Bill Text: IL HB5546 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to prepare and implement a Tier 3 plan by July 1, 2017 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the Tier 3 plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the Tier 3 plan. Makes related changes in the State Employees Group Insurance Act of 1971. In the Downstate Teachers, State Employees, and State Universities Articles, authorizes a person to elect not to participate or to terminate participation in those Systems. In the General Assembly and Judges Articles, authorizes a participant to terminate his or her participation in the System. In the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, and Downstate Teachers Articles, for participants who first become participants on or after the effective date, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable salary and (ii) unused sick or vacation time from being used to establish service credit. Imposes limitations on participation by certain persons. In the Downstate Teachers Article, prohibits an employer from making employee contributions on behalf of an employee, except for the sole purpose of allowing an employee to make pre-tax contributions. Amends the Illinois Educational Labor Relations Act to prohibit collective bargaining over that prohibition. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-02-10 - Referred to Rules Committee [HB5546 Detail]

Download: Illinois-2015-HB5546-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB5546 Introduced , by Rep. Jeanne M Ives SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to prepare and implement a Tier 3 plan by July 1, 2017 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the Tier 3 plan instead of the defined benefit plan and may also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the Tier 3 plan. Makes related changes in the State Employees Group Insurance Act of 1971. In the Downstate Teachers, State Employees, and State Universities Articles, authorizes a person to elect not to participate or to terminate participation in those Systems. In the General Assembly and Judges Articles, authorizes a participant to terminate his or her participation in the System. In the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, and Downstate Teachers Articles, for participants who first become participants on or after the effective date, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable salary and (ii) unused sick or vacation time from being used to establish service credit. Imposes limitations on participation by certain persons. In the Downstate Teachers Article, prohibits an employer from making employee contributions on behalf of an employee, except for the sole purpose of allowing an employee to make pre-tax contributions. Amends the Illinois Educational Labor Relations Act to prohibit collective bargaining over that prohibition. Effective immediately.
LRB099 20200 RPS 44658 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB5546 LRB099 20200 RPS 44658 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 3 and 10 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose of
implementing specific programs providing benefits under this
Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and capable
of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or has
retired, on or after January 1, 1966 on an immediate annuity
under the provisions of Article Articles 2 (including an
employee who, in lieu of receiving an annuity under that
Article, has retired under the Tier 3 plan established under
Section 2-165.5 of that Article), 14 (including an employee who

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has elected to receive an alternative retirement cancellation
payment under Section 14-108.5 of the Illinois Pension Code in
lieu of an annuity or an employee who, in lieu of receiving an
annuity under that Article, has retired under the Tier 3 plan
established under Section 14-155.5 of that Article), or 15
(including an employee who has retired under the optional
retirement program established under Section 15-158.2 or the
Tier 3 plan established under Section 15-155.5 of the Illinois
Pension Code), paragraphs (2), (3), or (5) of Section 16-106
(including an employee who, in lieu of receiving an annuity
under that Article, has retired under the Tier 3 plan
established under Section 16-205.5 of the Illinois Pension
Code), or Article 18 (including an employee who, in lieu of
receiving an annuity under that Article, has retired under the
Tier 3 plan established under Section 18-121.5 of that Article)
of the Illinois Pension Code; (2) any person who was receiving
group insurance coverage under this Act as of March 31, 1978 by
reason of his status as an annuitant, even though the annuity
in relation to which such coverage was provided is a
proportional annuity based on less than the minimum period of
service required for a retirement annuity in the system
involved; (3) any person not otherwise covered by this Act who
has retired as a participating member under Article 2 of the
Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code; (4)
the spouse of any person who is receiving a retirement annuity

HB5546 - 3 - LRB099 20200 RPS 44658 b
under Article 18 of the Illinois Pension Code and who is
covered under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and who
has irrevocably elected to waive his or her coverage under this
Act and to have his or her spouse considered as the "annuitant"
under this Act and not as a "dependent"; or (5) an employee who
retires, or has retired, from a qualified position, as
determined according to rules promulgated by the Director,
under a qualified local government, a qualified rehabilitation
facility, a qualified domestic violence shelter or service, or
a qualified child advocacy center. (For definition of "retired
employee", see (p) post).
(b-5) (Blank).
(b-6) (Blank).
(b-7) (Blank).
(c) "Carrier" means (1) an insurance company, a corporation
organized under the Limited Health Service Organization Act or
the Voluntary Health Services Plan Act, a partnership, or other
nongovernmental organization, which is authorized to do group
life or group health insurance business in Illinois, or (2) the
State of Illinois as a self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any

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Department out of State, trust, federal or other funds held by
the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or benefits
payable under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Compensation" also means
salary or wages paid to an employee of any qualified local
government, qualified rehabilitation facility, qualified
domestic violence shelter or service, or qualified child
advocacy center.
(e) "Commission" means the State Employees Group Insurance
Advisory Commission authorized by this Act. Commencing July 1,
1984, "Commission" as used in this Act means the Commission on
Government Forecasting and Accountability as established by
the Legislative Commission Reorganization Act of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected by
the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of

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an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely by
the State of Illinois without reduction of the member's salary.
(g) "Department" means any department, institution, board,
commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by the
General Assembly from any State fund, or against trust funds
held by the State Treasurer and includes boards of trustees of
the retirement systems created by Articles 2, 14, 15, 16 and 18
of the Illinois Pension Code. "Department" also includes the
Illinois Comprehensive Health Insurance Board, the Board of
Examiners established under the Illinois Public Accounting
Act, and the Illinois Finance Authority.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any child
(1) from birth to age 26 including an adopted child, a child
who lives with the member from the time of the filing of a
petition for adoption until entry of an order of adoption, a
stepchild or adjudicated child, or a child who lives with the
member if such member is a court appointed guardian of the
child or (2) age 19 or over who has a mental or physical
disability from a cause originating prior to the age of 19 (age
26 if enrolled as an adult child dependent). For the health
plan only, the term "dependent" also includes (1) any person

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enrolled prior to the effective date of this Section who is
dependent upon the member to the extent that the member may
claim such person as a dependent for income tax deduction
purposes and (2) any person who has received after June 30,
2000 an organ transplant and who is financially dependent upon
the member and eligible to be claimed as a dependent for income
tax purposes. A member requesting to cover any dependent must
provide documentation as requested by the Department of Central
Management Services and file with the Department any and all
forms required by the Department.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a member
has to elect enrollment in programs or to select benefits
without regard to age, sex or health.
(k) "Employee" means and includes each officer or employee
in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a department
or on a warrant or check issued and drawn by a department upon
a trust, federal or other fund or on a warrant issued pursuant
to a payroll certified by an elected or duly appointed officer
of the State or who receives payment of the performance of
personal services on a warrant issued pursuant to a payroll
certified by a Department and drawn by the Comptroller upon the
State Treasurer against appropriations made by the General

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Assembly from any fund or against trust funds held by the State
Treasurer, and (2) is employed full-time or part-time in a
position normally requiring actual performance of duty during
not less than 1/2 of a normal work period, as established by
the Director in cooperation with each department, except that
persons elected by popular vote will be considered employees
during the entire term for which they are elected regardless of
hours devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of the
State retirement systems under Articles 2, 14, 15 (either the
regular Article 15 system or the optional retirement program
established under Section 15-158.2) or 18, or under paragraph
(2), (3), or (5) of Section 16-106, of the Illinois Pension
Code, but such term does include persons who are employed
during the 6 month qualifying period under Article 14 of the
Illinois Pension Code. Such term also includes any person who
(1) after January 1, 1966, is receiving ordinary or accidental
disability benefits under Articles 2, 14, 15 (including
ordinary or accidental disability benefits under the optional
retirement program established under Section 15-158.2),
paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
the Illinois Pension Code, for disability incurred after
January 1, 1966, (2) receives total permanent or total
temporary disability under the Workers' Compensation Act or
Occupational Disease Act as a result of injuries sustained or

HB5546 - 8 - LRB099 20200 RPS 44658 b
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act and
has retired as a participating member under Article 2 of the
Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code.
However, a person who satisfies the criteria of the foregoing
definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code is also an "employee" for the purposes of
this Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in
accordance with Section 36 of the State Finance Act. "Employee"
also includes (i) each officer or employee in the service of a
qualified local government, including persons appointed as
trustees of sanitary districts regardless of hours devoted to
the service of the sanitary district, (ii) each employee in the
service of a qualified rehabilitation facility, (iii) each
full-time employee in the service of a qualified domestic
violence shelter or service, and (iv) each full-time employee
in the service of a qualified child advocacy center, as
determined according to rules promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor. In the case of an annuitant or retired
employee who first becomes an annuitant or retired employee on
or after the effective date of this amendatory Act of the 97th

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General Assembly, the individual must meet the minimum vesting
requirements of the applicable retirement system in order to be
eligible for group insurance benefits under that system. In the
case of a survivor who first becomes a survivor on or after the
effective date of this amendatory Act of the 97th General
Assembly, the deceased employee, annuitant, or retired
employee upon whom the annuity is based must have been eligible
to participate in the group insurance system under the
applicable retirement system in order for the survivor to be
eligible for group insurance benefits under that system.
(m) "Optional coverages or benefits" means those coverages
or benefits available to the member on his or her voluntary
election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a health benefits program offered
by the State of Illinois for persons eligible for the plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact that
such person retired prior to January 1, 1966. Such term also
includes any person formerly employed by the University of
Illinois in the Cooperative Extension Service who would be an
annuitant but for the fact that such person was made ineligible
to participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois

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Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who satisfies
the definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code; (2) the surviving dependent of any
person formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant except
for the fact that such person was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois
Pension Code; and (3) the surviving dependent of a person who
was an annuitant under this Act by virtue of receiving an
alternative retirement cancellation payment under Section
14-108.5 of the Illinois Pension Code.
(q-2) "SERS" means the State Employees' Retirement System
of Illinois, created under Article 14 of the Illinois Pension
Code.
(q-3) "SURS" means the State Universities Retirement
System, created under Article 15 of the Illinois Pension Code.
(q-4) "TRS" means the Teachers' Retirement System of the
State of Illinois, created under Article 16 of the Illinois
Pension Code.
(q-5) (Blank).

HB5546 - 11 - LRB099 20200 RPS 44658 b
(q-6) (Blank).
(q-7) (Blank).
(r) "Medical services" means the services provided within
the scope of their licenses by practitioners in all categories
licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental
Cooperation Act), special district or other unit, designated as
a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; any not-for-profit corporation or association,
with a membership consisting primarily of municipalities, that
operates its own utility system, and provides research,
training, dissemination of information, or other acts to
promote cooperation between and among municipalities that
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; the Illinois

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Association of Park Districts; and any hospital provider that
is owned by a county that has 100 or fewer hospital beds and
has not already joined the program. "Qualified local
government" means a unit of local government approved by the
Director and participating in a program created under
subsection (i) of Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor to
the Department of Mental Health and Developmental
Disabilities) to provide services to persons with disabilities
and which receives funds from the State of Illinois for
providing those services, approved by the Director and
participating in a program created under subsection (j) of
Section 10 of this Act.
(u) "Qualified domestic violence shelter or service" means
any Illinois domestic violence shelter or service and its
administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code; and

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(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years of
creditable service under Article 16 of the Illinois Pension
Code or was enrolled in the health insurance program
offered under that Article on the effective date of this
amendatory Act of 1995, or (iv) is a recipient or survivor
of a recipient of a disability benefit under Article 16 of
the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C) natural,
step, adjudicated, or adopted child who is (i) under age
26, (ii) was, on January 1, 1996, participating as a
dependent beneficiary in the health insurance program
offered under Article 16 of the Illinois Pension Code, or
(iii) age 19 or over who has a mental or physical
disability from a cause originating prior to the age of 19
(age 26 if enrolled as an adult child).
"TRS dependent beneficiary" does not include, as indicated
under paragraph (2) of this subsection (w), a dependent of the

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survivor of a TRS benefit recipient who first becomes a
dependent of a survivor of a TRS benefit recipient on or after
the effective date of this amendatory Act of the 97th General
Assembly unless that dependent would have been eligible for
coverage as a dependent of the deceased TRS benefit recipient
upon whom the survivor benefit is based.
(x) "Military leave" refers to individuals in basic
training for reserves, special/advanced training, annual
training, emergency call up, activation by the President of the
United States, or any other training or duty in service to the
United States Armed Forces.
(y) (Blank).
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly survivor's annuity or
retirement annuity under Article 15 of the Illinois Pension
Code; and
(3) either (i) was a full-time employee of a community
college district or an association of community college
boards created under the Public Community College Act
(other than an employee whose last employer under Article
15 of the Illinois Pension Code was a community college
district subject to Article VII of the Public Community
College Act) and was eligible to participate in a group
health benefit plan as an employee during the time of

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employment with a community college district (other than a
community college district subject to Article VII of the
Public Community College Act) or an association of
community college boards, or (ii) is the survivor of a
person described in item (i).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least half
of his or her support from the community college benefit
recipient, or (C) natural, step, adjudicated, or adopted
child who is (i) under age 26, or (ii) age 19 or over and
has a mental or physical disability from a cause
originating prior to the age of 19 (age 26 if enrolled as
an adult child).
"Community college dependent beneficiary" does not
include, as indicated under paragraph (2) of this subsection
(aa), a dependent of the survivor of a community college
benefit recipient who first becomes a dependent of a survivor
of a community college benefit recipient on or after the
effective date of this amendatory Act of the 97th General
Assembly unless that dependent would have been eligible for
coverage as a dependent of the deceased community college
benefit recipient upon whom the survivor annuity is based.

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(bb) "Qualified child advocacy center" means any Illinois
child advocacy center and its administrative offices funded by
the Department of Children and Family Services, as defined by
the Children's Advocacy Center Act (55 ILCS 80/), approved by
the Director and participating in a program created under
subsection (n) of Section 10.
(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
(5 ILCS 375/10) (from Ch. 127, par. 530)
Sec. 10. Contributions by the State and members.
(a) The State shall pay the cost of basic non-contributory
group life insurance and, subject to member paid contributions
set by the Department or required by this Section and except as
provided in this Section, the basic program of group health
benefits on each eligible member, except a member, not
otherwise covered by this Act, who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under Section
2-119 of the Illinois Pension Code, and part of each eligible
member's and retired member's premiums for health insurance
coverage for enrolled dependents as provided by Section 9. The
State shall pay the cost of the basic program of group health
benefits only after benefits are reduced by the amount of
benefits covered by Medicare for all members and dependents who
are eligible for benefits under Social Security or the Railroad
Retirement system or who had sufficient Medicare-covered

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government employment, except that such reduction in benefits
shall apply only to those members and dependents who (1) first
become eligible for such Medicare coverage on or after July 1,
1992; or (2) are Medicare-eligible members or dependents of a
local government unit which began participation in the program
on or after July 1, 1992; or (3) remain eligible for, but no
longer receive Medicare coverage which they had been receiving
on or after July 1, 1992. The Department may determine the
aggregate level of the State's contribution on the basis of
actual cost of medical services adjusted for age, sex or
geographic or other demographic characteristics which affect
the costs of such programs.
The cost of participation in the basic program of group
health benefits for the dependent or survivor of a living or
deceased retired employee who was formerly employed by the
University of Illinois in the Cooperative Extension Service and
would be an annuitant but for the fact that he or she was made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code shall not be greater than the cost of
participation that would otherwise apply to that dependent or
survivor if he or she were the dependent or survivor of an
annuitant under the State Universities Retirement System.
(a-1) (Blank).
(a-2) (Blank).
(a-3) (Blank).

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(a-4) (Blank).
(a-5) (Blank).
(a-6) (Blank).
(a-7) (Blank).
(a-8) Any annuitant, survivor, or retired employee may
waive or terminate coverage in the program of group health
benefits. Any such annuitant, survivor, or retired employee who
has waived or terminated coverage may enroll or re-enroll in
the program of group health benefits only during the annual
benefit choice period, as determined by the Director; except
that in the event of termination of coverage due to nonpayment
of premiums, the annuitant, survivor, or retired employee may
not re-enroll in the program.
(a-8.5) Beginning on the effective date of this amendatory
Act of the 97th General Assembly, the Director of Central
Management Services shall, on an annual basis, determine the
amount that the State shall contribute toward the basic program
of group health benefits on behalf of annuitants (including
individuals who (i) participated in the General Assembly
Retirement System, the State Employees' Retirement System of
Illinois, the State Universities Retirement System, the
Teachers' Retirement System of the State of Illinois, or the
Judges Retirement System of Illinois and (ii) qualify as
annuitants under subsection (b) of Section 3 of this Act),
survivors (including individuals who (i) receive an annuity as
a survivor of an individual who participated in the General

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Assembly Retirement System, the State Employees' Retirement
System of Illinois, the State Universities Retirement System,
the Teachers' Retirement System of the State of Illinois, or
the Judges Retirement System of Illinois and (ii) qualify as
survivors under subsection (q) of Section 3 of this Act), and
retired employees (as defined in subsection (p) of Section 3 of
this Act). The remainder of the cost of coverage for each
annuitant, survivor, or retired employee, as determined by the
Director of Central Management Services, shall be the
responsibility of that annuitant, survivor, or retired
employee.
Contributions required of annuitants, survivors, and
retired employees shall be the same for all retirement systems
and shall also be based on whether an individual has made an
election under Section 15-135.1 of the Illinois Pension Code.
Contributions may be based on annuitants', survivors', or
retired employees' Medicare eligibility, but may not be based
on Social Security eligibility.
(a-9) No later than May 1 of each calendar year, the
Director of Central Management Services shall certify in
writing to the Executive Secretary of the State Employees'
Retirement System of Illinois the amounts of the Medicare
supplement health care premiums and the amounts of the health
care premiums for all other retirees who are not Medicare
eligible.
A separate calculation of the premiums based upon the

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actual cost of each health care plan shall be so certified.
The Director of Central Management Services shall provide
to the Executive Secretary of the State Employees' Retirement
System of Illinois such information, statistics, and other data
as he or she may require to review the premium amounts
certified by the Director of Central Management Services.
The Department of Central Management Services, or any
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,
separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the Local Government
Health Insurance Reserve Fund. The Department may promulgate
rules further defining the methodology for the transfers. Any
interest earned by moneys in the funds or accounts shall inure
to the Local Government Health Insurance Reserve Fund. The
transferred moneys, and interest accrued thereon, shall be used
exclusively for transfers to administrative service
organizations or their financial institutions for payments of
claims to claimants and providers under the self-insurance
health plan. The transferred moneys, and interest accrued
thereon, shall not be used for any other purpose including, but
not limited to, reimbursement of administration fees due the

HB5546 - 21 - LRB099 20200 RPS 44658 b
administrative service organization pursuant to its contract
or contracts with the Department.
(a-10) For purposes of determining State contributions
under this Section, service established under a Tier 3 plan
under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code
shall be included in determining an employee's creditable
service. Any credit terminated as part of a transfer of
contributions to a Tier 3 plan under Article 2, 14, 15, 16, or
18 of the Illinois Pension Code shall also be included in
determining an employee's creditable service.
(b) State employees who become eligible for this program on
or after January 1, 1980 in positions normally requiring actual
performance of duty not less than 1/2 of a normal work period
but not equal to that of a normal work period, shall be given
the option of participating in the available program. If the
employee elects coverage, the State shall contribute on behalf
of such employee to the cost of the employee's benefit and any
applicable dependent supplement, that sum which bears the same
percentage as that percentage of time the employee regularly
works when compared to normal work period.
(c) The basic non-contributory coverage from the basic
program of group health benefits shall be continued for each
employee not in pay status or on active service by reason of
(1) leave of absence due to illness or injury, (2) authorized
educational leave of absence or sabbatical leave, or (3)
military leave. This coverage shall continue until expiration

HB5546 - 22 - LRB099 20200 RPS 44658 b
of authorized leave and return to active service, but not to
exceed 24 months for leaves under item (1) or (2). This
24-month limitation and the requirement of returning to active
service shall not apply to persons receiving ordinary or
accidental disability benefits or retirement benefits through
the appropriate State retirement system or benefits under the
Workers' Compensation or Occupational Disease Act.
(d) The basic group life insurance coverage shall continue,
with full State contribution, where such person is (1) absent
from active service by reason of disability arising from any
cause other than self-inflicted, (2) on authorized educational
leave of absence or sabbatical leave, or (3) on military leave.
(e) Where the person is in non-pay status for a period in
excess of 30 days or on leave of absence, other than by reason
of disability, educational or sabbatical leave, or military
leave, such person may continue coverage only by making
personal payment equal to the amount normally contributed by
the State on such person's behalf. Such payments and coverage
may be continued: (1) until such time as the person returns to
a status eligible for coverage at State expense, but not to
exceed 24 months or (2) until such person's employment or
annuitant status with the State is terminated (exclusive of any
additional service imposed pursuant to law).
(f) The Department shall establish by rule the extent to
which other employee benefits will continue for persons in
non-pay status or who are not in active service.

HB5546 - 23 - LRB099 20200 RPS 44658 b
(g) The State shall not pay the cost of the basic
non-contributory group life insurance, program of health
benefits and other employee benefits for members who are
survivors as defined by paragraphs (1) and (2) of subsection
(q) of Section 3 of this Act. The costs of benefits for these
survivors shall be paid by the survivors or by the University
of Illinois Cooperative Extension Service, or any combination
thereof. However, the State shall pay the amount of the
reduction in the cost of participation, if any, resulting from
the amendment to subsection (a) made by this amendatory Act of
the 91st General Assembly.
(h) Those persons occupying positions with any department
as a result of emergency appointments pursuant to Section 8b.8
of the Personnel Code who are not considered employees under
this Act shall be given the option of participating in the
programs of group life insurance, health benefits and other
employee benefits. Such persons electing coverage may
participate only by making payment equal to the amount normally
contributed by the State for similarly situated employees. Such
amounts shall be determined by the Director. Such payments and
coverage may be continued until such time as the person becomes
an employee pursuant to this Act or such person's appointment
is terminated.
(i) Any unit of local government within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their dependents provided group health

HB5546 - 24 - LRB099 20200 RPS 44658 b
coverage under this Act on a non-insured basis. To participate,
a unit of local government must agree to enroll all of its
employees, who may select coverage under either the State group
health benefits plan or a health maintenance organization that
has contracted with the State to be available as a health care
provider for employees as defined in this Act. A unit of local
government must remit the entire cost of providing coverage
under the State group health benefits plan or, for coverage
under a health maintenance organization, an amount determined
by the Director based on an analysis of the sex, age,
geographic location, or other relevant demographic variables
for its employees, except that the unit of local government
shall not be required to enroll those of its employees who are
covered spouses or dependents under this plan or another group
policy or plan providing health benefits as long as (1) an
appropriate official from the unit of local government attests
that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the unit of
local government remits the entire cost of providing coverage
to those employees, except that a participating school district
must have enrolled at least 50% of its full-time employees who
have not waived coverage under the district's group health plan
by participating in a component of the district's cafeteria
plan. A participating school district is not required to enroll
a full-time employee who has waived coverage under the

HB5546 - 25 - LRB099 20200 RPS 44658 b
district's health plan, provided that an appropriate official
from the participating school district attests that the
full-time employee has waived coverage by participating in a
component of the district's cafeteria plan. For the purposes of
this subsection, "participating school district" includes a
unit of local government whose primary purpose is education as
defined by the Department's rules.
Employees of a participating unit of local government who
are not enrolled due to coverage under another group health
policy or plan may enroll in the event of a qualifying change
in status, special enrollment, special circumstance as defined
by the Director, or during the annual Benefit Choice Period. A
participating unit of local government may also elect to cover
its annuitants. Dependent coverage shall be offered on an
optional basis, with the costs paid by the unit of local
government, its employees, or some combination of the two as
determined by the unit of local government. The unit of local
government shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine monthly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages, or contributed
by the State for basic insurance coverages on behalf of its

HB5546 - 26 - LRB099 20200 RPS 44658 b
employees, adjusted for differences between State
employees and employees of the local government in age,
sex, geographic location or other relevant demographic
variables, plus an amount sufficient to pay for the
additional administrative costs of providing coverage to
employees of the unit of local government and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the unit of local government.
In the case of coverage of local government employees under
a health maintenance organization, the Director shall annually
determine for each participating unit of local government the
maximum monthly amount the unit may contribute toward that
coverage, based on an analysis of (i) the age, sex, geographic
location, and other relevant demographic variables of the
unit's employees and (ii) the cost to cover those employees
under the State group health benefits plan. The Director may
similarly determine the maximum monthly amount each unit of
local government may contribute toward coverage of its
employees' dependents under a health maintenance organization.
Monthly payments by the unit of local government or its
employees for group health benefits plan or health maintenance
organization coverage shall be deposited in the Local
Government Health Insurance Reserve Fund.
The Local Government Health Insurance Reserve Fund is

HB5546 - 27 - LRB099 20200 RPS 44658 b
hereby created as a nonappropriated trust fund to be held
outside the State Treasury, with the State Treasurer as
custodian. The Local Government Health Insurance Reserve Fund
shall be a continuing fund not subject to fiscal year
limitations. The Local Government Health Insurance Reserve
Fund is not subject to administrative charges or charge-backs,
including but not limited to those authorized under Section 8h
of the State Finance Act. All revenues arising from the
administration of the health benefits program established
under this Section shall be deposited into the Local Government
Health Insurance Reserve Fund. Any interest earned on moneys in
the Local Government Health Insurance Reserve Fund shall be
deposited into the Fund. All expenditures from this Fund shall
be used for payments for health care benefits for local
government and rehabilitation facility employees, annuitants,
and dependents, and to reimburse the Department or its
administrative service organization for all expenses incurred
in the administration of benefits. No other State funds may be
used for these purposes.
A local government employer's participation or desire to
participate in a program created under this subsection shall
not limit that employer's duty to bargain with the
representative of any collective bargaining unit of its
employees.
(j) Any rehabilitation facility within the State of
Illinois may apply to the Director to have its employees,

HB5546 - 28 - LRB099 20200 RPS 44658 b
annuitants, and their eligible dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a rehabilitation facility must agree to enroll all
of its employees and remit the entire cost of providing such
coverage for its employees, except that the rehabilitation
facility shall not be required to enroll those of its employees
who are covered spouses or dependents under this plan or
another group policy or plan providing health benefits as long
as (1) an appropriate official from the rehabilitation facility
attests that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the
rehabilitation facility remits the entire cost of providing
coverage to those employees. Employees of a participating
rehabilitation facility who are not enrolled due to coverage
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment,
special circumstance as defined by the Director, or during the
annual Benefit Choice Period. A participating rehabilitation
facility may also elect to cover its annuitants. Dependent
coverage shall be offered on an optional basis, with the costs
paid by the rehabilitation facility, its employees, or some
combination of the 2 as determined by the rehabilitation
facility. The rehabilitation facility shall be responsible for
timely collection and transmission of dependent premiums.
The Director shall annually determine quarterly rates of

HB5546 - 29 - LRB099 20200 RPS 44658 b
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the rehabilitation facility in
age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the rehabilitation facility and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the rehabilitation facility.
Monthly payments by the rehabilitation facility or its
employees for group health benefits shall be deposited in the
Local Government Health Insurance Reserve Fund.
(k) Any domestic violence shelter or service within the
State of Illinois may apply to the Director to have its
employees, annuitants, and their dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a domestic violence shelter or service must agree
to enroll all of its employees and pay the entire cost of
providing such coverage for its employees. The domestic
violence shelter shall not be required to enroll those of its

HB5546 - 30 - LRB099 20200 RPS 44658 b
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the domestic violence
shelter attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or
plan and (2) at least 50% of the employees are enrolled and the
domestic violence shelter remits the entire cost of providing
coverage to those employees. Employees of a participating
domestic violence shelter who are not enrolled due to coverage
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment, or
special circumstance as defined by the Director or during the
annual Benefit Choice Period. A participating domestic
violence shelter may also elect to cover its annuitants.
Dependent coverage shall be offered on an optional basis, with
employees, or some combination of the 2 as determined by the
domestic violence shelter or service. The domestic violence
shelter or service shall be responsible for timely collection
and transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State

HB5546 - 31 - LRB099 20200 RPS 44658 b
employees and employees of the domestic violence shelter or
service in age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the domestic violence shelter or service
and their dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the domestic violence shelter or
service.
Monthly payments by the domestic violence shelter or
service or its employees for group health insurance shall be
deposited in the Local Government Health Insurance Reserve
Fund.
(l) A public community college or entity organized pursuant
to the Public Community College Act may apply to the Director
initially to have only annuitants not covered prior to July 1,
1992 by the district's health plan provided health coverage
under this Act on a non-insured basis. The community college
must execute a 2-year contract to participate in the Local
Government Health Plan. Any annuitant may enroll in the event
of a qualifying change in status, special enrollment, special
circumstance as defined by the Director, or during the annual
Benefit Choice Period.
The Director shall annually determine monthly rates of
payment subject to the following constraints: for those

HB5546 - 32 - LRB099 20200 RPS 44658 b
community colleges with annuitants only enrolled, first year
rates shall be equal to the average cost to cover claims for a
State member adjusted for demographics, Medicare
participation, and other factors; and in the second year, a
further adjustment of rates shall be made to reflect the actual
first year's claims experience of the covered annuitants.
(l-5) The provisions of subsection (l) become inoperative
on July 1, 1999.
(m) The Director shall adopt any rules deemed necessary for
implementation of this amendatory Act of 1989 (Public Act
86-978).
(n) Any child advocacy center within the State of Illinois
may apply to the Director to have its employees, annuitants,
and their dependents provided group health coverage under this
Act on a non-insured basis. To participate, a child advocacy
center must agree to enroll all of its employees and pay the
entire cost of providing coverage for its employees. The child
advocacy center shall not be required to enroll those of its
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the child advocacy
center attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or
plan and (2) at least 50% of the employees are enrolled and the
child advocacy center remits the entire cost of providing
coverage to those employees. Employees of a participating child

HB5546 - 33 - LRB099 20200 RPS 44658 b
advocacy center who are not enrolled due to coverage under
another group health policy or plan may enroll in the event of
a qualifying change in status, special enrollment, or special
circumstance as defined by the Director or during the annual
Benefit Choice Period. A participating child advocacy center
may also elect to cover its annuitants. Dependent coverage
shall be offered on an optional basis, with the costs paid by
the child advocacy center, its employees, or some combination
of the 2 as determined by the child advocacy center. The child
advocacy center shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the child advocacy center in
age, sex, geographic location, or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the child advocacy center and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience

HB5546 - 34 - LRB099 20200 RPS 44658 b
of the employees of the child advocacy center.
Monthly payments by the child advocacy center or its
employees for group health insurance shall be deposited into
the Local Government Health Insurance Reserve Fund.
(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
Section 10. The Illinois Pension Code is amended by
changing Sections 1-160, 2-117, 2-162, 7-109, 7-114, 7-116,
7-139, 14-103.05, 14-103.10, 14-104.3, 14-106, 14-152.1,
15-106, 15-108.1, 15-108.2, 15-112, 15-113.4, 15-134, 15-198,
16-106, 16-123, 16-127, 16-217, 16-152.1, 16-203, 18-120,
18-124, 18-125, 18-125.1, 18-127, 18-128.01, 18-133, 18-169,
20-121, 20-123, 20-124, and 20-125 and by adding Sections
2-105.3, 2-165.5, 14-103.41, 14-103.42, 14-103.43, 14-155.5,
15-108.3, 15-200.5, 16-106.40, 16-106.41, 16-106.42, 16-205.5,
18-110.1, 18-110.2, 18-110.3, and 18-121.5 as follows:
(40 ILCS 5/1-160)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed

HB5546 - 35 - LRB099 20200 RPS 44658 b
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to the effective date of Public Act 96-889,
notwithstanding the provisions of Section 1-103.1 of this Code.
The provisions of this Section do not apply to service
under a Tier 3 plan established under Article 2, 14, 15, 16, or
18 of this Code.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section

HB5546 - 36 - LRB099 20200 RPS 44658 b
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
enforcement employees), "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of

HB5546 - 37 - LRB099 20200 RPS 44658 b
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
8, 11, or 12 of this Code that is subject to this Section) and
has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article may
elect to receive the lower retirement annuity provided in
subsection (d) of this Section.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 8, 11, or 12 of
this Code that is subject to this Section) with at least 10
years of service credit shall be reduced by one-half of 1% for

HB5546 - 38 - LRB099 20200 RPS 44658 b
each full month that the member's age is under age 67
(beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section).
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 8, 11, or 12
of this Code that is subject to this Section) or the first
anniversary (the second anniversary with respect to service
under Article 8 or 11) of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
Notwithstanding any provision of this Section to the
contrary, with respect to service under Article 8 or 11 of this
Code that is subject to this Section, no annual increase under
this subsection shall be paid or accrue to any person in year
2025. In all other years, the Fund shall continue to pay annual
increases as provided in this Section.

HB5546 - 39 - LRB099 20200 RPS 44658 b
Notwithstanding Section 1-103.1 of this Code, the changes
in this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the

HB5546 - 40 - LRB099 20200 RPS 44658 b
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of

HB5546 - 41 - LRB099 20200 RPS 44658 b
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
person's annuity or retirement pension earned as an active
employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.

HB5546 - 42 - LRB099 20200 RPS 44658 b
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
eff. 11-19-13; 98-622, eff. 6-1-14; 98-641, eff. 6-9-14.)
(40 ILCS 5/2-105.3 new)
Sec. 2-105.3. Tier 1 participant; Tier 2 participant; Tier
3 participant.
"Tier 1 participant": A participant who first became a
participant before January 1, 2011.
In the case of a Tier 1 participant who elects to
participate in the Tier 3 plan under Section 2-165.5 of this
Code, that participant shall be deemed a Tier 1 participant
only with respect to service performed or established before
the effective date of that election.
"Tier 2 participant": A participant who first became a
participant on or after January 1, 2011.
In the case of a Tier 2 participant who elects to
participate in the Tier 3 plan under Section 2-165.5 of this
Code, that Tier 2 member shall be deemed a Tier 2 member only
with respect to service performed or established before the
effective date of that election.
"Tier 3 participant": A Tier 1 or Tier 2 participant who
elects to participate in the Tier 3 plan under Section 2-165.5

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of this Code, but only with respect to service performed on or
after the effective date of that election.
(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
Sec. 2-117. Participants - Election not to participate.
(a) Except as provided in subsection (c), every Every
person who was a member on November 1, 1947, or in military
service on such date, is subject to the provisions of this
system beginning upon such date, unless prior to such date he
or she filed with the board a written notice of election not to
participate.
Every person who becomes a member after November 1, 1947,
and who is then not a participant becomes a participant
beginning upon the date of becoming a member unless, within 24
months from that date, he or she has filed with the board a
written notice of election not to participate.
(b) A member who has filed notice of an election not to
participate (and a former member who has not yet begun to
receive a retirement annuity under this Article) may become a
participant with respect to the period for which the member
elected not to participate upon filing with the board, before
April 1, 1993, a written rescission of the election not to
participate. Upon contributing an amount equal to the
contributions he or she would have made as a participant from
November 1, 1947, or the date of becoming a member, whichever
is later, to the date of becoming a participant, with interest

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at the rate of 4% per annum until the contributions are paid,
the participant shall receive credit for service as a member
prior to the date of the rescission, both before and after
November 1, 1947. The required contributions shall be made
before commencement of the retirement annuity; otherwise no
credit for service prior to the date of participation shall be
granted.
(c) Notwithstanding any other provision of this Article, an
active participant may terminate his or her participation in
this System (including active participation in the Tier 3 plan,
if applicable) by notifying the System in writing. An active
participant terminating participation in this System under
this subsection shall be entitled to a refund of his or her
contributions (other than contributions to the Tier 3 plan
under Section 2-165.5) minus the benefits received prior to the
termination of participation.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-162)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for

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any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 99th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under

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this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
(40 ILCS 5/2-165.5 new)
Sec. 2-165.5. Tier 3 plan.
(a) By July 1, 2017, the System shall prepare and implement

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a Tier 3 plan. The Tier 3 plan developed under this Section
shall be a plan that aggregates State and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after
retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
retirement plan available under this Article to Tier 1 or Tier
2 participants who have not made the election authorized under
this Section.
(1) A participant in the Tier 3 plan shall pay employee
contributions at a rate determined by the participant, but
not less than 3% of salary and not more than a percentage
of salary determined by the Board in accordance with the
requirements of State and federal law.
(2) State contributions shall be paid into the accounts
of all participants in the Tier 3 plan at a uniform rate,
expressed as a percentage of salary and determined for each
year. This rate shall be no higher than 7.6% of salary and
shall be no lower than 3% of salary. The State shall adjust
this rate annually.
(3) The Tier 3 plan shall require 5 years of
participation in the Tier 3 plan before vesting in State
contributions. If the participant fails to vest in them,
the State contributions, and the earnings thereon, shall be
forfeited.

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(4) The Tier 3 plan shall provide a variety of options
for investments. These options shall include investments
handled by the Illinois State Board of Investment as well
as private sector investment options.
(5) The Tier 3 plan shall provide a variety of options
for payouts to participants in the Tier 3 plan who are no
longer active in the System and their survivors.
(6) To the extent authorized under federal law and as
authorized by the System, the plan shall allow former
participants in the plan to transfer or roll over employee
and vested State contributions, and the earnings thereon,
from the Tier 3 plan into other qualified retirement plans.
(7) The System shall reduce the employee contributions
credited to the participant's Tier 3 plan account by an
amount determined by the System to cover the cost of
offering these benefits and any applicable administrative
fees.
(b) Under the Tier 3 plan, an active Tier 1 or Tier 2
participant of this System may elect, in writing, to cease
accruing benefits in the defined benefit plan and begin
accruing benefits for future service in the Tier 3 plan. The
election to participate in the Tier 3 plan is voluntary and
irrevocable.
(1) Service credit under the Tier 3 plan may be used
for determining retirement eligibility under the defined
benefit plan.

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(2) The System shall make a good faith effort to
contact all active Tier 1 and Tier 2 participants who are
eligible to participate in the Tier 3 plan. The System
shall mail information describing the option to join the
Tier 3 plan to each of these employees to his or her last
known address on file with the System. If the employee is
not responsive to other means of contact, it is sufficient
for the System to publish the details of the option on its
website.
(3) Upon request for further information describing
the option, the System shall provide employees with
information from the System before exercising the option to
join the plan, including information on the impact to their
benefits and service. The individual consultation shall
include projections of the participant's defined benefits
at retirement or earlier termination of service and the
value of the participant's account at retirement or earlier
termination of service. The System shall not provide advice
or counseling with respect to whether the employee should
exercise the option. The System shall inform Tier 1 and
Tier 2 participants who are eligible to participate in the
Tier 3 plan that they may also wish to obtain information
and counsel relating to their option from any other
available source, including but not limited to private
counsel and financial advisors.
(b-5) A Tier 1 or Tier 2 participant who elects to

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participate in the Tier 3 plan may irrevocably elect to
terminate all participation in the defined benefit plan. Upon
that election, the System shall transfer to the participant's
individual account an amount equal to the amount of
contribution refund that the participant would be eligible to
receive if the member terminated employment on that date and
elected a refund of contributions, including the prescribed
rate of interest for the respective years. The System shall
make the transfer as a tax free transfer in accordance with
Internal Revenue Service guidelines, for purposes of funding
the amount credited to the participant's individual account.
(c) In no event shall the System, its staff, its authorized
representatives, or the Board be liable for any information
given to an employee under this Section. The System may
coordinate with the Illinois Department of Central Management
Services and other retirement systems administering a Tier 3
plan in accordance with this amendatory Act of the 99th General
Assembly to provide information concerning the impact of the
Tier 3 plan set forth in this Section.
(d) Notwithstanding any other provision of this Section, no
person shall begin participating in the Tier 3 plan until it
has attained qualified plan status and received all necessary
approvals from the U.S. Internal Revenue Service.
(e) The System shall report on its progress under this
Section, including the available details of the Tier 3 plan and
the System's plans for informing eligible Tier 1 and Tier 2

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participants about the plan, to the Governor and the General
Assembly on or before January 15, 2017.
(f) The Illinois State Board of Investment shall be the
plan sponsor for the Tier 3 plan established under this
Section.
(g) The intent of this amendatory Act of the 99th General
Assembly is to ensure that the State's normal cost of
participation in the Tier 3 plan is similar, and if possible
equal, to the State's normal cost of participation in the
defined benefit plan, unless a lower State's normal cost is
necessary to ensure cost neutrality.
(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-109. Employee.
(1) "Employee" means any person who:
(a) 1. Receives earnings as payment for the performance
of personal services or official duties out of the
general fund of a municipality, or out of any special
fund or funds controlled by a municipality, or by an
instrumentality thereof, or a participating
instrumentality, including, in counties, the fees or
earnings of any county fee office; and
2. Under the usual common law rules applicable in
determining the employer-employee relationship, has

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

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

HB5546 - 54 - LRB099 20200 RPS 44658 b
to the extent of concurrent service and earnings not
designated as being for police or fire protection duties.
However, (i) any head of a police department who was a
participant under this Article immediately before October
1, 1977 and did not elect, under Section 3-109 of this Act,
to participate in a police pension fund shall be an
"employee", and (ii) any chief of police who elects to
participate in this Fund under Section 3-109.1 of this
Code, regardless of whether such person continues to be
employed as chief of police or is employed in some other
rank or capacity within the police department, shall be an
employee under this Article for so long as such person is
employed to perform police duties by a participating
municipality and has not lawfully rescinded that election.
(c) Are contributors to or eligible to contribute to a
Taft-Hartley pension plan to which the participating
municipality is required to contribute as the person's
employer based on earnings from the municipality. Nothing
in this paragraph shall affect service credit or creditable
service for any period of service prior to the effective
date of this amendatory Act of the 98th General Assembly,
and this paragraph shall not apply to individuals who are
participating in the Fund prior to the effective date of
this amendatory Act of the 98th General Assembly.
(d) Become an employee of any of the following
participating instrumentalities on or after the effective

HB5546 - 55 - LRB099 20200 RPS 44658 b
date of this amendatory Act of the 99th General Assembly:
the Illinois Municipal League; the Illinois Association of
Park Districts; the Illinois Supervisors, County
Commissioners and Superintendents of Highways Association;
an association, or not-for-profit corporation, membership
in which is authorized under Section 85-15 of the Township
Code; the United Counties Council; or the Will County
Governmental League.
(3) All persons, including, without limitation, public
defenders and probation officers, who receive earnings from
general or special funds of a county for performance of
personal services or official duties within the territorial
limits of the county, are employees of the county (unless
excluded by subsection (2) of this Section) notwithstanding
that they may be appointed by and are subject to the direction
of a person or persons other than a county board or a county
officer. It is hereby established that an employer-employee
relationship under the usual common law rules exists between
such employees and the county paying their salaries by reason
of the fact that the county boards fix their rates of
compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and this
amendatory Act shall apply to all such employees from the date
of appointment whether such date is prior to or after the
effective date of this amendatory Act and is intended to
clarify existing law pertaining to their status as

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participating employees in the Fund.
(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
97-813, eff. 7-13-12; 98-712, eff. 7-16-14.)
(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-114. Earnings. "Earnings":
(a) An amount to be determined by the board, equal to the
sum of:
1. The total amount of money paid to an employee for
personal services or official duties as an employee (except
those employed as independent contractors) paid out of the
general fund, or out of any special funds controlled by the
municipality, or by any instrumentality thereof, or
participating instrumentality, including compensation,
fees, allowances, or other emolument paid for official
duties (but not including automobile maintenance, travel
expense, or reimbursements for expenditures incurred in
the performance of duties or, in the case of a person who
first becomes a participant on or after the effective date
of this amendatory Act of the 99th General Assembly,
payments for unused sick or vacation time) and, for fee
offices, the fees or earnings of the offices to the extent
such fees are paid out of funds controlled by the
municipality, or instrumentality or participating

HB5546 - 57 - LRB099 20200 RPS 44658 b
instrumentality; and
2. The money value, as determined by rules prescribed
by the governing body of the municipality, or
instrumentality thereof, of any board, lodging, fuel,
laundry, and other allowances provided an employee in lieu
of money.
(b) For purposes of determining benefits payable under this
fund payments to a person who is engaged in an independently
established trade, occupation, profession or business and who
is paid for his service on a basis other than a monthly or
other regular salary, are not earnings.
(c) If a disabled participating employee is eligible to
receive Workers' Compensation for an accidental injury and the
participating municipality or instrumentality which employed
the participating employee when injured continues to pay the
participating employee regular salary or other compensation or
pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the
total payments, including an amount equal to the Workers'
Compensation payments. These payments shall be subject to
employee contributions and allocated as if paid to the
participating employee when the regular payroll amounts would
have been paid if the participating employee had continued
working, and creditable service shall be awarded for this
period.
(d) If an elected official who is a participating employee

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becomes disabled but does not resign and is not removed from
office, then earnings shall include all salary payments made
for the remainder of that term of office and the official shall
be awarded creditable service for the term of office.
(e) If a participating employee is paid pursuant to "An Act
to provide for the continuation of compensation for law
enforcement officers, correctional officers and firemen who
suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed
earnings, and the participating employee shall be awarded
creditable service for this period.
(f) Additional compensation received by a person while
serving as a supervisor of assessments, assessor, deputy
assessor or member of a board of review from the State of
Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
Code shall not be earnings for purposes of this Article and
shall not be included in the contribution formula or
calculation of benefits for such person pursuant to this
Article.
(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly

HB5546 - 59 - LRB099 20200 RPS 44658 b
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) the 48 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest or (2) the employee's
total period of service, by the number of months of service in
such period.
(b) For death benefits, the higher of the rate determined
under paragraph (a) of this Section or total earnings received
in the last 12 months of service divided by twelve. If the
deceased employee has less than 12 months of service, the
monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service is
received under Section 7-139 or, if there is less than 3 years
of creditable prior service, the average for the total prior
service period for which creditable service is received under
Section 7-139; (2) for out of state service and authorized
leave, the earnings rate shall be the rate upon which service
credits are granted; (3) periods of military leave shall not be
considered; (4) the earnings rate for all periods of disability

HB5546 - 60 - LRB099 20200 RPS 44658 b
shall be considered equal to the rate of earnings upon which
the employee's disability benefits are computed for such
periods; (5) the earnings to be considered for each of the
final three months of the final earnings period for persons who
first became participants before January 1, 2012 and the
earnings to be considered for each of the final 24 months for
participants who first become participants on or after January
1, 2012 shall not exceed 125% of the highest earnings of any
other month in the final earnings period; and (6) the annual
amount of final rate of earnings shall be the monthly amount
multiplied by the number of months of service normally required
by the position in a year; and (7) in the case of a person who
first becomes a participant on or after the effective date of
this amendatory Act of the 99th General Assembly, payments for
unused sick or vacation time shall not be considered.
(Source: P.A. 97-609, eff. 1-1-12.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the amount
of any annuity or benefit to which he or a beneficiary is
entitled, as follows:
1. For prior service: Each participating employee who

HB5546 - 61 - LRB099 20200 RPS 44658 b
is an employee of a participating municipality or
participating instrumentality on the effective date shall
be granted creditable service, but no credits under
paragraph 2 of this subsection (a), for periods of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:
If the effective date of participation for the
participating municipality or participating
instrumentality is on or before January 1, 1998, creditable
service shall be granted for the entire period of prior
service with that employer without any employee
contribution.
If the effective date of participation for the
participating municipality or participating
instrumentality is after January 1, 1998, creditable
service shall be granted for the last 20% of the period of
prior service with that employer, but no more than 5 years,
without any employee contribution. A participating
employee may establish creditable service for the
remainder of the period of prior service with that employer
by making an application in writing, accompanied by payment
of an employee contribution in an amount determined by the
Fund, based on the employee contribution rates in effect at
the time of application for the creditable service and the
employee's salary rate on the effective date of

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participation for that employer, plus interest at the
effective rate from the date of the prior service to the
date of payment. Application for this creditable service
may be made at any time while the employee is still in
service.
A municipality that (i) has at least 35 employees; (ii)
is located in a county with at least 2,000,000 inhabitants;
and (iii) maintains an independent defined benefit pension
plan for the benefit of its eligible employees may restrict
creditable service in whole or in part for periods of prior
service with the employer if the governing body of the
municipality adopts an irrevocable resolution to restrict
that creditable service and files the resolution with the
board before the municipality's effective date of
participation.
Any person who has withdrawn from the service of a
participating municipality or participating
instrumentality prior to the effective date, who reenters
the service of the same municipality or participating
instrumentality after the effective date and becomes a
participating employee is entitled to creditable service
for prior service as otherwise provided in this subdivision
(a)(1) only if he or she renders 2 years of service as a
participating employee after the effective date.
Application for such service must be made while in a
participating status. The salary rate to be used in the

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calculation of the required employee contribution, if any,
shall be the employee's salary rate at the time of first
reentering service with the employer after the employer's
effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from him
under Section 7-173, as of the date the corresponding
payment of earnings is payable to him.
b. Normal credits of amounts equal to each payment
of normal contributions received from him, as of the
date the corresponding payment of earnings is payable
to him, and normal contributions made for the purpose
of establishing out-of-state service credits as
permitted under the conditions set forth in paragraph 6
of this subsection (a).
c. Municipality credits in an amount equal to 1.4
times the normal credits, except those established by
out-of-state service credits, as of the date of
computation of any benefit if these credits would
increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the participating
employee as of the date the corresponding payment of
earnings is payable, and survivor contributions made

HB5546 - 64 - LRB099 20200 RPS 44658 b
for the purpose of establishing out-of-state service
credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the period
during which disability benefits are payable. Normal and
survivor credits, based upon the rate of earnings applied
for disability benefits, shall also be granted if such
credits would result in a higher benefit to any such
employee or his beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of
absence without pay under the following conditions:
a. An application for credits and creditable
service is submitted to the board while the employee is
in a status of active employment.
b. Not more than 12 complete months of creditable
service for authorized leave of absence without pay
shall be counted for purposes of determining any
benefits payable under this Article.
c. Credits and creditable service shall be granted
for leave of absence only if such leave is approved by
the governing body of the municipality, including
approval of the estimated cost thereof to the
municipality as determined by the fund, and employee

HB5546 - 65 - LRB099 20200 RPS 44658 b
contributions, plus interest at the effective rate
applicable for each year from the end of the period of
leave to date of payment, have been paid to the fund in
accordance with Section 7-173. The contributions shall
be computed upon the assumption earnings continued
during the period of leave at the rate in effect when
the leave began.
d. Benefits under the provisions of Sections
7-141, 7-146, 7-150 and 7-163 shall become payable to
employees on authorized leave of absence, or their
designated beneficiary, only if such leave of absence
is creditable hereunder, and if the employee has at
least one year of creditable service other than the
service granted for leave of absence. Any employee
contributions due may be deducted from any benefits
payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a
municipality or participating instrumentality may elect to
allow creditable service to participating employees who
leave their employment to serve in the armed forces of the
United States for all periods of such service, provided
that the person returns to active employment within 90 days
after completion of full time active duty, but no

HB5546 - 66 - LRB099 20200 RPS 44658 b
creditable service shall be allowed such person for any
period that can be used in the computation of a pension or
any other pay or benefit, other than pay for active duty,
for service in any branch of the armed forces of the United
States. If necessary to the computation of any benefit, the
board shall establish municipality credits for
participating employees under this paragraph on the
assumption that the employee received earnings at the rate
received at the time he left the employment to enter the
armed forces. A participating employee in the armed forces
shall not be considered an employee during such period of
service and no additional death and no disability benefits
are payable for death or disability during such period.
Any participating employee who left his employment
with a municipality or participating instrumentality to
serve in the armed forces of the United States and who
again became a participating employee within 90 days after
completion of full time active duty by entering the service
of a different municipality or participating
instrumentality, which has elected to allow creditable
service for periods of military service under the preceding
paragraph, shall also be allowed creditable service for his
period of military service on the same terms that would
apply if he had been employed, before entering military
service, by the municipality or instrumentality which
employed him after he left the military service and the

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employer costs arising in relation to such grant of
creditable service shall be charged to and paid by that
municipality or instrumentality.
Notwithstanding the foregoing, any participating
employee shall be entitled to creditable service as
required by any federal law relating to re-employment
rights of persons who served in the United States Armed
Services. Such creditable service shall be granted upon
payment by the member of an amount equal to the employee
contributions which would have been required had the
employee continued in service at the same rate of earnings
during the military leave period, plus interest at the
effective rate.
5.1. In addition to any creditable service established
under paragraph 5 of this subsection (a), creditable
service may be granted for up to 48 months of service in
the armed forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating employee
must (1) apply to the Fund in writing and provide evidence
of the military service that is satisfactory to the Board;
(2) obtain the written approval of the current employer;
and (3) make contributions to the Fund equal to (i) the
employee contributions that would have been required had
the service been rendered as a member, plus (ii) an amount
determined by the board to be equal to the employer's

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normal cost of the benefits accrued for that military
service, plus (iii) interest on items (i) and (ii) from the
date of first membership in the Fund to the date of
payment. The required interest shall be calculated at the
regular interest rate.
The changes made to this paragraph 5.1 by Public Acts
95-483 and 95-486 apply only to participating employees in
service on or after August 28, 2007 (the effective date of
those Public Acts).
6. For out-of-state service: Creditable service shall
be granted for service rendered to an out-of-state local
governmental body under the following conditions: The
employee had participated and has irrevocably forfeited
all rights to benefits in the out-of-state public employees
pension system; the governing body of his participating
municipality or instrumentality authorizes the employee to
establish such service; the employee has 2 years current
service with this municipality or participating
instrumentality; the employee makes a payment of
contributions, which shall be computed at 8% (normal) plus
2% (survivor) times length of service purchased times the
average rate of earnings for the first 2 years of service
with the municipality or participating instrumentality
whose governing body authorizes the service established
plus interest at the effective rate on the date such
credits are established, payable from the date the employee

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completes the required 2 years of current service to date
of payment. In no case shall more than 120 months of
creditable service be granted under this provision.
7. For retroactive service: Any employee who could have
but did not elect to become a participating employee, or
who should have been a participant in the Municipal Public
Utilities Annuity and Benefit Fund before that fund was
superseded, may receive creditable service for the period
of service not to exceed 50 months; however, a current or
former elected or appointed official of a participating
municipality may establish credit under this paragraph 7
for more than 50 months of service as an official of that
municipality, if the excess over 50 months is approved by
resolution of the governing body of the affected
municipality filed with the Fund before January 1, 2002.
Any employee who is a participating employee on or
after September 24, 1981 and who was excluded from
participation by the age restrictions removed by Public Act
82-596 may receive creditable service for the period, on or
after January 1, 1979, excluded by the age restriction and,
in addition, if the governing body of the participating
municipality or participating instrumentality elects to
allow creditable service for all employees excluded by the
age restriction prior to January 1, 1979, for service
during the period prior to that date excluded by the age
restriction. Any employee who was excluded from

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participation by the age restriction removed by Public Act
82-596 and who is not a participating employee on or after
September 24, 1981 may receive creditable service for
service after January 1, 1979. Creditable service under
this paragraph shall be granted upon payment of the
employee contributions which would have been required had
he participated, with interest at the effective rate for
each year from the end of the period of service established
to date of payment.
8. For accumulated unused sick leave: A participating
employee who first becomes a participating employee before
the effective date of this amendatory Act of the 99th
General Assembly and who is applying for a retirement
annuity shall be entitled to creditable service for that
portion of the employee's accumulated unused sick leave for
which payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees or
a class of employees.
b. Except as provided in item b-1, only sick leave
days accumulated with a participating municipality or
participating instrumentality with which the employee
was in service within 60 days of the effective date of
his retirement annuity shall be credited; If the

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employee was in service with more than one employer
during this period only the sick leave days with the
employer with which the employee has the greatest
number of unpaid sick leave days shall be considered.
b-1. If the employee was in the service of more
than one employer as defined in item (2) of paragraph
(a) of subsection (A) of Section 7-132, then the sick
leave days from all such employers shall be credited,
as long as the creditable service attributed to those
sick leave days does not exceed the limitation in item
f of this paragraph 8. In calculating the creditable
service under this item b-1, the sick leave days from
the last employer shall be considered first, then the
remaining sick leave days shall be considered until
there are no more days or the maximum creditable sick
leave threshold under item f of this paragraph 8 has
been reached.
c. The creditable service granted shall be
considered solely for the purpose of computing the
amount of the retirement annuity and shall not be used
to establish any minimum service period required by any
provision of the Illinois Pension Code, the effective
date of the retirement annuity, or the final rate of
earnings.
d. The creditable service shall be at the rate of
1/20 of a month for each full sick day, provided that

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no more than 12 months may be credited under this
subdivision 8.
e. Employee contributions shall not be required
for creditable service under this subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee
has service within 60 days of the effective date of his
retirement annuity shall certify to the board the
number of accumulated unpaid sick leave days credited
to the employee at the time of termination of service.
9. For service transferred from another system:
Credits and creditable service shall be granted for service
under Article 4, 5, 8, 14, or 16 of this Act, to any active
member of this Fund, and to any inactive member who has
been a county sheriff, upon transfer of such credits
pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
16-131.4, and payment by the member of the amount by which
(1) the employer and employee contributions that would have
been required if he had participated in this Fund as a
sheriff's law enforcement employee during the period for
which credit is being transferred, plus interest thereon at
the effective rate for each year, compounded annually, from
the date of termination of the service for which credit is
being transferred to the date of payment, exceeds (2) the
amount actually transferred to the Fund. Such transferred
service shall be deemed to be service as a sheriff's law

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enforcement employee for the purposes of Section 7-142.1.
10. (Blank).
11. For service transferred from an Article 3 system
under Section 3-110.3: Credits and creditable service
shall be granted for service under Article 3 of this Act as
provided in Section 3-110.3, to any active member of this
Fund, upon transfer of such credits pursuant to Section
3-110.3. If the board determines that the amount
transferred is less than the true cost to the Fund of
allowing that creditable service to be established, then in
order to establish that creditable service, the member must
pay to the Fund an additional contribution equal to the
difference, as determined by the board in accordance with
the rules and procedures adopted under this paragraph. If
the member does not make the full additional payment as
required by this paragraph prior to termination of his
participation with that employer, then his or her
creditable service shall be reduced by an amount equal to
the difference between the amount transferred under
Section 3-110.3, including any payments made by the member
under this paragraph prior to termination, and the true
cost to the Fund of allowing that creditable service to be
established, as determined by the board in accordance with
the rules and procedures adopted under this paragraph.
The board shall establish by rule the manner of making
the calculation required under this paragraph 11, taking

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into account the appropriate actuarial assumptions; the
member's service, age, and salary history, and any other
factors that the board determines to be relevant.
12. For omitted service: Any employee who was employed
by a participating employer in a position that required
participation, but who was not enrolled in the Fund, may
establish such credits under the following conditions:
a. Application for such credits is received by the
Board while the employee is an active participant of
the Fund or a reciprocal retirement system.
b. Eligibility for participation and earnings are
verified by the Authorized Agent of the participating
employer for which the service was rendered.
Creditable service under this paragraph shall be
granted upon payment of the employee contributions that
would have been required had he participated, which shall
be calculated by the Fund using the member contribution
rate in effect during the period that the service was
rendered.
(b) Creditable service - amount:
1. One month of creditable service shall be allowed for
each month for which a participating employee made
contributions as required under Section 7-173, or for which
creditable service is otherwise granted hereunder. Not
more than 1 month of service shall be credited and counted
for 1 calendar month, and not more than 1 year of service

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shall be credited and counted for any calendar year. A
calendar month means a nominal month beginning on the first
day thereof, and a calendar year means a year beginning
January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the
number of months of service rendered shall be credited.
3. An intermittent employee shall be given creditable
service for only those months in which a contribution is
made under Section 7-173.
(c) No application for correction of credits or creditable
service shall be considered unless the board receives an
application for correction while (1) the applicant is a
participating employee and in active employment with a
participating municipality or instrumentality, or (2) while
the applicant is actively participating in a pension fund or
retirement system which is a participating system under the
Retirement Systems Reciprocal Act. A participating employee or
other applicant shall not be entitled to credits or creditable
service unless the required employee contributions are made in
a lump sum or in installments made in accordance with board
rule.
(d) Upon the granting of a retirement, surviving spouse or

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child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate. Terminated credits shall not be applied to increase
the benefits any remaining employee would otherwise receive
under this Article.
(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
98-932, eff. 8-15-14.)
(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee.
(a) Except as provided in subsection (d), any Any person
employed by a Department who receives salary for personal
services rendered to the Department on a warrant issued
pursuant to a payroll voucher certified by a Department and
drawn by the State Comptroller upon the State Treasurer,
including an elected official described in subparagraph (d) of
Section 14-104, shall become an employee for purpose of
membership in the Retirement System on the first day of such
employment.
A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of employment and shall begin making contributions as of the
first day of employment.
A person entering service on or after January 1, 1984

HB5546 - 77 - LRB099 20200 RPS 44658 b
shall, upon completion of 6 months of continuous service which
is not interrupted by a break of more than 2 months, become a
member as a condition of employment. Contributions shall begin
the first of the month after completion of the qualifying
period.
A person employed by the Chicago Metropolitan Agency for
Planning on the effective date of this amendatory Act of the
95th General Assembly who was a member of this System as an
employee of the Chicago Area Transportation Study and makes an
election under Section 14-104.13 to participate in this System
for his or her employment with the Chicago Metropolitan Agency
for Planning.
The qualifying period of 6 months of service is not
applicable to: (1) a person who has been granted credit for
service in a position covered by the State Universities
Retirement System, the Teachers' Retirement System of the State
of Illinois, the General Assembly Retirement System, or the
Judges Retirement System of Illinois unless that service has
been forfeited under the laws of those systems; (2) a person
entering service on or after July 1, 1991 in a noncovered
position; (3) a person to whom Section 14-108.2a or 14-108.2b
applies; or (4) a person to whom subsection (a-5) of this
Section applies.
(a-5) Except as provided in subsection (d), a A person
entering service on or after December 1, 2010 and before the
effective date of this amendatory Act of the 99th General

HB5546 - 78 - LRB099 20200 RPS 44658 b
Assembly shall become a member as a condition of employment and
shall begin making contributions as of the first day of
employment. A person serving in the qualifying period on
December 1, 2010 will become a member on December 1, 2010 and
shall begin making contributions as of December 1, 2010.
(b) The term "employee" does not include the following:
(1) members of the State Legislature, and persons
electing to become members of the General Assembly
Retirement System pursuant to Section 2-105;
(2) incumbents of offices normally filled by vote of
the people;
(3) except as otherwise provided in this Section, any
person appointed by the Governor with the advice and
consent of the Senate unless that person elects to
participate in this system;
(3.1) any person serving as a commissioner of an ethics
commission created under the State Officials and Employees
Ethics Act unless that person elects to participate in this
system with respect to that service as a commissioner;
(3.2) any person serving as a part-time employee in any
of the following positions: Legislative Inspector General,
Special Legislative Inspector General, employee of the
Office of the Legislative Inspector General, Executive
Director of the Legislative Ethics Commission, or staff of
the Legislative Ethics Commission, regardless of whether
he or she is in active service on or after July 8, 2004

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

HB5546 - 80 - LRB099 20200 RPS 44658 b
administered by the Department of Natural Resources under
the Youth Conservation Corps Act of 1970;
(9) any person who is a member of any professional
licensing or disciplinary board created under an Act
administered by the Department of Professional Regulation
or a successor agency or created or re-created after the
effective date of this amendatory Act of 1997, and who
receives per diem compensation rather than a salary,
notwithstanding that such per diem compensation is paid by
warrant issued pursuant to a payroll voucher; such persons
have never been included in the membership of this System,
and this amendatory Act of 1987 (P.A. 84-1472) is not
intended to effect any change in the status of such
persons;
(10) any person who is a member of the Illinois Health
Care Cost Containment Council, and receives per diem
compensation rather than a salary, notwithstanding that
such per diem compensation is paid by warrant issued
pursuant to a payroll voucher; such persons have never been
included in the membership of this System, and this
amendatory Act of 1987 is not intended to effect any change
in the status of such persons;
(11) any person who is a member of the Oil and Gas
Board created by Section 1.2 of the Illinois Oil and Gas
Act, and receives per diem compensation rather than a
salary, notwithstanding that such per diem compensation is

HB5546 - 81 - LRB099 20200 RPS 44658 b
paid by warrant issued pursuant to a payroll voucher;
(12) a person employed by the State Board of Higher
Education in a position with the Illinois Century Network
as of June 30, 2004, who remains continuously employed
after that date by the Department of Central Management
Services in a position with the Illinois Century Network
and participates in the Article 15 system with respect to
that employment;
(13) any person who first becomes a member of the Civil
Service Commission on or after January 1, 2012;
(14) any person, other than the Director of Employment
Security, who first becomes a member of the Board of Review
of the Department of Employment Security on or after
January 1, 2012;
(15) any person who first becomes a member of the Civil
Service Commission on or after January 1, 2012;
(16) any person who first becomes a member of the
Illinois Liquor Control Commission on or after January 1,
2012;
(17) any person who first becomes a member of the
Secretary of State Merit Commission on or after January 1,
2012;
(18) any person who first becomes a member of the Human
Rights Commission on or after January 1, 2012;
(19) any person who first becomes a member of the State
Mining Board on or after January 1, 2012;

HB5546 - 82 - LRB099 20200 RPS 44658 b
(20) any person who first becomes a member of the
Property Tax Appeal Board on or after January 1, 2012;
(21) any person who first becomes a member of the
Illinois Racing Board on or after January 1, 2012;
(22) any person who first becomes a member of the
Department of State Police Merit Board on or after January
1, 2012;
(23) any person who first becomes a member of the
Illinois State Toll Highway Authority on or after January
1, 2012; or
(24) any person who first becomes a member of the
Illinois State Board of Elections on or after January 1,
2012.
(c) An individual who represents or is employed as an
officer or employee of a statewide labor organization that
represents members of this System may participate in the System
and shall be deemed an employee, provided that (1) the
individual has previously earned creditable service under this
Article, (2) the individual files with the System an
irrevocable election to become a participant within 6 months
after the effective date of this amendatory Act of the 94th
General Assembly, and (3) the individual does not receive
credit for that employment under any other provisions of this
Code. An employee under this subsection (c) is responsible for
paying to the System both (i) employee contributions based on
the actual compensation received for service with the labor

HB5546 - 83 - LRB099 20200 RPS 44658 b
organization and (ii) employer contributions based on the
percentage of payroll certified by the board; all or any part
of these contributions may be paid on the employee's behalf or
picked up for tax purposes (if authorized under federal law) by
the labor organization.
A person who is an employee as defined in this subsection
(c) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection (c) for any such prior employment
for which the applicant received credit under any other
provision of this Code or during which the applicant was on a
leave of absence.
(d) Notwithstanding any other provision of this Article,
beginning on the effective date of this amendatory Act of the
99th General Assembly, a person is not required, as a condition
of employment or otherwise, to participate in this System. An
active employee may terminate his or her participation in this
System (including active participation in the Tier 3 plan, if
applicable) by notifying the System in writing. An active
employee terminating participation in this System under this
subsection shall be entitled to a refund of his or her
contributions (other than contributions to the Tier 3 plan
under Section 14-155.5) minus the benefits received prior to

HB5546 - 84 - LRB099 20200 RPS 44658 b
the termination of participation.
(Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-103.10. Compensation.
(a) For periods of service prior to January 1, 1978, the
full rate of salary or wages payable to an employee for
personal services performed if he worked the full normal
working period for his position, subject to the following
maximum amounts: (1) prior to July 1, 1951, $400 per month or
$4,800 per year; (2) between July 1, 1951 and June 30, 1957
inclusive, $625 per month or $7,500 per year; (3) beginning
July 1, 1957, no limitation.
In the case of service of an employee in a position
involving part-time employment, compensation shall be
determined according to the employees' earnings record.
(b) For periods of service on and after January 1, 1978,
all remuneration for personal services performed defined as
"wages" under the Social Security Enabling Act, including that
part of such remuneration which is in excess of any maximum
limitation provided in such Act, and including any benefits
received by an employee under a sick pay plan in effect before
January 1, 1981, but excluding lump sum salary payments:
(1) for vacation,

HB5546 - 85 - LRB099 20200 RPS 44658 b
(2) for accumulated unused sick leave,
(3) upon discharge or dismissal,
(4) for approved holidays.
(c) For periods of service on or after December 16, 1978,
compensation also includes any benefits, other than lump sum
salary payments made at termination of employment, which an
employee receives or is eligible to receive under a sick pay
plan authorized by law.
(d) For periods of service after September 30, 1985,
compensation also includes any remuneration for personal
services not included as "wages" under the Social Security
Enabling Act, which is deducted for purposes of participation
in a program established pursuant to Section 125 of the
Internal Revenue Code or its successor laws.
(e) For members for which Section 1-160 applies for periods
of service on and after January 1, 2011, all remuneration for
personal services performed defined as "wages" under the Social
Security Enabling Act, excluding remuneration that is in excess
of the annual earnings, salary, or wages of a member or
participant, as provided in subsection (b-5) of Section 1-160,
but including any benefits received by an employee under a sick
pay plan in effect before January 1, 1981. Compensation shall
exclude lump sum salary payments:
(1) for vacation;
(2) for accumulated unused sick leave;
(3) upon discharge or dismissal; and

HB5546 - 86 - LRB099 20200 RPS 44658 b
(4) for approved holidays.
(f) Notwithstanding the other provisions of this Section,
for service on or after July 1, 2013, "compensation" does not
include any stipend payable to an employee for service on a
board or commission.
(g) Notwithstanding any other provision of this Section,
for an employee who first becomes a participant on or after the
effective date of this amendatory Act of the 99th General
Assembly, "compensation" does not include any payments or
reimbursements for travel vouchers submitted more than 30 days
after the last day of travel for which the voucher is
submitted.
(Source: P.A. 98-449, eff. 8-16-13.)
(40 ILCS 5/14-103.41 new)
Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member of
this System who first became a member or participant before
January 1, 2011 under any reciprocal retirement system or
pension fund established under this Code other than a
retirement system or pension fund established under Article 2,
3, 4, 5, 6, or 18 of this Code.
In the case of a Tier 1 member who elects to participate in
the Tier 3 plan under Section 14-155.5 of this Code, that Tier
1 member shall be deemed a Tier 1 member only with respect to
service performed or established before the effective date of
that election.

HB5546 - 87 - LRB099 20200 RPS 44658 b
(40 ILCS 5/14-103.42 new)
Sec. 14-103.42. Tier 2 member. "Tier 2 member": A member of
this System who first becomes a member under this Article on or
after January 1, 2011 and who is not a Tier 1 member.
In the case of a Tier 2 member who elects to participate in
the Tier 3 plan under Section 14-155.5 of this Code, that Tier
2 member shall be deemed a Tier 2 member only with respect to
service performed or established before the effective date of
that election.
(40 ILCS 5/14-103.43 new)
Sec. 14-103.43. Tier 3 member. "Tier 3 member": A Tier 1 or
Tier 2 member who elects to participate in the Tier 3 plan
under Section 14-155.5 of this Code, but only with respect to
service performed on or after the effective date of that
election.
(40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-104.3. Notwithstanding provisions contained in
Section 14-103.10, any person who first becomes a member before
the effective date of this amendatory Act of the 99th General
Assembly and who at the time of retirement and after December
6, 1983 receives compensation in a lump sum for accumulated

HB5546 - 88 - LRB099 20200 RPS 44658 b
vacation, sickness, or personal business may receive service
credit for such periods by making contributions within 90 days
of withdrawal, based on the rate of compensation in effect
immediately prior to retirement and the contribution rate then
in effect. Any person who first becomes a member on or after
the effective date of this amendatory Act of the 99th General
Assembly and who receives compensation in a lump sum for
accumulated vacation, sickness, or personal business may not
receive service credit for such periods. Exercising the option
provided in this Section shall not change a member's date of
withdrawal or final average compensation for purposes of
computing the amount or effective date of a retirement annuity.
Any annuitant who establishes service credit as herein provided
shall have his retirement annuity adjusted retroactively to the
date of retirement.
(Source: P.A. 83-1362.)
(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-106. Membership service credit.
(a) After January 1, 1944, all service of a member since he
last became a member with respect to which contributions are
made shall count as membership service; provided, that for
service on and after July 1, 1950, 12 months of service shall
constitute a year of membership service, the completion of 15

HB5546 - 89 - LRB099 20200 RPS 44658 b
days or more of service during any month shall constitute 1
month of membership service, 8 to 15 days shall constitute 1/2
month of membership service and less than 8 days shall
constitute 1/4 month of membership service. The payroll record
of each department shall constitute conclusive evidence of the
record of service rendered by a member.
(b) For a member who is employed and paid on an
academic-year basis rather than on a 12-month annual basis,
employment for a full academic year shall constitute a full
year of membership service, except that the member shall not
receive more than one year of membership service credit (plus
any additional service credit granted for unused sick leave)
for service during any 12-month period. This subsection (b)
applies to all such service for which the member has not begun
to receive a retirement annuity before January 1, 2001.
(c) A person who first becomes a member before the
effective date of this amendatory Act of the 99th General
Assembly shall be entitled to additional service credit, under
rules prescribed by the Board, for accumulated unused sick
leave credited to his account in the last Department on the
date of withdrawal from service or for any period for which he
would have been eligible to receive benefits under a sick pay
plan authorized by law, if he had suffered a sickness or
accident on the date of withdrawal from service. It shall be
the responsibility of the last Department to certify to the
Board the length of time salary or benefits would have been

HB5546 - 90 - LRB099 20200 RPS 44658 b
paid to the member based upon the accumulated unused sick leave
or the applicable sick pay plan if he had become entitled
thereto because of sickness on the date that his status as an
employee terminated. This period of service credit granted
under this paragraph shall not be considered in determining the
date the retirement annuity is to begin, or final average
compensation.
(d) A person who first becomes a member on or after the
effective date of this amendatory Act of the 99th General
Assembly shall not be entitled to additional service credit for
accumulated unused sick leave.
(Source: P.A. 92-14, eff. 6-28-01.)
(40 ILCS 5/14-152.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to this Article by Public Act 96-37 or this

HB5546 - 91 - LRB099 20200 RPS 44658 b
amendatory Act of the 99th General Assembly this amendatory Act
of the 96th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which

HB5546 - 92 - LRB099 20200 RPS 44658 b
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 96-37, eff. 7-13-09.)
(40 ILCS 5/14-155.5 new)
Sec. 14-155.5. Tier 3 plan.
(a) By July 1, 2017, the System shall prepare and implement
a Tier 3 plan. The Tier 3 plan developed under this Section
shall be a plan that aggregates State and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after

HB5546 - 93 - LRB099 20200 RPS 44658 b
retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
retirement plan available under this Article to Tier 1 or Tier
2 members who have not made the election authorized under this
Section.
(1) A participant in the Tier 3 plan shall pay employee
contributions at a rate determined by the participant, but
not less than 3% of compensation and not more than a
percentage of compensation determined by the board in
accordance with the requirements of State and federal law.
(2) State contributions shall be paid into the accounts
of all participants in the Tier 3 plan at a uniform rate,
expressed as a percentage of compensation and determined
for each year. This rate shall be no higher than 7.6% of
compensation and shall be no lower than 3% of compensation.
The State shall adjust this rate annually.
(3) The Tier 3 plan shall require 5 years of
participation in the Tier 3 plan before vesting in State
contributions. If the participant fails to vest in them,
the State contributions, and the earnings thereon, shall be
forfeited.
(4) The Tier 3 plan may provide for participants in the
plan to be eligible for the defined disability benefits
available to other participants under this Article. If it
does, the System shall reduce the employee contributions

HB5546 - 94 - LRB099 20200 RPS 44658 b
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering such
benefits.
(5) The Tier 3 plan shall provide a variety of options
for investments. These options shall include investments
handled by the Illinois State Board of Investment as well
as private sector investment options.
(6) The Tier 3 plan shall provide a variety of options
for payouts to participants in the Tier 3 plan who are no
longer active in the System and their survivors.
(7) To the extent authorized under federal law and as
authorized by the System, the plan shall allow former
participants in the plan to transfer or roll over employee
and vested State contributions, and the earnings thereon,
from the Tier 3 plan into other qualified retirement plans.
(8) The System shall reduce the employee contributions
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering
these benefits and any applicable administrative fees.
(b) Under the Tier 3 plan, an active Tier 1 or Tier 2
member of this System may elect, in writing, to cease accruing
benefits in the defined benefit plan and begin accruing
benefits for future service in the Tier 3 plan. The election to
participate in the Tier 3 plan is voluntary and irrevocable.
(1) Service credit under the Tier 3 plan may be used
for determining retirement eligibility under the defined

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benefit plan.
(2) The System shall make a good faith effort to
contact all active Tier 1 and Tier 2 members who are
eligible to participate in the Tier 3 plan. The System
shall mail information describing the option to join the
Tier 3 plan to each of these employees to his or her last
known address on file with the System. If the employee is
not responsive to other means of contact, it is sufficient
for the System to publish the details of the option on its
website.
(3) Upon request for further information describing
the option, the System shall provide employees with
information from the System before exercising the option to
join the plan, including information on the impact to their
benefits and service. The individual consultation shall
include projections of the member's defined benefits at
retirement or earlier termination of service and the value
of the member's account at retirement or earlier
termination of service. The System shall not provide advice
or counseling with respect to whether the employee should
exercise the option. The System shall inform Tier 1 and
Tier 2 members who are eligible to participate in the Tier
3 plan that they may also wish to obtain information and
counsel relating to their option from any other available
source, including but not limited to labor organizations,
private counsel, and financial advisors.

HB5546 - 96 - LRB099 20200 RPS 44658 b
(b-5) A Tier 1 or Tier 2 member who elects to participate
in the Tier 3 plan may irrevocably elect to terminate all
participation in the defined benefit plan. Upon that election,
the System shall transfer to the member's individual account an
amount equal to the amount of contribution refund that the
member would be eligible to receive if the member terminated
employment on that date and elected a refund of contributions,
including regular interest for the respective years. The System
shall make the transfer as a tax free transfer in accordance
with Internal Revenue Service guidelines, for purposes of
funding the amount credited to the member's individual account.
(c) In no event shall the System, its staff, its authorized
representatives, or the Board be liable for any information
given to an employee under this Section. The System may
coordinate with the Illinois Department of Central Management
Services and other retirement systems administering a Tier 3
plan in accordance with this amendatory Act of the 99th General
Assembly to provide information concerning the impact of the
Tier 3 plan set forth in this Section.
(d) Notwithstanding any other provision of this Section, no
person shall begin participating in the Tier 3 plan until it
has attained qualified plan status and received all necessary
approvals from the U.S. Internal Revenue Service.
(e) The System shall report on its progress under this
Section, including the available details of the Tier 3 plan and
the System's plans for informing eligible Tier 1 and Tier 2

HB5546 - 97 - LRB099 20200 RPS 44658 b
members about the plan, to the Governor and the General
Assembly on or before January 15, 2017.
(f) The Illinois State Board of Investment shall be the
plan sponsor for the Tier 3 plan established under this
Section.
(g) The intent of this amendatory Act of the 99th General
Assembly is to ensure that the State's normal cost of
participation in the Tier 3 plan is similar, and if possible
equal, to the State's normal cost of participation in the
defined benefit plan, unless a lower State's normal cost is
necessary to ensure cost neutrality.
(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-106. Employer. "Employer": The University of
Illinois, Southern Illinois University, Chicago State
University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Western Illinois
University, the State Board of Higher Education, the Illinois
Mathematics and Science Academy, the University Civil Service
Merit Board, the Board of Trustees of the State Universities
Retirement System, the Illinois Community College Board,
community college boards, any association of community college
boards organized under Section 3-55 of the Public Community

HB5546 - 98 - LRB099 20200 RPS 44658 b
College Act, the Board of Examiners established under the
Illinois Public Accounting Act, and, only during the period for
which employer contributions required under Section 15-155 are
paid, the following organizations: the alumni associations,
the foundations and the athletic associations which are
affiliated with the universities and colleges included in this
Section as employers. An individual who begins employment after
the effective date of this amendatory Act of the 99th General
Assembly with an entity not defined as an employer in this
Section shall not be deemed an employee for the purposes of
this Article with respect to that employment and shall not be
eligible to participate in the System with respect to that
employment; provided, however, that those individuals who are
both employed and already participants in the System on the
effective date of this amendatory Act of the 99th General
Assembly shall be allowed to continue as participants in the
System for the duration of that employment and continue to earn
service credit.
Notwithstanding any provision of law to the contrary, an
individual who begins employment with any of the following
employers on or after the effective date of this amendatory Act
of the 99th General Assembly shall not be deemed an employee
and shall not be eligible to participate in the System with
respect to that employment: any association of community
college boards organized under Section 3-55 of the Public
Community College Act, the Association of Illinois

HB5546 - 99 - LRB099 20200 RPS 44658 b
Middle-Grade Schools, the Illinois Association of School
Administrators, the Illinois Association for Supervision and
Curriculum Development, the Illinois Principals Association,
the Illinois Association of School Business Officials, or the
Illinois Special Olympics; provided, however, that those
individuals who are both employed and already participants in
the System on the effective date of this amendatory Act of the
99th General Assembly shall be allowed to continue as
participants in the System for the duration of that employment
and continue to earn service credit.
A department as defined in Section 14-103.04 is an employer
for any person appointed by the Governor under the Civil
Administrative Code of Illinois who is a participating employee
as defined in Section 15-109. The Department of Central
Management Services is an employer with respect to persons
employed by the State Board of Higher Education in positions
with the Illinois Century Network as of June 30, 2004 who
remain continuously employed after that date by the Department
of Central Management Services in positions with the Illinois
Century Network, the Bureau of Communication and Computer
Services, or, if applicable, any successor bureau.
The cities of Champaign and Urbana shall be considered
employers, but only during the period for which contributions
are required to be made under subsection (b-1) of Section
15-155 and only with respect to individuals described in
subsection (h) of Section 15-107.

HB5546 - 100 - LRB099 20200 RPS 44658 b
(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
Sec. 999.)
(40 ILCS 5/15-108.1)
Sec. 15-108.1. Tier 1 member. "Tier 1 member": A
participant or an annuitant of a retirement annuity under this
Article, other than a participant in the self-managed plan
under Section 15-158.2, who first became a participant or
member before January 1, 2011 under any reciprocal retirement
system or pension fund established under this Code, other than
a retirement system or pension fund established under Articles
2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a
person who first became a participant under this System before
January 1, 2011 and who accepts a refund and is subsequently
reemployed by an employer on or after January 1, 2011.
In the case of a Tier 1 member who elects to participate in
the Tier 3 plan under Section 15-200.5 of this Code, that Tier
1 member shall be deemed a Tier 1 member only with respect to
service performed or established before the effective date of
that election.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-108.2)
Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who
first becomes a participant under this Article on or after
January 1, 2011, other than a person in the self-managed plan

HB5546 - 101 - LRB099 20200 RPS 44658 b
established under Section 15-158.2, unless the person is
otherwise a Tier 1 member. The changes made to this Section by
this amendatory Act of the 98th General Assembly are a
correction of existing law and are intended to be retroactive
to the effective date of Public Act 96-889, notwithstanding the
provisions of Section 1-103.1 of this Code.
In the case of a Tier 2 member who elects to participate in
the Tier 3 plan under Section 15-200.5 of this Code, that Tier
2 member shall be deemed a Tier 2 member only with respect to
service performed or established before the effective date of
that election.
(Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
(40 ILCS 5/15-108.3 new)
Sec. 15-108.3. Tier 3 member. "Tier 3 member": A Tier 1 or
Tier 2 member who elects to participate in the Tier 3 plan
under Section 15-200.5 of this Code, but only with respect to
service performed on or after the effective date of that
election.
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings":
(a) This subsection (a) applies only to a Tier 1 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of

HB5546 - 102 - LRB099 20200 RPS 44658 b
each academic year, the average annual earnings during the 48
consecutive calendar month period ending with the last day of
final termination of employment or the 4 consecutive academic
years of service in which the employee's earnings were the
highest, whichever is greater. For any other employee, the
average annual earnings during the 4 consecutive academic years
of service in which his or her earnings were the highest. For
an employee with less than 48 months or 4 consecutive academic
years of service, the average earnings during his or her entire
period of service. The earnings of an employee with more than
36 months of service under item (a) of Section 15-113.1 prior
to the date of becoming a participant are, for such period,
considered equal to the average earnings during the last 36
months of such service.
(b) This subsection (b) applies to a Tier 2 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings obtained by
dividing by 8 the total earnings of the employee during the 96
consecutive months in which the total earnings were the highest
within the last 120 months prior to termination.
For any other employee, the average annual earnings during
the 8 consecutive academic years within the 10 years prior to
termination in which the employee's earnings were the highest.
For an employee with less than 96 consecutive months or 8
consecutive academic years of service, whichever is necessary,

HB5546 - 103 - LRB099 20200 RPS 44658 b
the average earnings during his or her entire period of
service.
(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after the
effective date of this amendatory Act of 1997 with at least 20
years of service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate of
earnings received by the participant on his or her last day as
a firefighter or police officer under this Article, if that is
greater than the final rate of earnings as calculated under the
other provisions of this Section.
(f) If a Tier 1 member is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year, and
(2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this

HB5546 - 104 - LRB099 20200 RPS 44658 b
Section.
(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year
by more than 20 percent shall be excluded; in the event that an
employee has more than one employer this limitation shall be
calculated separately for the earnings with each employer. In
making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or
overtime or to contracts for summer employment.
(h) The following are not considered as earnings in
determining final rate of earnings: (1) severance or separation
pay, (2) retirement pay, (3) payment for unused sick leave, and
(4) payments from an employer for the period used in
determining final rate of earnings for any purpose other than
(i) services rendered, (ii) leave of absence or vacation
granted during that period, and (iii) vacation of up to 56 work
days allowed upon termination of employment; except that, if
the benefit has been collectively bargained between the
employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance
with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section, and if the

HB5546 - 105 - LRB099 20200 RPS 44658 b
person first becomes a participant on or after the effective
date of this amendatory Act of the 99th General Assembly,
payments for unused sick or vacation time shall not be
considered as earnings. Any unused sick leave considered as
earnings under this Section shall not be taken into account in
calculating service credit under Section 15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-113.4. Service for unused sick leave. "Service for
unused sick leave": A person who first becomes a participant
before the effective date of this amendatory Act of the 99th
General Assembly and who is an employee under this System or
one of the other systems subject to Article 20 of this Code
within 60 days immediately preceding the date on which his or
her retirement annuity begins, is entitled to credit for
service for that portion of unused sick leave earned in the
course of employment with an employer and credited on the date
of termination of employment by an employer for which payment
is not received, in accordance with the following schedule: 30
through 90 full calendar days and 20 through 59 full work days
of unused sick leave, 1/4 of a year of service; 91 through 180

HB5546 - 106 - LRB099 20200 RPS 44658 b
full calendar days and 60 through 119 full work days, 1/2 of a
year of service; 181 through 270 full calendar days and 120
through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work
days, one year of service. Only uncompensated, unused sick
leave earned in accordance with an employer's sick leave
accrual policy generally applicable to employees or a class of
employees shall be taken into account in calculating service
credit under this Section. Any uncompensated, unused sick leave
granted by an employer to facilitate the hiring, retirement,
termination, or other special circumstances of an employee
shall not be taken into account in calculating service credit
under this Section. If a participant transfers from one
employer to another, the unused sick leave credited by the
previous employer shall be considered in determining service to
be credited under this Section, even if the participant
terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall
be recalculated to reflect such sick leave credit. Each
employer shall certify to the board the number of days of
unused sick leave accrued to the participant's credit on the
date that the participant's status as an employee terminated.
This period of unused sick leave shall not be considered in
determining the date the retirement annuity begins. A person
who first becomes a participant on or after the effective date
of this amendatory Act of the 99th General Assembly shall not

HB5546 - 107 - LRB099 20200 RPS 44658 b
receive service credit for unused sick leave.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Except as provided in subsection (a-5), each Each
person shall, as a condition of employment, become a
participant and be subject to this Article on the date that he
or she becomes an employee, makes an election to participate
in, or otherwise becomes a participant in one of the retirement
programs offered under this Article, whichever date is later.
An employee who becomes a participant shall continue to be
a participant until he or she becomes an annuitant, dies or
accepts a refund of contributions.
(a-5) Notwithstanding any other provision of this Article,
beginning on the effective date of this amendatory Act of the
99th General Assembly, a person is not required, as a condition
of employment or otherwise, to participate in this System. An
active employee may terminate his or her participation in this
System (including active participation in the Tier 3 plan, if
applicable) by notifying the System in writing. An active
employee terminating participation in this System under this
subsection shall be entitled to a refund of his or her
contributions (other than contributions to the self-managed
plan under Section 15-158.2 or the Tier 3 plan under Section
15-200.5) minus the benefits received prior to the termination

HB5546 - 108 - LRB099 20200 RPS 44658 b
of participation.
(b) A person employed concurrently by 2 or more employers
is eligible to participate in the system on compensation
received from all employers.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-198)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made by this amendatory Act of the
99th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must

HB5546 - 109 - LRB099 20200 RPS 44658 b
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating

HB5546 - 110 - LRB099 20200 RPS 44658 b
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
(40 ILCS 5/15-200.5 new)
Sec. 15-200.5. Tier 3 plan.
(a) By July 1, 2017, the System shall prepare and implement
a Tier 3 plan. The Tier 3 plan developed under this Section
shall be a plan that aggregates State and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after
retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
traditional benefit package or the portable benefit package
available under this Article to Tier 1 or Tier 2 members who
have not made the election authorized under this Section and do
not participate in the self-managed plan under Section
15-158.2.

HB5546 - 111 - LRB099 20200 RPS 44658 b
(1) A participant in the Tier 3 plan shall pay employee
contributions at a rate determined by the participant, but
not less than 3% of earnings and not more than a percentage
of earnings determined by the Board in accordance with the
requirements of State and federal law.
(2) State contributions shall be paid into the accounts
of all participants in the Tier 3 plan at a uniform rate,
expressed as a percentage of earnings and determined for
each year. This rate shall be no higher than 7.6% of
earnings and shall be no lower than 3% of earnings. The
State shall adjust this rate annually.
(3) The Tier 3 plan shall require 5 years of
participation in the Tier 3 plan before vesting in State
contributions. If the participant fails to vest in them,
the State contributions, and the earnings thereon, shall be
forfeited.
(4) The Tier 3 plan may provide for participants in the
plan to be eligible for the defined disability benefits
available to other participants under this Article. If it
does, the System shall reduce the employee contributions
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering such
benefits.
(5) The Tier 3 plan shall provide a variety of options
for investments. These options shall include investments
handled by the System as well as private sector investment

HB5546 - 112 - LRB099 20200 RPS 44658 b
options.
(6) The Tier 3 plan shall provide a variety of options
for payouts to participants in the Tier 3 plan who are no
longer active in the System and their survivors.
(7) To the extent authorized under federal law and as
authorized by the System, the plan shall allow former
participants in the plan to transfer or roll over employee
and vested State contributions, and the earnings thereon,
from the Tier 3 plan into other qualified retirement plans.
(8) The System shall reduce the employee contributions
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering
these benefits and any applicable administrative fees.
(b) Under the Tier 3 plan, an active Tier 1 or Tier 2
member of this System may elect, in writing, to cease accruing
benefits in the defined benefit plan and begin accruing
benefits for future service in the Tier 3 plan. An active Tier
1 or Tier 2 member who elects to cease accruing benefits in his
or her defined benefit plan shall be prohibited from purchasing
service credit on or after the date of his or her election. A
Tier 1 or Tier 2 member who elects to participate in the Tier 3
plan shall not receive interest accruals to his or her Rule 2
benefit on or after the date of his or her election. The
election to participate in the Tier 3 plan is voluntary and
irrevocable.
(1) Service credit under the Tier 3 plan may be used

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for determining retirement eligibility under the defined
benefit plan.
(2) The System shall make a good faith effort to
contact all active Tier 1 and Tier 2 members who are
eligible to participate in the Tier 3 plan. The System
shall mail information describing the option to join the
Tier 3 plan to each of these employees to his or her last
known address on file with the System. If the employee is
not responsive to other means of contact, it is sufficient
for the System to publish the details of the option on its
website.
(3) Upon request for further information describing
the option, the System shall provide employees with
information from the System before exercising the option to
join the plan, including information on the impact to their
benefits and service. The individual consultation shall
include projections of the member's defined benefits at
retirement or earlier termination of service and the value
of the member's account at retirement or earlier
termination of service. The System shall not provide advice
or counseling with respect to whether the employee should
exercise the option. The System shall inform Tier 1 and
Tier 2 members who are eligible to participate in the Tier
3 plan that they may also wish to obtain information and
counsel relating to their option from any other available
source, including but not limited to labor organizations,

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private counsel, and financial advisors.
(b-5) A Tier 1 or Tier 2 member who elects to participate
in the Tier 3 plan may irrevocably elect to terminate all
participation in the defined benefit plan. Upon that election,
the System shall transfer to the member's individual account an
amount equal to the amount of contribution refund that the
member would be eligible to receive if the member terminated
employment on that date and elected a refund of contributions,
including interest at the effective rate for the respective
years. The System shall make the transfer as a tax free
transfer in accordance with Internal Revenue Service
guidelines, for purposes of funding the amount credited to the
member's individual account.
(c) In no event shall the System, its staff, its authorized
representatives, or the Board be liable for any information
given to an employee under this Section. The System may
coordinate with the Illinois Department of Central Management
Services and other retirement systems administering a Tier 3
plan in accordance with this amendatory Act of the 99th General
Assembly to provide information concerning the impact of the
Tier 3 plan set forth in this Section.
(d) Notwithstanding any other provision of this Section, no
person shall begin participating in the Tier 3 plan until it
has attained qualified plan status and received all necessary
approvals from the U.S. Internal Revenue Service.
(e) The System shall report on its progress under this

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Section, including the available details of the Tier 3 plan and
the System's plans for informing eligible Tier 1 and Tier 2
members about the plan, to the Governor and the General
Assembly on or before January 15, 2017.
(f) The intent of this amendatory Act of the 99th General
Assembly is to ensure that the State's normal cost of
participation in the Tier 3 plan is similar, and if possible
equal, to the State's normal cost of participation in the
defined benefit plan, unless a lower State's normal cost is
necessary to ensure cost neutrality.
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position in
which services are expected to be rendered for at least one
school term:
(1) Any educational, administrative, professional or
other staff employed in the public common schools included
within this system in a position requiring certification
under the law governing the certification of teachers;
(2) Any educational, administrative, professional or
other staff employed in any facility of the Department of

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Children and Family Services or the Department of Human
Services, in a position requiring certification under the
law governing the certification of teachers, and any person
who (i) works in such a position for the Department of
Corrections, (ii) was a member of this System on May 31,
1987, and (iii) did not elect to become a member of the
State Employees' Retirement System pursuant to Section
14-108.2 of this Code; except that "teacher" does not
include any person who (A) becomes a security employee of
the Department of Human Services, as defined in Section
14-110, after June 28, 2001 (the effective date of Public
Act 92-14), or (B) becomes a member of the State Employees'
Retirement System pursuant to Section 14-108.2c of this
Code;
(3) Any regional superintendent of schools, assistant
regional superintendent of schools, State Superintendent
of Education; any person employed by the State Board of
Education as an executive; any executive of the boards
engaged in the service of public common school education in
school districts covered under this system of which the
State Superintendent of Education is an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School Code
who is certificated under the law governing the
certification of teachers, provided that he or she becomes
such an employee before the effective date of this

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amendatory Act of the 99th General Assembly;
(5) Any person employed by the retirement system who:
(i) was an employee of and a participant in the
system on August 17, 2001 (the effective date of Public
Act 92-416), or
(ii) becomes an employee of the system on or after
August 17, 2001;
(6) Any educational, administrative, professional or
other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or more
districts in accordance with a joint agreement authorized
by the School Code or by federal legislation;
(7) Any educational, administrative, professional or
other staff employed in an educational program serving 2 or
more school districts in accordance with a joint agreement
authorized by the School Code or by federal legislation and
in a position requiring certification under the laws
governing the certification of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher organization
who is certified under the law governing certification of
teachers, provided: (i) the individual had previously
established creditable service under this Article, (ii)

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the individual files with the system an irrevocable
election to become a member before the effective date of
this amendatory Act of the 97th General Assembly, (iii) the
individual does not receive credit for such service under
any other Article of this Code, and (iv) the individual
first became an officer or employee of the teacher
organization and becomes a member before the effective date
of this amendatory Act of the 97th General Assembly;
(9) Any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is certificated
under the law governing the certification of teachers;
(10) Any person employed, on the effective date of this
amendatory Act of the 94th General Assembly, by the
Macon-Piatt Regional Office of Education in a
birth-through-age-three pilot program receiving funds
under Section 2-389 of the School Code who is required by
the Macon-Piatt Regional Office of Education to hold a
teaching certificate, provided that the Macon-Piatt
Regional Office of Education makes an election, within 6
months after the effective date of this amendatory Act of
the 94th General Assembly, to have the person participate
in the system. Any service established prior to the
effective date of this amendatory Act of the 94th General
Assembly for service as an employee of the Macon-Piatt
Regional Office of Education in a birth-through-age-three

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pilot program receiving funds under Section 2-389 of the
School Code shall be considered service as a teacher if
employee and employer contributions have been received by
the system and the system has not refunded those
contributions.
An annuitant receiving a retirement annuity under this
Article or under Article 17 of this Code who is employed by a
board of education or other employer as permitted under Section
16-118 or 16-150.1 is not a "teacher" for purposes of this
Article. A person who has received a single-sum retirement
benefit under Section 16-136.4 of this Article is not a
"teacher" for purposes of this Article.
(Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13.)
(40 ILCS 5/16-106.40 new)
Sec. 16-106.40. Tier 1 member. "Tier 1 member": A member
under this Article who first became a member or participant
before January 1, 2011 under any reciprocal retirement system
or pension fund established under this Code other than a
retirement system or pension fund established under Article 2,
3, 4, 5, 6, or 18 of this Code.
In the case of a Tier 1 member who elects to participate in
the Tier 3 plan under Section 16-205.5 of this Code, that Tier
1 member shall be deemed a Tier 1 member only with respect to
service performed or established before the effective date of
that election.

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(40 ILCS 5/16-106.41 new)
Sec. 16-106.41. Tier 2 member. "Tier 2 member": A member of
the System who first becomes a member under this Article on or
after January 1, 2011 and who is not a Tier 1 member.
In the case of a Tier 2 member who elects to participate in
the Tier 3 plan under Section 16-205.5 of this Code, the Tier 2
member shall be deemed a Tier 2 member only with respect to
service performed or established before the effective date of
that election.
(40 ILCS 5/16-106.42 new)
Sec. 16-106.42. Tier 3 member. "Tier 3 member": A Tier 1 or
Tier 2 member who elects to participate in the Tier 3 plan
under Section 16-205.5 of this Code, but only with respect to
service performed on or after the effective date of that
election.
(40 ILCS 5/16-123) (from Ch. 108 1/2, par. 16-123)
Sec. 16-123. Membership of System.
(a) Except as provided in subsection (c), the The
membership of this System shall be composed of all teachers
employed after June 30, 1939 who become members as a condition
of employment on the date they become teachers. Membership
shall continue until the date a member becomes an annuitant,
dies, accepts a single-sum retirement benefit, accepts a

HB5546 - 121 - LRB099 20200 RPS 44658 b
refund, or forfeits the rights to a refund.
(b) This Article does not apply to any person first
employed after June 30, 1979 as a public service employment
program participant under the Federal Comprehensive Employment
and Training Act and whose wages or fringe benefits are paid in
whole or in part by funds provided under such Act.
(c) Notwithstanding any other provision of this Article,
beginning on the effective date of this amendatory Act of the
99th General Assembly, a person is not required, as a condition
of employment or otherwise, to participate in this System. An
active teacher may terminate his or her membership in this
System (including active participation in the Tier 3 plan, if
applicable) by notifying the System in writing. An active
teacher terminating his or her membership in this System under
this subsection shall be entitled to a refund of his or her
contributions (other than contributions to the Tier 3 plan
under Section 16-205.5) minus the benefits received prior to
the termination of membership.
(Source: P.A. 87-11.)
(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 16-127. Computation of creditable service.
(a) Each member shall receive regular credit for all
service as a teacher from the date membership begins, for which

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satisfactory evidence is supplied and all contributions have
been paid.
(b) The following periods of service shall earn optional
credit and each member shall receive credit for all such
service for which satisfactory evidence is supplied and all
contributions have been paid as of the date specified:
(1) Prior service as a teacher.
(2) Service in a capacity essentially similar or
equivalent to that of a teacher, in the public common
schools in school districts in this State not included
within the provisions of this System, or of any other
State, territory, dependency or possession of the United
States, or in schools operated by or under the auspices of
the United States, or under the auspices of any agency or
department of any other State, and service during any
period of professional speech correction or special
education experience for a public agency within this State
or any other State, territory, dependency or possession of
the United States, and service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety, for a period not exceeding the lesser of 2/5 of the
total creditable service of the member or 10 years. The
maximum service of 10 years which is allowable under this
paragraph shall be reduced by the service credit which is
validated by other retirement systems under paragraph (i)
of Section 15-113 and paragraph 1 of Section 17-133. Credit

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granted under this paragraph may not be used in
determination of a retirement annuity or disability
benefits unless the member has at least 5 years of
creditable service earned subsequent to this employment
with one or more of the following systems: Teachers'
Retirement System of the State of Illinois, State
Universities Retirement System, and the Public School
Teachers' Pension and Retirement Fund of Chicago. Whenever
such service credit exceeds the maximum allowed for all
purposes of this Article, the first service rendered in
point of time shall be considered. The changes to this
subdivision (b)(2) made by Public Act 86-272 shall apply
not only to persons who on or after its effective date
(August 23, 1989) are in service as a teacher under the
System, but also to persons whose status as such a teacher
terminated prior to such effective date, whether or not
such person is an annuitant on that date.
(3) Any periods immediately following teaching
service, under this System or under Article 17, (or
immediately following service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety) spent in active service with the military forces of
the United States; periods spent in educational programs
that prepare for return to teaching sponsored by the
federal government following such active military service;
if a teacher returns to teaching service within one

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calendar year after discharge or after the completion of
the educational program, a further period, not exceeding
one calendar year, between time spent in military service
or in such educational programs and the return to
employment as a teacher under this System; and a period of
up to 2 years of active military service not immediately
following employment as a teacher.
The changes to this Section and Section 16-128 relating
to military service made by P.A. 87-794 shall apply not
only to persons who on or after its effective date are in
service as a teacher under the System, but also to persons
whose status as a teacher terminated prior to that date,
whether or not the person is an annuitant on that date. In
the case of an annuitant who applies for credit allowable
under this Section for a period of military service that
did not immediately follow employment, and who has made the
required contributions for such credit, the annuity shall
be recalculated to include the additional service credit,
with the increase taking effect on the date the System
received written notification of the annuitant's intent to
purchase the credit, if payment of all the required
contributions is made within 60 days of such notice, or
else on the first annuity payment date following the date
of payment of the required contributions. In calculating
the automatic annual increase for an annuity that has been
recalculated under this Section, the increase attributable

HB5546 - 125 - LRB099 20200 RPS 44658 b
to the additional service allowable under P.A. 87-794 shall
be included in the calculation of automatic annual
increases accruing after the effective date of the
recalculation.
Credit for military service shall be determined as
follows: if entry occurs during the months of July, August,
or September and the member was a teacher at the end of the
immediately preceding school term, credit shall be granted
from July 1 of the year in which he or she entered service;
if entry occurs during the school term and the teacher was
in teaching service at the beginning of the school term,
credit shall be granted from July 1 of such year. In all
other cases where credit for military service is allowed,
credit shall be granted from the date of entry into the
service.
The total period of military service for which credit
is granted shall not exceed 5 years for any member unless
the service: (A) is validated before July 1, 1964, and (B)
does not extend beyond July 1, 1963. Credit for military
service shall be granted under this Section only if not
more than 5 years of the military service for which credit
is granted under this Section is used by the member to
qualify for a military retirement allotment from any branch
of the armed forces of the United States. The changes to
this subdivision (b)(3) made by Public Act 86-272 shall
apply not only to persons who on or after its effective

HB5546 - 126 - LRB099 20200 RPS 44658 b
date (August 23, 1989) are in service as a teacher under
the System, but also to persons whose status as such a
teacher terminated prior to such effective date, whether or
not such person is an annuitant on that date.
(4) Any periods served as a member of the General
Assembly.
(5)(i) Any periods for which a teacher, as defined in
Section 16-106, is granted a leave of absence, provided he
or she returns to teaching service creditable under this
System or the State Universities Retirement System
following the leave; (ii) periods during which a teacher is
involuntarily laid off from teaching, provided he or she
returns to teaching following the lay-off; (iii) periods
prior to July 1, 1983 during which a teacher ceased covered
employment due to pregnancy, provided that the teacher
returned to teaching service creditable under this System
or the State Universities Retirement System following the
pregnancy and submits evidence satisfactory to the Board
documenting that the employment ceased due to pregnancy;
and (iv) periods prior to July 1, 1983 during which a
teacher ceased covered employment for the purpose of
adopting an infant under 3 years of age or caring for a
newly adopted infant under 3 years of age, provided that
the teacher returned to teaching service creditable under
this System or the State Universities Retirement System
following the adoption and submits evidence satisfactory

HB5546 - 127 - LRB099 20200 RPS 44658 b
to the Board documenting that the employment ceased for the
purpose of adopting an infant under 3 years of age or
caring for a newly adopted infant under 3 years of age.
However, total credit under this paragraph (5) may not
exceed 3 years.
Any qualified member or annuitant may apply for credit
under item (iii) or (iv) of this paragraph (5) without
regard to whether service was terminated before the
effective date of this amendatory Act of 1997. In the case
of an annuitant who establishes credit under item (iii) or
(iv), the annuity shall be recalculated to include the
additional service credit. The increase in annuity shall
take effect on the date the System receives written
notification of the annuitant's intent to purchase the
credit, if the required evidence is submitted and the
required contribution paid within 60 days of that
notification, otherwise on the first annuity payment date
following the System's receipt of the required evidence and
contribution. The increase in an annuity recalculated
under this provision shall be included in the calculation
of automatic annual increases in the annuity accruing after
the effective date of the recalculation.
Optional credit may be purchased under this subsection
(b)(5) for periods during which a teacher has been granted
a leave of absence pursuant to Section 24-13 of the School
Code. A teacher whose service under this Article terminated

HB5546 - 128 - LRB099 20200 RPS 44658 b
prior to the effective date of P.A. 86-1488 shall be
eligible to purchase such optional credit. If a teacher who
purchases this optional credit is already receiving a
retirement annuity under this Article, the annuity shall be
recalculated as if the annuitant had applied for the leave
of absence credit at the time of retirement. The difference
between the entitled annuity and the actual annuity shall
be credited to the purchase of the optional credit. The
remainder of the purchase cost of the optional credit shall
be paid on or before April 1, 1992.
The change in this paragraph made by Public Act 86-273
shall be applicable to teachers who retire after June 1,
1989, as well as to teachers who are in service on that
date.
(6) For a person who first becomes a member before the
effective date of this amendatory Act of the 99th General
Assembly, any Any days of unused and uncompensated
accumulated sick leave earned by a teacher. The service
credit granted under this paragraph shall be the ratio of
the number of unused and uncompensated accumulated sick
leave days to 170 days, subject to a maximum of 2 years of
service credit. Prior to the member's retirement, each
former employer shall certify to the System the number of
unused and uncompensated accumulated sick leave days
credited to the member at the time of termination of
service. The period of unused sick leave shall not be

HB5546 - 129 - LRB099 20200 RPS 44658 b
considered in determining the effective date of
retirement. A member is not required to make contributions
in order to obtain service credit for unused sick leave.
Credit for sick leave shall, at retirement, be granted
by the System for any retiring regional or assistant
regional superintendent of schools who first becomes a
member before the effective date of this amendatory Act of
the 99th General Assembly at the rate of 6 days per year of
creditable service or portion thereof established while
serving as such superintendent or assistant
superintendent.
(7) Periods prior to February 1, 1987 served as an
employee of the Illinois Mathematics and Science Academy
for which credit has not been terminated under Section
15-113.9 of this Code.
(8) Service as a substitute teacher for work performed
prior to July 1, 1990.
(9) Service as a part-time teacher for work performed
prior to July 1, 1990.
(10) Up to 2 years of employment with Southern Illinois
University - Carbondale from September 1, 1959 to August
31, 1961, or with Governors State University from September
1, 1972 to August 31, 1974, for which the teacher has no
credit under Article 15. To receive credit under this item
(10), a teacher must apply in writing to the Board and pay
the required contributions before May 1, 1993 and have at

HB5546 - 130 - LRB099 20200 RPS 44658 b
least 12 years of service credit under this Article.
(b-1) A member may establish optional credit for up to 2
years of service as a teacher or administrator employed by a
private school recognized by the Illinois State Board of
Education, provided that the teacher (i) was certified under
the law governing the certification of teachers at the time the
service was rendered, (ii) applies in writing on or after
August 1, 2009 and on or before August 1, 2012, (iii) supplies
satisfactory evidence of the employment, (iv) completes at
least 10 years of contributing service as a teacher as defined
in Section 16-106, and (v) pays the contribution required in
subsection (d-5) of Section 16-128. The member may apply for
credit under this subsection and pay the required contribution
before completing the 10 years of contributing service required
under item (iv), but the credit may not be used until the item
(iv) contributing service requirement has been met.
(c) The service credits specified in this Section shall be
granted only if: (1) such service credits are not used for
credit in any other statutory tax-supported public employee
retirement system other than the federal Social Security
program; and (2) the member makes the required contributions as
specified in Section 16-128. Except as provided in subsection
(b-1) of this Section, the service credit shall be effective as
of the date the required contributions are completed.
Any service credits granted under this Section shall
terminate upon cessation of membership for any cause.

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Credit may not be granted under this Section covering any
period for which an age retirement or disability retirement
allowance has been paid.
(Source: P.A. 96-546, eff. 8-17-09.)
(40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)
Sec. 16-152.1. Pickup of contributions.
(a) Each employer may pick up the member contributions
required under Section 16-152 for all salary earned after
December 31, 1981. If an employer decides not to pick up the
member contributions, the amount that would have been picked up
shall continue to be deducted from salary. If contributions are
picked up, they shall be treated as employer contributions in
determining tax treatment under the United States Internal
Revenue Code. The employer shall pay these member contributions
from the same source of funds which is used in paying salary to
the member. The employer may pick up these contributions by a
reduction in the cash salary of the member or by an offset
against a future salary increase or by a combination of a
reduction in salary and offset against a future salary
increase. If member contributions are picked up, they shall be
treated for all purposes of this Article 16 in the same manner
as member contributions made prior to the date the pick up
began.
(b) The State Board of Education shall pick up the
contributions of regional superintendents required under

HB5546 - 132 - LRB099 20200 RPS 44658 b
Section 16-152 for all salary earned for the 1982 calendar year
and thereafter.
(c) Effective July 1, 1983, each employer shall pick up the
member contributions required under Section 16-152 for all
salary earned after such date. Contributions so picked up shall
be treated as employer contributions in determining tax
treatment under the United States Internal Revenue Code. The
employer shall pay these member contributions from the same
source of funds which is used in paying salary to the member.
The employer may pick up these contributions by a reduction in
the cash salary of the member or by an offset against a future
salary increase or by a combination of a reduction in salary
and offset against a future salary increase. Member
contributions so picked up shall be treated for all purposes of
this Article 16 in the same manner as member contributions made
prior to the date the pick up began.
(d) Subject to the requirements of federal law and the
rules of the board, beginning July 1, 1998 a member who is
employed on a full-time basis may elect to have the employer
pick up optional contributions that the member has elected to
pay to the System, and the contributions so picked up shall be
treated as employer contributions for the purposes of
determining federal tax treatment. The election to have
optional contributions picked up is irrevocable. At the time of
making the election, the member shall execute a binding,
irrevocable payroll deduction authorization. Upon receiving

HB5546 - 133 - LRB099 20200 RPS 44658 b
notice of the election, the employer shall pick up the
contributions by a reduction in the cash salary of the member
and shall pay the contributions from the same source of funds
that is used to pay earnings to the member.
(e) Beginning on the effective date of this amendatory Act
of the 99th General Assembly, no employer shall pay employee
contributions on behalf of an employee, except for the sole
purpose of allowing the employee to make pre-tax contributions
as provided in this Section. The provisions of this subsection
(e) do not apply to an employment contract or collective
bargaining agreement that is in effect on the effective date of
this amendatory Act of the 99th General Assembly. However, any
such contract or agreement that is subsequently modified,
amended, or renewed shall be subject to the provisions of this
subsection (e).
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/16-203)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment

HB5546 - 134 - LRB099 20200 RPS 44658 b
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to this Article by Public Act 95-910 or this
amendatory Act of the 99th General Assembly this amendatory Act
of the 95th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under

HB5546 - 135 - LRB099 20200 RPS 44658 b
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
(40 ILCS 5/16-205.5 new)
Sec. 16-205.5. Tier 3 plan.
(a) By July 1, 2017, the System shall prepare and implement

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a Tier 3 plan. The Tier 3 plan developed under this Section
shall be a plan that aggregates State and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after
retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
retirement plan available under this Article to Tier 1 or Tier
2 members who have not made the election authorized under this
Section.
(1) A participant in the Tier 3 plan shall pay employee
contributions at a rate determined by the participant, but
not less than 3% of salary and not more than a percentage
of salary determined by the Board in accordance with the
requirements of State and federal law.
(2) State contributions shall be paid into the accounts
of all participants in the Tier 3 plan at a uniform rate,
expressed as a percentage of salary and determined for each
year. This rate shall be no higher than 7.6% of salary and
shall be no lower than 3% of salary. The State shall adjust
this rate annually.
(3) The Tier 3 plan shall require 5 years of
participation in the Tier 3 plan before vesting in State
contributions. If the participant fails to vest in them,
the State contributions, and the earnings thereon, shall be
forfeited.

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(4) The Tier 3 plan may provide for participants in the
plan to be eligible for the defined disability benefits
available to other participants under this Article. If it
does, the System shall reduce the employee contributions
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering such
benefits.
(5) The Tier 3 plan shall provide a variety of options
for investments. These options shall include investments
in a fund created by the System and managed in accordance
with legal and fiduciary standards, as well as investment
options otherwise available.
(6) The Tier 3 plan shall provide a variety of options
for payouts to participants in the Tier 3 plan who are no
longer active in the System and their survivors.
(7) To the extent authorized under federal law and as
authorized by the System, the plan shall allow former
participants in the plan to transfer or roll over employee
and vested State contributions, and the earnings thereon,
from the Tier 3 plan into other qualified retirement plans.
(8) The System shall reduce the employee contributions
credited to the member's Tier 3 plan account by an amount
determined by the System to cover the cost of offering
these benefits and any applicable administrative fees.
(b) Under the Tier 3 plan, an active Tier 1 or Tier 2
member of this System may elect, in writing, to cease accruing

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benefits in the defined benefit plan and begin accruing
benefits for future service in the Tier 3 plan. An active Tier
1 or Tier 2 member who elects to cease accruing benefits in his
or her defined benefit plan shall be prohibited from purchasing
service credit on or after the date of his or her election. A
Tier 1 or Tier 2 member making the irrevocable election
provided under this subsection shall not receive interest
accruals to his or her benefit under paragraph (A) of
subsection (a) of Section 16-133 of this Code on or after the
date of his or her election. The election to participate in the
Tier 3 plan is voluntary and irrevocable.
(1) Service credit under the Tier 3 plan may be used
for determining retirement eligibility under the defined
benefit plan.
(2) The System shall make a good faith effort to
contact all active Tier 1 and Tier 2 members who are
eligible to participate in the Tier 3 plan. The System
shall mail information describing the option to join the
Tier 3 plan to each of these employees to his or her last
known address on file with the System. If the employee is
not responsive to other means of contact, it is sufficient
for the System to publish the details of the option on its
website.
(3) Upon request for further information describing
the option, the System shall provide employees with
information from the System before exercising the option to

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join the plan, including information on the impact to their
benefits and service. The individual consultation shall
include projections of the member's defined benefits at
retirement or earlier termination of service and the value
of the member's account at retirement or earlier
termination of service. The System shall not provide advice
or counseling with respect to whether the employee should
exercise the option. The System shall inform Tier 1 and
Tier 2 members who are eligible to participate in the Tier
3 plan that they may also wish to obtain information and
counsel relating to their option from any other available
source, including but not limited to labor organizations,
private counsel, and financial advisors.
(b-5) A Tier 1 or Tier 2 member who elects to participate
in the Tier 3 plan may irrevocably elect to terminate all
participation in the defined benefit plan. Upon that election,
the System shall transfer to the member's individual account an
amount equal to the amount of contribution refund that the
member would be eligible to receive if the member terminated
employment on that date and elected a refund of contributions,
including regular interest for the respective years. The System
shall make the transfer as a tax free transfer in accordance
with Internal Revenue Service guidelines, for purposes of
funding the amount credited to the member's individual account.
(c) In no event shall the System, its staff, its authorized
representatives, or the Board be liable for any information

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given to an employee under this Section. The System may
coordinate with the Illinois Department of Central Management
Services and other retirement systems administering a Tier 3
plan in accordance with this amendatory Act of the 99th General
Assembly to provide information concerning the impact of the
Tier 3 plan set forth in this Section.
(d) Notwithstanding any other provision of this Section, no
person shall begin participating in the Tier 3 plan until it
has attained qualified plan status and received all necessary
approvals from the U.S. Internal Revenue Service.
(e) The System shall report on its progress under this
Section, including the available details of the Tier 3 plan and
the System's plans for informing eligible Tier 1 and Tier 2
members about the plan, to the Governor and the General
Assembly on or before January 15, 2017.
(f) The intent of this amendatory Act of the 99th General
Assembly is to ensure that the State's normal cost of
participation in the Tier 3 plan is similar, and if possible
equal, to the State's normal cost of participation in the
defined benefit plan, unless a lower State's normal cost is
necessary to ensure cost neutrality.
(40 ILCS 5/18-110.1 new)
Sec. 18-110.1. Tier 1 participant. "Tier 1 participant": A
participant who first became a participant of this System
before January 1, 2011.

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In the case of a Tier 1 participant who elects to
participate in the Tier 3 plan under Section 18-121.5 of this
Code, that Tier 1 participant shall be deemed a Tier 1
participant only with respect to service performed or
established before the effective date of that election.
(40 ILCS 5/18-110.2 new)
Sec. 18-110.2. Tier 2 participant. "Tier 2 participant": A
participant who first becomes a participant of this System on
or after January 1, 2011.
In the case of a Tier 2 participant who elects to
participate in the Tier 3 plan under Section 18-121.5 of this
Code, that Tier 2 participant shall be deemed a Tier 2
participant only with respect to service performed or
established before the effective date of that election.
(40 ILCS 5/18-110.3 new)
Sec. 18-110.3. Tier 3 participant. "Tier 3 participant": A
Tier 1 or Tier 2 participant who elects to participate in the
Tier 3 plan under Section 18-121.5 of this Code, but only with
respect to service performed on or after the effective date of
that election.
(40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
Sec. 18-120. Employee participation.
(a) Except as provided in subsection (b), an An eligible

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judge who is not a participant shall become a participant
beginning on the date he or she becomes an eligible judge,
unless the judge files with the board a written notice of
election not to participate within 30 days of the date of being
notified of the option.
A person electing not to participate shall thereafter be
ineligible to become a participant unless the election is
revoked as provided in Section 18-121.
(b) Notwithstanding any other provision of this Article, an
active participant may terminate his or her participation in
this System (including active participation in the Tier 3 plan,
if applicable) by notifying the System in writing. An active
participant terminating participation in this System under
this subsection shall be entitled to a refund of his or her
contributions (other than contributions to the Tier 3 plan
under Section 18-121.5) minus the benefits received prior to
the termination of participation.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-121.5 new)
Sec. 18-121.5. Tier 3 plan.
(a) By July 1, 2017, the System shall prepare and implement
a Tier 3 plan. The Tier 3 plan developed under this Section
shall be a plan that aggregates State and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after

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retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
retirement plan available under this Article to Tier 1 or Tier
2 participants who have not made the election authorized under
this Section.
(1) A participant in the Tier 3 plan shall pay employee
contributions at a rate determined by the participant, but
not less than 3% of salary and not more than a percentage
of salary determined by the Board in accordance with the
requirements of State and federal law.
(2) State contributions shall be paid into the accounts
of all participants in the Tier 3 plan at a uniform rate,
expressed as a percentage of salary and determined for each
year. This rate shall be no higher than 7.6% of salary and
shall be no lower than 3% of salary. The State shall adjust
this rate annually.
(3) The Tier 3 plan shall require 5 years of
participation in the Tier 3 plan before vesting in State
contributions. If the participant fails to vest in them,
the State contributions, and the earnings thereon, shall be
forfeited.
(4) The Tier 3 plan may provide for participants in the
plan to be eligible for defined disability benefits. If it
does, the System shall reduce the employee contributions
credited to the participant's Tier 3 plan account by an

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amount determined by the System to cover the cost of
offering such benefits.
(5) The Tier 3 plan shall provide a variety of options
for investments. These options shall include investments
handled by the Illinois State Board of Investment as well
as private sector investment options.
(6) The Tier 3 plan shall provide a variety of options
for payouts to participants in the Tier 3 plan who are no
longer active in the System and their survivors.
(7) To the extent authorized under federal law and as
authorized by the System, the plan shall allow former
participants in the plan to transfer or roll over employee
and vested State contributions, and the earnings thereon,
into other qualified retirement plans.
(8) The System shall reduce the employee contributions
credited to the participant's Tier 3 plan account by an
amount determined by the System to cover the cost of
offering these benefits and any applicable administrative
fees.
(b) Under the Tier 3 plan, an active Tier 1 or Tier 2
participant of this System may elect, in writing, to cease
accruing benefits in the defined benefit plan and begin
accruing benefits for future service in the Tier 3 plan. The
election to participate in the Tier 3 plan is voluntary and
irrevocable.
(1) Service credit under the Tier 3 plan may be used

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for determining retirement eligibility under the defined
benefit plan.
(2) The System shall make a good faith effort to
contact all active Tier 1 and Tier 2 participants who are
eligible to participate in the Tier 3 plan. The System
shall mail information describing the option to join the
Tier 3 plan to each of these employees to his or her last
known address on file with the System. If the employee is
not responsive to other means of contact, it is sufficient
for the System to publish the details of the option on its
website.
(3) Upon request for further information describing
the option, the System shall provide employees with
information from the System before exercising the option to
join the plan, including information on the impact to their
benefits and service. The individual consultation shall
include projections of the participant's defined benefits
at retirement or earlier termination of service and the
value of the participant's account at retirement or earlier
termination of service. The System shall not provide advice
or counseling with respect to whether the employee should
exercise the option. The System shall inform Tier 1 and
Tier 2 participants who are eligible to participate in the
Tier 3 plan that they may also wish to obtain information
and counsel relating to their option from any other
available source, including but not limited to private

HB5546 - 146 - LRB099 20200 RPS 44658 b
counsel and financial advisors.
(b-5) A Tier 1 or Tier 2 participant who elects to
participate in the Tier 3 plan may irrevocably elect to
terminate all participation in the defined benefit plan. Upon
that election, the System shall transfer to the participant's
individual account an amount equal to the amount of
contribution refund that the participant would be eligible to
receive if the participant terminated employment on that date
and elected a refund of contributions, including interest at
the prescribed rate of interest for the respective years. The
System shall make the transfer as a tax free transfer in
accordance with Internal Revenue Service guidelines, for
purposes of funding the amount credited to the participant's
individual account.
(c) In no event shall the System, its staff, its authorized
representatives, or the Board be liable for any information
given to an employee under this Section. The System may
coordinate with the Illinois Department of Central Management
Services and other retirement systems administering a Tier 3
plan in accordance with this amendatory Act of the 99th General
Assembly to provide information concerning the impact of the
Tier 3 plan set forth in this Section.
(d) Notwithstanding any other provision of this Section, no
person shall begin participating in the Tier 3 plan until it
has attained qualified plan status and received all necessary
approvals from the U.S. Internal Revenue Service.

HB5546 - 147 - LRB099 20200 RPS 44658 b
(e) The System shall report on its progress under this
Section, including the available details of the Tier 3 plan and
the System's plans for informing eligible Tier 1 and Tier 2
participants about the plan, to the Governor and the General
Assembly on or before January 15, 2017.
(f) The Illinois State Board of Investment shall be the
plan sponsor for the Tier 3 plan established under this
Section.
(g) The intent of this amendatory Act of the 99th General
Assembly is to ensure that the State's normal cost of
participation in the Tier 3 plan is similar, and if possible
equal, to the State's normal cost of participation in the
defined benefit plan, unless a lower State's normal cost is
necessary to ensure cost neutrality.
(40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
Sec. 18-124. Retirement annuities - conditions for
eligibility.
(a) This subsection (a) applies to a Tier 1 participant who
first serves as a judge before the effective date of this
amendatory Act of the 96th General Assembly.
A participant whose employment as a judge is terminated,
regardless of age or cause is entitled to a retirement annuity
beginning on the date specified in a written application
subject to the following:
(1) the date the annuity begins is subsequent to the

HB5546 - 148 - LRB099 20200 RPS 44658 b
date of final termination of employment, or the date 30
days prior to the receipt of the application by the board
for annuities based on disability, or one year before the
receipt of the application by the board for annuities based
on attained age;
(2) the participant is at least age 55, or has become
permanently disabled and as a consequence is unable to
perform the duties of his or her office;
(3) the participant has at least 10 years of service
credit except that a participant terminating service after
June 30 1975, with at least 6 years of service credit,
shall be entitled to a retirement annuity at age 62 or
over;
(4) the participant is not receiving or entitled to
receive, at the date of retirement, any salary from an
employer for service currently performed.
(b) This subsection (b) applies to a Tier 2 participant who
first serves as a judge on or after the effective date of this
amendatory Act of the 96th General Assembly.
A participant who has at least 8 years of creditable
service is entitled to a retirement annuity when he or she has
attained age 67.
A member who has attained age 62 and has at least 8 years
of service credit may elect to receive the lower retirement
annuity provided in subsection (d) of Section 18-125 of this
Code.

HB5546 - 149 - LRB099 20200 RPS 44658 b
(Source: P.A. 96-889, eff. 1-1-11.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service on excess of 10.
For purposes of this Section, final average salary for a
Tier 1 participant who first serves as a judge before August
10, 2009 (the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of credited
service as a judge for a participant who terminates service
before July 1, 1975.
(2) for a participant who terminates service after June
30, 1975 and before July 1, 1982, the salary on the last
day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.

HB5546 - 150 - LRB099 20200 RPS 44658 b
(4) for a participant who terminates service on or
after January 1, 1990 but before the effective date of this
amendatory Act of 1995, the salary on the last day of
employment as a judge.
(5) for a participant who terminates service on or
after the effective date of this amendatory Act of 1995,
the salary on the last day of employment as a judge, or the
highest salary received by the participant for employment
as a judge in a position held by the participant for at
least 4 consecutive years, whichever is greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a Tier 1 participant who first serves as a judge on or
after August 10, 2009 (the effective date of Public Act 96-207)
and before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
The maximum retirement annuity for any participant shall be

HB5546 - 151 - LRB099 20200 RPS 44658 b
85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a Tier 2 participant who first serves as a judge on or
after January 1, 2011 (the effective date of Public Act
96-889), the annual retirement annuity is 3% of the
participant's final average salary for each year of service.
The maximum retirement annuity payable shall be 60% of the
participant's final average salary.
For a Tier 2 participant who first serves as a judge on or
after January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the judge
during the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period; however,
beginning January 1, 2011, the annual salary may not exceed
$106,800, except that that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) the annual unadjusted percentage
increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each
November 1. "Consumer price index-u" means the index published
by the Bureau of Labor Statistics of the United States
Department of Labor that measures the average change in prices
of goods and services purchased by all urban consumers, United
States city average, all items, 1982-84 = 100. The new amount

HB5546 - 152 - LRB099 20200 RPS 44658 b
resulting from each annual adjustment shall be determined by
the Public Pension Division of the Department of Insurance and
made available to the Board by November 1st of each year.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
the effective date of this amendatory Act of the 91st General
Assembly, the percentage reduction in retirement annuity
imposed under this subsection shall be reduced by 5/12 of 1%
for every month of service in this System in excess of 20
years, and therefore a participant with at least 26 years of
service in this System may retire at age 55 without any
reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on account
of disability.
(d) Notwithstanding any other provision of this Article,
for a Tier 2 participant who first serves as a judge on or
after January 1, 2011 (the effective date of Public Act 96-889)
and who is retiring after attaining age 62, the retirement
annuity shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;

HB5546 - 153 - LRB099 20200 RPS 44658 b
96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.
Notwithstanding any other provision of this Article, a
retirement annuity for a Tier 2 participant who first serves as
a judge on or after January 1, 2011 (the effective date of
Public Act 96-889) shall be increased in January of the year
next following the year in which the first anniversary of
retirement occurs, but in no event prior to age 67, and in
January of each year thereafter, by an amount equal to 3% or
the annual percentage increase in the consumer price index-u as
determined by the Public Pension Division of the Department of
Insurance under subsection (b-5) of Section 18-125, whichever
is less, of the retirement annuity then being paid.
This Section is not applicable to a participant who retires
before he or she has made contributions at the rate prescribed
in Section 18-133 for automatic increases for not less than the

HB5546 - 154 - LRB099 20200 RPS 44658 b
equivalent of one full year, unless such a participant arranges
to pay the system the amount required to bring the total
contributions for the automatic increase to the equivalent of
one year's contribution based upon his or her last year's
salary.
This Section is applicable to all participants (other than
Tier 3 participants who do not have any service credit as a
Tier 1 or Tier 2 participant) in service after June 30, 1969
unless a participant has elected, prior to September 1, 1969,
in a written direction filed with the board not to be subject
to the provisions of this Section. Any participant in service
on or after July 1, 1992 shall have the option of electing
prior to April 1, 1993, in a written direction filed with the
board, to be covered by the provisions of the 1969 amendatory
Act. Such participant shall be required to make the aforesaid
additional contributions with compound interest at 4% per
annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge
after receiving a retirement annuity under this Article shall
have the amount of his or her retirement annuity increased by
3% of the originally granted annuity amount for each year of
such resumed service, beginning in January of the year next
following the date of such resumed service, upon subsequent
termination of such resumed service.
Beginning January 1, 1990, all automatic annual increases

HB5546 - 155 - LRB099 20200 RPS 44658 b
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
Sec. 18-127. Retirement annuity - suspension on
reemployment.
(a) A participant receiving a retirement annuity who is
regularly employed for compensation by an employer other than a
county, in any capacity, shall have his or her retirement
annuity payments suspended during such employment. Upon
termination of such employment, retirement annuity payments at
the previous rate shall be resumed.
If such a participant resumes service as a judge, he or she
shall receive credit for any additional service. Upon
subsequent retirement, his or her retirement annuity shall be
the amount previously granted, plus the amount earned by the
additional judicial service under the provisions in effect
during the period of such additional service. However, if the
participant was receiving the maximum rate of annuity at the
time of re-employment, he or she may elect, in a written
direction filed with the board, not to receive any additional
service credit during the period of re-employment. In such
case, contributions shall not be required during the period of
re-employment. Any such election shall be irrevocable.

HB5546 - 156 - LRB099 20200 RPS 44658 b
(b) Beginning January 1, 1991, any participant receiving a
retirement annuity who accepts temporary employment from an
employer other than a county for a period not exceeding 75
working days in any calendar year shall not be deemed to be
regularly employed for compensation or to have resumed service
as a judge for the purposes of this Article. A day shall be
considered a working day if the annuitant performs on it any of
his duties under the temporary employment agreement.
(c) Except as provided in subsection (a), beginning January
1, 1993, retirement annuities shall not be subject to
suspension upon resumption of employment for an employer, and
any retirement annuity that is then so suspended shall be
reinstated on that date.
(d) The changes made in this Section by this amendatory Act
of 1993 shall apply to judges no longer in service on its
effective date, as well as to judges serving on or after that
date.
(e) A participant receiving a retirement annuity under this
Article who serves as a part-time employee in any of the
following positions: Legislative Inspector General, Special
Legislative Inspector General, employee of the Office of the
Legislative Inspector General, Executive Director of the
Legislative Ethics Commission, or staff of the Legislative
Ethics Commission, but has not elected to participate in the
Article 14 System with respect to that service, shall not be
deemed to be regularly employed for compensation by an employer

HB5546 - 157 - LRB099 20200 RPS 44658 b
other than a county, nor to have resumed service as a judge, on
the basis of that service, and the retirement annuity payments
and other benefits of that person under this Code shall not be
suspended, diminished, or otherwise impaired solely as a
consequence of that service. This subsection (e) applies
without regard to whether the person is in service as a judge
under this Article on or after the effective date of this
amendatory Act of the 93rd General Assembly. In this
subsection, a "part-time employee" is a person who is not
required to work at least 35 hours per week.
(f) A participant receiving a retirement annuity under this
Article who has made an election under Section 1-123 and who is
serving either as legal counsel in the Office of the Governor
or as Chief Deputy Attorney General shall not be deemed to be
regularly employed for compensation by an employer other than a
county, nor to have resumed service as a judge, on the basis of
that service, and the retirement annuity payments and other
benefits of that person under this Code shall not be suspended,
diminished, or otherwise impaired solely as a consequence of
that service. This subsection (f) applies without regard to
whether the person is in service as a judge under this Article
on or after the effective date of this amendatory Act of the
93rd General Assembly.
(g) Notwithstanding any other provision of this Article, if
a Tier 2 participant person who first becomes a participant
under this System on or after January 1, 2011 (the effective

HB5546 - 158 - LRB099 20200 RPS 44658 b
date of this amendatory Act of the 96th General Assembly) is
receiving a retirement annuity under this Article and becomes a
member or participant under this Article or any other Article
of this Code and is employed on a full-time basis, then the
person's retirement annuity under this System shall be
suspended during that employment. Upon termination of that
employment, the person's retirement annuity shall resume and,
if appropriate, be recalculated under the applicable
provisions of this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
Sec. 18-128.01. Amount of survivor's annuity.
(a) Upon the death of an annuitant, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity the annuitant was receiving immediately prior to
his or her death, inclusive of annual increases in the
retirement annuity to the date of death.
(b) Upon the death of an active participant, his or her
surviving spouse shall receive a survivor's annuity of 66 2/3%
of the annuity earned by the participant as of the date of his
or her death, determined without regard to whether the
participant had attained age 60 as of that time, or 7 1/2% of
the last salary of the decedent, whichever is greater.
(c) Upon the death of a participant who had terminated
service with at least 10 years of service, his or her surviving

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spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity earned by the deceased participant at the date of
death.
(d) Upon the death of an annuitant, active participant, or
participant who had terminated service with at least 10 years
of service, each surviving child under the age of 18 or
disabled as defined in Section 18-128 shall be entitled to a
child's annuity in an amount equal to 5% of the decedent's
final salary, not to exceed in total for all such children the
greater of 20% of the decedent's last salary or 66 2/3% of the
annuity received or earned by the decedent as provided under
subsections (a) and (b) of this Section. This child's annuity
shall be paid whether or not a survivor's annuity was elected
under Section 18-123.
(e) The changes made in the survivor's annuity provisions
by Public Act 82-306 shall apply to the survivors of a deceased
participant or annuitant whose death occurs on or after August
21, 1981.
(f) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or after
the commencement of the annuity if the deceased member died
while receiving a retirement annuity, or (2) in other cases, on
each January 1 occurring on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply

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without regard to whether the deceased member was in service on
or after the effective date of this amendatory Act of 1991, but
shall not accrue for any period prior to January 1, 1990.
(g) Notwithstanding any other provision of this Article,
the initial survivor's annuity for a survivor of a Tier 2
participant who first serves as a judge after January 1, 2011
(the effective date of Public Act 96-889) shall be in the
amount of 66 2/3% of the annuity received or earned by the
decedent, and shall be increased (1) on each January 1
occurring on or after the commencement of the annuity if the
deceased participant died while receiving a retirement
annuity, or (2) in other cases, on each January 1 occurring on
or after the first anniversary of the commencement of the
annuity, but in no event prior to age 67, by an amount equal to
3% or the annual unadjusted percentage increase in the consumer
price index-u as determined by the Public Pension Division of
the Department of Insurance under subsection (b-5) of Section
18-125, whichever is less, of the survivor's annuity then being
paid.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
Sec. 18-133. Financing; employee contributions.
(a) Effective July 1, 1967, each participant is required to
contribute 7 1/2% of each payment of salary toward the
retirement annuity. Such contributions shall continue during

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the entire time the participant is in service, with the
following exceptions:
(1) Contributions for the retirement annuity are not
required on salary received after 18 years of service by
persons who were participants before January 2, 1954.
(2) A participant who continues to serve as a judge
after becoming eligible to receive the maximum rate of
annuity may elect, through a written direction filed with
the Board, to discontinue contributing to the System. Any
such option elected by a judge shall be irrevocable unless
prior to January 1, 2000, and while continuing to serve as
judge, the judge (A) files with the Board a letter
cancelling the direction to discontinue contributing to
the System and requesting that such contributing resume,
and (B) pays into the System an amount equal to the total
of the discontinued contributions plus interest thereon at
5% per annum. Service credits earned in any other
"participating system" as defined in Article 20 of this
Code shall be considered for purposes of determining a
judge's eligibility to discontinue contributions under
this subdivision (a)(2).
(3) A participant who (i) has attained age 60, (ii)
continues to serve as a judge after becoming eligible to
receive the maximum rate of annuity, and (iii) has not
elected to discontinue contributing to the System under
subdivision (a)(2) of this Section (or has revoked any such

HB5546 - 162 - LRB099 20200 RPS 44658 b
election) may elect, through a written direction filed with
the Board, to make contributions to the System based only
on the amount of the increases in salary received by the
judge on or after the date of the election, rather than the
total salary received. If a judge who is making
contributions to the System on the effective date of this
amendatory Act of the 91st General Assembly makes an
election to limit contributions under this subdivision
(a)(3) within 90 days after that effective date, the
election shall be deemed to become effective on that
effective date and the judge shall be entitled to receive a
refund of any excess contributions paid to the System
during that 90-day period; any other election under this
subdivision (a)(3) becomes effective on the first of the
month following the date of the election. An election to
limit contributions under this subdivision (a)(3) is
irrevocable. Service credits earned in any other
participating system as defined in Article 20 of this Code
shall be considered for purposes of determining a judge's
eligibility to make an election under this subdivision
(a)(3).
(b) Beginning July 1, 1969, each participant is required to
contribute 1% of each payment of salary towards the automatic
increase in annuity provided in Section 18-125.1. However, such
contributions need not be made by any participant who has
elected prior to September 15, 1969, not to be subject to the

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automatic increase in annuity provisions.
(c) Effective July 13, 1953, each married participant
subject to the survivor's annuity provisions is required to
contribute 2 1/2% of each payment of salary, whether or not he
or she is required to make any other contributions under this
Section. Such contributions shall be made concurrently with the
contributions made for annuity purposes.
(d) Notwithstanding any other provision of this Article,
the required contributions for a Tier 2 participant who first
becomes a participant on or after January 1, 2011 shall not
exceed the contributions that would be due under this Article
if that participant's highest salary for annuity purposes were
$106,800, plus any increase in that amount under Section
18-125.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase

HB5546 - 164 - LRB099 20200 RPS 44658 b
resulting from the changes made by this amendatory Act of the
99th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence
of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which

HB5546 - 165 - LRB099 20200 RPS 44658 b
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-121. Calculation of proportional retirement
annuities.
(a) Upon retirement of the employee, a proportional
retirement annuity shall be computed by each participating

HB5546 - 166 - LRB099 20200 RPS 44658 b
system in which pension credit has been established on the
basis of pension credits under each system. The computation
shall be in accordance with the formula or method prescribed by
each participating system which is in effect at the date of the
employee's latest withdrawal from service covered by any of the
systems in which he has pension credits which he elects to have
considered under this Article. However, the amount of any
retirement annuity payable under the self-managed plan
established under Section 15-158.2 of this Code depends solely
on the value of the participant's vested account balances and
is not subject to any proportional adjustment under this
Section.
(a-5) For persons who participate in a Tier 3 plan
established under Article 2, 14, 15, 16, or 18 of this Code to
whom the provisions of this Article apply, the pension credits
established under the Tier 3 plan may be considered in
determining eligibility for or the amount of the defined
benefit retirement annuity that is payable by any other
participating system.
(b) Combined pension credit under all retirement systems
subject to this Article shall be considered in determining
whether the minimum qualification has been met and the formula
or method of computation which shall be applied, except as may
be otherwise provided with respect to vesting in State or
employer contributions in a Tier 3 plan. If a system has a
step-rate formula for calculation of the retirement annuity,

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pension credits covering previous service which have been
established under another system shall be considered in
determining which range or ranges of the step-rate formula are
to be applicable to the employee.
(c) Interest on pension credit shall continue to accumulate
in accordance with the provisions of the law governing the
retirement system in which the same has been established during
the time an employee is in the service of another employer, on
the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement
system.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-123. Survivor's annuity. The provisions governing
a retirement annuity shall be applicable to a survivor's
annuity. Appropriate credits shall be established for
survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same
conditions and subject to the same limitations and restrictions
herein prescribed for a retirement annuity. If a participating
system has no survivor's annuity benefit, or if the survivor's
annuity benefit under that system is waived, pension credit
established in that system shall not be considered in

HB5546 - 168 - LRB099 20200 RPS 44658 b
determining eligibility for or the amount of the survivor's
annuity which may be payable by any other participating system.
For persons who participate in the self-managed plan
established under Section 15-158.2 or the portable benefit
package established under Section 15-136.4, pension credit
established under Article 15 may be considered in determining
eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit
established in any other system shall not result in any right
to a survivor's annuity under the Article 15 system.
For persons who participate in a Tier 3 plan established
under Article 2, 14, 15, 16, or 18 of this Code to whom the
provisions of this Article apply, the pension credits
established under the Tier 3 plan may be considered in
determining eligibility for or the amount of the defined
benefit survivor's annuity that is payable by any other
participating system, but pension credits established in any
other system shall not result in any right to or increase in
the value of a survivor's annuity under the Tier 3 plan, which
depends solely on the options chosen and the value of the
participant's vested account balances and is not subject to any
proportional adjustment under this Section.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
(Text of Section WITHOUT the changes made by P.A. 98-599,

HB5546 - 169 - LRB099 20200 RPS 44658 b
which has been held unconstitutional)
Sec. 20-124. Maximum benefits.
(a) In no event shall the combined retirement or survivors
annuities exceed the highest annuity which would have been
payable by any participating system in which the employee has
pension credits, if all of his pension credits had been
validated in that system.
If the combined annuities should exceed the highest maximum
as determined in accordance with this Section, the respective
annuities shall be reduced proportionately according to the
ratio which the amount of each proportional annuity bears to
the aggregate of all such annuities.
(b) In the case of a participant in the self-managed plan
established under Section 15-158.2 of this Code to whom the
provisions of this Article apply:
(i) For purposes of calculating the combined
retirement annuity and the proportionate reduction, if
any, in a retirement annuity other than one payable under
the self-managed plan, the amount of the Article 15
retirement annuity shall be deemed to be the highest
annuity to which the annuitant would have been entitled if
he or she had participated in the traditional benefit
package as defined in Section 15-103.1 rather than the
self-managed plan.
(ii) For purposes of calculating the combined
survivor's annuity and the proportionate reduction, if

HB5546 - 170 - LRB099 20200 RPS 44658 b
any, in a survivor's annuity other than one payable under
the self-managed plan, the amount of the Article 15
survivor's annuity shall be deemed to be the highest
survivor's annuity to which the survivor would have been
entitled if the deceased employee had participated in the
traditional benefit package as defined in Section 15-103.1
rather than the self-managed plan.
(iii) Benefits payable under the self-managed plan are
not subject to proportionate reduction under this Section.
(c) In the case of a participant in a Tier 3 plan
established under Article 2, 14, 15, 16, or 18 of this Code to
whom the provisions of this Article apply:
(i) For purposes of calculating the combined
retirement annuity and the proportionate reduction, if
any, in a defined benefit retirement annuity, any benefit
payable under the Tier 3 plan shall not be considered.
(ii) For purposes of calculating the combined
survivor's annuity and the proportionate reduction, if
any, in a defined benefit survivor's annuity, any benefit
payable under the Tier 3 plan shall not be considered.
(iii) Benefits payable under a Tier 3 plan established
under Article 2, 14, 15, 16, or 18 of this Code are not
subject to proportionate reduction under this Section.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)

HB5546 - 171 - LRB099 20200 RPS 44658 b
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-125. Return to employment - suspension of benefits.
If a retired employee returns to employment which is covered by
a system from which he is receiving a proportional annuity
under this Article, his proportional annuity from all
participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to
any distributions payable under the self-managed plan
established under Section 15-158.2 of this Code or under a Tier
3 plan established under Article 2, 14, 15, 16, or 18 of this
Code.
The provisions of the Article under which such employment
would be covered shall govern the determination of whether the
employee has returned to employment, and if applicable the
exemption of temporary employment or employment not exceeding a
specified duration or frequency, for all participating systems
from which the retired employee is receiving a proportional
annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/2-165 rep.)
(40 ILCS 5/2-166 rep.)
(40 ILCS 5/14-155 rep.)
(40 ILCS 5/14-156 rep.)

HB5546 - 172 - LRB099 20200 RPS 44658 b
(40 ILCS 5/15-200 rep.)
(40 ILCS 5/15-201 rep.)
(40 ILCS 5/16-205 rep.)
(40 ILCS 5/16-206 rep.)
Section 15. The Illinois Pension Code is amended by
repealing Sections 2-165, 2-166, 14-155, 14-156, 15-200,
15-201, 16-205, and 16-206.
Section 20. The Illinois Educational Labor Relations Act is
amended by changing Sections 4 and 17 and by adding Section
10.6 as follows:
(115 ILCS 5/4) (from Ch. 48, par. 1704)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 4. Employer rights. Employers shall not be required to
bargain over matters of inherent managerial policy, which shall
include such areas of discretion or policy as the functions of
the employer, standards of services, its overall budget, the
organizational structure and selection of new employees and
direction of employees. Employers, however, shall be required
to bargain collectively with regard to policy matters directly
affecting wages, hours and terms and conditions of employment
as well as the impact thereon upon request by employee
representatives, except as provided in Section 10.6. To
preserve the rights of employers and exclusive representatives

HB5546 - 173 - LRB099 20200 RPS 44658 b
which have established collective bargaining relationships or
negotiated collective bargaining agreements prior to the
effective date of this Act, employers shall be required to
bargain collectively with regard to any matter concerning
wages, hours or conditions of employment about which they have
bargained for and agreed to in a collective bargaining
agreement prior to the effective date of this Act, except as
provided in Section 10.6.
(Source: P.A. 83-1014.)
(115 ILCS 5/10.6 new)
Sec. 10.6. Bargaining regarding pension contributions on
behalf of employees; prohibited.
(a) Notwithstanding any other provision of this Act,
beginning on the effective date of this amendatory Act of the
99th General Assembly, employers shall not bargain over matters
prohibited by subsection (e) of Section 16-152.1 of the
Illinois Pension Code, which concerns employers paying pension
contributions on behalf of employees.
(b) In case of any conflict between this Section and any
other provisions of this Act or any other law, the provisions
of this Section shall control.
(115 ILCS 5/17) (from Ch. 48, par. 1717)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)

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Sec. 17. Effect on other laws. Except as provided in
Section 10.6, in In case of any conflict between the provisions
of this Act and any other law, executive order or
administrative regulation, the provisions of this Act shall
prevail and control. Nothing in this Act shall be construed to
replace or diminish the rights of employees established by
Section 36d of "An Act to create the State Universities Civil
Service System", approved May 11, 1905, as amended or modified.
(Source: P.A. 83-1014.)
Section 99. Effective date. This Act takes effect upon
becoming law.
HB5546 - 175 - LRB099 20200 RPS 44658 b
INDEX
Statutes amended in order of appearance
5 ILCS 375/3 from Ch. 127, par. 523
5 ILCS 375/10 from Ch. 127, par. 530
40 ILCS 5/1-160
40 ILCS 5/2-105.3 new
40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
40 ILCS 5/2-162
40 ILCS 5/2-165.5 new
40 ILCS 5/7-109 from Ch. 108 1/2, par. 7-109
40 ILCS 5/7-114 from Ch. 108 1/2, par. 7-114
40 ILCS 5/7-116 from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139
40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
40 ILCS 5/14-103.10 from Ch. 108 1/2, par. 14-103.10
40 ILCS 5/14-103.41 new
40 ILCS 5/14-103.42 new
40 ILCS 5/14-103.43 new
40 ILCS 5/14-104.3 from Ch. 108 1/2, par. 14-104.3
40 ILCS 5/14-106 from Ch. 108 1/2, par. 14-106
40 ILCS 5/14-152.1
40 ILCS 5/14-155.5 new
40 ILCS 5/15-106 from Ch. 108 1/2, par. 15-106
40 ILCS 5/15-108.1
40 ILCS 5/15-108.2
HB5546 - 176 - LRB099 20200 RPS 44658 b
40 ILCS 5/15-108.3 new
40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4
40 ILCS 5/15-134 from Ch. 108 1/2, par. 15-134
40 ILCS 5/15-198
40 ILCS 5/15-200.5 new
40 ILCS 5/16-106 from Ch. 108 1/2, par. 16-106
40 ILCS 5/16-106.40 new
40 ILCS 5/16-106.41 new
40 ILCS 5/16-106.42 new
40 ILCS 5/16-123 from Ch. 108 1/2, par. 16-123
40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
40 ILCS 5/16-152.1 from Ch. 108 1/2, par. 16-152.1
40 ILCS 5/16-203
40 ILCS 5/16-205.5 new
40 ILCS 5/18-110.1 new
40 ILCS 5/18-110.2 new
40 ILCS 5/18-110.3 new
40 ILCS 5/18-120 from Ch. 108 1/2, par. 18-120
40 ILCS 5/18-121.5 new
40 ILCS 5/18-124 from Ch. 108 1/2, par. 18-124
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/18-127 from Ch. 108 1/2, par. 18-127
40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01
40 ILCS 5/18-133 from Ch. 108 1/2, par. 18-133
HB5546 - 177 - LRB099 20200 RPS 44658 b