5annuity or retirement pension, as well as his or her 
6contractual employer, of his or her retirement status before 
7accepting contractual employment. A person who fails to submit 
8such notification shall be guilty of a Class A misdemeanor and 
9required to pay a fine of $1,000. Upon termination of that 
10contractual employment, the person's retirement annuity or 
11retirement pension payments shall resume and, if appropriate, 
12be recalculated under the applicable provisions of this Code. 
13 (i) (Blank). 
14 (j) In the case of a conflict between the provisions of 
15this Section and any other provision of this Code, the 
16provisions of this Section shall control.
17(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
18102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
195-6-22.)

20 (Text of Section from P.A. 102-813)
21 Sec. 1-160. Provisions applicable to new hires. 
22 (a) The provisions of this Section apply to a person who, 
23on or after January 1, 2011, first becomes a member or a 
24participant under any reciprocal retirement system or pension 
25fund established under this Code, other than a retirement 
 
 
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1system or pension fund established under Article 2, 3, 4, 5, 6, 
27, 15, or 18 of this Code, notwithstanding any other provision 
3of this Code to the contrary, but do not apply to any 
4self-managed plan established under this Code or to any 
5participant of the retirement plan established under Section 
622-101; except that this Section applies to a person who 
7elected to establish alternative credits by electing in 
8writing after January 1, 2011, but before August 8, 2011, 
9under Section 7-145.1 of this Code. Notwithstanding anything 
10to the contrary in this Section, for purposes of this Section, 
11a person who is a Tier 1 regular employee as defined in Section 
127-109.4 of this Code or who participated in a retirement 
13system under Article 15 prior to January 1, 2011 shall be 
14deemed a person who first became a member or participant prior 
15to January 1, 2011 under any retirement system or pension fund 
16subject to this Section. The changes made to this Section by 
17Public Act 98-596 are a clarification of existing law and are 
18intended to be retroactive to January 1, 2011 (the effective 
19date of Public Act 96-889), notwithstanding the provisions of 
20Section 1-103.1 of this Code.
21 This Section does not apply to a person who first becomes a 
22noncovered employee under Article 14 on or after the 
23implementation date of the plan created under Section 1-161 
24for that Article, unless that person elects under subsection 
25(b) of Section 1-161 to instead receive the benefits provided 
26under this Section and the applicable provisions of that 
 
 
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1Article.
2 This Section does not apply to a person who first becomes a 
3member or participant under Article 16 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who elects under 
10subsection (c-5) of Section 1-161 to receive the benefits 
11under Section 1-161. 
12 This Section does not apply to a person who first becomes a 
13member or participant of an affected pension fund on or after 6 
14months after the resolution or ordinance date, as defined in 
15Section 1-162, unless that person elects under subsection (c) 
16of Section 1-162 to receive the benefits provided under this 
17Section and the applicable provisions of the Article under 
18which he or she is a member or participant. 
19 (b) "Final average salary" means, except as otherwise 
20provided in this subsection, the average monthly (or annual) 
21salary obtained by dividing the total salary or earnings 
22calculated under the Article applicable to the member or 
23participant during the 96 consecutive months (or 8 consecutive 
24years) of service within the last 120 months (or 10 years) of 
25service in which the total salary or earnings calculated under 
26the applicable Article was the highest by the number of months 
 
 
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1(or years) of service in that period. For the purposes of a 
2person who first becomes a member or participant of any 
3retirement system or pension fund to which this Section 
4applies on or after January 1, 2011, in this Code, "final 
5average salary" shall be substituted for the following:
6  (1) (Blank).
7  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
8 annual salary for any 4 consecutive years within the last 
9 10 years of service immediately preceding the date of 
10 withdrawal". 
11  (3) In Article 13, "average final salary". 
12  (4) In Article 14, "final average compensation". 
13  (5) In Article 17, "average salary". 
14  (6) In Section 22-207, "wages or salary received by 
15 him at the date of retirement or discharge". 
16 A member of the Teachers' Retirement System of the State 
17of Illinois who retires on or after June 1, 2021 and for whom 
18the 2020-2021 school year is used in the calculation of the 
19member's final average salary shall use the higher of the 
20following for the purpose of determining the member's final 
21average salary:
22  (A) the amount otherwise calculated under the first 
23 paragraph of this subsection; or
24  (B) an amount calculated by the Teachers' Retirement 
25 System of the State of Illinois using the average of the 
26 monthly (or annual) salary obtained by dividing the total 
 
 
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1 salary or earnings calculated under Article 16 applicable 
2 to the member or participant during the 96 months (or 8 
3 years) of service within the last 120 months (or 10 years) 
4 of service in which the total salary or earnings 
5 calculated under the Article was the highest by the number 
6 of months (or years) of service in that period.
7 (b-5) Except as provided in subsection (b-10) Beginning on 
8January 1, 2011, for all purposes under this Code (including 
9without limitation the calculation of benefits and employee 
10contributions), the annual earnings, salary, or wages (based 
11on the plan year) of a member or participant to whom this 
12Section applies shall not exceed $106,800; however, that 
13amount shall annually thereafter be increased by the lesser of 
14(i) 3% of that amount, including all previous adjustments, or 
15(ii) one-half the annual unadjusted percentage increase (but 
16not less than zero) in the consumer price index-u for the 12 
17months ending with the September preceding each November 1, 
18including all previous adjustments.
19 For the purposes of this Section, "consumer price index-u" 
20means the index published by the Bureau of Labor Statistics of 
21the United States Department of Labor that measures the 
22average change in prices of goods and services purchased by 
23all urban consumers, United States city average, all items, 
241982-84 = 100. The new amount resulting from each annual 
25adjustment shall be determined by the Public Pension Division 
26of the Department of Insurance and made available to the 
 
 
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1boards of the retirement systems and pension funds by November 
21 of each year. 
3 (b-10) Beginning January 1, 2024, for all purposes under 
4this Code (including, without limitation, the calculation of 
5benefits and employee contributions), the annual earnings, 
6salary, or wages (based on the plan year) of a member or 
7participant under Article 14, 16, or 17 to whom this Section 
8applies shall not exceed 90.5% of the federal Social Security 
9Wage Base then in effect or the amount determined under 
10subsection (b-5), whichever is greater.
11 (c) A member or participant is entitled to a retirement 
12annuity upon written application if he or she has attained age 
1367 (age 65, with respect to service under Article 12 that is 
14subject to this Section, for a member or participant under 
15Article 12 who first becomes a member or participant under 
16Article 12 on or after January 1, 2022 or who makes the 
17election under item (i) of subsection (d-15) of this Section) 
18and has at least 10 years of service credit and is otherwise 
19eligible under the requirements of the applicable Article. 
20 A member or participant who has attained age 62 (age 60, 
21with respect to service under Article 12 that is subject to 
22this Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15) of this Section) and has at least 10 years 
26of service credit and is otherwise eligible under the 
 
 
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1requirements of the applicable Article may elect to receive 
2the lower retirement annuity provided in subsection (d) of 
3this Section. 
4 (c-5) A person who first becomes a member or a participant 
5subject to this Section on or after July 6, 2017 (the effective 
6date of Public Act 100-23), notwithstanding any other 
7provision of this Code to the contrary, is entitled to a 
8retirement annuity under Article 8 or Article 11 upon written 
9application if he or she has attained age 65 and has at least 
1010 years of service credit and is otherwise eligible under the 
11requirements of Article 8 or Article 11 of this Code, 
12whichever is applicable. 
13 (d) The retirement annuity of a member or participant who 
14is retiring after attaining age 62 (age 60, with respect to 
15service under Article 12 that is subject to this Section, for a 
16member or participant under Article 12 who first becomes a 
17member or participant under Article 12 on or after January 1, 
182022 or who makes the election under item (i) of subsection 
19(d-15) of this Section) with at least 10 years of service 
20credit shall be reduced by one-half of 1% for each full month 
21that the member's age is under age 67 (age 65, with respect to 
22service under Article 12 that is subject to this Section, for a 
23member or participant under Article 12 who first becomes a 
24member or participant under Article 12 on or after January 1, 
252022 or who makes the election under item (i) of subsection 
26(d-15) of this Section).
 
 
HB5448- 21 -LRB103 34609 RPS 64449 b


1 (d-5) The retirement annuity payable under Article 8 or 
2Article 11 to an eligible person subject to subsection (c-5) 
3of this Section who is retiring at age 60 with at least 10 
4years of service credit shall be reduced by one-half of 1% for 
5each full month that the member's age is under age 65. 
6 (d-10) Each person who first became a member or 
7participant under Article 8 or Article 11 of this Code on or 
8after January 1, 2011 and prior to July 6, 2017 (the effective 
9date of Public Act 100-23) shall make an irrevocable election 
10either:
11  (i) to be eligible for the reduced retirement age 
12 provided in subsections (c-5) and (d-5) of this Section, 
13 the eligibility for which is conditioned upon the member 
14 or participant agreeing to the increases in employee 
15 contributions for age and service annuities provided in 
16 subsection (a-5) of Section 8-174 of this Code (for 
17 service under Article 8) or subsection (a-5) of Section 
18 11-170 of this Code (for service under Article 11); or 
19  (ii) to not agree to item (i) of this subsection 
20 (d-10), in which case the member or participant shall 
21 continue to be subject to the retirement age provisions in 
22 subsections (c) and (d) of this Section and the employee 
23 contributions for age and service annuity as provided in 
24 subsection (a) of Section 8-174 of this Code (for service 
25 under Article 8) or subsection (a) of Section 11-170 of 
26 this Code (for service under Article 11). 
 
 
HB5448- 22 -LRB103 34609 RPS 64449 b


1 The election provided for in this subsection shall be made 
2between October 1, 2017 and November 15, 2017. A person 
3subject to this subsection who makes the required election 
4shall remain bound by that election. A person subject to this 
5subsection who fails for any reason to make the required 
6election within the time specified in this subsection shall be 
7deemed to have made the election under item (ii). 
8 (d-15) Each person who first becomes a member or 
9participant under Article 12 on or after January 1, 2011 and 
10prior to January 1, 2022 shall make an irrevocable election 
11either: 
12  (i) to be eligible for the reduced retirement age 
13 specified in subsections (c) and (d) of this Section, the 
14 eligibility for which is conditioned upon the member or 
15 participant agreeing to the increase in employee 
16 contributions for service annuities specified in 
17 subsection (b) of Section 12-150; or
18  (ii) to not agree to item (i) of this subsection 
19 (d-15), in which case the member or participant shall not 
20 be eligible for the reduced retirement age specified in 
21 subsections (c) and (d) of this Section and shall not be 
22 subject to the increase in employee contributions for 
23 service annuities specified in subsection (b) of Section 
24 12-150. 
25 The election provided for in this subsection shall be made 
26between January 1, 2022 and April 1, 2022. A person subject to 
 
 
HB5448- 23 -LRB103 34609 RPS 64449 b


1this subsection who makes the required election shall remain 
2bound by that election. A person subject to this subsection 
3who fails for any reason to make the required election within 
4the time specified in this subsection shall be deemed to have 
5made the election under item (ii). 
6 (e) Any retirement annuity or supplemental annuity shall 
7be subject to annual increases on the January 1 occurring 
8either on or after the attainment of age 67 (age 65, with 
9respect to service under Article 12 that is subject to this 
10Section, for a member or participant under Article 12 who 
11first becomes a member or participant under Article 12 on or 
12after January 1, 2022 or who makes the election under item (i) 
13of subsection (d-15); and beginning on July 6, 2017 (the 
14effective date of Public Act 100-23), age 65 with respect to 
15service under Article 8 or Article 11 for eligible persons 
16who: (i) are subject to subsection (c-5) of this Section; or 
17(ii) made the election under item (i) of subsection (d-10) of 
18this Section) or the first anniversary of the annuity start 
19date, whichever is later. Each annual increase shall be 
20calculated at 3% or one-half the annual unadjusted percentage 
21increase (but not less than zero) in the consumer price 
22index-u for the 12 months ending with the September preceding 
23each November 1, whichever is less, of the originally granted 
24retirement annuity. If the annual unadjusted percentage change 
25in the consumer price index-u for the 12 months ending with the 
26September preceding each November 1 is zero or there is a 
 
 
HB5448- 24 -LRB103 34609 RPS 64449 b


1decrease, then the annuity shall not be increased. 
2 For the purposes of Section 1-103.1 of this Code, the 
3changes made to this Section by Public Act 102-263 are 
4applicable without regard to whether the employee was in 
5active service on or after August 6, 2021 (the effective date 
6of Public Act 102-263). 
7 For the purposes of Section 1-103.1 of this Code, the 
8changes made to this Section by Public Act 100-23 are 
9applicable without regard to whether the employee was in 
10active service on or after July 6, 2017 (the effective date of 
11Public Act 100-23). 
12 (f) The initial survivor's or widow's annuity of an 
13otherwise eligible survivor or widow of a retired member or 
14participant who first became a member or participant on or 
15after January 1, 2011 shall be in the amount of 66 2/3% of the 
16retired member's or participant's retirement annuity at the 
17date of death. In the case of the death of a member or 
18participant who has not retired and who first became a member 
19or participant on or after January 1, 2011, eligibility for a 
20survivor's or widow's annuity shall be determined by the 
21applicable Article of this Code. The initial benefit shall be 
2266 2/3% of the earned annuity without a reduction due to age. A 
23child's annuity of an otherwise eligible child shall be in the 
24amount prescribed under each Article if applicable. Any 
25survivor's or widow's annuity shall be increased (1) on each 
26January 1 occurring on or after the commencement of the 
 
 
HB5448- 25 -LRB103 34609 RPS 64449 b


1annuity if the deceased member died while receiving a 
2retirement annuity or (2) in other cases, on each January 1 
3occurring after the first anniversary of the commencement of 
4the annuity. Each annual increase shall be calculated at 3% or 
5one-half the annual unadjusted percentage increase (but not 
6less than zero) in the consumer price index-u for the 12 months 
7ending with the September preceding each November 1, whichever 
8is less, of the originally granted survivor's annuity. If the 
9annual unadjusted percentage change in the consumer price 
10index-u for the 12 months ending with the September preceding 
11each November 1 is zero or there is a decrease, then the 
12annuity shall not be increased. 
13 (g) The benefits in Section 14-110 apply only if the 
14person is a State policeman, a fire fighter in the fire 
15protection service of a department, a conservation police 
16officer, an investigator for the Secretary of State, an arson 
17investigator, a Commerce Commission police officer, 
18investigator for the Department of Revenue or the Illinois 
19Gaming Board, a security employee of the Department of 
20Corrections or the Department of Juvenile Justice, or a 
21security employee of the Department of Innovation and 
22Technology, as those terms are defined in subsection (b) and 
23subsection (c) of Section 14-110. A person who meets the 
24requirements of this Section is entitled to an annuity 
25calculated under the provisions of Section 14-110, in lieu of 
26the regular or minimum retirement annuity, only if the person 
 
 
HB5448- 26 -LRB103 34609 RPS 64449 b


1has withdrawn from service with not less than 20 years of 
2eligible creditable service and has attained age 60, 
3regardless of whether the attainment of age 60 occurs while 
4the person is still in service. 
5 (h) If a person who first becomes a member or a participant 
6of a retirement system or pension fund subject to this Section 
7on or after January 1, 2011 is receiving a retirement annuity 
8or retirement pension under that system or fund and becomes a 
9member or participant under any other system or fund created 
10by this Code and is employed on a full-time basis, except for 
11those members or participants exempted from the provisions of 
12this Section under subsection (a) of this Section, then the 
13person's retirement annuity or retirement pension under that 
14system or fund shall be suspended during that employment. Upon 
15termination of that employment, the person's retirement 
16annuity or retirement pension payments shall resume and be 
17recalculated if recalculation is provided for under the 
18applicable Article of this Code.
19 If a person who first becomes a member of a retirement 
20system or pension fund subject to this Section on or after 
21January 1, 2012 and is receiving a retirement annuity or 
22retirement pension under that system or fund and accepts on a 
23contractual basis a position to provide services to a 
24governmental entity from which he or she has retired, then 
25that person's annuity or retirement pension earned as an 
26active employee of the employer shall be suspended during that 
 
 
HB5448- 27 -LRB103 34609 RPS 64449 b


1contractual service. A person receiving an annuity or 
2retirement pension under this Code shall notify the pension 
3fund or retirement system from which he or she is receiving an 
4annuity or retirement pension, as well as his or her 
5contractual employer, of his or her retirement status before 
6accepting contractual employment. A person who fails to submit 
7such notification shall be guilty of a Class A misdemeanor and 
8required to pay a fine of $1,000. Upon termination of that 
9contractual employment, the person's retirement annuity or 
10retirement pension payments shall resume and, if appropriate, 
11be recalculated under the applicable provisions of this Code. 
12 (i) (Blank). 
13 (j) In the case of a conflict between the provisions of 
14this Section and any other provision of this Code, the 
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
17102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
185-13-22.)

19 (Text of Section from P.A. 102-956)
20 Sec. 1-160. Provisions applicable to new hires. 
21 (a) The provisions of this Section apply to a person who, 
22on or after January 1, 2011, first becomes a member or a 
23participant under any reciprocal retirement system or pension 
24fund established under this Code, other than a retirement 
25system or pension fund established under Article 2, 3, 4, 5, 6, 
 
 
HB5448- 28 -LRB103 34609 RPS 64449 b


17, 15, or 18 of this Code, notwithstanding any other provision 
2of this Code to the contrary, but do not apply to any 
3self-managed plan established under this Code or to any 
4participant of the retirement plan established under Section 
522-101; except that this Section applies to a person who 
6elected to establish alternative credits by electing in 
7writing after January 1, 2011, but before August 8, 2011, 
8under Section 7-145.1 of this Code. Notwithstanding anything 
9to the contrary in this Section, for purposes of this Section, 
10a person who is a Tier 1 regular employee as defined in Section 
117-109.4 of this Code or who participated in a retirement 
12system under Article 15 prior to January 1, 2011 shall be 
13deemed a person who first became a member or participant prior 
14to January 1, 2011 under any retirement system or pension fund 
15subject to this Section. The changes made to this Section by 
16Public Act 98-596 are a clarification of existing law and are 
17intended to be retroactive to January 1, 2011 (the effective 
18date of Public Act 96-889), notwithstanding the provisions of 
19Section 1-103.1 of this Code.
20 This Section does not apply to a person who first becomes a 
21noncovered employee under Article 14 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
HB5448- 29 -LRB103 34609 RPS 64449 b


1 This Section does not apply to a person who first becomes a 
2member or participant under Article 16 on or after the 
3implementation date of the plan created under Section 1-161 
4for that Article, unless that person elects under subsection 
5(b) of Section 1-161 to instead receive the benefits provided 
6under this Section and the applicable provisions of that 
7Article.
8 This Section does not apply to a person who elects under 
9subsection (c-5) of Section 1-161 to receive the benefits 
10under Section 1-161. 
11 This Section does not apply to a person who first becomes a 
12member or participant of an affected pension fund on or after 6 
13months after the resolution or ordinance date, as defined in 
14Section 1-162, unless that person elects under subsection (c) 
15of Section 1-162 to receive the benefits provided under this 
16Section and the applicable provisions of the Article under 
17which he or she is a member or participant. 
18 (b) "Final average salary" means, except as otherwise 
19provided in this subsection, the average monthly (or annual) 
20salary obtained by dividing the total salary or earnings 
21calculated under the Article applicable to the member or 
22participant during the 96 consecutive months (or 8 consecutive 
23years) of service within the last 120 months (or 10 years) of 
24service in which the total salary or earnings calculated under 
25the applicable Article was the highest by the number of months 
26(or years) of service in that period. For the purposes of a 
 
 
HB5448- 30 -LRB103 34609 RPS 64449 b


1person who first becomes a member or participant of any 
2retirement system or pension fund to which this Section 
3applies on or after January 1, 2011, in this Code, "final 
4average salary" shall be substituted for the following:
5  (1) (Blank).
6  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
7 annual salary for any 4 consecutive years within the last 
8 10 years of service immediately preceding the date of 
9 withdrawal". 
10  (3) In Article 13, "average final salary". 
11  (4) In Article 14, "final average compensation". 
12  (5) In Article 17, "average salary". 
13  (6) In Section 22-207, "wages or salary received by 
14 him at the date of retirement or discharge". 
15 A member of the Teachers' Retirement System of the State 
16of Illinois who retires on or after June 1, 2021 and for whom 
17the 2020-2021 school year is used in the calculation of the 
18member's final average salary shall use the higher of the 
19following for the purpose of determining the member's final 
20average salary:
21  (A) the amount otherwise calculated under the first 
22 paragraph of this subsection; or
23  (B) an amount calculated by the Teachers' Retirement 
24 System of the State of Illinois using the average of the 
25 monthly (or annual) salary obtained by dividing the total 
26 salary or earnings calculated under Article 16 applicable 
 
 
HB5448- 31 -LRB103 34609 RPS 64449 b


1 to the member or participant during the 96 months (or 8 
2 years) of service within the last 120 months (or 10 years) 
3 of service in which the total salary or earnings 
4 calculated under the Article was the highest by the number 
5 of months (or years) of service in that period.
6 (b-5) Except as provided in subsection (b-10) Beginning on 
7January 1, 2011, for all purposes under this Code (including 
8without limitation the calculation of benefits and employee 
9contributions), the annual earnings, salary, or wages (based 
10on the plan year) of a member or participant to whom this 
11Section applies shall not exceed $106,800; however, that 
12amount shall annually thereafter be increased by the lesser of 
13(i) 3% of that amount, including all previous adjustments, or 
14(ii) one-half the annual unadjusted percentage increase (but 
15not less than zero) in the consumer price index-u for the 12 
16months ending with the September preceding each November 1, 
17including all previous adjustments.
18 For the purposes of this Section, "consumer price index-u" 
19means the index published by the Bureau of Labor Statistics of 
20the United States Department of Labor that measures the 
21average change in prices of goods and services purchased by 
22all urban consumers, United States city average, all items, 
231982-84 = 100. The new amount resulting from each annual 
24adjustment shall be determined by the Public Pension Division 
25of the Department of Insurance and made available to the 
26boards of the retirement systems and pension funds by November 
 
 
HB5448- 32 -LRB103 34609 RPS 64449 b


11 of each year. 
2 (b-10) Beginning January 1, 2024, for all purposes under 
3this Code (including, without limitation, the calculation of 
4benefits and employee contributions), the annual earnings, 
5salary, or wages (based on the plan year) of a member or 
6participant under Article 14, 16, or 17 to whom this Section 
7applies shall not exceed 90.5% of the federal Social Security 
8Wage Base then in effect or the amount determined under 
9subsection (b-5), whichever is greater.
10 (c) A member or participant is entitled to a retirement 
11annuity upon written application if he or she has attained age 
1267 (age 65, with respect to service under Article 12 that is 
13subject to this Section, for a member or participant under 
14Article 12 who first becomes a member or participant under 
15Article 12 on or after January 1, 2022 or who makes the 
16election under item (i) of subsection (d-15) of this Section) 
17and has at least 10 years of service credit and is otherwise 
18eligible under the requirements of the applicable Article. 
19 A member or participant who has attained age 62 (age 60, 
20with respect to service under Article 12 that is subject to 
21this Section, for a member or participant under Article 12 who 
22first becomes a member or participant under Article 12 on or 
23after January 1, 2022 or who makes the election under item (i) 
24of subsection (d-15) of this Section) and has at least 10 years 
25of service credit and is otherwise eligible under the 
26requirements of the applicable Article may elect to receive 
 
 
HB5448- 33 -LRB103 34609 RPS 64449 b


1the lower retirement annuity provided in subsection (d) of 
2this Section. 
3 (c-5) A person who first becomes a member or a participant 
4subject to this Section on or after July 6, 2017 (the effective 
5date of Public Act 100-23), notwithstanding any other 
6provision of this Code to the contrary, is entitled to a 
7retirement annuity under Article 8 or Article 11 upon written 
8application if he or she has attained age 65 and has at least 
910 years of service credit and is otherwise eligible under the 
10requirements of Article 8 or Article 11 of this Code, 
11whichever is applicable. 
12 (d) The retirement annuity of a member or participant who 
13is retiring after attaining age 62 (age 60, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section) with at least 10 years of service 
19credit shall be reduced by one-half of 1% for each full month 
20that the member's age is under age 67 (age 65, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section).
26 (d-5) The retirement annuity payable under Article 8 or 
 
 
HB5448- 34 -LRB103 34609 RPS 64449 b


1Article 11 to an eligible person subject to subsection (c-5) 
2of this Section who is retiring at age 60 with at least 10 
3years of service credit shall be reduced by one-half of 1% for 
4each full month that the member's age is under age 65. 
5 (d-10) Each person who first became a member or 
6participant under Article 8 or Article 11 of this Code on or 
7after January 1, 2011 and prior to July 6, 2017 (the effective 
8date of Public Act 100-23) shall make an irrevocable election 
9either:
10  (i) to be eligible for the reduced retirement age 
11 provided in subsections (c-5) and (d-5) of this Section, 
12 the eligibility for which is conditioned upon the member 
13 or participant agreeing to the increases in employee 
14 contributions for age and service annuities provided in 
15 subsection (a-5) of Section 8-174 of this Code (for 
16 service under Article 8) or subsection (a-5) of Section 
17 11-170 of this Code (for service under Article 11); or 
18  (ii) to not agree to item (i) of this subsection 
19 (d-10), in which case the member or participant shall 
20 continue to be subject to the retirement age provisions in 
21 subsections (c) and (d) of this Section and the employee 
22 contributions for age and service annuity as provided in 
23 subsection (a) of Section 8-174 of this Code (for service 
24 under Article 8) or subsection (a) of Section 11-170 of 
25 this Code (for service under Article 11). 
26 The election provided for in this subsection shall be made 
 
 
HB5448- 35 -LRB103 34609 RPS 64449 b


1between October 1, 2017 and November 15, 2017. A person 
2subject to this subsection who makes the required election 
3shall remain bound by that election. A person subject to this 
4subsection who fails for any reason to make the required 
5election within the time specified in this subsection shall be 
6deemed to have made the election under item (ii). 
7 (d-15) Each person who first becomes a member or 
8participant under Article 12 on or after January 1, 2011 and 
9prior to January 1, 2022 shall make an irrevocable election 
10either: 
11  (i) to be eligible for the reduced retirement age 
12 specified in subsections (c) and (d) of this Section, the 
13 eligibility for which is conditioned upon the member or 
14 participant agreeing to the increase in employee 
15 contributions for service annuities specified in 
16 subsection (b) of Section 12-150; or
17  (ii) to not agree to item (i) of this subsection 
18 (d-15), in which case the member or participant shall not 
19 be eligible for the reduced retirement age specified in 
20 subsections (c) and (d) of this Section and shall not be 
21 subject to the increase in employee contributions for 
22 service annuities specified in subsection (b) of Section 
23 12-150. 
24 The election provided for in this subsection shall be made 
25between January 1, 2022 and April 1, 2022. A person subject to 
26this subsection who makes the required election shall remain 
 
 
HB5448- 36 -LRB103 34609 RPS 64449 b


1bound by that election. A person subject to this subsection 
2who fails for any reason to make the required election within 
3the time specified in this subsection shall be deemed to have 
4made the election under item (ii). 
5 (e) Any retirement annuity or supplemental annuity shall 
6be subject to annual increases on the January 1 occurring 
7either on or after the attainment of age 67 (age 65, with 
8respect to service under Article 12 that is subject to this 
9Section, for a member or participant under Article 12 who 
10first becomes a member or participant under Article 12 on or 
11after January 1, 2022 or who makes the election under item (i) 
12of subsection (d-15); and beginning on July 6, 2017 (the 
13effective date of Public Act 100-23), age 65 with respect to 
14service under Article 8 or Article 11 for eligible persons 
15who: (i) are subject to subsection (c-5) of this Section; or 
16(ii) made the election under item (i) of subsection (d-10) of 
17this Section) or the first anniversary of the annuity start 
18date, whichever is later. Each annual increase shall be 
19calculated at 3% or one-half the annual unadjusted percentage 
20increase (but not less than zero) in the consumer price 
21index-u for the 12 months ending with the September preceding 
22each November 1, whichever is less, of the originally granted 
23retirement annuity. If the annual unadjusted percentage change 
24in the consumer price index-u for the 12 months ending with the 
25September preceding each November 1 is zero or there is a 
26decrease, then the annuity shall not be increased. 
 
 
HB5448- 37 -LRB103 34609 RPS 64449 b


1 For the purposes of Section 1-103.1 of this Code, the 
2changes made to this Section by Public Act 102-263 are 
3applicable without regard to whether the employee was in 
4active service on or after August 6, 2021 (the effective date 
5of Public Act 102-263). 
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this Section by Public Act 100-23 are 
8applicable without regard to whether the employee was in 
9active service on or after July 6, 2017 (the effective date of 
10Public Act 100-23). 
11 (f) The initial survivor's or widow's annuity of an 
12otherwise eligible survivor or widow of a retired member or 
13participant who first became a member or participant on or 
14after January 1, 2011 shall be in the amount of 66 2/3% of the 
15retired member's or participant's retirement annuity at the 
16date of death. In the case of the death of a member or 
17participant who has not retired and who first became a member 
18or participant on or after January 1, 2011, eligibility for a 
19survivor's or widow's annuity shall be determined by the 
20applicable Article of this Code. The initial benefit shall be 
2166 2/3% of the earned annuity without a reduction due to age. A 
22child's annuity of an otherwise eligible child shall be in the 
23amount prescribed under each Article if applicable. Any 
24survivor's or widow's annuity shall be increased (1) on each 
25January 1 occurring on or after the commencement of the 
26annuity if the deceased member died while receiving a 
 
 
HB5448- 38 -LRB103 34609 RPS 64449 b


1retirement annuity or (2) in other cases, on each January 1 
2occurring after the first anniversary of the commencement of 
3the annuity. Each annual increase shall be calculated at 3% or 
4one-half the annual unadjusted percentage increase (but not 
5less than zero) in the consumer price index-u for the 12 months 
6ending with the September preceding each November 1, whichever 
7is less, of the originally granted survivor's annuity. If the 
8annual unadjusted percentage change in the consumer price 
9index-u for the 12 months ending with the September preceding 
10each November 1 is zero or there is a decrease, then the 
11annuity shall not be increased. 
12 (g) The benefits in Section 14-110 apply only if the 
13person is a State policeman, a fire fighter in the fire 
14protection service of a department, a conservation police 
15officer, an investigator for the Secretary of State, an 
16investigator for the Office of the Attorney General, an arson 
17investigator, a Commerce Commission police officer, 
18investigator for the Department of Revenue or the Illinois 
19Gaming Board, a security employee of the Department of 
20Corrections or the Department of Juvenile Justice, or a 
21security employee of the Department of Innovation and 
22Technology, as those terms are defined in subsection (b) and 
23subsection (c) of Section 14-110. A person who meets the 
24requirements of this Section is entitled to an annuity 
25calculated under the provisions of Section 14-110, in lieu of 
26the regular or minimum retirement annuity, only if the person 
 
 
HB5448- 39 -LRB103 34609 RPS 64449 b


1has withdrawn from service with not less than 20 years of 
2eligible creditable service and has attained age 60, 
3regardless of whether the attainment of age 60 occurs while 
4the person is still in service. 
5 (h) If a person who first becomes a member or a participant 
6of a retirement system or pension fund subject to this Section 
7on or after January 1, 2011 is receiving a retirement annuity 
8or retirement pension under that system or fund and becomes a 
9member or participant under any other system or fund created 
10by this Code and is employed on a full-time basis, except for 
11those members or participants exempted from the provisions of 
12this Section under subsection (a) of this Section, then the 
13person's retirement annuity or retirement pension under that 
14system or fund shall be suspended during that employment. Upon 
15termination of that employment, the person's retirement 
16annuity or retirement pension payments shall resume and be 
17recalculated if recalculation is provided for under the 
18applicable Article of this Code.
19 If a person who first becomes a member of a retirement 
20system or pension fund subject to this Section on or after 
21January 1, 2012 and is receiving a retirement annuity or 
22retirement pension under that system or fund and accepts on a 
23contractual basis a position to provide services to a 
24governmental entity from which he or she has retired, then 
25that person's annuity or retirement pension earned as an 
26active employee of the employer shall be suspended during that 
 
 
HB5448- 40 -LRB103 34609 RPS 64449 b


1contractual service. A person receiving an annuity or 
2retirement pension under this Code shall notify the pension 
3fund or retirement system from which he or she is receiving an 
4annuity or retirement pension, as well as his or her 
5contractual employer, of his or her retirement status before 
6accepting contractual employment. A person who fails to submit 
7such notification shall be guilty of a Class A misdemeanor and 
8required to pay a fine of $1,000. Upon termination of that 
9contractual employment, the person's retirement annuity or 
10retirement pension payments shall resume and, if appropriate, 
11be recalculated under the applicable provisions of this Code. 
12 (i) (Blank). 
13 (j) In the case of a conflict between the provisions of 
14this Section and any other provision of this Code, the 
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
17102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff. 
185-27-22.)

19 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
20 (Text of Section WITHOUT the changes made by P.A. 98-599, 
21which has been held unconstitutional)
22 Sec. 2-108.1. Highest salary for annuity purposes. 
23 (a) "Highest salary for annuity purposes" means whichever 
24of the following is applicable to the participant:
25 For a participant who first becomes a participant of this 
 
 
HB5448- 41 -LRB103 34609 RPS 64449 b


1System before August 10, 2009 (the effective date of Public 
2Act 96-207):  
3  (1) For a participant who is a member of the General 
4 Assembly on his or her last day of service: the highest 
5 salary that is prescribed by law, on the participant's 
6 last day of service, for a member of the General Assembly 
7 who is not an officer; plus, if the participant was 
8 elected or appointed to serve as an officer of the General 
9 Assembly for 2 or more years and has made contributions as 
10 required under subsection (d) of Section 2-126, the 
11 highest additional amount of compensation prescribed by 
12 law, at the time of the participant's service as an 
13 officer, for members of the General Assembly who serve in 
14 that office. 
15  (2) For a participant who holds one of the State 
16 executive offices specified in Section 2-105 on his or her 
17 last day of service: the highest salary prescribed by law 
18 for service in that office on the participant's last day 
19 of service. 
20  (3) For a participant who is Clerk or Assistant Clerk 
21 of the House of Representatives or Secretary or Assistant 
22 Secretary of the Senate on his or her last day of service: 
23 the salary received for service in that capacity on the 
24 last day of service, but not to exceed the highest salary 
25 (including additional compensation for service as an 
26 officer) that is prescribed by law on the participant's 
 
 
HB5448- 42 -LRB103 34609 RPS 64449 b


1 last day of service for the highest paid officer of the 
2 General Assembly. 
3  (4) For a participant who is a continuing participant 
4 under Section 2-117.1 on his or her last day of service: 
5 the salary received for service in that capacity on the 
6 last day of service, but not to exceed the highest salary 
7 (including additional compensation for service as an 
8 officer) that is prescribed by law on the participant's 
9 last day of service for the highest paid officer of the 
10 General Assembly.
11 For a participant who first becomes a participant of this 
12System on or after August 10, 2009 (the effective date of 
13Public Act 96-207) and before January 1, 2011 (the effective 
14date of Public Act 96-889), the average monthly salary 
15obtained by dividing the total salary of the participant 
16during the period of: (1) the 48 consecutive months of service 
17within the last 120 months of service in which the total 
18compensation was the highest, or (2) the total period of 
19service, if less than 48 months, by the number of months of 
20service in that period. 
21 For a participant who first becomes a participant of this 
22System on or after January 1, 2011 (the effective date of 
23Public Act 96-889), the average monthly salary obtained by 
24dividing the total salary of the participant during the 96 
25consecutive months of service within the last 120 months of 
26service in which the total compensation was the highest by the 
 
 
HB5448- 43 -LRB103 34609 RPS 64449 b


1number of months of service in that period; however, except as 
2provided in subsection (a-5), beginning January 1, 2011, the 
3highest salary for annuity purposes may not exceed $106,800, 
4except that that amount shall annually thereafter be increased 
5by the lesser of (i) 3% of that amount, including all previous 
6adjustments, or (ii) the annual unadjusted percentage increase 
7(but not less than zero) in the consumer price index-u for the 
812 months ending with the September preceding each November 1. 
9"Consumer price index-u" means the index published by the 
10Bureau of Labor Statistics of the United States Department of 
11Labor that measures the average change in prices of goods and 
12services purchased by all urban consumers, United States city 
13average, all items, 1982-84 = 100. The new amount resulting 
14from each annual adjustment shall be determined by the Public 
15Pension Division of the Department of Insurance and made 
16available to the Board by November 1 of each year. 
17 (a-5) Beginning January 1, 2024, the highest salary for 
18annuity purposes of a person who first becomes a participant 
19of this System on or after January 1, 2011 may not exceed 90.5% 
20of the federal Social Security Wage Base then in effect or the 
21amount determined under subsection (a) for that class of 
22persons, whichever is greater. 
23 (b) The earnings limitations of subsection (a) or (a-5), 
24whichever is applic
able, apply to earnings under any other 
25participating system under the Retirement Systems Reciprocal 
26Act that are considered in calculating a proportional annuity 
 
 
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1under this Article, except in the case of a person who first 
2became a member of this System before August 22, 1994 and has 
3not, on or after the effective date of this amendatory Act of 
4the 97th General Assembly, irrevocably elected to have those 
5limitations apply. The limitations of subsection (a) or (a-5), 
6whichever is applicable, shall apply, however, to earnings 
7under any other participating system under the Retirement 
8Systems Reciprocal Act that are considered in calculating the 
9proportional annuity of a person who first became a member of 
10this System before August 22, 1994 if, on or after the 
11effective date of this amendatory Act of the 97th General 
12Assembly, that member irrevocably elects to have those 
13limitations apply.
14 (c) In calculating the subsection (a) earnings limitations 
15limitation to be applied to earnings under any other 
16participating system under the Retirement Systems Reciprocal 
17Act for the purpose of calculating a proportional annuity 
18under this Article, the participant's last day of service 
19shall be deemed to mean the last day of service in any 
20participating system from which the person has applied for a 
21proportional annuity under the Retirement Systems Reciprocal 
22Act.
23(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 
2496-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)

25 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
 
 
HB5448- 45 -LRB103 34609 RPS 64449 b


1 (Text of Section WITHOUT the changes made by P.A. 98-599, 
2which has been held unconstitutional)
3 Sec. 2-119.1. Automatic increase in retirement annuity. 
4 (a) A participant who retires after June 30, 1967, and who 
5has not received an initial increase under this Section before 
6the effective date of this amendatory Act of 1991, shall, in 
7January or July next following the first anniversary of 
8retirement, whichever occurs first, and in the same month of 
9each year thereafter, but in no event prior to age 60, have the 
10amount of the originally granted retirement annuity increased 
11as follows: for each year through 1971, 1 1/2%; for each year 
12from 1972 through 1979, 2%; and for 1980 and each year 
13thereafter, 3%. Annuitants who have received an initial 
14increase under this subsection prior to the effective date of 
15this amendatory Act of 1991 shall continue to receive their 
16annual increases in the same month as the initial increase.
17 (b) Beginning January 1, 1990, for eligible participants 
18who remain in service after attaining 20 years of creditable 
19service, the 3% increases provided under subsection (a) shall 
20begin to accrue on the January 1 next following the date upon 
21which the participant (1) attains age 55, or (2) attains 20 
22years of creditable service, whichever occurs later, and shall 
23continue to accrue while the participant remains in service; 
24such increases shall become payable on January 1 or July 1, 
25whichever occurs first, next following the first anniversary 
26of retirement. For any person who has service credit in the 
 
 
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1System for the entire period from January 15, 1969 through 
2December 31, 1992, regardless of the date of termination of 
3service, the reference to age 55 in clause (1) of this 
4subsection (b) shall be deemed to mean age 50.
5 This subsection (b) does not apply to any person who first 
6becomes a member of the System after the effective date of this 
7amendatory Act of the 93rd General Assembly.
8 (b-5) Notwithstanding any other provision of this Article, 
9a participant who first becomes a participant on or after 
10January 1, 2011 (the effective date of Public Act 96-889) 
11shall, in January or July next following the first anniversary 
12of retirement, whichever occurs first, and in the same month 
13of each year thereafter, but in no event prior to age 67, have 
14the amount of the retirement annuity then being paid increased 
15by 3% or the annual unadjusted percentage increase in the 
16Consumer Price Index for All Urban Consumers as determined by 
17the Public Pension Division of the Department of Insurance 
18under subsection (a) of Section 2-108.1, whichever is less. 
19 In this subsection, "consumer price index-u" means the 
20index published by the Bureau of Labor Statistics of the 
21United States Department of Labor that measures the average 
22change in prices of goods and services purchased by all urban 
23consumers, United States city average, all items, 1982-84 = 
24100. The new amount resulting from each annual adjustment 
25shall be determined by the Public Pension Division of the 
26Department of Insurance and made available to the Board by 
 
 
HB5448- 47 -LRB103 34609 RPS 64449 b


1November 1 of each year. 
2 (c) The foregoing provisions relating to automatic 
3increases are not applicable to a participant who retires 
4before having made contributions (at the rate prescribed in 
5Section 2-126) for automatic increases for less than the 
6equivalent of one full year. However, in order to be eligible 
7for the automatic increases, such a participant may make 
8arrangements to pay to the system the amount required to bring 
9the total contributions for the automatic increase to the 
10equivalent of one year's contributions based upon his or her 
11last salary.
12 (d) A participant who terminated service prior to July 1, 
131967, with at least 14 years of service is entitled to an 
14increase in retirement annuity beginning January, 1976, and to 
15additional increases in January of each year thereafter.
16 The initial increase shall be 1 1/2% of the originally 
17granted retirement annuity multiplied by the number of full 
18years that the annuitant was in receipt of such annuity prior 
19to January 1, 1972, plus 2% of the originally granted 
20retirement annuity for each year after that date. The 
21subsequent annual increases shall be at the rate of 2% of the 
22originally granted retirement annuity for each year through 
231979 and at the rate of 3% for 1980 and thereafter.
24 (e) Beginning January 1, 1990, all automatic annual 
25increases payable under this Section shall be calculated as a 
26percentage of the total annuity payable at the time of the 
 
 
HB5448- 48 -LRB103 34609 RPS 64449 b


1increase, including previous increases granted under this 
2Article.
3(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

4 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
5 (Text of Section WITHOUT the changes made by P.A. 98-599, 
6which has been held unconstitutional)
7 Sec. 14-103.10. Compensation. 
8 (a) For periods of service prior to January 1, 1978, the 
9full rate of salary or wages payable to an employee for 
10personal services performed if he worked the full normal 
11working period for his position, subject to the following 
12maximum amounts: (1) prior to July 1, 1951, $400 per month or 
13$4,800 per year; (2) between July 1, 1951 and June 30, 1957 
14inclusive, $625 per month or $7,500 per year; (3) beginning 
15July 1, 1957, no limitation.
16 In the case of service of an employee in a position 
17involving part-time employment, compensation shall be 
18determined according to the employees' earnings record.
19 (b) For periods of service on and after January 1, 1978, 
20all remuneration for personal services performed defined as 
21"wages" under the Social Security Enabling Act, including that 
22part of such remuneration which is in excess of any maximum 
23limitation provided in such Act, and including any benefits 
24received by an employee under a sick pay plan in effect before 
25January 1, 1981, but excluding lump sum salary payments: 
 
 
HB5448- 49 -LRB103 34609 RPS 64449 b


1  (1) for vacation, 
2  (2) for accumulated unused sick leave, 
3  (3) upon discharge or dismissal, 
4  (4) for approved holidays.
5 (c) For periods of service on or after December 16, 1978, 
6compensation also includes any benefits, other than lump sum 
7salary payments made at termination of employment, which an 
8employee receives or is eligible to receive under a sick pay 
9plan authorized by law.
10 (d) For periods of service after September 30, 1985, 
11compensation also includes any remuneration for personal 
12services not included as "wages" under the Social Security 
13Enabling Act, which is deducted for purposes of participation 
14in a program established pursuant to Section 125 of the 
15Internal Revenue Code or its successor laws.
16 (e) For members for which Section 1-160 applies for 
17periods of service on and after January 1, 2011, all 
18remuneration for personal services performed defined as 
19"wages" under the Social Security Enabling Act, excluding 
20remuneration that is in excess of the annual earnings, salary, 
21or wages of a member or participant, as provided in subsection 
22(b-5) or (b-10) of Section 1-160, whichever is applicable, but 
23including any benefits received by an employee under a sick 
24pay plan in effect before January 1, 1981. Compensation shall 
25exclude lump sum salary payments:
26  (1) for vacation;
 
 
HB5448- 50 -LRB103 34609 RPS 64449 b


1  (2) for accumulated unused sick leave;
2  (3) upon discharge or dismissal; and
3  (4) for approved holidays. 
4 (f) Notwithstanding the other provisions of this Section, 
5for service on or after July 1, 2013, "compensation" does not 
6include any stipend payable to an employee for service on a 
7board or commission. 
8(Source: P.A. 98-449, eff. 8-16-13.)

9 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
10 Sec. 15-111. Earnings.  
11 (a) "Earnings": Subject to Section 15-111.5, an amount 
12paid for personal services equal to the sum of the basic 
13compensation plus extra compensation for summer teaching, 
14overtime or other extra service. For periods for which an 
15employee receives service credit under subsection (c) of 
16Section 15-113.1 or Section 15-113.2, earnings are equal to 
17the basic compensation on which contributions are paid by the 
18employee during such periods. Compensation for employment 
19which is irregular, intermittent and temporary shall not be 
20considered earnings, unless the participant is also receiving 
21earnings from the employer as an employee under Section 
2215-107.
23 With respect to transition pay paid by the University of 
24Illinois to a person who was a participating employee employed 
25in the fire department of the University of Illinois's 
 
 
HB5448- 51 -LRB103 34609 RPS 64449 b


1Champaign-Urbana campus immediately prior to the elimination 
2of that fire department: 
3  (1) "Earnings" includes transition pay paid to the 
4 employee on or after the effective date of this amendatory 
5 Act of the 91st General Assembly. 
6  (2) "Earnings" includes transition pay paid to the 
7 employee before the effective date of this amendatory Act 
8 of the 91st General Assembly only if (i) employee 
9 contributions under Section 15-157 have been withheld from 
10 that transition pay or (ii) the employee pays to the 
11 System before January 1, 2001 an amount representing 
12 employee contributions under Section 15-157 on that 
13 transition pay. Employee contributions under item (ii) may 
14 be paid in a lump sum, by withholding from additional 
15 transition pay accruing before January 1, 2001, or in any 
16 other manner approved by the System. Upon payment of the 
17 employee contributions on transition pay, the 
18 corresponding employer contributions become an obligation 
19 of the State.
20 (b) For a Tier 2 member, the annual earnings shall not 
21exceed $106,800; however, except as provided in subsection 
22(b-5), that amount shall annually thereafter be increased by 
23the lesser of (i) 3% of that amount, including all previous 
24adjustments, or (ii) one half the annual unadjusted percentage 
25increase (but not less than zero) in the consumer price 
26index-u for the 12 months ending with the September preceding 
 
 
HB5448- 52 -LRB103 34609 RPS 64449 b


1each November 1, including all previous adjustments. 
2 For the purposes of this Section, "consumer price index-u 
3index u" means the index published by the Bureau of Labor 
4Statistics of the United States Department of Labor that 
5measures the average change in prices of goods and services 
6purchased by all urban consumers, United States city average, 
7all items, 1982-84 = 100. The new amount resulting from each 
8annual adjustment shall be determined by the Public Pension 
9Division of the Department of Insurance and made available to 
10the boards of the retirement systems and pension funds by 
11November 1 of each year. 
12 (b-5) Beginning January 1, 2024, the annual earnings of a 
13Tier 2 member may not exceed 90.5% of the federal Social 
14Security Wage Base then in effect or the amount determined 
15under subsection (b), whichever is greater. 
16 (c) With each submission of payroll information in the 
17manner prescribed by the System, the employer shall certify 
18that the payroll information is correct and complies with all 
19applicable State and federal laws.
20(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)

21 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
22 Sec. 18-125. Retirement annuity amount. 
23 (a) The annual retirement annuity for a participant who 
24terminated service as a judge prior to July 1, 1971 shall be 
25based on the law in effect at the time of termination of 
 
 
HB5448- 53 -LRB103 34609 RPS 64449 b


1service.
2 (b) Except as provided in subsection (b-5), effective July 
31, 1971, the retirement annuity for any participant in service 
4on or after such date shall be 3 1/2% of final average salary, 
5as defined in this Section, for each of the first 10 years of 
6service, and 5% of such final average salary for each year of 
7service in excess of 10.
8 For purposes of this Section, final average salary for a 
9participant who first serves as a judge before August 10, 2009 
10(the effective date of Public Act 96-207) shall be:
11  (1) the average salary for the last 4 years of 
12 credited service as a judge for a participant who 
13 terminates service before July 1, 1975.
14  (2) for a participant who terminates service after 
15 June 30, 1975 and before July 1, 1982, the salary on the 
16 last day of employment as a judge.
17  (3) for any participant who terminates service after 
18 June 30, 1982 and before January 1, 1990, the average 
19 salary for the final year of service as a judge.
20  (4) for a participant who terminates service on or 
21 after January 1, 1990 but before July 14, 1995 (the 
22 effective date of Public Act 89-136), the salary on the 
23 last day of employment as a judge.
24  (5) for a participant who terminates service on or 
25 after July 14, 1995 (the effective date of Public Act 
26 89-136), the salary on the last day of employment as a 
 
 
HB5448- 54 -LRB103 34609 RPS 64449 b


1 judge, or the highest salary received by the participant 
2 for employment as a judge in a position held by the 
3 participant for at least 4 consecutive years, whichever is 
4 greater.
5 However, in the case of a participant who elects to 
6discontinue contributions as provided in subdivision (a)(2) of 
7Section 18-133, the time of such election shall be considered 
8the last day of employment in the determination of final 
9average salary under this subsection.
10 For a participant who first serves as a judge on or after 
11August 10, 2009 (the effective date of Public Act 96-207) and 
12before January 1, 2011 (the effective date of Public Act 
1396-889), final average salary shall be the average monthly 
14salary obtained by dividing the total salary of the 
15participant during the period of: (1) the 48 consecutive 
16months of service within the last 120 months of service in 
17which the total compensation was the highest, or (2) the total 
18period of service, if less than 48 months, by the number of 
19months of service in that period. 
20 The maximum retirement annuity for any participant shall 
21be 85% of final average salary.
22 (b-5) Notwithstanding any other provision of this Article, 
23for a participant who first serves as a judge on or after 
24January 1, 2011 (the effective date of Public Act 96-889), the 
25annual retirement annuity is 3% of the participant's final 
26average salary for each year of service. The maximum 
 
 
HB5448- 55 -LRB103 34609 RPS 64449 b


1retirement annuity payable shall be 60% of the participant's 
2final average salary. 
3 For a participant who first serves as a judge on or after 
4January 1, 2011 (the effective date of Public Act 96-889), 
5final average salary shall be the average monthly salary 
6obtained by dividing the total salary of the judge during the 
796 consecutive months of service within the last 120 months of 
8service in which the total salary was the highest by the number 
9of months of service in that period; however, except as 
10provided in subsection (b-10), beginning January 1, 2011, the 
11annual salary may not exceed $106,800, except that that amount 
12shall annually thereafter be increased by the lesser of (i) 3% 
13of that amount, including all previous adjustments, or (ii) 
14the annual unadjusted percentage increase (but not less than 
15zero) in the consumer price index-u for the 12 months ending 
16with the September preceding each November 1. "Consumer price 
17index-u" means the index published by the Bureau of Labor 
18Statistics of the United States Department of Labor that 
19measures the average change in prices of goods and services 
20purchased by all urban consumers, United States city average, 
21all items, 1982-84 = 100. The new amount resulting from each 
22annual adjustment shall be determined by the Public Pension 
23Division of the Department of Insurance and made available to 
24the Board by November 1st of each year. 
25 (b-10) Beginning January 1, 2024, the annual salary of a 
26participant who first serves as a judge on or after January 1, 
 
 
HB5448- 56 -LRB103 34609 RPS 64449 b


12011 may not exceed 90.5% of the federal Social Security Wage 
2Base then in effect or the amount determined under subsection 
3(b-5), whichever is greater. 
4 (c) The retirement annuity for a participant who retires 
5prior to age 60 with less than 28 years of service in the 
6System shall be reduced 1/2 of 1% for each month that the 
7participant's age is under 60 years at the time the annuity 
8commences. However, for a participant who retires on or after 
9December 10, 1999 (the effective date of Public Act 91-653), 
10the percentage reduction in retirement annuity imposed under 
11this subsection shall be reduced by 5/12 of 1% for every month 
12of service in this System in excess of 20 years, and therefore 
13a participant with at least 26 years of service in this System 
14may retire at age 55 without any reduction in annuity.
15 The reduction in retirement annuity imposed by this 
16subsection shall not apply in the case of retirement on 
17account of disability.
18 (d) Notwithstanding any other provision of this Article, 
19for a participant who first serves as a judge on or after 
20January 1, 2011 (the effective date of Public Act 96-889) and 
21who is retiring after attaining age 62, the retirement annuity 
22shall be reduced by 1/2 of 1% for each month that the 
23participant's age is under age 67 at the time the annuity 
24commences. 
25(Source: P.A. 100-201, eff. 8-18-17.)

 
 
HB5448- 57 -LRB103 34609 RPS 64449 b


1 (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
2 Sec. 18-128.01. Amount of survivor's annuity. 
3 (a) Upon the death of an annuitant, his or her surviving 
4spouse shall be entitled to a survivor's annuity of 66 2/3% of 
5the annuity the annuitant was receiving immediately prior to 
6his or her death, inclusive of annual increases in the 
7retirement annuity to the date of death.
8 (b) Upon the death of an active participant, his or her 
9surviving spouse shall receive a survivor's annuity of 66 2/3% 
10of the annuity earned by the participant as of the date of his 
11or her death, determined without regard to whether the 
12participant had attained age 60 as of that time, or 7 1/2% of 
13the last salary of the decedent, whichever is greater.
14 (c) Upon the death of a participant who had terminated 
15service with at least 10 years of service, his or her surviving 
16spouse shall be entitled to a survivor's annuity of 66 2/3% of 
17the annuity earned by the deceased participant at the date of 
18death.
19 (d) Upon the death of an annuitant, active participant, or 
20participant who had terminated service with at least 10 years 
21of service, each surviving child under the age of 18 or 
22disabled as defined in Section 18-128 shall be entitled to a 
23child's annuity in an amount equal to 5% of the decedent's 
24final salary, not to exceed in total for all such children the 
25greater of 20% of the decedent's last salary or 66 2/3% of the 
26annuity received or earned by the decedent as provided under 
 
 
HB5448- 58 -LRB103 34609 RPS 64449 b


1subsections (a) and (b) of this Section. This child's annuity 
2shall be paid whether or not a survivor's annuity was elected 
3under Section 18-123.
4 (e) The changes made in the survivor's annuity provisions 
5by Public Act 82-306 shall apply to the survivors of a deceased 
6participant or annuitant whose death occurs on or after August 
721, 1981. 
8 (f) Beginning January 1, 1990, every survivor's annuity 
9shall be increased (1) on each January 1 occurring on or after 
10the commencement of the annuity if the deceased member died 
11while receiving a retirement annuity, or (2) in other cases, 
12on each January 1 occurring on or after the first anniversary 
13of the commencement of the annuity, by an amount equal to 3% of 
14the current amount of the annuity, including any previous 
15increases under this Article. Such increases shall apply 
16without regard to whether the deceased member was in service 
17on or after the effective date of this amendatory Act of 1991, 
18but shall not accrue for any period prior to January 1, 1990.
19 (g) Notwithstanding any other provision of this Article, 
20the initial survivor's annuity for a survivor of a participant 
21who first serves as a judge after January 1, 2011 (the 
22effective date of Public Act 96-889) shall be in the amount of 
2366 2/3% of the annuity received or earned by the decedent, and 
24shall be increased (1) on each January 1 occurring on or after 
25the commencement of the annuity if the deceased participant 
26died while receiving a retirement annuity, or (2) in other 
 
 
HB5448- 59 -LRB103 34609 RPS 64449 b


1cases, on each January 1 occurring on or after the first 
2anniversary of the commencement of the annuity, but in no 
3event prior to age 67, by an amount equal to 3% or the annual 
4unadjusted percentage increase in the consumer price index-u 
5as determined by the Public Pension Division of the Department 
6of Insurance under subsection (b-5) of Section 18-125, 
7whichever is less, of the survivor's annuity then being paid. 
8 In this subsection, "consumer price index-u" means the 
9index published by the Bureau of Labor Statistics of the 
10United States Department of Labor that measures the average 
11change in prices of goods and services purchased by all urban 
12consumers, United States city average, all items, 1982-84 = 
13100. The new amount resulting from each annual adjustment 
14shall be determined by the Public Pension Division of the 
15Department of Insurance and made available to the Board by 
16November 1 of each year. 
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

18
Article 2. 


19 Section 2-5. The Illinois Pension Code is amended by 
20changing Sections 1-103.3, 2-124, 14-131, 15-155, 16-158, and 
2118-131 as follows:

22 (40 ILCS 5/1-103.3)
23 (Text of Section WITHOUT the changes made by P.A. 98-599, 
 
 
HB5448- 60 -LRB103 34609 RPS 64449 b


1which has been held unconstitutional)
2 Sec. 1-103.3. Application of 1994 amendment; funding 
3standard. 
4 (a) The provisions of this amendatory Act of 1994 that 
5change the method of calculating, certifying, and paying the 
6required State contributions to the retirement systems 
7established under Articles 2, 14, 15, 16, and 18 shall first 
8apply to the State contributions required for State fiscal 
9year 1996.
10 (b) The General Assembly declares that a funding ratio 
11(the ratio of a retirement system's total assets to its total 
12actuarial liabilities) of 100% 90% is an appropriate goal for 
13State-funded retirement systems in Illinois, and it finds that 
14a funding ratio of 100% 90% is now the generally-recognized 
15norm throughout the nation for public employee retirement 
16systems that are considered to be financially secure and 
17funded in an appropriate and responsible manner.
18 (c) Every 5 years, beginning in 1999, the Commission on 
19Government Forecasting and Accountability, in consultation 
20with the affected retirement systems and the Governor's Office 
21of Management and Budget (formerly Bureau of the Budget), 
22shall consider and determine whether the 100% 90% funding 
23ratio adopted in subsection (b) continues to represent an 
24appropriate goal for State-funded retirement systems in 
25Illinois, and it shall report its findings and recommendations 
26on this subject to the Governor and the General Assembly.
 
 
HB5448- 61 -LRB103 34609 RPS 64449 b


1(Source: P.A. 93-1067, eff. 1-15-05.)

2 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
3 Sec. 2-124. Contributions by State. 
4 (a) The State shall make contributions to the System by 
5appropriations of amounts which, together with the 
6contributions of participants, interest earned on investments, 
7and other income will meet the cost of maintaining and 
8administering the System on a 100% 90% funded basis by 2050 in 
9accordance with actuarial recommendations.
10 (b) The Board shall determine the amount of State 
11contributions required for each fiscal year on the basis of 
12the actuarial tables and other assumptions adopted by the 
13Board and the prescribed rate of interest, using the formula 
14in subsection (c).
15 (c) For State fiscal years 2025 through 2050, the minimum 
16contribution to the System to be made by the State for each 
17fiscal year shall be an amount determined by the System to be 
18sufficient to bring the total assets of the System up to 100% 
19of the total actuarial liabilities of the System by the end of 
20State fiscal year 2050. In making these determinations, the 
21required State contribution shall be calculated each year as a 
22level percentage of payroll over the years remaining to and 
23including fiscal year 2050 and shall be determined under the 
24projected unit credit actuarial cost method.
25 For State fiscal years 2012 through 2024 2045, the minimum 
 
 
HB5448- 62 -LRB103 34609 RPS 64449 b


1contribution to the System to be made by the State for each 
2fiscal year shall be an amount determined by the System to be 
3sufficient to bring the total assets of the System up to 90% of 
4the total actuarial liabilities of the System by the end of 
5State fiscal year 2045. In making these determinations, the 
6required State contribution shall be calculated each year as a 
7level percentage of payroll over the years remaining to and 
8including fiscal year 2045 and shall be determined under the 
9projected unit credit actuarial cost method.
10 A change in an actuarial or investment assumption that 
11increases or decreases the required State contribution and 
12first applies in State fiscal year 2018 or thereafter shall be 
13implemented in equal annual amounts over a 5-year period 
14beginning in the State fiscal year in which the actuarial 
15change first applies to the required State contribution.
16 A change in an actuarial or investment assumption that 
17increases or decreases the required State contribution and 
18first applied to the State contribution in fiscal year 2014, 
192015, 2016, or 2017 shall be implemented:
20  (i) as already applied in State fiscal years before 
21 2018; and
22  (ii) in the portion of the 5-year period beginning in 
23 the State fiscal year in which the actuarial change first 
24 applied that occurs in State fiscal year 2018 or 
25 thereafter, by calculating the change in equal annual 
26 amounts over that 5-year period and then implementing it 
 
 
HB5448- 63 -LRB103 34609 RPS 64449 b


1 at the resulting annual rate in each of the remaining 
2 fiscal years in that 5-year period.
3 For State fiscal years 1996 through 2005, the State 
4contribution to the System, as a percentage of the applicable 
5employee payroll, shall be increased in equal annual 
6increments so that by State fiscal year 2011, the State is 
7contributing at the rate required under this Section.
8 Notwithstanding any other provision of this Article, the 
9total required State contribution for State fiscal year 2006 
10is $4,157,000. 
11 Notwithstanding any other provision of this Article, the 
12total required State contribution for State fiscal year 2007 
13is $5,220,300. 
14 For each of State fiscal years 2008 through 2009, the 
15State contribution to the System, as a percentage of the 
16applicable employee payroll, shall be increased in equal 
17annual increments from the required State contribution for 
18State fiscal year 2007, so that by State fiscal year 2011, the 
19State is contributing at the rate otherwise required under 
20this Section. 
21 Notwithstanding any other provision of this Article, the 
22total required State contribution for State fiscal year 2010 
23is $10,454,000 and shall be made from the proceeds of bonds 
24sold in fiscal year 2010 pursuant to Section 7.2 of the General 
25Obligation Bond Act, less (i) the pro rata share of bond sale 
26expenses determined by the System's share of total bond 
 
 
HB5448- 64 -LRB103 34609 RPS 64449 b


1proceeds, (ii) any amounts received from the General Revenue 
2Fund in fiscal year 2010, and (iii) any reduction in bond 
3proceeds due to the issuance of discounted bonds, if 
4applicable. 
5 Notwithstanding any other provision of this Article, the 
6total required State contribution for State fiscal year 2011 
7is the amount recertified by the System on or before April 1, 
82011 pursuant to Section 2-134 and shall be made from the 
9proceeds of bonds sold in fiscal year 2011 pursuant to Section 
107.2 of the General Obligation Bond Act, less (i) the pro rata 
11share of bond sale expenses determined by the System's share 
12of total bond proceeds, (ii) any amounts received from the 
13General Revenue Fund in fiscal year 2011, and (iii) any 
14reduction in bond proceeds due to the issuance of discounted 
15bonds, if applicable. 
16 Beginning in State fiscal year 2051 2046, the minimum 
17State contribution for each fiscal year shall be the amount 
18needed to maintain the total assets of the System at 100% 90% 
19of the total actuarial liabilities of the System.
20 Amounts received by the System pursuant to Section 25 of 
21the Budget Stabilization Act or Section 8.12 of the State 
22Finance Act in any fiscal year do not reduce and do not 
23constitute payment of any portion of the minimum State 
24contribution required under this Article in that fiscal year. 
25Such amounts shall not reduce, and shall not be included in the 
26calculation of, the required State contributions under this 
 
 
HB5448- 65 -LRB103 34609 RPS 64449 b


1Article in any future year until the System has reached a 
2funding ratio of at least 90%. A reference in this Article to 
3the "required State contribution" or any substantially similar 
4term does not include or apply to any amounts payable to the 
5System under Section 25 of the Budget Stabilization Act. 
6 Notwithstanding any other provision of this Section, the 
7required State contribution for State fiscal year 2005 and for 
8fiscal year 2008 and each fiscal year thereafter, as 
9calculated under this Section and certified under Section 
102-134, shall not exceed an amount equal to (i) the amount of 
11the required State contribution that would have been 
12calculated under this Section for that fiscal year if the 
13System had not received any payments under subsection (d) of 
14Section 7.2 of the General Obligation Bond Act, minus (ii) the 
15portion of the State's total debt service payments for that 
16fiscal year on the bonds issued in fiscal year 2003 for the 
17purposes of that Section 7.2, as determined and certified by 
18the Comptroller, that is the same as the System's portion of 
19the total moneys distributed under subsection (d) of Section 
207.2 of the General Obligation Bond Act. In determining this 
21maximum for State fiscal years 2008 through 2010, however, the 
22amount referred to in item (i) shall be increased, as a 
23percentage of the applicable employee payroll, in equal 
24increments calculated from the sum of the required State 
25contribution for State fiscal year 2007 plus the applicable 
26portion of the State's total debt service payments for fiscal 
 
 
HB5448- 66 -LRB103 34609 RPS 64449 b


1year 2007 on the bonds issued in fiscal year 2003 for the 
2purposes of Section 7.2 of the General Obligation Bond Act, so 
3that, by State fiscal year 2011, the State is contributing at 
4the rate otherwise required under this Section. 
5 (d) For purposes of determining the required State 
6contribution to the System, the value of the System's assets 
7shall be equal to the actuarial value of the System's assets, 
8which shall be calculated as follows:
9 As of June 30, 2008, the actuarial value of the System's 
10assets shall be equal to the market value of the assets as of 
11that date. In determining the actuarial value of the System's 
12assets for fiscal years after June 30, 2008, any actuarial 
13gains or losses from investment return incurred in a fiscal 
14year shall be recognized in equal annual amounts over the 
155-year period following that fiscal year. 
16 (e) For purposes of determining the required State 
17contribution to the system for a particular year, the 
18actuarial value of assets shall be assumed to earn a rate of 
19return equal to the system's actuarially assumed rate of 
20return. 
21(Source: P.A. 100-23, eff. 7-6-17.)

22 (40 ILCS 5/14-131)
23 Sec. 14-131. Contributions by State. 
24 (a) The State shall make contributions to the System by 
25appropriations of amounts which, together with other employer 
 
 
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1contributions from trust, federal, and other funds, employee 
2contributions, investment income, and other income, will be 
3sufficient to meet the cost of maintaining and administering 
4the System on a 100% 90% funded basis by 2050 in accordance 
5with actuarial recommendations.
6 For the purposes of this Section and Section 14-135.08, 
7references to State contributions refer only to employer 
8contributions and do not include employee contributions that 
9are picked up or otherwise paid by the State or a department on 
10behalf of the employee.
11 (b) The Board shall determine the total amount of State 
12contributions required for each fiscal year on the basis of 
13the actuarial tables and other assumptions adopted by the 
14Board, using the formula in subsection (e).
15 The Board shall also determine a State contribution rate 
16for each fiscal year, expressed as a percentage of payroll, 
17based on the total required State contribution for that fiscal 
18year (less the amount received by the System from 
19appropriations under Section 8.12 of the State Finance Act and 
20Section 1 of the State Pension Funds Continuing Appropriation 
21Act, if any, for the fiscal year ending on the June 30 
22immediately preceding the applicable November 15 certification 
23deadline), the estimated payroll (including all forms of 
24compensation) for personal services rendered by eligible 
25employees, and the recommendations of the actuary.
26 For the purposes of this Section and Section 14.1 of the 
 
 
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1State Finance Act, the term "eligible employees" includes 
2employees who participate in the System, persons who may elect 
3to participate in the System but have not so elected, persons 
4who are serving a qualifying period that is required for 
5participation, and annuitants employed by a department as 
6described in subdivision (a)(1) or (a)(2) of Section 14-111.
7 (c) Contributions shall be made by the several departments 
8for each pay period by warrants drawn by the State Comptroller 
9against their respective funds or appropriations based upon 
10vouchers stating the amount to be so contributed. These 
11amounts shall be based on the full rate certified by the Board 
12under Section 14-135.08 for that fiscal year. From March 5, 
132004 (the effective date of Public Act 93-665) through the 
14payment of the final payroll from fiscal year 2004 
15appropriations, the several departments shall not make 
16contributions for the remainder of fiscal year 2004 but shall 
17instead make payments as required under subsection (a-1) of 
18Section 14.1 of the State Finance Act. The several departments 
19shall resume those contributions at the commencement of fiscal 
20year 2005.
21 (c-1) Notwithstanding subsection (c) of this Section, for 
22fiscal years 2010, 2012, and each fiscal year thereafter, 
23contributions by the several departments are not required to 
24be made for General Revenue Funds payrolls processed by the 
25Comptroller. Payrolls paid by the several departments from all 
26other State funds must continue to be processed pursuant to 
 
 
HB5448- 69 -LRB103 34609 RPS 64449 b


1subsection (c) of this Section.
2 (c-2) For State fiscal years 2010, 2012, and each fiscal 
3year thereafter, on or as soon as possible after the 15th day 
4of each month, the Board shall submit vouchers for payment of 
5State contributions to the System, in a total monthly amount 
6of one-twelfth of the fiscal year General Revenue Fund 
7contribution as certified by the System pursuant to Section 
814-135.08 of the Illinois Pension Code. 
9 (d) If an employee is paid from trust funds or federal 
10funds, the department or other employer shall pay employer 
11contributions from those funds to the System at the certified 
12rate, unless the terms of the trust or the federal-State 
13agreement preclude the use of the funds for that purpose, in 
14which case the required employer contributions shall be paid 
15by the State. 
16 (e) For State fiscal years 2025 through 2050, the minimum 
17contribution to the System to be made by the State for each 
18fiscal year shall be an amount determined by the System to be 
19sufficient to bring the total assets of the System up to 100% 
20of the total actuarial liabilities of the System by the end of 
21State fiscal year 2050. In making these determinations, the 
22required State contribution shall be calculated each year as a 
23level percentage of payroll over the years remaining to and 
24including fiscal year 2050 and shall be determined under the 
25projected unit credit actuarial cost method.
26 For State fiscal years 2012 through 2024 2045, the minimum 
 
 
HB5448- 70 -LRB103 34609 RPS 64449 b


1contribution to the System to be made by the State for each 
2fiscal year shall be an amount determined by the System to be 
3sufficient to bring the total assets of the System up to 90% of 
4the total actuarial liabilities of the System by the end of 
5State fiscal year 2045. In making these determinations, the 
6required State contribution shall be calculated each year as a 
7level percentage of payroll over the years remaining to and 
8including fiscal year 2045 and shall be determined under the 
9projected unit credit actuarial cost method.
10 A change in an actuarial or investment assumption that 
11increases or decreases the required State contribution and 
12first applies in State fiscal year 2018 or thereafter shall be 
13implemented in equal annual amounts over a 5-year period 
14beginning in the State fiscal year in which the actuarial 
15change first applies to the required State contribution.
16 A change in an actuarial or investment assumption that 
17increases or decreases the required State contribution and 
18first applied to the State contribution in fiscal year 2014, 
192015, 2016, or 2017 shall be implemented:
20  (i) as already applied in State fiscal years before 
21 2018; and
22  (ii) in the portion of the 5-year period beginning in 
23 the State fiscal year in which the actuarial change first 
24 applied that occurs in State fiscal year 2018 or 
25 thereafter, by calculating the change in equal annual 
26 amounts over that 5-year period and then implementing it 
 
 
HB5448- 71 -LRB103 34609 RPS 64449 b


1 at the resulting annual rate in each of the remaining 
2 fiscal years in that 5-year period.
3 For State fiscal years 1996 through 2005, the State 
4contribution to the System, as a percentage of the applicable 
5employee payroll, shall be increased in equal annual 
6increments so that by State fiscal year 2011, the State is 
7contributing at the rate required under this Section; except 
8that (i) for State fiscal year 1998, for all purposes of this 
9Code and any other law of this State, the certified percentage 
10of the applicable employee payroll shall be 5.052% for 
11employees earning eligible creditable service under Section 
1214-110 and 6.500% for all other employees, notwithstanding any 
13contrary certification made under Section 14-135.08 before 
14July 7, 1997 (the effective date of Public Act 90-65), and (ii) 
15in the following specified State fiscal years, the State 
16contribution to the System shall not be less than the 
17following indicated percentages of the applicable employee 
18payroll, even if the indicated percentage will produce a State 
19contribution in excess of the amount otherwise required under 
20this subsection and subsection (a): 9.8% in FY 1999; 10.0% in 
21FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003; 
22and 10.8% in FY 2004.
23 Beginning in State fiscal year 2051 2046, the minimum 
24State contribution for each fiscal year shall be the amount 
25needed to maintain the total assets of the System at 100% 90% 
26of the total actuarial liabilities of the System.
 
 
HB5448- 72 -LRB103 34609 RPS 64449 b


1 Amounts received by the System pursuant to Section 25 of 
2the Budget Stabilization Act or Section 8.12 of the State 
3Finance Act in any fiscal year do not reduce and do not 
4constitute payment of any portion of the minimum State 
5contribution required under this Article in that fiscal year. 
6Such amounts shall not reduce, and shall not be included in the 
7calculation of, the required State contributions under this 
8Article in any future year until the System has reached a 
9funding ratio of at least 90%. A reference in this Article to 
10the "required State contribution" or any substantially similar 
11term does not include or apply to any amounts payable to the 
12System under Section 25 of the Budget Stabilization Act. 
13 Notwithstanding any other provision of this Section, the 
14required State contribution for State fiscal year 2005 and for 
15fiscal year 2008 and each fiscal year thereafter, as 
16calculated under this Section and certified under Section 
1714-135.08, shall not exceed an amount equal to (i) the amount 
18of the required State contribution that would have been 
19calculated under this Section for that fiscal year if the 
20System had not received any payments under subsection (d) of 
21Section 7.2 of the General Obligation Bond Act, minus (ii) the 
22portion of the State's total debt service payments for that 
23fiscal year on the bonds issued in fiscal year 2003 for the 
24purposes of that Section 7.2, as determined and certified by 
25the Comptroller, that is the same as the System's portion of 
26the total moneys distributed under subsection (d) of Section 
 
 
HB5448- 73 -LRB103 34609 RPS 64449 b


17.2 of the General Obligation Bond Act.
2 (f) (Blank).
3 (g) For purposes of determining the required State 
4contribution to the System, the value of the System's assets 
5shall be equal to the actuarial value of the System's assets, 
6which shall be calculated as follows:
7 As of June 30, 2008, the actuarial value of the System's 
8assets shall be equal to the market value of the assets as of 
9that date. In determining the actuarial value of the System's 
10assets for fiscal years after June 30, 2008, any actuarial 
11gains or losses from investment return incurred in a fiscal 
12year shall be recognized in equal annual amounts over the 
135-year period following that fiscal year. 
14 (h) For purposes of determining the required State 
15contribution to the System for a particular year, the 
16actuarial value of assets shall be assumed to earn a rate of 
17return equal to the System's actuarially assumed rate of 
18return. 
19 (i) (Blank).
20 (j) (Blank).
21 (k) For fiscal year 2012 and each fiscal year thereafter, 
22after the submission of all payments for eligible employees 
23from personal services line items paid from the General 
24Revenue Fund in the fiscal year have been made, the 
25Comptroller shall provide to the System a certification of the 
26sum of all expenditures in the fiscal year for personal 
 
 
HB5448- 74 -LRB103 34609 RPS 64449 b


1services. Upon receipt of the certification, the System shall 
2determine the amount due to the System based on the full rate 
3certified by the Board under Section 14-135.08 for the fiscal 
4year in order to meet the State's obligation under this 
5Section. The System shall compare this amount due to the 
6amount received by the System for the fiscal year. If the 
7amount due is more than the amount received, the difference 
8shall be termed the "Prior Fiscal Year Shortfall" for purposes 
9of this Section, and the Prior Fiscal Year Shortfall shall be 
10satisfied under Section 1.2 of the State Pension Funds 
11Continuing Appropriation Act. If the amount due is less than 
12the amount received, the difference shall be termed the "Prior 
13Fiscal Year Overpayment" for purposes of this Section, and the 
14Prior Fiscal Year Overpayment shall be repaid by the System to 
15the General Revenue Fund as soon as practicable after the 
16certification. 
17(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 
18101-10, eff. 6-5-19.)

19 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
20 Sec. 15-155. Employer contributions. 
21 (a) The State of Illinois shall make contributions by 
22appropriations of amounts which, together with the other 
23employer contributions from trust, federal, and other funds, 
24employee contributions, income from investments, and other 
25income of this System, will be sufficient to meet the cost of 
 
 
HB5448- 75 -LRB103 34609 RPS 64449 b


1maintaining and administering the System on a 100% 90% funded 
2basis by 2050 in accordance with actuarial recommendations.
3 The Board shall determine the amount of State 
4contributions required for each fiscal year on the basis of 
5the actuarial tables and other assumptions adopted by the 
6Board and the recommendations of the actuary, using the 
7formula in subsection (a-1).
8 (a-1) For State fiscal years 2025 through 2050, the 
9minimum contribution to the System to be made by the State for 
10each fiscal year shall be an amount determined by the System to 
11be sufficient to bring the total assets of the System up to 
12100% of the total actuarial liabilities of the System by the 
13end of State fiscal year 2050. In making these determinations, 
14the required State contribution shall be calculated each year 
15as a level percentage of payroll over the years remaining to 
16and including fiscal year 2050 and shall be determined under 
17the projected unit credit actuarial cost method. 
18 For State fiscal years 2012 through 2024 2045, the minimum 
19contribution to the System to be made by the State for each 
20fiscal year shall be an amount determined by the System to be 
21sufficient to bring the total assets of the System up to 90% of 
22the total actuarial liabilities of the System by the end of 
23State fiscal year 2045. In making these determinations, the 
24required State contribution shall be calculated each year as a 
25level percentage of payroll over the years remaining to and 
26including fiscal year 2045 and shall be determined under the 
 
 
HB5448- 76 -LRB103 34609 RPS 64449 b


1projected unit credit actuarial cost method.
2 For each of State fiscal years 2018, 2019, and 2020, the 
3State shall make an additional contribution to the System 
4equal to 2% of the total payroll of each employee who is deemed 
5to have elected the benefits under Section 1-161 or who has 
6made the election under subsection (c) of Section 1-161. 
7 A change in an actuarial or investment assumption that 
8increases or decreases the required State contribution and 
9first applies in State fiscal year 2018 or thereafter shall be 
10implemented in equal annual amounts over a 5-year period 
11beginning in the State fiscal year in which the actuarial 
12change first applies to the required State contribution.
13 A change in an actuarial or investment assumption that 
14increases or decreases the required State contribution and 
15first applied to the State contribution in fiscal year 2014, 
162015, 2016, or 2017 shall be implemented:
17  (i) as already applied in State fiscal years before 
18 2018; and
19  (ii) in the portion of the 5-year period beginning in 
20 the State fiscal year in which the actuarial change first 
21 applied that occurs in State fiscal year 2018 or 
22 thereafter, by calculating the change in equal annual 
23 amounts over that 5-year period and then implementing it 
24 at the resulting annual rate in each of the remaining 
25 fiscal years in that 5-year period.
26 For State fiscal years 1996 through 2005, the State 
 
 
HB5448- 77 -LRB103 34609 RPS 64449 b


1contribution to the System, as a percentage of the applicable 
2employee payroll, shall be increased in equal annual 
3increments so that by State fiscal year 2011, the State is 
4contributing at the rate required under this Section.
5 Notwithstanding any other provision of this Article, the 
6total required State contribution for State fiscal year 2006 
7is $166,641,900. 
8 Notwithstanding any other provision of this Article, the 
9total required State contribution for State fiscal year 2007 
10is $252,064,100. 
11 For each of State fiscal years 2008 through 2009, the 
12State contribution to the System, as a percentage of the 
13applicable employee payroll, shall be increased in equal 
14annual increments from the required State contribution for 
15State fiscal year 2007, so that by State fiscal year 2011, the 
16State is contributing at the rate otherwise required under 
17this Section. 
18 Notwithstanding any other provision of this Article, the 
19total required State contribution for State fiscal year 2010 
20is $702,514,000 and shall be made from the State Pensions Fund 
21and proceeds of bonds sold in fiscal year 2010 pursuant to 
22Section 7.2 of the General Obligation Bond Act, less (i) the 
23pro rata share of bond sale expenses determined by the 
24System's share of total bond proceeds, (ii) any amounts 
25received from the General Revenue Fund in fiscal year 2010, 
26(iii) any reduction in bond proceeds due to the issuance of 
 
 
HB5448- 78 -LRB103 34609 RPS 64449 b


1discounted bonds, if applicable. 
2 Notwithstanding any other provision of this Article, the 
3total required State contribution for State fiscal year 2011 
4is the amount recertified by the System on or before April 1, 
52011 pursuant to Section 15-165 and shall be made from the 
6State Pensions Fund and proceeds of bonds sold in fiscal year 
72011 pursuant to Section 7.2 of the General Obligation Bond 
8Act, less (i) the pro rata share of bond sale expenses 
9determined by the System's share of total bond proceeds, (ii) 
10any amounts received from the General Revenue Fund in fiscal 
11year 2011, and (iii) any reduction in bond proceeds due to the 
12issuance of discounted bonds, if applicable. 
13 Beginning in State fiscal year 2051 2046, the minimum 
14State contribution for each fiscal year shall be the amount 
15needed to maintain the total assets of the System at 100% 90% 
16of the total actuarial liabilities of the System.
17 Amounts received by the System pursuant to Section 25 of 
18the Budget Stabilization Act or Section 8.12 of the State 
19Finance Act in any fiscal year do not reduce and do not 
20constitute payment of any portion of the minimum State 
21contribution required under this Article in that fiscal year. 
22Such amounts shall not reduce, and shall not be included in the 
23calculation of, the required State contributions under this 
24Article in any future year until the System has reached a 
25funding ratio of at least 90%. A reference in this Article to 
26the "required State contribution" or any substantially similar 
 
 
HB5448- 79 -LRB103 34609 RPS 64449 b


1term does not include or apply to any amounts payable to the 
2System under Section 25 of the Budget Stabilization Act.
3 Notwithstanding any other provision of this Section, the 
4required State contribution for State fiscal year 2005 and for 
5fiscal year 2008 and each fiscal year thereafter, as 
6calculated under this Section and certified under Section 
715-165, shall not exceed an amount equal to (i) the amount of 
8the required State contribution that would have been 
9calculated under this Section for that fiscal year if the 
10System had not received any payments under subsection (d) of 
11Section 7.2 of the General Obligation Bond Act, minus (ii) the 
12portion of the State's total debt service payments for that 
13fiscal year on the bonds issued in fiscal year 2003 for the 
14purposes of that Section 7.2, as determined and certified by 
15the Comptroller, that is the same as the System's portion of 
16the total moneys distributed under subsection (d) of Section 
177.2 of the General Obligation Bond Act. In determining this 
18maximum for State fiscal years 2008 through 2010, however, the 
19amount referred to in item (i) shall be increased, as a 
20percentage of the applicable employee payroll, in equal 
21increments calculated from the sum of the required State 
22contribution for State fiscal year 2007 plus the applicable 
23portion of the State's total debt service payments for fiscal 
24year 2007 on the bonds issued in fiscal year 2003 for the 
25purposes of Section 7.2 of the General Obligation Bond Act, so 
26that, by State fiscal year 2011, the State is contributing at 
 
 
HB5448- 80 -LRB103 34609 RPS 64449 b


1the rate otherwise required under this Section.
2 (a-2) Beginning in fiscal year 2018, each employer under 
3this Article shall pay to the System a required contribution 
4determined as a percentage of projected payroll and sufficient 
5to produce an annual amount equal to:
6  (i) for each of fiscal years 2018, 2019, and 2020, the 
7 defined benefit normal cost of the defined benefit plan, 
8 less the employee contribution, for each employee of that 
9 employer who has elected or who is deemed to have elected 
10 the benefits under Section 1-161 or who has made the 
11 election under subsection (c) of Section 1-161; for fiscal 
12 year 2021 and each fiscal year thereafter, the defined 
13 benefit normal cost of the defined benefit plan, less the 
14 employee contribution, plus 2%, for each employee of that 
15 employer who has elected or who is deemed to have elected 
16 the benefits under Section 1-161 or who has made the 
17 election under subsection (c) of Section 1-161; plus
18  (ii) the amount required for that fiscal year to 
19 amortize any unfunded actuarial accrued liability 
20 associated with the present value of liabilities 
21 attributable to the employer's account under Section 
22 15-155.2, determined as a level percentage of payroll over 
23 a 30-year rolling amortization period.
24 In determining contributions required under item (i) of 
25this subsection, the System shall determine an aggregate rate 
26for all employers, expressed as a percentage of projected 
 
 
HB5448- 81 -LRB103 34609 RPS 64449 b


1payroll. 
2 In determining the contributions required under item (ii) 
3of this subsection, the amount shall be computed by the System 
4on the basis of the actuarial assumptions and tables used in 
5the most recent actuarial valuation of the System that is 
6available at the time of the computation. 
7 The contributions required under this subsection (a-2) 
8shall be paid by an employer concurrently with that employer's 
9payroll payment period. The State, as the actual employer of 
10an employee, shall make the required contributions under this 
11subsection. 
12 As used in this subsection, "academic year" means the 
1312-month period beginning September 1. 
14 (b) If an employee is paid from trust or federal funds, the 
15employer shall pay to the Board contributions from those funds 
16which are sufficient to cover the accruing normal costs on 
17behalf of the employee. However, universities having employees 
18who are compensated out of local auxiliary funds, income 
19funds, or service enterprise funds are not required to pay 
20such contributions on behalf of those employees. The local 
21auxiliary funds, income funds, and service enterprise funds of 
22universities shall not be considered trust funds for the 
23purpose of this Article, but funds of alumni associations, 
24foundations, and athletic associations which are affiliated 
25with the universities included as employers under this Article 
26and other employers which do not receive State appropriations 
 
 
HB5448- 82 -LRB103 34609 RPS 64449 b


1are considered to be trust funds for the purpose of this 
2Article.
3 (b-1) The City of Urbana and the City of Champaign shall 
4each make employer contributions to this System for their 
5respective firefighter employees who participate in this 
6System pursuant to subsection (h) of Section 15-107. The rate 
7of contributions to be made by those municipalities shall be 
8determined annually by the Board on the basis of the actuarial 
9assumptions adopted by the Board and the recommendations of 
10the actuary, and shall be expressed as a percentage of salary 
11for each such employee. The Board shall certify the rate to the 
12affected municipalities as soon as may be practical. The 
13employer contributions required under this subsection shall be 
14remitted by the municipality to the System at the same time and 
15in the same manner as employee contributions.
16 (c) Through State fiscal year 1995: The total employer 
17contribution shall be apportioned among the various funds of 
18the State and other employers, whether trust, federal, or 
19other funds, in accordance with actuarial procedures approved 
20by the Board. State of Illinois contributions for employers 
21receiving State appropriations for personal services shall be 
22payable from appropriations made to the employers or to the 
23System. The contributions for Class I community colleges 
24covering earnings other than those paid from trust and federal 
25funds, shall be payable solely from appropriations to the 
26Illinois Community College Board or the System for employer 
 
 
HB5448- 83 -LRB103 34609 RPS 64449 b


1contributions.
2 (d) Beginning in State fiscal year 1996, the required 
3State contributions to the System shall be appropriated 
4directly to the System and shall be payable through vouchers 
5issued in accordance with subsection (c) of Section 15-165, 
6except as provided in subsection (g).
7 (e) The State Comptroller shall draw warrants payable to 
8the System upon proper certification by the System or by the 
9employer in accordance with the appropriation laws and this 
10Code.
11 (f) Normal costs under this Section means liability for 
12pensions and other benefits which accrues to the System 
13because of the credits earned for service rendered by the 
14participants during the fiscal year and expenses of 
15administering the System, but shall not include the principal 
16of or any redemption premium or interest on any bonds issued by 
17the Board or any expenses incurred or deposits required in 
18connection therewith.
19 (g) If the amount of a participant's earnings for any 
20academic year used to determine the final rate of earnings, 
21determined on a full-time equivalent basis, exceeds the amount 
22of his or her earnings with the same employer for the previous 
23academic year, determined on a full-time equivalent basis, by 
24more than 6%, the participant's employer shall pay to the 
25System, in addition to all other payments required under this 
26Section and in accordance with guidelines established by the 
 
 
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1System, the present value of the increase in benefits 
2resulting from the portion of the increase in earnings that is 
3in excess of 6%. This present value shall be computed by the 
4System on the basis of the actuarial assumptions and tables 
5used in the most recent actuarial valuation of the System that 
6is available at the time of the computation. The System may 
7require the employer to provide any pertinent information or 
8documentation.
9 Whenever it determines that a payment is or may be 
10required under this subsection (g), the System shall calculate 
11the amount of the payment and bill the employer for that 
12amount. The bill shall specify the calculations used to 
13determine the amount due. If the employer disputes the amount 
14of the bill, it may, within 30 days after receipt of the bill, 
15apply to the System in writing for a recalculation. The 
16application must specify in detail the grounds of the dispute 
17and, if the employer asserts that the calculation is subject 
18to subsection (h), (h-5), or (i) of this Section, must include 
19an affidavit setting forth and attesting to all facts within 
20the employer's knowledge that are pertinent to the 
21applicability of that subsection. Upon receiving a timely 
22application for recalculation, the System shall review the 
23application and, if appropriate, recalculate the amount due. 
24 The employer contributions required under this subsection 
25(g) may be paid in the form of a lump sum within 90 days after 
26receipt of the bill. If the employer contributions are not 
 
 
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1paid within 90 days after receipt of the bill, then interest 
2will be charged at a rate equal to the System's annual 
3actuarially assumed rate of return on investment compounded 
4annually from the 91st day after receipt of the bill. Payments 
5must be concluded within 3 years after the employer's receipt 
6of the bill.
7 When assessing payment for any amount due under this 
8subsection (g), the System shall include earnings, to the 
9extent not established by a participant under Section 
1015-113.11 or 15-113.12, that would have been paid to the 
11participant had the participant not taken (i) periods of 
12voluntary or involuntary furlough occurring on or after July 
131, 2015 and on or before June 30, 2017 or (ii) periods of 
14voluntary pay reduction in lieu of furlough occurring on or 
15after July 1, 2015 and on or before June 30, 2017. Determining 
16earnings that would have been paid to a participant had the 
17participant not taken periods of voluntary or involuntary 
18furlough or periods of voluntary pay reduction shall be the 
19responsibility of the employer, and shall be reported in a 
20manner prescribed by the System.
21 This subsection (g) does not apply to (1) Tier 2 hybrid 
22plan members and (2) Tier 2 defined benefit members who first 
23participate under this Article on or after the implementation 
24date of the Optional Hybrid Plan. 
25 (g-1) (Blank).
26 (h) This subsection (h) applies only to payments made or 
 
 
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1salary increases given on or after June 1, 2005 but before July 
21, 2011. The changes made by Public Act 94-1057 shall not 
3require the System to refund any payments received before July 
431, 2006 (the effective date of Public Act 94-1057).
5 When assessing payment for any amount due under subsection 
6(g), the System shall exclude earnings increases paid to 
7participants under contracts or collective bargaining 
8agreements entered into, amended, or renewed before June 1, 
92005. 
10 When assessing payment for any amount due under subsection 
11(g), the System shall exclude earnings increases paid to a 
12participant at a time when the participant is 10 or more years 
13from retirement eligibility under Section 15-135. 
14 When assessing payment for any amount due under subsection 
15(g), the System shall exclude earnings increases resulting 
16from overload work, including a contract for summer teaching, 
17or overtime when the employer has certified to the System, and 
18the System has approved the certification, that: (i) in the 
19case of overloads (A) the overload work is for the sole purpose 
20of academic instruction in excess of the standard number of 
21instruction hours for a full-time employee occurring during 
22the academic year that the overload is paid and (B) the 
23earnings increases are equal to or less than the rate of pay 
24for academic instruction computed using the participant's 
25current salary rate and work schedule; and (ii) in the case of 
26overtime, the overtime was necessary for the educational 
 
 
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1mission.
2 When assessing payment for any amount due under subsection 
3(g), the System shall exclude any earnings increase resulting 
4from (i) a promotion for which the employee moves from one 
5classification to a higher classification under the State 
6Universities Civil Service System, (ii) a promotion in 
7academic rank for a tenured or tenure-track faculty position, 
8or (iii) a promotion that the Illinois Community College Board 
9has recommended in accordance with subsection (k) of this 
10Section. These earnings increases shall be excluded only if 
11the promotion is to a position that has existed and been filled 
12by a member for no less than one complete academic year and the 
13earnings increase as a result of the promotion is an increase 
14that results in an amount no greater than the average salary 
15paid for other similar positions.
16 (h-5) When assessing payment for any amount due under 
17subsection (g), the System shall exclude any earnings increase 
18paid in an academic year beginning on or after July 1, 2020 
19resulting from overload work performed in an academic year 
20subsequent to an academic year in which the employer was 
21unable to offer or allow to be conducted overload work due to 
22an emergency declaration limiting such activities. 
23 (i) When assessing payment for any amount due under 
24subsection (g), the System shall exclude any salary increase 
25described in subsection (h) of this Section given on or after 
26July 1, 2011 but before July 1, 2014 under a contract or 
 
 
HB5448- 88 -LRB103 34609 RPS 64449 b


1collective bargaining agreement entered into, amended, or 
2renewed on or after June 1, 2005 but before July 1, 2011. 
3Except as provided in subsection (h-5), any payments made or 
4salary increases given after June 30, 2014 shall be used in 
5assessing payment for any amount due under subsection (g) of 
6this Section. 
7 (j) The System shall prepare a report and file copies of 
8the report with the Governor and the General Assembly by 
9January 1, 2007 that contains all of the following 
10information:
11  (1) The number of recalculations required by the 
12 changes made to this Section by Public Act 94-1057 for 
13 each employer.
14  (2) The dollar amount by which each employer's 
15 contribution to the System was changed due to 
16 recalculations required by Public Act 94-1057.
17  (3) The total amount the System received from each 
18 employer as a result of the changes made to this Section by 
19 Public Act 94-4.
20  (4) The increase in the required State contribution 
21 resulting from the changes made to this Section by Public 
22 Act 94-1057.
23 (j-5) For State fiscal years beginning on or after July 1, 
242017, if the amount of a participant's earnings for any State 
25fiscal year exceeds the amount of the salary set by law for the 
26Governor that is in effect on July 1 of that fiscal year, the 
 
 
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1participant's employer shall pay to the System, in addition to 
2all other payments required under this Section and in 
3accordance with guidelines established by the System, an 
4amount determined by the System to be equal to the employer 
5normal cost, as established by the System and expressed as a 
6total percentage of payroll, multiplied by the amount of 
7earnings in excess of the amount of the salary set by law for 
8the Governor. This amount shall be computed by the System on 
9the basis of the actuarial assumptions and tables used in the 
10most recent actuarial valuation of the System that is 
11available at the time of the computation. The System may 
12require the employer to provide any pertinent information or 
13documentation.
14 Whenever it determines that a payment is or may be 
15required under this subsection, the System shall calculate the 
16amount of the payment and bill the employer for that amount. 
17The bill shall specify the calculation used to determine the 
18amount due. If the employer disputes the amount of the bill, it 
19may, within 30 days after receipt of the bill, apply to the 
20System in writing for a recalculation. The application must 
21specify in detail the grounds of the dispute. Upon receiving a 
22timely application for recalculation, the System shall review 
23the application and, if appropriate, recalculate the amount 
24due. 
25 The employer contributions required under this subsection 
26may be paid in the form of a lump sum within 90 days after 
 
 
HB5448- 90 -LRB103 34609 RPS 64449 b


1issuance of the bill. If the employer contributions are not 
2paid within 90 days after issuance of the bill, then interest 
3will be charged at a rate equal to the System's annual 
4actuarially assumed rate of return on investment compounded 
5annually from the 91st day after issuance of the bill. All 
6payments must be received within 3 years after issuance of the 
7bill. If the employer fails to make complete payment, 
8including applicable interest, within 3 years, then the System 
9may, after giving notice to the employer, certify the 
10delinquent amount to the State Comptroller, and the 
11Comptroller shall thereupon deduct the certified delinquent 
12amount from State funds payable to the employer and pay them 
13instead to the System. 
14 This subsection (j-5) does not apply to a participant's 
15earnings to the extent an employer pays the employer normal 
16cost of such earnings. 
17 The changes made to this subsection (j-5) by Public Act 
18100-624 are intended to apply retroactively to July 6, 2017 
19(the effective date of Public Act 100-23). 
20 (k) The Illinois Community College Board shall adopt rules 
21for recommending lists of promotional positions submitted to 
22the Board by community colleges and for reviewing the 
23promotional lists on an annual basis. When recommending 
24promotional lists, the Board shall consider the similarity of 
25the positions submitted to those positions recognized for 
26State universities by the State Universities Civil Service 
 
 
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1System. The Illinois Community College Board shall file a copy 
2of its findings with the System. The System shall consider the 
3findings of the Illinois Community College Board when making 
4determinations under this Section. The System shall not 
5exclude any earnings increases resulting from a promotion when 
6the promotion was not submitted by a community college. 
7Nothing in this subsection (k) shall require any community 
8college to submit any information to the Community College 
9Board. 
10 (l) For purposes of determining the required State 
11contribution to the System, the value of the System's assets 
12shall be equal to the actuarial value of the System's assets, 
13which shall be calculated as follows:
14 As of June 30, 2008, the actuarial value of the System's 
15assets shall be equal to the market value of the assets as of 
16that date. In determining the actuarial value of the System's 
17assets for fiscal years after June 30, 2008, any actuarial 
18gains or losses from investment return incurred in a fiscal 
19year shall be recognized in equal annual amounts over the 
205-year period following that fiscal year. 
21 (m) For purposes of determining the required State 
22contribution to the system for a particular year, the 
23actuarial value of assets shall be assumed to earn a rate of 
24return equal to the system's actuarially assumed rate of 
25return. 
26(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
 
 
HB5448- 92 -LRB103 34609 RPS 64449 b


1102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 
25-13-22.)

3 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
4 Sec. 16-158. Contributions by State and other employing 
5units. 
6 (a) The State shall make contributions to the System by 
7means of appropriations from the Common School Fund and other 
8State funds of amounts which, together with other employer 
9contributions, employee contributions, investment income, and 
10other income, will be sufficient to meet the cost of 
11maintaining and administering the System on a 100% 90% funded 
12basis by 2050 in accordance with actuarial recommendations.
13 The Board shall determine the amount of State 
14contributions required for each fiscal year on the basis of 
15the actuarial tables and other assumptions adopted by the 
16Board and the recommendations of the actuary, using the 
17formula in subsection (b-3).
18 (a-1) Annually, on or before November 15 until November 
1915, 2011, the Board shall certify to the Governor the amount of 
20the required State contribution for the coming fiscal year. 
21The certification under this subsection (a-1) shall include a 
22copy of the actuarial recommendations upon which it is based 
23and shall specifically identify the System's projected State 
24normal cost for that fiscal year.
25 On or before May 1, 2004, the Board shall recalculate and 
 
 
HB5448- 93 -LRB103 34609 RPS 64449 b


1recertify to the Governor the amount of the required State 
2contribution to the System for State fiscal year 2005, taking 
3into account the amounts appropriated to and received by the 
4System under subsection (d) of Section 7.2 of the General 
5Obligation Bond Act.
6 On or before July 1, 2005, the Board shall recalculate and 
7recertify to the Governor the amount of the required State 
8contribution to the System for State fiscal year 2006, taking 
9into account the changes in required State contributions made 
10by Public Act 94-4. 
11 On or before April 1, 2011, the Board shall recalculate 
12and recertify to the Governor the amount of the required State 
13contribution to the System for State fiscal year 2011, 
14applying the changes made by Public Act 96-889 to the System's 
15assets and liabilities as of June 30, 2009 as though Public Act 
1696-889 was approved on that date. 
17 (a-5) On or before November 1 of each year, beginning 
18November 1, 2012, the Board shall submit to the State Actuary, 
19the Governor, and the General Assembly a proposed 
20certification of the amount of the required State contribution 
21to the System for the next fiscal year, along with all of the 
22actuarial assumptions, calculations, and data upon which that 
23proposed certification is based. On or before January 1 of 
24each year, beginning January 1, 2013, the State Actuary shall 
25issue a preliminary report concerning the proposed 
26certification and identifying, if necessary, recommended 
 
 
HB5448- 94 -LRB103 34609 RPS 64449 b


1changes in actuarial assumptions that the Board must consider 
2before finalizing its certification of the required State 
3contributions. On or before January 15, 2013 and each January 
415 thereafter, the Board shall certify to the Governor and the 
5General Assembly the amount of the required State contribution 
6for the next fiscal year. The Board's certification must note 
7any deviations from the State Actuary's recommended changes, 
8the reason or reasons for not following the State Actuary's 
9recommended changes, and the fiscal impact of not following 
10the State Actuary's recommended changes on the required State 
11contribution. 
12 (a-10) By November 1, 2017, the Board shall recalculate 
13and recertify to the State Actuary, the Governor, and the 
14General Assembly the amount of the State contribution to the 
15System for State fiscal year 2018, taking into account the 
16changes in required State contributions made by Public Act 
17100-23. The State Actuary shall review the assumptions and 
18valuations underlying the Board's revised certification and 
19issue a preliminary report concerning the proposed 
20recertification and identifying, if necessary, recommended 
21changes in actuarial assumptions that the Board must consider 
22before finalizing its certification of the required State 
23contributions. The Board's final certification must note any 
24deviations from the State Actuary's recommended changes, the 
25reason or reasons for not following the State Actuary's 
26recommended changes, and the fiscal impact of not following 
 
 
HB5448- 95 -LRB103 34609 RPS 64449 b


1the State Actuary's recommended changes on the required State 
2contribution. 
3 (a-15) On or after June 15, 2019, but no later than June 
430, 2019, the Board shall recalculate and recertify to the 
5Governor and the General Assembly the amount of the State 
6contribution to the System for State fiscal year 2019, taking 
7into account the changes in required State contributions made 
8by Public Act 100-587. The recalculation shall be made using 
9assumptions adopted by the Board for the original fiscal year 
102019 certification. The monthly voucher for the 12th month of 
11fiscal year 2019 shall be paid by the Comptroller after the 
12recertification required pursuant to this subsection is 
13submitted to the Governor, Comptroller, and General Assembly. 
14The recertification submitted to the General Assembly shall be 
15filed with the Clerk of the House of Representatives and the 
16Secretary of the Senate in electronic form only, in the manner 
17that the Clerk and the Secretary shall direct. 
18 (b) Through State fiscal year 1995, the State 
19contributions shall be paid to the System in accordance with 
20Section 18-7 of the School Code.
21 (b-1) Beginning in State fiscal year 1996, on the 15th day 
22of each month, or as soon thereafter as may be practicable, the 
23Board shall submit vouchers for payment of State contributions 
24to the System, in a total monthly amount of one-twelfth of the 
25required annual State contribution certified under subsection 
26(a-1). From March 5, 2004 (the effective date of Public Act 
 
 
HB5448- 96 -LRB103 34609 RPS 64449 b


193-665) through June 30, 2004, the Board shall not submit 
2vouchers for the remainder of fiscal year 2004 in excess of the 
3fiscal year 2004 certified contribution amount determined 
4under this Section after taking into consideration the 
5transfer to the System under subsection (a) of Section 6z-61 
6of the State Finance Act. These vouchers shall be paid by the 
7State Comptroller and Treasurer by warrants drawn on the funds 
8appropriated to the System for that fiscal year.
9 If in any month the amount remaining unexpended from all 
10other appropriations to the System for the applicable fiscal 
11year (including the appropriations to the System under Section 
128.12 of the State Finance Act and Section 1 of the State 
13Pension Funds Continuing Appropriation Act) is less than the 
14amount lawfully vouchered under this subsection, the 
15difference shall be paid from the Common School Fund under the 
16continuing appropriation authority provided in Section 1.1 of 
17the State Pension Funds Continuing Appropriation Act.
18 (b-2) Allocations from the Common School Fund apportioned 
19to school districts not coming under this System shall not be 
20diminished or affected by the provisions of this Article.
21 (b-3) For State fiscal years 2025 through 2050, the 
22minimum contribution to the System to be made by the State for 
23each fiscal year shall be an amount determined by the System to 
24be sufficient to bring the total assets of the System up to 
25100% of the total actuarial liabilities of the System by the 
26end of State fiscal year 2050. In making these determinations, 
 
 
HB5448- 97 -LRB103 34609 RPS 64449 b


1the required State contribution shall be calculated each year 
2as a level percentage of payroll over the years remaining to 
3and including fiscal year 2050 and shall be determined under 
4the projected unit credit actuarial cost method. 
5 For State fiscal years 2012 through 2024 2045, the minimum 
6contribution to the System to be made by the State for each 
7fiscal year shall be an amount determined by the System to be 
8sufficient to bring the total assets of the System up to 90% of 
9the total actuarial liabilities of the System by the end of 
10State fiscal year 2045. In making these determinations, the 
11required State contribution shall be calculated each year as a 
12level percentage of payroll over the years remaining to and 
13including fiscal year 2045 and shall be determined under the 
14projected unit credit actuarial cost method.
15 For each of State fiscal years 2018, 2019, and 2020, the 
16State shall make an additional contribution to the System 
17equal to 2% of the total payroll of each employee who is deemed 
18to have elected the benefits under Section 1-161 or who has 
19made the election under subsection (c) of Section 1-161. 
20 A change in an actuarial or investment assumption that 
21increases or decreases the required State contribution and 
22first applies in State fiscal year 2018 or thereafter shall be 
23implemented in equal annual amounts over a 5-year period 
24beginning in the State fiscal year in which the actuarial 
25change first applies to the required State contribution.
26 A change in an actuarial or investment assumption that 
 
 
HB5448- 98 -LRB103 34609 RPS 64449 b


1increases or decreases the required State contribution and 
2first applied to the State contribution in fiscal year 2014, 
32015, 2016, or 2017 shall be implemented:
4  (i) as already applied in State fiscal years before 
5 2018; and
6  (ii) in the portion of the 5-year period beginning in 
7 the State fiscal year in which the actuarial change first 
8 applied that occurs in State fiscal year 2018 or 
9 thereafter, by calculating the change in equal annual 
10 amounts over that 5-year period and then implementing it 
11 at the resulting annual rate in each of the remaining 
12 fiscal years in that 5-year period.
13 For State fiscal years 1996 through 2005, the State 
14contribution to the System, as a percentage of the applicable 
15employee payroll, shall be increased in equal annual 
16increments so that by State fiscal year 2011, the State is 
17contributing at the rate required under this Section; except 
18that in the following specified State fiscal years, the State 
19contribution to the System shall not be less than the 
20following indicated percentages of the applicable employee 
21payroll, even if the indicated percentage will produce a State 
22contribution in excess of the amount otherwise required under 
23this subsection and subsection (a), and notwithstanding any 
24contrary certification made under subsection (a-1) before May 
2527, 1998 (the effective date of Public Act 90-582): 10.02% in 
26FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 
 
 
HB5448- 99 -LRB103 34609 RPS 64449 b


12002; 12.86% in FY 2003; and 13.56% in FY 2004.
2 Notwithstanding any other provision of this Article, the 
3total required State contribution for State fiscal year 2006 
4is $534,627,700. 
5 Notwithstanding any other provision of this Article, the 
6total required State contribution for State fiscal year 2007 
7is $738,014,500. 
8 For each of State fiscal years 2008 through 2009, the 
9State contribution to the System, as a percentage of the 
10applicable employee payroll, shall be increased in equal 
11annual increments from the required State contribution for 
12State fiscal year 2007, so that by State fiscal year 2011, the 
13State is contributing at the rate otherwise required under 
14this Section. 
15 Notwithstanding any other provision of this Article, the 
16total required State contribution for State fiscal year 2010 
17is $2,089,268,000 and shall be made from the proceeds of bonds 
18sold in fiscal year 2010 pursuant to Section 7.2 of the General 
19Obligation Bond Act, less (i) the pro rata share of bond sale 
20expenses determined by the System's share of total bond 
21proceeds, (ii) any amounts received from the Common School 
22Fund in fiscal year 2010, and (iii) any reduction in bond 
23proceeds due to the issuance of discounted bonds, if 
24applicable. 
25 Notwithstanding any other provision of this Article, the 
26total required State contribution for State fiscal year 2011 
 
 
HB5448- 100 -LRB103 34609 RPS 64449 b


1is the amount recertified by the System on or before April 1, 
22011 pursuant to subsection (a-1) of this Section and shall be 
3made from the proceeds of bonds sold in fiscal year 2011 
4pursuant to Section 7.2 of the General Obligation Bond Act, 
5less (i) the pro rata share of bond sale expenses determined by 
6the System's share of total bond proceeds, (ii) any amounts 
7received from the Common School Fund in fiscal year 2011, and 
8(iii) any reduction in bond proceeds due to the issuance of 
9discounted bonds, if applicable. This amount shall include, in 
10addition to the amount certified by the System, an amount 
11necessary to meet employer contributions required by the State 
12as an employer under paragraph (e) of this Section, which may 
13also be used by the System for contributions required by 
14paragraph (a) of Section 16-127. 
15 Beginning in State fiscal year 2051 2046, the minimum 
16State contribution for each fiscal year shall be the amount 
17needed to maintain the total assets of the System at 100% 90% 
18of the total actuarial liabilities of the System.
19 Amounts received by the System pursuant to Section 25 of 
20the Budget Stabilization Act or Section 8.12 of the State 
21Finance Act in any fiscal year do not reduce and do not 
22constitute payment of any portion of the minimum State 
23contribution required under this Article in that fiscal year. 
24Such amounts shall not reduce, and shall not be included in the 
25calculation of, the required State contributions under this 
26Article in any future year until the System has reached a 
 
 
HB5448- 101 -LRB103 34609 RPS 64449 b


1funding ratio of at least 90%. A reference in this Article to 
2the "required State contribution" or any substantially similar 
3term does not include or apply to any amounts payable to the 
4System under Section 25 of the Budget Stabilization Act.
5 Notwithstanding any other provision of this Section, the 
6required State contribution for State fiscal year 2005 and for 
7fiscal year 2008 and each fiscal year thereafter, as 
8calculated under this Section and certified under subsection 
9(a-1), shall not exceed an amount equal to (i) the amount of 
10the required State contribution that would have been 
11calculated under this Section for that fiscal year if the 
12System had not received any payments under subsection (d) of 
13Section 7.2 of the General Obligation Bond Act, minus (ii) the 
14portion of the State's total debt service payments for that 
15fiscal year on the bonds issued in fiscal year 2003 for the 
16purposes of that Section 7.2, as determined and certified by 
17the Comptroller, that is the same as the System's portion of 
18the total moneys distributed under subsection (d) of Section 
197.2 of the General Obligation Bond Act. In determining this 
20maximum for State fiscal years 2008 through 2010, however, the 
21amount referred to in item (i) shall be increased, as a 
22percentage of the applicable employee payroll, in equal 
23increments calculated from the sum of the required State 
24contribution for State fiscal year 2007 plus the applicable 
25portion of the State's total debt service payments for fiscal 
26year 2007 on the bonds issued in fiscal year 2003 for the 
 
 
HB5448- 102 -LRB103 34609 RPS 64449 b


1purposes of Section 7.2 of the General Obligation Bond Act, so 
2that, by State fiscal year 2011, the State is contributing at 
3the rate otherwise required under this Section.
4 (b-4) Beginning in fiscal year 2018, each employer under 
5this Article shall pay to the System a required contribution 
6determined as a percentage of projected payroll and sufficient 
7to produce an annual amount equal to:
8  (i) for each of fiscal years 2018, 2019, and 2020, the 
9 defined benefit normal cost of the defined benefit plan, 
10 less the employee contribution, for each employee of that 
11 employer who has elected or who is deemed to have elected 
12 the benefits under Section 1-161 or who has made the 
13 election under subsection (b) of Section 1-161; for fiscal 
14 year 2021 and each fiscal year thereafter, the defined 
15 benefit normal cost of the defined benefit plan, less the 
16 employee contribution, plus 2%, for each employee of that 
17 employer who has elected or who is deemed to have elected 
18 the benefits under Section 1-161 or who has made the 
19 election under subsection (b) of Section 1-161; plus
20  (ii) the amount required for that fiscal year to 
21 amortize any unfunded actuarial accrued liability 
22 associated with the present value of liabilities 
23 attributable to the employer's account under Section 
24 16-158.3, determined as a level percentage of payroll over 
25 a 30-year rolling amortization period.
26 In determining contributions required under item (i) of 
 
 
HB5448- 103 -LRB103 34609 RPS 64449 b


1this subsection, the System shall determine an aggregate rate 
2for all employers, expressed as a percentage of projected 
3payroll. 
4 In determining the contributions required under item (ii) 
5of this subsection, the amount shall be computed by the System 
6on the basis of the actuarial assumptions and tables used in 
7the most recent actuarial valuation of the System that is 
8available at the time of the computation. 
9 The contributions required under this subsection (b-4) 
10shall be paid by an employer concurrently with that employer's 
11payroll payment period. The State, as the actual employer of 
12an employee, shall make the required contributions under this 
13subsection. 
14 (c) Payment of the required State contributions and of all 
15pensions, retirement annuities, death benefits, refunds, and 
16other benefits granted under or assumed by this System, and 
17all expenses in connection with the administration and 
18operation thereof, are obligations of the State.
19 If members are paid from special trust or federal funds 
20which are administered by the employing unit, whether school 
21district or other unit, the employing unit shall pay to the 
22System from such funds the full accruing retirement costs 
23based upon that service, which, beginning July 1, 2017, shall 
24be at a rate, expressed as a percentage of salary, equal to the 
25total employer's normal cost, expressed as a percentage of 
26payroll, as determined by the System. Employer contributions, 
 
 
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1based on salary paid to members from federal funds, may be 
2forwarded by the distributing agency of the State of Illinois 
3to the System prior to allocation, in an amount determined in 
4accordance with guidelines established by such agency and the 
5System. Any contribution for fiscal year 2015 collected as a 
6result of the change made by Public Act 98-674 shall be 
7considered a State contribution under subsection (b-3) of this 
8Section. 
9 (d) Effective July 1, 1986, any employer of a teacher as 
10defined in paragraph (8) of Section 16-106 shall pay the 
11employer's normal cost of benefits based upon the teacher's 
12service, in addition to employee contributions, as determined 
13by the System. Such employer contributions shall be forwarded 
14monthly in accordance with guidelines established by the 
15System.
16 However, with respect to benefits granted under Section 
1716-133.4 or 16-133.5 to a teacher as defined in paragraph (8) 
18of Section 16-106, the employer's contribution shall be 12% 
19(rather than 20%) of the member's highest annual salary rate 
20for each year of creditable service granted, and the employer 
21shall also pay the required employee contribution on behalf of 
22the teacher. For the purposes of Sections 16-133.4 and 
2316-133.5, a teacher as defined in paragraph (8) of Section 
2416-106 who is serving in that capacity while on leave of 
25absence from another employer under this Article shall not be 
26considered an employee of the employer from which the teacher 
 
 
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1is on leave.
2 (e) Beginning July 1, 1998, every employer of a teacher 
3shall pay to the System an employer contribution computed as 
4follows:
5  (1) Beginning July 1, 1998 through June 30, 1999, the 
6 employer contribution shall be equal to 0.3% of each 
7 teacher's salary.
8  (2) Beginning July 1, 1999 and thereafter, the 
9 employer contribution shall be equal to 0.58% of each 
10 teacher's salary.
11The school district or other employing unit may pay these 
12employer contributions out of any source of funding available 
13for that purpose and shall forward the contributions to the 
14System on the schedule established for the payment of member 
15contributions.
16 These employer contributions are intended to offset a 
17portion of the cost to the System of the increases in 
18retirement benefits resulting from Public Act 90-582.
19 Each employer of teachers is entitled to a credit against 
20the contributions required under this subsection (e) with 
21respect to salaries paid to teachers for the period January 1, 
222002 through June 30, 2003, equal to the amount paid by that 
23employer under subsection (a-5) of Section 6.6 of the State 
24Employees Group Insurance Act of 1971 with respect to salaries 
25paid to teachers for that period.
26 The additional 1% employee contribution required under 
 
 
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1Section 16-152 by Public Act 90-582 is the responsibility of 
2the teacher and not the teacher's employer, unless the 
3employer agrees, through collective bargaining or otherwise, 
4to make the contribution on behalf of the teacher.
5 If an employer is required by a contract in effect on May 
61, 1998 between the employer and an employee organization to 
7pay, on behalf of all its full-time employees covered by this 
8Article, all mandatory employee contributions required under 
9this Article, then the employer shall be excused from paying 
10the employer contribution required under this subsection (e) 
11for the balance of the term of that contract. The employer and 
12the employee organization shall jointly certify to the System 
13the existence of the contractual requirement, in such form as 
14the System may prescribe. This exclusion shall cease upon the 
15termination, extension, or renewal of the contract at any time 
16after May 1, 1998.
17 (f) If the amount of a teacher's salary for any school year 
18used to determine final average salary exceeds the member's 
19annual full-time salary rate with the same employer for the 
20previous school year by more than 6%, the teacher's employer 
21shall pay to the System, in addition to all other payments 
22required under this Section and in accordance with guidelines 
23established by the System, the present value of the increase 
24in benefits resulting from the portion of the increase in 
25salary that is in excess of 6%. This present value shall be 
26computed by the System on the basis of the actuarial 
 
 
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1assumptions and tables used in the most recent actuarial 
2valuation of the System that is available at the time of the 
3computation. If a teacher's salary for the 2005-2006 school 
4year is used to determine final average salary under this 
5subsection (f), then the changes made to this subsection (f) 
6by Public Act 94-1057 shall apply in calculating whether the 
7increase in his or her salary is in excess of 6%. For the 
8purposes of this Section, change in employment under Section 
910-21.12 of the School Code on or after June 1, 2005 shall 
10constitute a change in employer. The System may require the 
11employer to provide any pertinent information or 
12documentation. The changes made to this subsection (f) by 
13Public Act 94-1111 apply without regard to whether the teacher 
14was in service on or after its effective date. 
15 Whenever it determines that a payment is or may be 
16required under this subsection, the System shall calculate the 
17amount of the payment and bill the employer for that amount. 
18The bill shall specify the calculations used to determine the 
19amount due. If the employer disputes the amount of the bill, it 
20may, within 30 days after receipt of the bill, apply to the 
21System in writing for a recalculation. The application must 
22specify in detail the grounds of the dispute and, if the 
23employer asserts that the calculation is subject to subsection 
24(g), (g-5), (g-10), (g-15), or (h) of this Section, must 
25include an affidavit setting forth and attesting to all facts 
26within the employer's knowledge that are pertinent to the 
 
 
HB5448- 108 -LRB103 34609 RPS 64449 b


1applicability of that subsection. Upon receiving a timely 
2application for recalculation, the System shall review the 
3application and, if appropriate, recalculate the amount due.  
4 The employer contributions required under this subsection 
5(f) may be paid in the form of a lump sum within 90 days after 
6receipt of the bill. If the employer contributions are not 
7paid within 90 days after receipt of the bill, then interest 
8will be charged at a rate equal to the System's annual 
9actuarially assumed rate of return on investment compounded 
10annually from the 91st day after receipt of the bill. Payments 
11must be concluded within 3 years after the employer's receipt 
12of the bill. 
13 (f-1) (Blank).
14 (g) This subsection (g) applies only to payments made or 
15salary increases given on or after June 1, 2005 but before July 
161, 2011. The changes made by Public Act 94-1057 shall not 
17require the System to refund any payments received before July 
1831, 2006 (the effective date of Public Act 94-1057).
19 When assessing payment for any amount due under subsection 
20(f), the System shall exclude salary increases paid to 
21teachers under contracts or collective bargaining agreements 
22entered into, amended, or renewed before June 1, 2005. 
23 When assessing payment for any amount due under subsection 
24(f), the System shall exclude salary increases paid to a 
25teacher at a time when the teacher is 10 or more years from 
26retirement eligibility under Section 16-132 or 16-133.2. 
 
 
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1 When assessing payment for any amount due under subsection 
2(f), the System shall exclude salary increases resulting from 
3overload work, including summer school, when the school 
4district has certified to the System, and the System has 
5approved the certification, that (i) the overload work is for 
6the sole purpose of classroom instruction in excess of the 
7standard number of classes for a full-time teacher in a school 
8district during a school year and (ii) the salary increases 
9are equal to or less than the rate of pay for classroom 
10instruction computed on the teacher's current salary and work 
11schedule. 
12 When assessing payment for any amount due under subsection 
13(f), the System shall exclude a salary increase resulting from 
14a promotion (i) for which the employee is required to hold a 
15certificate or supervisory endorsement issued by the State 
16Teacher Certification Board that is a different certification 
17or supervisory endorsement than is required for the teacher's 
18previous position and (ii) to a position that has existed and 
19been filled by a member for no less than one complete academic 
20year and the salary increase from the promotion is an increase 
21that results in an amount no greater than the lesser of the 
22average salary paid for other similar positions in the 
23district requiring the same certification or the amount 
24stipulated in the collective bargaining agreement for a 
25similar position requiring the same certification. 
26 When assessing payment for any amount due under subsection 
 
 
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1(f), the System shall exclude any payment to the teacher from 
2the State of Illinois or the State Board of Education over 
3which the employer does not have discretion, notwithstanding 
4that the payment is included in the computation of final 
5average salary. 
6 (g-5) When assessing payment for any amount due under 
7subsection (f), the System shall exclude salary increases 
8resulting from overload or stipend work performed in a school 
9year subsequent to a school year in which the employer was 
10unable to offer or allow to be conducted overload or stipend 
11work due to an emergency declaration limiting such activities.
12 (g-10) When assessing payment for any amount due under 
13subsection (f), the System shall exclude salary increases 
14resulting from increased instructional time that exceeded the 
15instructional time required during the 2019-2020 school year. 
16 (g-15) When assessing payment for any amount due under 
17subsection (f), the System shall exclude salary increases 
18resulting from teaching summer school on or after May 1, 2021 
19and before September 15, 2022. 
20 (h) When assessing payment for any amount due under 
21subsection (f), the System shall exclude any salary increase 
22described in subsection (g) of this Section given on or after 
23July 1, 2011 but before July 1, 2014 under a contract or 
24collective bargaining agreement entered into, amended, or 
25renewed on or after June 1, 2005 but before July 1, 2011. 
26Notwithstanding any other provision of this Section, any 
 
 
HB5448- 111 -LRB103 34609 RPS 64449 b


1payments made or salary increases given after June 30, 2014 
2shall be used in assessing payment for any amount due under 
3subsection (f) of this Section. 
4 (i) The System shall prepare a report and file copies of 
5the report with the Governor and the General Assembly by 
6January 1, 2007 that contains all of the following 
7information:
8  (1) The number of recalculations required by the 
9 changes made to this Section by Public Act 94-1057 for 
10 each employer.
11  (2) The dollar amount by which each employer's 
12 contribution to the System was changed due to 
13 recalculations required by Public Act 94-1057.
14  (3) The total amount the System received from each 
15 employer as a result of the changes made to this Section by 
16 Public Act 94-4.
17  (4) The increase in the required State contribution 
18 resulting from the changes made to this Section by Public 
19 Act 94-1057. 
20 (i-5) For school years beginning on or after July 1, 2017, 
21if the amount of a participant's salary for any school year 
22exceeds the amount of the salary set for the Governor, the 
23participant's employer shall pay to the System, in addition to 
24all other payments required under this Section and in 
25accordance with guidelines established by the System, an 
26amount determined by the System to be equal to the employer 
 
 
HB5448- 112 -LRB103 34609 RPS 64449 b


1normal cost, as established by the System and expressed as a 
2total percentage of payroll, multiplied by the amount of 
3salary in excess of the amount of the salary set for the 
4Governor. This amount shall be computed by the System on the 
5basis of the actuarial assumptions and tables used in the most 
6recent actuarial valuation of the System that is available at 
7the time of the computation. The System may require the 
8employer to provide any pertinent information or 
9documentation.
10 Whenever it determines that a payment is or may be 
11required under this subsection, the System shall calculate the 
12amount of the payment and bill the employer for that amount. 
13The bill shall specify the calculations used to determine the 
14amount due. If the employer disputes the amount of the bill, it 
15may, within 30 days after receipt of the bill, apply to the 
16System in writing for a recalculation. The application must 
17specify in detail the grounds of the dispute. Upon receiving a 
18timely application for recalculation, the System shall review 
19the application and, if appropriate, recalculate the amount 
20due. 
21 The employer contributions required under this subsection 
22may be paid in the form of a lump sum within 90 days after 
23receipt of the bill. If the employer contributions are not 
24paid within 90 days after receipt of the bill, then interest 
25will be charged at a rate equal to the System's annual 
26actuarially assumed rate of return on investment compounded 
 
 
HB5448- 113 -LRB103 34609 RPS 64449 b


1annually from the 91st day after receipt of the bill. Payments 
2must be concluded within 3 years after the employer's receipt 
3of the bill. 
4 (j) For purposes of determining the required State 
5contribution to the System, the value of the System's assets 
6shall be equal to the actuarial value of the System's assets, 
7which shall be calculated as follows:
8 As of June 30, 2008, the actuarial value of the System's 
9assets shall be equal to the market value of the assets as of 
10that date. In determining the actuarial value of the System's 
11assets for fiscal years after June 30, 2008, any actuarial 
12gains or losses from investment return incurred in a fiscal 
13year shall be recognized in equal annual amounts over the 
145-year period following that fiscal year. 
15 (k) For purposes of determining the required State 
16contribution to the system for a particular year, the 
17actuarial value of assets shall be assumed to earn a rate of 
18return equal to the system's actuarially assumed rate of 
19return. 
20(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
21102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff. 
228-20-21; 102-813, eff. 5-13-22.)

23 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
24 Sec. 18-131. Financing; employer contributions. 
25 (a) The State of Illinois shall make contributions to this 
 
 
HB5448- 114 -LRB103 34609 RPS 64449 b


1System by appropriations of the amounts which, together with 
2the contributions of participants, net earnings on 
3investments, and other income, will meet the costs of 
4maintaining and administering this System on a 100% 90% funded 
5basis by 2050 in accordance with actuarial recommendations.
6 (b) The Board shall determine the amount of State 
7contributions required for each fiscal year on the basis of 
8the actuarial tables and other assumptions adopted by the 
9Board and the prescribed rate of interest, using the formula 
10in subsection (c).
11 (c) For State fiscal years 2025 through 2050, the minimum 
12contribution to the System to be made by the State for each 
13fiscal year shall be an amount determined by the System to be 
14sufficient to bring the total assets of the System up to 100% 
15of the total actuarial liabilities of the System by the end of 
16State fiscal year 2050. In making these determinations, the 
17required State contribution shall be calculated each year as a 
18level percentage of payroll over the years remaining to and 
19including fiscal year 2050 and shall be determined under the 
20projected unit credit actuarial cost method. 
21 For State fiscal years 2012 through 2024 2045, the minimum 
22contribution to the System to be made by the State for each 
23fiscal year shall be an amount determined by the System to be 
24sufficient to bring the total assets of the System up to 90% of 
25the total actuarial liabilities of the System by the end of 
26State fiscal year 2045. In making these determinations, the 
 
 
HB5448- 115 -LRB103 34609 RPS 64449 b


1required State contribution shall be calculated each year as a 
2level percentage of payroll over the years remaining to and 
3including fiscal year 2045 and shall be determined under the 
4projected unit credit actuarial cost method.
5 A change in an actuarial or investment assumption that 
6increases or decreases the required State contribution and 
7first applies in State fiscal year 2018 or thereafter shall be 
8implemented in equal annual amounts over a 5-year period 
9beginning in the State fiscal year in which the actuarial 
10change first applies to the required State contribution.
11 A change in an actuarial or investment assumption that 
12increases or decreases the required State contribution and 
13first applied to the State contribution in fiscal year 2014, 
142015, 2016, or 2017 shall be implemented:
15  (i) as already applied in State fiscal years before 
16 2018; and
17  (ii) in the portion of the 5-year period beginning in 
18 the State fiscal year in which the actuarial change first 
19 applied that occurs in State fiscal year 2018 or 
20 thereafter, by calculating the change in equal annual 
21 amounts over that 5-year period and then implementing it 
22 at the resulting annual rate in each of the remaining 
23 fiscal years in that 5-year period.
24 For State fiscal years 1996 through 2005, the State 
25contribution to the System, as a percentage of the applicable 
26employee payroll, shall be increased in equal annual 
 
 
HB5448- 116 -LRB103 34609 RPS 64449 b


1increments so that by State fiscal year 2011, the State is 
2contributing at the rate required under this Section.
3 Notwithstanding any other provision of this Article, the 
4total required State contribution for State fiscal year 2006 
5is $29,189,400. 
6 Notwithstanding any other provision of this Article, the 
7total required State contribution for State fiscal year 2007 
8is $35,236,800. 
9 For each of State fiscal years 2008 through 2009, the 
10State contribution to the System, as a percentage of the 
11applicable employee payroll, shall be increased in equal 
12annual increments from the required State contribution for 
13State fiscal year 2007, so that by State fiscal year 2011, the 
14State is contributing at the rate otherwise required under 
15this Section. 
16 Notwithstanding any other provision of this Article, the 
17total required State contribution for State fiscal year 2010 
18is $78,832,000 and shall be made from the proceeds of bonds 
19sold in fiscal year 2010 pursuant to Section 7.2 of the General 
20Obligation Bond Act, less (i) the pro rata share of bond sale 
21expenses determined by the System's share of total bond 
22proceeds, (ii) any amounts received from the General Revenue 
23Fund in fiscal year 2010, and (iii) any reduction in bond 
24proceeds due to the issuance of discounted bonds, if 
25applicable. 
26 Notwithstanding any other provision of this Article, the 
 
 
HB5448- 117 -LRB103 34609 RPS 64449 b


1total required State contribution for State fiscal year 2011 
2is the amount recertified by the System on or before April 1, 
32011 pursuant to Section 18-140 and shall be made from the 
4proceeds of bonds sold in fiscal year 2011 pursuant to Section 
57.2 of the General Obligation Bond Act, less (i) the pro rata 
6share of bond sale expenses determined by the System's share 
7of total bond proceeds, (ii) any amounts received from the 
8General Revenue Fund in fiscal year 2011, and (iii) any 
9reduction in bond proceeds due to the issuance of discounted 
10bonds, if applicable. 
11 Beginning in State fiscal year 2051 2046, the minimum 
12State contribution for each fiscal year shall be the amount 
13needed to maintain the total assets of the System at 100% 90% 
14of the total actuarial liabilities of the System.
15 Amounts received by the System pursuant to Section 25 of 
16the Budget Stabilization Act or Section 8.12 of the State 
17Finance Act in any fiscal year do not reduce and do not 
18constitute payment of any portion of the minimum State 
19contribution required under this Article in that fiscal year. 
20Such amounts shall not reduce, and shall not be included in the 
21calculation of, the required State contributions under this 
22Article in any future year until the System has reached a 
23funding ratio of at least 90%. A reference in this Article to 
24the "required State contribution" or any substantially similar 
25term does not include or apply to any amounts payable to the 
26System under Section 25 of the Budget Stabilization Act. 
 
 
HB5448- 118 -LRB103 34609 RPS 64449 b


1 Notwithstanding any other provision of this Section, the 
2required State contribution for State fiscal year 2005 and for 
3fiscal year 2008 and each fiscal year thereafter, as 
4calculated under this Section and certified under Section 
518-140, shall not exceed an amount equal to (i) the amount of 
6the required State contribution that would have been 
7calculated under this Section for that fiscal year if the 
8System had not received any payments under subsection (d) of 
9Section 7.2 of the General Obligation Bond Act, minus (ii) the 
10portion of the State's total debt service payments for that 
11fiscal year on the bonds issued in fiscal year 2003 for the 
12purposes of that Section 7.2, as determined and certified by 
13the Comptroller, that is the same as the System's portion of 
14the total moneys distributed under subsection (d) of Section 
157.2 of the General Obligation Bond Act. In determining this 
16maximum for State fiscal years 2008 through 2010, however, the 
17amount referred to in item (i) shall be increased, as a 
18percentage of the applicable employee payroll, in equal 
19increments calculated from the sum of the required State 
20contribution for State fiscal year 2007 plus the applicable 
21portion of the State's total debt service payments for fiscal 
22year 2007 on the bonds issued in fiscal year 2003 for the 
23purposes of Section 7.2 of the General Obligation Bond Act, so 
24that, by State fiscal year 2011, the State is contributing at 
25the rate otherwise required under this Section.
26 (d) For purposes of determining the required State 
 
 
HB5448- 119 -LRB103 34609 RPS 64449 b


1contribution to the System, the value of the System's assets 
2shall be equal to the actuarial value of the System's assets, 
3which shall be calculated as follows:
4 As of June 30, 2008, the actuarial value of the System's 
5assets shall be equal to the market value of the assets as of 
6that date. In determining the actuarial value of the System's 
7assets for fiscal years after June 30, 2008, any actuarial 
8gains or losses from investment return incurred in a fiscal 
9year shall be recognized in equal annual amounts over the 
105-year period following that fiscal year. 
11 (e) For purposes of determining the required State 
12contribution to the system for a particular year, the 
13actuarial value of assets shall be assumed to earn a rate of 
14return equal to the system's actuarially assumed rate of 
15return. 
16(Source: P.A. 100-23, eff. 7-6-17.)

17
Article 3. 


18 Section 3-5. The Illinois Pension Code is amended by 
19changing Sections 2-101, 2-105, 2-107, 2-117, 14-103.05, 
2014-104, 14-105.4, 18-101, 18-108, 18-109, and 18-110 as 
21follows: 

22 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
23 Sec. 2-101. Creation of system.  A retirement system is 
 
 
HB5448- 120 -LRB103 34609 RPS 64449 b


1created to provide retirement annuities, survivor's annuities 
2and other benefits for certain members of the General 
3Assembly, certain elected state officials, and their 
4beneficiaries. 
5 The system shall be known as the "General Assembly 
6Retirement System". All its funds and property shall be a 
7trust separate from all other entities, maintained for the 
8purpose of securing payment of annuities and benefits under 
9this Article. 
10 Participation in the retirement system created under this 
11Article is restricted to persons who became participants 
12before January 8, 2025. Beginning on that date, the System 
13shall not accept any new participants. 
14(Source: P.A. 83-1440.)

15 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
16 Sec. 2-105. Member.  "Member": Members of the General 
17Assembly of this State, including persons who enter military 
18service while a member of the General Assembly, and any person 
19serving as Governor, Lieutenant Governor, Secretary of State, 
20Treasurer, Comptroller, or Attorney General for the period of 
21service in such office. 
22 Any person who has served for 10 or more years as Clerk or 
23Assistant Clerk of the House of Representatives, Secretary or 
24Assistant Secretary of the Senate, or any combination thereof, 
25may elect to become a member of this system while thenceforth 
 
 
HB5448- 121 -LRB103 34609 RPS 64449 b


1engaged in such service by filing a written election with the 
2board. Any person so electing shall be deemed an active member 
3of the General Assembly for the purpose of validating and 
4transferring any service credits earned under any of the funds 
5and systems established under Articles 3 through 18 of this 
6Code. 
7 Notwithstanding any other provision of this Article, a 
8person shall not be deemed a member for the purposes of this 
9Article unless he or she became a participant of the System 
10before January 8, 2025. 
11(Source: P.A. 85-1008.)

12 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
13 Sec. 2-107. Participant. "Participant": Any member who 
14elects to participate; and any former member who elects to 
15continue participation under Section 2-117.1, for the duration 
16of such continued participation. Notwithstanding any other 
17provision of this Article, a person shall not be deemed a 
18participant for the purposes of this Article unless he or she 
19became a participant of the System before January 8, 2025.
20(Source: P.A. 86-1488.)

21 (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
22 Sec. 2-117. Participants; election not to participate or 
23to terminate participation Participants - Election not to 
24participate. 
 
 
HB5448- 122 -LRB103 34609 RPS 64449 b


1 (a) Every person who was a member on November 1, 1947, or 
2in military service on such date, is subject to the provisions 
3of this system beginning upon such date, unless prior to such 
4date he or she filed with the board a written notice of 
5election not to participate.
6 Every person who becomes a member after November 1, 1947, 
7and who is then not a participant becomes a participant 
8beginning upon the date of becoming a member unless, within 24 
9months from that date, he or she has filed with the board a 
10written notice of election not to participate.
11 (b) A member who has filed notice of an election not to 
12participate (and a former member who has not yet begun to 
13receive a retirement annuity under this Article) may become a 
14participant with respect to the period for which the member 
15elected not to participate upon filing with the board, before 
16April 1, 1993, a written rescission of the election not to 
17participate. Upon contributing an amount equal to the 
18contributions he or she would have made as a participant from 
19November 1, 1947, or the date of becoming a member, whichever 
20is later, to the date of becoming a participant, with interest 
21at the rate of 4% per annum until the contributions are paid, 
22the participant shall receive credit for service as a member 
23prior to the date of the rescission, both before and after 
24November 1, 1947. The required contributions shall be made 
25before commencement of the retirement annuity; otherwise no 
26credit for service prior to the date of participation shall be 
 
 
HB5448- 123 -LRB103 34609 RPS 64449 b


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

12 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
13 Sec. 14-103.05. Employee. 
14 (a) Any person employed by a Department who receives 
15salary for personal services rendered to the Department on a 
16warrant issued pursuant to a payroll voucher certified by a 
17Department and drawn by the State Comptroller upon the State 
18Treasurer, including an elected official described in 
19subparagraph (d) of Section 14-104, shall become an employee 
20for purpose of membership in the Retirement System on the 
21first day of such employment.
22 A person entering service on or after January 1, 1972 and 
23prior to January 1, 1984 shall become a member as a condition 
24of employment and shall begin making contributions as of the 
25first day of employment.
 
 
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1 A person entering service on or after January 1, 1984 
2shall, upon completion of 6 months of continuous service which 
3is not interrupted by a break of more than 2 months, become a 
4member as a condition of employment. Contributions shall begin 
5the first of the month after completion of the qualifying 
6period.
7 A person employed by the Chicago Metropolitan Agency for 
8Planning on the effective date of this amendatory Act of the 
995th General Assembly who was a member of this System as an 
10employee of the Chicago Area Transportation Study and makes an 
11election under Section 14-104.13 to participate in this System 
12for his or her employment with the Chicago Metropolitan Agency 
13for Planning. 
14 The qualifying period of 6 months of service is not 
15applicable to: (1) a person who has been granted credit for 
16service in a position covered by the State Universities 
17Retirement System, the Teachers' Retirement System of the 
18State of Illinois, the General Assembly Retirement System, or 
19the Judges Retirement System of Illinois unless that service 
20has been forfeited under the laws of those systems; (2) a 
21person entering service on or after July 1, 1991 in a 
22noncovered position; (3) a person to whom Section 14-108.2a or 
2314-108.2b applies; or (4) a person to whom subsection (a-5) of 
24this Section applies.
25 (a-5) A person entering service on or after December 1, 
262010 shall become a member as a condition of employment and 
 
 
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1shall begin making contributions as of the first day of 
2employment. A person serving in the qualifying period on 
3December 1, 2010 will become a member on December 1, 2010 and 
4shall begin making contributions as of December 1, 2010. 
5 (b) The term "employee" does not include the following: 
6  (1) members of the State Legislature, and persons 
7 electing to become members of the General Assembly 
8 Retirement System pursuant to Section 2-105; 
9  (2) incumbents of offices normally filled by vote of 
10 the people; 
11  (3) except as otherwise provided in this Section, any 
12 person appointed by the Governor with the advice and 
13 consent of the Senate unless that person elects to 
14 participate in this system;
15  (3.1) any person serving as a commissioner of an 
16 ethics commission created under the State Officials and 
17 Employees Ethics Act unless that person elects to 
18 participate in this system with respect to that service as 
19 a commissioner; 
20  (3.2) any person serving as a part-time employee in 
21 any of the following positions: Legislative Inspector 
22 General, Special Legislative Inspector General, employee 
23 of the Office of the Legislative Inspector General, 
24 Executive Director of the Legislative Ethics Commission, 
25 or staff of the Legislative Ethics Commission, regardless 
26 of whether he or she is in active service on or after July 
 
 
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1 8, 2004 (the effective date of Public Act 93-685), unless 
2 that person elects to participate in this System with 
3 respect to that service; in this item (3.2), a "part-time 
4 employee" is a person who is not required to work at least 
5 35 hours per week;
6  (3.3) any person who has made an election under 
7 Section 1-123 and who is serving either as legal counsel 
8 in the Office of the Governor or as Chief Deputy Attorney 
9 General;  
10  (4) except as provided in Section 14-108.2 or 
11 14-108.2c, any person who is covered or eligible to be 
12 covered by the Teachers' Retirement System of the State of 
13 Illinois, the State Universities Retirement System, or the 
14 Judges Retirement System of Illinois; 
15  (5) an employee of a municipality or any other 
16 political subdivision of the State; 
17  (6) any person who becomes an employee after June 30, 
18 1979 as a public service employment program participant 
19 under the Federal Comprehensive Employment and Training 
20 Act and whose wages or fringe benefits are paid in whole or 
21 in part by funds provided under such Act; 
22  (7) enrollees of the Illinois Young Adult Conservation 
23 Corps program, administered by the Department of Natural 
24 Resources, authorized grantee pursuant to Title VIII of 
25 the "Comprehensive Employment and Training Act of 1973", 
26 29 USC 993, as now or hereafter amended; 
 
 
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1  (8) enrollees and temporary staff of programs 
2 administered by the Department of Natural Resources under 
3 the Youth Conservation Corps Act of 1970; 
4  (9) any person who is a member of any professional 
5 licensing or disciplinary board created under an Act 
6 administered by the Department of Professional Regulation 
7 or a successor agency or created or re-created after the 
8 effective date of this amendatory Act of 1997, and who 
9 receives per diem compensation rather than a salary, 
10 notwithstanding that such per diem compensation is paid by 
11 warrant issued pursuant to a payroll voucher; such persons 
12 have never been included in the membership of this System, 
13 and this amendatory Act of 1987 (P.A. 84-1472) is not 
14 intended to effect any change in the status of such 
15 persons; 
16  (10) any person who is a member of the Illinois Health 
17 Care Cost Containment Council, and receives per diem 
18 compensation rather than a salary, notwithstanding that 
19 such per diem compensation is paid by warrant issued 
20 pursuant to a payroll voucher; such persons have never 
21 been included in the membership of this System, and this 
22 amendatory Act of 1987 is not intended to effect any 
23 change in the status of such persons; 
24  (11) any person who is a member of the Oil and Gas 
25 Board created by Section 1.2 of the Illinois Oil and Gas 
26 Act, and receives per diem compensation rather than a 
 
 
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1 salary, notwithstanding that such per diem compensation is 
2 paid by warrant issued pursuant to a payroll voucher;
3  (12) a person employed by the State Board of Higher 
4 Education in a position with the Illinois Century Network 
5 as of June 30, 2004, who remains continuously employed 
6 after that date by the Department of Central Management 
7 Services in a position with the Illinois Century Network 
8 and participates in the Article 15 system with respect to 
9 that employment; 
10  (13) any person who first becomes a member of the 
11 Civil Service Commission on or after January 1, 2012;
12  (14) any person, other than the Director of Employment 
13 Security, who first becomes a member of the Board of 
14 Review of the Department of Employment Security on or 
15 after January 1, 2012;
16  (15) any person who first becomes a member of the 
17 Civil Service Commission on or after January 1, 2012;
18  (16) any person who first becomes a member of the 
19 Illinois Liquor Control Commission on or after January 1, 
20 2012;
21  (17) any person who first becomes a member of the 
22 Secretary of State Merit Commission on or after January 1, 
23 2012;
24  (18) any person who first becomes a member of the 
25 Human Rights Commission on or after January 1, 2012 unless 
26 he or she is eligible to participate in accordance with 
 
 
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1 subsection (d) of this Section;
2  (19) any person who first becomes a member of the 
3 State Mining Board on or after January 1, 2012;
4  (20) any person who first becomes a member of the 
5 Property Tax Appeal Board on or after January 1, 2012;
6  (21) any person who first becomes a member of the 
7 Illinois Racing Board on or after January 1, 2012;
8  (22) any person who first becomes a member of the 
9 Illinois State Police Merit Board on or after January 1, 
10 2012;
11  (23) any person who first becomes a member of the 
12 Illinois State Toll Highway Authority on or after January 
13 1, 2012; or
14  (24) any person who first becomes a member of the 
15 Illinois State Board of Elections on or after January 1, 
16 2012. 
17 (c) An individual who represents or is employed as an 
18officer or employee of a statewide labor organization that 
19represents members of this System may participate in the 
20System and shall be deemed an employee, provided that (1) the 
21individual has previously earned creditable service under this 
22Article, (2) the individual files with the System an 
23irrevocable election to become a participant within 6 months 
24after the effective date of this amendatory Act of the 94th 
25General Assembly, and (3) the individual does not receive 
26credit for that employment under any other provisions of this 
 
 
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1Code. An employee under this subsection (c) is responsible for 
2paying to the System both (i) employee contributions based on 
3the actual compensation received for service with the labor 
4organization and (ii) employer contributions based on the 
5percentage of payroll certified by the board; all or any part 
6of these contributions may be paid on the employee's behalf or 
7picked up for tax purposes (if authorized under federal law) 
8by the labor organization.
9 A person who is an employee as defined in this subsection 
10(c) may establish service credit for similar employment prior 
11to becoming an employee under this subsection by paying to the 
12System for that employment the contributions specified in this 
13subsection, plus interest at the effective rate from the date 
14of service to the date of payment. However, credit shall not be 
15granted under this subsection (c) for any such prior 
16employment for which the applicant received credit under any 
17other provision of this Code or during which the applicant was 
18on a leave of absence. 
19 (d) A person appointed as a member of the Human Rights 
20Commission on or after June 1, 2019 may elect to participate in 
21the System and shall be deemed an employee. Service and 
22contributions shall begin on the first payroll period 
23immediately following the employee's election to participate 
24in the System.
25 A person who is an employee as described in this 
26subsection (d) may establish service credit for employment as 
 
 
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1a Human Rights Commissioner that occurred on or after June 1, 
22019 and before establishing service under this subsection by 
3paying to the System for that employment the contributions 
4specified in paragraph (1) of subsection (a) of Section 
514-133, plus regular interest from the date of service to the 
6date of payment. 
7(Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)

8 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
9 Sec. 14-104. Service for which contributions permitted. 
10Contributions provided for in this Section shall cover the 
11period of service granted. Except as otherwise provided in 
12this Section, the contributions shall be based upon the 
13employee's compensation and contribution rate in effect on the 
14date he last became a member of the System; provided that for 
15all employment prior to January 1, 1969 the contribution rate 
16shall be that in effect for a noncovered employee on the date 
17he last became a member of the System. Except as otherwise 
18provided in this Section, contributions permitted under this 
19Section shall include regular interest from the date an 
20employee last became a member of the System to the date of 
21payment. 
22 These contributions must be paid in full before retirement 
23either in a lump sum or in installment payments in accordance 
24with such rules as may be adopted by the board. 
25 (a) Any member may make contributions as required in this 
 
 
HB5448- 132 -LRB103 34609 RPS 64449 b


1Section for any period of service, subsequent to the date of 
2establishment, but prior to the date of membership. 
3 (b) Any employee who had been previously excluded from 
4membership because of age at entry and subsequently became 
5eligible may elect to make contributions as required in this 
6Section for the period of service during which he was 
7ineligible. 
8 (c) An employee of the Department of Insurance who, after 
9January 1, 1944 but prior to becoming eligible for membership, 
10received salary from funds of insurance companies in the 
11process of rehabilitation, liquidation, conservation or 
12dissolution, may elect to make contributions as required in 
13this Section for such service. 
14 (d) Any employee who rendered service in a State office to 
15which he was elected, or rendered service in the elective 
16office of Clerk of the Appellate Court prior to the date he 
17became a member, may make contributions for such service as 
18required in this Section. Any member who served by appointment 
19of the Governor under the Civil Administrative Code of 
20Illinois and did not participate in this System may make 
21contributions as required in this Section for such service. 
22 (e) Any person employed by the United States government or 
23any instrumentality or agency thereof from January 1, 1942 
24through November 15, 1946 as the result of a transfer from 
25State service by executive order of the President of the 
26United States shall be entitled to prior service credit 
 
 
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1covering the period from January 1, 1942 through December 31, 
21943 as provided for in this Article and to membership service 
3credit for the period from January 1, 1944 through November 
415, 1946 by making the contributions required in this Section. 
5A person so employed on January 1, 1944 but whose employment 
6began after January 1, 1942 may qualify for prior service and 
7membership service credit under the same conditions. 
8 (f) An employee of the Department of Labor of the State of 
9Illinois who performed services for and under the supervision 
10of that Department prior to January 1, 1944 but who was 
11compensated for those services directly by federal funds and 
12not by a warrant of the Auditor of Public Accounts paid by the 
13State Treasurer may establish credit for such employment by 
14making the contributions required in this Section. An employee 
15of the Department of Agriculture of the State of Illinois, who 
16performed services for and under the supervision of that 
17Department prior to June 1, 1963, but was compensated for 
18those services directly by federal funds and not paid by a 
19warrant of the Auditor of Public Accounts paid by the State 
20Treasurer, and who did not contribute to any other public 
21employee retirement system for such service, may establish 
22credit for such employment by making the contributions 
23required in this Section. 
24 (g) Any employee who executed a waiver of membership 
25within 60 days prior to January 1, 1944 may, at any time while 
26in the service of a department, file with the board a 
 
 
HB5448- 134 -LRB103 34609 RPS 64449 b


1rescission of such waiver. Upon making the contributions 
2required by this Section, the member shall be granted the 
3creditable service that would have been received if the waiver 
4had not been executed. 
5 (h) Until May 1, 1990, an employee who was employed on a 
6full-time basis by a regional planning commission for at least 
75 continuous years may establish creditable service for such 
8employment by making the contributions required under this 
9Section, provided that any credits earned by the employee in 
10the commission's retirement plan have been terminated. 
11 (i) Any person who rendered full time contractual services 
12to the General Assembly as a member of a legislative staff may 
13establish service credit for up to 8 years of such services by 
14making the contributions required under this Section, provided 
15that application therefor is made not later than July 1, 1991. 
16 (j) By paying the contributions otherwise required under 
17this Section, plus an amount determined by the Board to be 
18equal to the employer's normal cost of the benefit plus 
19interest, but with all of the interest calculated from the 
20date the employee last became a member of the System or 
21November 19, 1991, whichever is later, to the date of payment, 
22an employee may establish service credit for a period of up to 
234 years spent in active military service for which he does not 
24qualify for credit under Section 14-105, provided that (1) he 
25was not dishonorably discharged from such military service, 
26and (2) the amount of service credit established by a member 
 
 
HB5448- 135 -LRB103 34609 RPS 64449 b


1under this subsection (j), when added to the amount of 
2military service credit granted to the member under subsection 
3(b) of Section 14-105, shall not exceed 5 years. The change in 
4the manner of calculating interest under this subsection (j) 
5made by this amendatory Act of the 92nd General Assembly 
6applies to credit purchased by an employee on or after its 
7effective date and does not entitle any person to a refund of 
8contributions or interest already paid. In compliance with 
9Section 14-152.1 of this Act concerning new benefit increases, 
10any new benefit increase as a result of the changes to this 
11subsection (j) made by Public Act 95-483 is funded through the 
12employee contributions provided for in this subsection (j). 
13Any new benefit increase as a result of the changes made to 
14this subsection (j) by Public Act 95-483 is exempt from the 
15provisions of subsection (d) of Section 14-152.1.
16 (k) An employee who was employed on a full-time basis by 
17the Illinois State's Attorneys Association Statewide Appellate 
18Assistance Service LEAA-ILEC grant project prior to the time 
19that project became the State's Attorneys Appellate Service 
20Commission, now the Office of the State's Attorneys Appellate 
21Prosecutor, an agency of State government, may establish 
22creditable service for not more than 60 months service for 
23such employment by making contributions required under this 
24Section. 
25 (l) By paying the contributions otherwise required under 
26this Section, plus an amount determined by the Board to be 
 
 
HB5448- 136 -LRB103 34609 RPS 64449 b


1equal to the employer's normal cost of the benefit plus 
2interest, a member may establish service credit for periods of 
3less than one year spent on authorized leave of absence from 
4service, provided that (1) the period of leave began on or 
5after January 1, 1982 and (2) any credit established by the 
6member for the period of leave in any other public employee 
7retirement system has been terminated. A member may establish 
8service credit under this subsection for more than one period 
9of authorized leave, and in that case the total period of 
10service credit established by the member under this subsection 
11may exceed one year. In determining the contributions required 
12for establishing service credit under this subsection, the 
13interest shall be calculated from the beginning of the leave 
14of absence to the date of payment. 
15 (l-5) By paying the contributions otherwise required under 
16this Section, plus an amount determined by the Board to be 
17equal to the employer's normal cost of the benefit plus 
18interest, a member may establish service credit for periods of 
19up to 2 years spent on authorized leave of absence from 
20service, provided that during that leave the member 
21represented or was employed as an officer or employee of a 
22statewide labor organization that represents members of this 
23System. In determining the contributions required for 
24establishing service credit under this subsection, the 
25interest shall be calculated from the beginning of the leave 
26of absence to the date of payment. 
 
 
HB5448- 137 -LRB103 34609 RPS 64449 b


1 (m) Any person who rendered contractual services to a 
2member of the General Assembly as a worker in the member's 
3district office may establish creditable service for up to 3 
4years of those contractual services by making the 
5contributions required under this Section. The System shall 
6determine a full-time salary equivalent for the purpose of 
7calculating the required contribution. To establish credit 
8under this subsection, the applicant must apply to the System 
9by March 1, 1998. 
10 (n) Any person who rendered contractual services to a 
11member of the General Assembly as a worker providing 
12constituent services to persons in the member's district may 
13establish creditable service for up to 8 years of those 
14contractual services by making the contributions required 
15under this Section. The System shall determine a full-time 
16salary equivalent for the purpose of calculating the required 
17contribution. To establish credit under this subsection, the 
18applicant must apply to the System by March 1, 1998. 
19 (o) A member who participated in the Illinois Legislative 
20Staff Internship Program may establish creditable service for 
21up to one year of that participation by making the 
22contribution required under this Section. The System shall 
23determine a full-time salary equivalent for the purpose of 
24calculating the required contribution. Credit may not be 
25established under this subsection for any period for which 
26service credit is established under any other provision of 
 
 
HB5448- 138 -LRB103 34609 RPS 64449 b


1this Code. 
2 (p) By paying the contributions otherwise required under 
3this Section, plus an amount determined by the Board to be 
4equal to the employer's normal cost of the benefit plus 
5interest, a member may establish service credit for a period 
6of up to 8 years during which he or she was employed by the 
7Visually Handicapped Managers of Illinois in a vending program 
8operated under a contractual agreement with the Department of 
9Rehabilitation Services or its successor agency. 
10 This subsection (p) applies without regard to whether the 
11person was in service on or after the effective date of this 
12amendatory Act of the 94th General Assembly. In the case of a 
13person who is receiving a retirement annuity on that effective 
14date, the increase, if any, shall begin to accrue on the first 
15annuity payment date following receipt by the System of the 
16contributions required under this subsection (p).
17 (q) By paying the required contributions under this 
18Section, plus an amount determined by the Board to be equal to 
19the employer's normal cost of the benefit plus interest, an 
20employee who was laid off but returned to any State employment 
21may establish creditable service for the period of the layoff, 
22provided that (1) the applicant applies for the creditable 
23service under this subsection (q) within 6 months after July 
2427, 2010 (the effective date of Public Act 96-1320), (2) the 
25applicant does not receive credit for that period under any 
26other provision of this Code, (3) at the time of the layoff, 
 
 
HB5448- 139 -LRB103 34609 RPS 64449 b


1the applicant is not in an initial probationary status 
2consistent with the rules of the Department of Central 
3Management Services, and (4) the total amount of creditable 
4service established by the applicant under this subsection (q) 
5does not exceed 3 years. For service established under this 
6subsection (q), the required employee contribution shall be 
7based on the rate of compensation earned by the employee on the 
8date of returning to employment after the layoff and the 
9contribution rate then in effect, and the required interest 
10shall be calculated at the actuarially assumed rate from the 
11date of returning to employment after the layoff to the date of 
12payment. Funding for any new benefit increase, as defined in 
13Section 14-152.1 of this Act, that is created under this 
14subsection (q) will be provided by the employee contributions 
15required under this subsection (q). 
16 (r) A member who participated in the University of 
17Illinois Government Public Service Internship Program (GPSI) 
18may establish creditable service for up to 2 years of that 
19participation by making the contribution required under this 
20Section, plus an amount determined by the Board to be equal to 
21the employer's normal cost of the benefit plus interest. The 
22System shall determine a full-time salary equivalent for the 
23purpose of calculating the required contribution. Credit may 
24not be established under this subsection for any period for 
25which service credit is established under any other provision 
26of this Code.
 
 
HB5448- 140 -LRB103 34609 RPS 64449 b


1 (s) A member who worked as a nurse under a contractual 
2agreement for the Department of Public Aid, or its successor 
3agency, the Department of Human Services, in the Client 
4Assessment Unit and was subsequently determined to be a State 
5employee by the United States Internal Revenue Service and the 
6Illinois Labor Relations Board may establish creditable 
7service for those contractual services by making the 
8contributions required under this Section. To establish credit 
9under this subsection, the applicant must apply to the System 
10by July 1, 2008.
11 The Department of Human Services shall pay an employer 
12contribution based upon an amount determined by the Board to 
13be equal to the employer's normal cost of the benefit, plus 
14interest.
15 In compliance with Section 14-152.1 added by Public Act 
1694-4, the cost of the benefits provided by Public Act 95-583 
17are offset by the required employee and employer 
18contributions. 
19 (t) Any person who rendered contractual services on a 
20full-time basis to the Illinois Institute of Natural Resources 
21and the Illinois Department of Energy and Natural Resources 
22may establish creditable service for up to 4 years of those 
23contractual services by making the contributions required 
24under this Section, plus an amount determined by the Board to 
25be equal to the employer's normal cost of the benefit plus 
26interest at the actuarially assumed rate from the first day of 
 
 
HB5448- 141 -LRB103 34609 RPS 64449 b


1the service for which credit is being established to the date 
2of payment. To establish credit under this subsection (t), the 
3applicant must apply to the System within 6 months after July 
427, 2010 (the effective date of Public Act 96-1320). 
5 (u) By paying the required contributions under this 
6Section, plus an amount determined by the Board to be equal to 
7the employer's normal cost of the benefit, plus interest, a 
8member may establish creditable service and earnings credit 
9for periods of furlough beginning on or after July 1, 2008. To 
10receive this credit, the participant must (i) apply in writing 
11to the System before December 31, 2011 and (ii) not receive 
12compensation for the furlough period. For service established 
13under this subsection, the required employee contribution 
14shall be based on the rate of compensation earned by the 
15employee immediately following the date of the first furlough 
16day in the time period specified in this subsection (u), and 
17the required interest shall be calculated at the actuarially 
18assumed rate from the date of the furlough to the date of 
19payment. 
20 (v) Any member who rendered full-time contractual services 
21to an Illinois Veterans Home operated by the Department of 
22Veterans' Affairs may establish service credit for up to 8 
23years of such services by making the contributions required 
24under this Section, plus an amount determined by the Board to 
25be equal to the employer's normal cost of the benefit, plus 
26interest at the actuarially assumed rate. To establish credit 
 
 
HB5448- 142 -LRB103 34609 RPS 64449 b


1under this subsection, the applicant must apply to the System 
2no later than 6 months after July 27, 2010 (the effective date 
3of Public Act 96-1320). 
4 (w) Any member who served as a member of the General 
5Assembly and did not contribute to any other public employee 
6retirement system for such service may establish service 
7credit for up to 5 years of that service by making the 
8contributions required under this Section, plus an amount 
9determined by the Board to be equal to the employer's normal 
10cost of the benefit, plus interest at the actuarially assumed 
11rate. 
12(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09; 
1396-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff. 
147-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333, 
158-12-11.)

16 (40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
17 Sec. 14-105.4. Transfer of service from the General 
18Assembly Retirement System. 
19 (a) Persons otherwise required or eligible to participate 
20in this System who elect to continue participation in the 
21General Assembly Retirement System under Section 2-117.1 may 
22not participate in this System for the duration of such 
23continued participation under Section 2-117.1.
24 (b) Upon terminating such continued participation, a 
25person may transfer credits and creditable service accumulated 
 
 
HB5448- 143 -LRB103 34609 RPS 64449 b


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

23 (40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
24 Sec. 18-101. Creation of fund. A retirement system is 
25created to be known as the "Judges Retirement System of 
 
 
HB5448- 144 -LRB103 34609 RPS 64449 b


1Illinois". It shall be a trust separate and distinct from all 
2other entities, maintained for the purpose of securing the 
3payment of annuities and benefits as prescribed herein.
4 Participation in the retirement system created under this 
5Article is restricted to persons who became participants of 
6the System before January 8, 2025. Beginning on that date, the 
7System shall not accept any new participants. 
8(Source: Laws 1963, p. 161.)

9 (40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
10 Sec. 18-108. Judge. "Judge": Any person who receives 
11payment for personal services as a judge or associate judge of 
12a court; and any person, previously a participant, who 
13receives payment for personal services as the administrative 
14director appointed by the Supreme Court.
15 Notwithstanding any other provision of this Article, a 
16person shall not be deemed a judge for the purposes of this 
17Article unless he or she became a participant of the System 
18before January 8, 2025. 
19(Source: P.A. 83-1440.)

20 (40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
21 Sec. 18-109. Eligible judge. "Eligible judge": Any judge 
22except one who has elected not to participate in this system.
23 Notwithstanding any other provision of this Article, a 
24person shall not be deemed an eligible judge for the purposes 
 
 
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1of this Article unless he or she became a participant of the 
2System before January 8, 2025. 
3(Source: P.A. 83-1440.)

4 (40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
5 Sec. 18-110. Participant. "Participant": Any judge 
6participating in this system as specified in Sections 18-120 
7and 18-121.
8 Notwithstanding any other provision of this Article, a 
9person shall not be deemed a participant for the purposes of 
10this Article unless he or she became a participant of the 
11System before January 8, 2025. 
12(Source: P.A. 83-1440.)

13
Article 90. 


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

17 (40 ILCS 5/2-162)
18 (Text of Section WITHOUT the changes made by P.A. 98-599, 
19which has been held unconstitutional)
20 Sec. 2-162. Application and expiration of new benefit 
21increases.
22 (a) As used in this Section, "new benefit increase" means 
 
 
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1an increase in the amount of any benefit provided under this 
2Article, or an expansion of the conditions of eligibility for 
3any benefit under this Article, that results from an amendment 
4to this Code that takes effect after the effective date of this 
5amendatory Act of the 94th General Assembly. "New benefit 
6increase", however, does not include any benefit increase 
7resulting from the changes made to this Article by this 
8amendatory Act of the 103rd General Assembly. 
9 (b) Notwithstanding any other provision of this Code or 
10any subsequent amendment to this Code, every new benefit 
11increase is subject to this Section and shall be deemed to be 
12granted only in conformance with and contingent upon 
13compliance with the provisions of this Section. 
14 (c) The Public Act enacting a new benefit increase must 
15identify and provide for payment to the System of additional 
16funding at least sufficient to fund the resulting annual 
17increase in cost to the System as it accrues.
18 Every new benefit increase is contingent upon the General 
19Assembly providing the additional funding required under this 
20subsection. The Commission on Government Forecasting and 
21Accountability shall analyze whether adequate additional 
22funding has been provided for the new benefit increase and 
23shall report its analysis to the Public Pension Division of 
24the Department of Financial and Professional Regulation. A new 
25benefit increase created by a Public Act that does not include 
26the additional funding required under this subsection is null 
 
 
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1and void. If the Public Pension Division determines that the 
2additional funding provided for a new benefit increase under 
3this subsection is or has become inadequate, it may so certify 
4to the Governor and the State Comptroller and, in the absence 
5of corrective action by the General Assembly, the new benefit 
6increase shall expire at the end of the fiscal year in which 
7the certification is made. 
8 (d) Every new benefit increase shall expire 5 years after 
9its effective date or on such earlier date as may be specified 
10in the language enacting the new benefit increase or provided 
11under subsection (c). This does not prevent the General 
12Assembly from extending or re-creating a new benefit increase 
13by law.
14 (e) Except as otherwise provided in the language creating 
15the new benefit increase, a new benefit increase that expires 
16under this Section continues to apply to persons who applied 
17and qualified for the affected benefit while the new benefit 
18increase was in effect and to the affected beneficiaries and 
19alternate payees of such persons, but does not apply to any 
20other person, including without limitation a person who 
21continues in service after the expiration date and did not 
22apply and qualify for the affected benefit while the new 
23benefit increase was in effect.
24(Source: P.A. 94-4, eff. 6-1-05.)

25 (40 ILCS 5/14-152.1)
 
 
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1 Sec. 14-152.1. Application and expiration of new benefit 
2increases.
3 (a) As used in this Section, "new benefit increase" means 
4an increase in the amount of any benefit provided under this 
5Article, or an expansion of the conditions of eligibility for 
6any benefit under this Article, that results from an amendment 
7to this Code that takes effect after June 1, 2005 (the 
8effective date of Public Act 94-4). "New benefit increase", 
9however, does not include any benefit increase resulting from 
10the changes made to Article 1 or this Article by Public Act 
1196-37, Public Act 100-23, Public Act 100-587, Public Act 
12100-611, Public Act 101-10, Public Act 101-610, Public Act 
13102-210, Public Act 102-856, Public Act 102-956, or this 
14amendatory Act of the 103rd General Assembly this amendatory 
15Act of the 102nd General Assembly. 
16 (b) Notwithstanding any other provision of this Code or 
17any subsequent amendment to this Code, every new benefit 
18increase is subject to this Section and shall be deemed to be 
19granted only in conformance with and contingent upon 
20compliance with the provisions of this Section. 
21 (c) The Public Act enacting a new benefit increase must 
22identify and provide for payment to the System of additional 
23funding at least sufficient to fund the resulting annual 
24increase in cost to the System as it accrues.
25 Every new benefit increase is contingent upon the General 
26Assembly providing the additional funding required under this 
 
 
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1subsection. The Commission on Government Forecasting and 
2Accountability shall analyze whether adequate additional 
3funding has been provided for the new benefit increase and 
4shall report its analysis to the Public Pension Division of 
5the Department of Insurance. A new benefit increase created by 
6a Public Act that does not include the additional funding 
7required under this subsection is null and void. If the Public 
8Pension Division determines that the additional funding 
9provided for a new benefit increase under this subsection is 
10or has become inadequate, it may so certify to the Governor and 
11the State Comptroller and, in the absence of corrective action 
12by the General Assembly, the new benefit increase shall expire 
13at the end of the fiscal year in which the certification is 
14made. 
15 (d) Every new benefit increase shall expire 5 years after 
16its effective date or on such earlier date as may be specified 
17in the language enacting the new benefit increase or provided 
18under subsection (c). This does not prevent the General 
19Assembly from extending or re-creating a new benefit increase 
20by law.
21 (e) Except as otherwise provided in the language creating 
22the new benefit increase, a new benefit increase that expires 
23under this Section continues to apply to persons who applied 
24and qualified for the affected benefit while the new benefit 
25increase was in effect and to the affected beneficiaries and 
26alternate payees of such persons, but does not apply to any 
 
 
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1other person, including, without limitation, a person who 
2continues in service after the expiration date and did not 
3apply and qualify for the affected benefit while the new 
4benefit increase was in effect.
5(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
6101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. 
71-1-23; 102-956, eff. 5-27-22.)

8 (40 ILCS 5/15-198)
9 Sec. 15-198. Application and expiration of new benefit 
10increases.
11 (a) As used in this Section, "new benefit increase" means 
12an increase in the amount of any benefit provided under this 
13Article, or an expansion of the conditions of eligibility for 
14any benefit under this Article, that results from an amendment 
15to this Code that takes effect after June 1, 2005 (the 
16effective date of Public Act 94-4). "New benefit increase", 
17however, does not include any benefit increase resulting from 
18the changes made to Article 1 or this Article by Public Act 
19100-23, Public Act 100-587, Public Act 100-769, Public Act 
20101-10, Public Act 101-610, Public Act 102-16, or this 
21amendatory Act of the 103rd General Assembly this amendatory 
22Act of the 102nd General Assembly.
23 (b) Notwithstanding any other provision of this Code or 
24any subsequent amendment to this Code, every new benefit 
25increase is subject to this Section and shall be deemed to be 
 
 
HB5448- 151 -LRB103 34609 RPS 64449 b


1granted only in conformance with and contingent upon 
2compliance with the provisions of this Section. 
3 (c) The Public Act enacting a new benefit increase must 
4identify and provide for payment to the System of additional 
5funding at least sufficient to fund the resulting annual 
6increase in cost to the System as it accrues.
7 Every new benefit increase is contingent upon the General 
8Assembly providing the additional funding required under this 
9subsection. The Commission on Government Forecasting and 
10Accountability shall analyze whether adequate additional 
11funding has been provided for the new benefit increase and 
12shall report its analysis to the Public Pension Division of 
13the Department of Insurance. A new benefit increase created by 
14a Public Act that does not include the additional funding 
15required under this subsection is null and void. If the Public 
16Pension Division determines that the additional funding 
17provided for a new benefit increase under this subsection is 
18or has become inadequate, it may so certify to the Governor and 
19the State Comptroller and, in the absence of corrective action 
20by the General Assembly, the new benefit increase shall expire 
21at the end of the fiscal year in which the certification is 
22made. 
23 (d) Every new benefit increase shall expire 5 years after 
24its effective date or on such earlier date as may be specified 
25in the language enacting the new benefit increase or provided 
26under subsection (c). This does not prevent the General 
 
 
HB5448- 152 -LRB103 34609 RPS 64449 b


1Assembly from extending or re-creating a new benefit increase 
2by law.
3 (e) Except as otherwise provided in the language creating 
4the new benefit increase, a new benefit increase that expires 
5under this Section continues to apply to persons who applied 
6and qualified for the affected benefit while the new benefit 
7increase was in effect and to the affected beneficiaries and 
8alternate payees of such persons, but does not apply to any 
9other person, including, without limitation, a person who 
10continues in service after the expiration date and did not 
11apply and qualify for the affected benefit while the new 
12benefit increase was in effect.
13(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
14101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)

15 (40 ILCS 5/16-203)
16 Sec. 16-203. Application and expiration of new benefit 
17increases.
18 (a) As used in this Section, "new benefit increase" means 
19an increase in the amount of any benefit provided under this 
20Article, or an expansion of the conditions of eligibility for 
21any benefit under this Article, that results from an amendment 
22to this Code that takes effect after June 1, 2005 (the 
23effective date of Public Act 94-4). "New benefit increase", 
24however, does not include any benefit increase resulting from 
25the changes made to Article 1 or this Article by Public Act 
 
 
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195-910, Public Act 100-23, Public Act 100-587, Public Act 
2100-743, Public Act 100-769, Public Act 101-10, Public Act 
3101-49, Public Act 102-16, or Public Act 102-871, or this 
4amendatory Act of the 103rd General Assembly.
5 (b) Notwithstanding any other provision of this Code or 
6any subsequent amendment to this Code, every new benefit 
7increase is subject to this Section and shall be deemed to be 
8granted only in conformance with and contingent upon 
9compliance with the provisions of this Section. 
10 (c) The Public Act enacting a new benefit increase must 
11identify and provide for payment to the System of additional 
12funding at least sufficient to fund the resulting annual 
13increase in cost to the System as it accrues.
14 Every new benefit increase is contingent upon the General 
15Assembly providing the additional funding required under this 
16subsection. The Commission on Government Forecasting and 
17Accountability shall analyze whether adequate additional 
18funding has been provided for the new benefit increase and 
19shall report its analysis to the Public Pension Division of 
20the Department of Insurance. A new benefit increase created by 
21a Public Act that does not include the additional funding 
22required under this subsection is null and void. If the Public 
23Pension Division determines that the additional funding 
24provided for a new benefit increase under this subsection is 
25or has become inadequate, it may so certify to the Governor and 
26the State Comptroller and, in the absence of corrective action 
 
 
HB5448- 154 -LRB103 34609 RPS 64449 b


1by the General Assembly, the new benefit increase shall expire 
2at the end of the fiscal year in which the certification is 
3made. 
4 (d) Every new benefit increase shall expire 5 years after 
5its effective date or on such earlier date as may be specified 
6in the language enacting the new benefit increase or provided 
7under subsection (c). This does not prevent the General 
8Assembly from extending or re-creating a new benefit increase 
9by law.
10 (e) Except as otherwise provided in the language creating 
11the new benefit increase, a new benefit increase that expires 
12under this Section continues to apply to persons who applied 
13and qualified for the affected benefit while the new benefit 
14increase was in effect and to the affected beneficiaries and 
15alternate payees of such persons, but does not apply to any 
16other person, including, without limitation, a person who 
17continues in service after the expiration date and did not 
18apply and qualify for the affected benefit while the new 
19benefit increase was in effect.
20(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
21102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. 
226-30-23.)

23 (40 ILCS 5/18-169)
24 Sec. 18-169. Application and expiration of new benefit 
25increases.
 
 
HB5448- 155 -LRB103 34609 RPS 64449 b


1 (a) As used in this Section, "new benefit increase" means 
2an increase in the amount of any benefit provided under this 
3Article, or an expansion of the conditions of eligibility for 
4any benefit under this Article, that results from an amendment 
5to this Code that takes effect after the effective date of this 
6amendatory Act of the 94th General Assembly. "New benefit 
7increase", however, does not include any benefit increase 
8resulting from the changes made to this Article by this 
9amendatory Act of the 103rd General Assembly. 
10 (b) Notwithstanding any other provision of this Code or 
11any subsequent amendment to this Code, every new benefit 
12increase is subject to this Section and shall be deemed to be 
13granted only in conformance with and contingent upon 
14compliance with the provisions of this Section. 
15 (c) The Public Act enacting a new benefit increase must 
16identify and provide for payment to the System of additional 
17funding at least sufficient to fund the resulting annual 
18increase in cost to the System as it accrues.
19 Every new benefit increase is contingent upon the General 
20Assembly providing the additional funding required under this 
21subsection. The Commission on Government Forecasting and 
22Accountability shall analyze whether adequate additional 
23funding has been provided for the new benefit increase and 
24shall report its analysis to the Public Pension Division of 
25the Department of Financial and Professional Regulation. A new 
26benefit increase created by a Public Act that does not include 
 
 
HB5448- 156 -LRB103 34609 RPS 64449 b


1the additional funding required under this subsection is null 
2and void. If the Public Pension Division determines that the 
3additional funding provided for a new benefit increase under 
4this subsection is or has become inadequate, it may so certify 
5to the Governor and the State Comptroller and, in the absence 
6of corrective action by the General Assembly, the new benefit 
7increase shall expire at the end of the fiscal year in which 
8the certification is made. 
9 (d) Every new benefit increase shall expire 5 years after 
10its effective date or on such earlier date as may be specified 
11in the language enacting the new benefit increase or provided 
12under subsection (c). This does not prevent the General 
13Assembly from extending or re-creating a new benefit increase 
14by law.
15 (e) Except as otherwise provided in the language creating 
16the new benefit increase, a new benefit increase that expires 
17under this Section continues to apply to persons who applied 
18and qualified for the affected benefit while the new benefit 
19increase was in effect and to the affected beneficiaries and 
20alternate payees of such persons, but does not apply to any 
21other person, including without limitation a person who 
22continues in service after the expiration date and did not 
23apply and qualify for the affected benefit while the new 
24benefit increase was in effect.
25(Source: P.A. 94-4, eff. 6-1-05.)

 
 
HB5448- 157 -LRB103 34609 RPS 64449 b


1 Section 90-90. The State Mandates Act is amended by adding 
2Section 8.47 as follows:

3 (30 ILCS 805/8.47 new)
4 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and 
58 of this Act, no reimbursement by the State is required for 
6the implementation of any mandate created by this amendatory 
7Act of the 103rd General Assembly.

8
Article 99. 


9 Section 99-99. Effective date. This Act takes effect upon 
10becoming law.
 
 
HB5448- 158 -LRB103 34609 RPS 64449 b


1
INDEX

2
Statutes amended in order of appearance

3 40 ILCS 5/1-160
4 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.1
5 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
6 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
7 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-125
9 40 ILCS 5/18-128.01from Ch. 108 1/2, par. 18-128.01
10 40 ILCS 5/1-103.3
11 40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
12 40 ILCS 5/14-131
13 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
14 40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
15 40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
16 40 ILCS 5/2-101from Ch. 108 1/2, par. 2-101
17 40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
18 40 ILCS 5/2-107from Ch. 108 1/2, par. 2-107
19 40 ILCS 5/2-117from Ch. 108 1/2, par. 2-117
20 40 ILCS 5/14-103.05from Ch. 108 1/2, par. 14-103.05
21 40 ILCS 5/14-104from Ch. 108 1/2, par. 14-104
22 40 ILCS 5/14-105.4from Ch. 108 1/2, par. 14-105.4
23 40 ILCS 5/18-101from Ch. 108 1/2, par. 18-101
24 40 ILCS 5/18-108from Ch. 108 1/2, par. 18-108
25 40 ILCS 5/18-109from Ch. 108 1/2, par. 18-109
 
 
HB5448- 159 -LRB103 34609 RPS 64449 b