Bill Text: IL HB5909 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increase to 3% of the originally granted retirement annuity or 3% of the retirement annuity then being paid for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, changing the calculation of final average salary to the Tier 1 calculation for persons who are active members on or after January 1, 2025, and changing the retirement age. Establishes an accelerated pension benefit payment option for the General Assembly, Chicago Teachers, and Judges Articles of the Code. Provides that, with regard to persons subject to the Tier 2 provisions, a security employee of the Department of Human Services, a security employee of the Department of Corrections or the Department of Juvenile Justice, an investigator for the Department of the Lottery, or a State highway worker is entitled to an annuity calculated under the alternative retirement annuity provisions of the State Employee Article of the Code. Authorizes the conversion of service to eligible creditable service. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under the Illinois Municipal Retirement Fund for a person who is a county correctional officer or probation officer and for a person who participates in IMRF and qualifies as a firefighter under the Public Safety Employee Benefits Act. In the Downstate Firefighter Article, includes a de facto firefighter in the definition of "firefighter". Defines "de facto firefighter". Provides that the monthly pension of a firefighter who is receiving a disability pension shall be increased at the rate of 3% of the original monthly pension. Makes changes to the minimum retirement annuity payable to a firefighter with 20 or more years of creditable service, the minimum disability pension, and the minimum surviving spouse's pension. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2024-11-20 - Added Co-Sponsor Rep. Joyce Mason [HB5909 Detail]

Download: Illinois-2023-HB5909-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5909 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Pension Code. Makes changes to Tier 2 benefits, including changing the amount of the automatic annual increase to 3% of the originally granted retirement annuity or 3% of the retirement annuity then being paid for the General Assembly and Judges Articles, changing the limit on the amount of salary for annuity purposes to the Social Security wage base, changing the calculation of final average salary to the Tier 1 calculation for persons who are active members on or after January 1, 2025, and changing the retirement age. Establishes an accelerated pension benefit payment option for the General Assembly, Chicago Teachers, and Judges Articles of the Code. Provides that, with regard to persons subject to the Tier 2 provisions, a security employee of the Department of Human Services, a security employee of the Department of Corrections or the Department of Juvenile Justice, an investigator for the Department of the Lottery, or a State highway worker is entitled to an annuity calculated under the alternative retirement annuity provisions of the State Employee Article of the Code. Authorizes the conversion of service to eligible creditable service. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. Authorizes SLEP status under the Illinois Municipal Retirement Fund for a person who is a county correctional officer or probation officer and for a person who participates in IMRF and qualifies as a firefighter under the Public Safety Employee Benefits Act. In the Downstate Firefighter Article, includes a de facto firefighter in the definition of "firefighter". Defines "de facto firefighter". Provides that the monthly pension of a firefighter who is receiving a disability pension shall be increased at the rate of 3% of the original monthly pension. Makes changes to the minimum retirement annuity payable to a firefighter with 20 or more years of creditable service, the minimum disability pension, and the minimum surviving spouse's pension. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.
LRB103 43117 RPS 76377 b
A BILL FOR
HB5909 LRB103 43117 RPS 76377 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1.
Section 1-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, and 18-125 and by adding
Sections 1-163, 3-153, 4-145, 5-239, 6-231, 7-226, 8-251.5,
9-242, 10-110, 11-233, 12-196, 13-217, 14-157, 15-203, 16-207,
17-160, and 18-175 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who

HB5909 - 2 - LRB103 43117 RPS 76377 b
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided

HB5909 - 3 - LRB103 43117 RPS 76377 b
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).

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

HB5909 - 5 - LRB103 43117 RPS 76377 b
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section

HB5909 - 6 - LRB103 43117 RPS 76377 b
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under

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

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

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

HB5909 - 10 - LRB103 43117 RPS 76377 b
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to

HB5909 - 11 - LRB103 43117 RPS 76377 b
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or

HB5909 - 12 - LRB103 43117 RPS 76377 b
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a

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

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

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

HB5909 - 16 - LRB103 43117 RPS 76377 b
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided

HB5909 - 17 - LRB103 43117 RPS 76377 b
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).

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

HB5909 - 19 - LRB103 43117 RPS 76377 b
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section

HB5909 - 20 - LRB103 43117 RPS 76377 b
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under

HB5909 - 21 - LRB103 43117 RPS 76377 b
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to

HB5909 - 22 - LRB103 43117 RPS 76377 b
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee

HB5909 - 23 - LRB103 43117 RPS 76377 b
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or

HB5909 - 24 - LRB103 43117 RPS 76377 b
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to

HB5909 - 25 - LRB103 43117 RPS 76377 b
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or

HB5909 - 26 - LRB103 43117 RPS 76377 b
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire

HB5909 - 27 - LRB103 43117 RPS 76377 b
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon

HB5909 - 28 - LRB103 43117 RPS 76377 b
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, except for

HB5909 - 29 - LRB103 43117 RPS 76377 b
Section 1-163, the provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund

HB5909 - 30 - LRB103 43117 RPS 76377 b
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)

HB5909 - 31 - LRB103 43117 RPS 76377 b
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".

HB5909 - 32 - LRB103 43117 RPS 76377 b
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer

HB5909 - 33 - LRB103 43117 RPS 76377 b
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under

HB5909 - 34 - LRB103 43117 RPS 76377 b
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

HB5909 - 35 - LRB103 43117 RPS 76377 b
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB5909 - 36 - LRB103 43117 RPS 76377 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in

HB5909 - 37 - LRB103 43117 RPS 76377 b
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section

HB5909 - 38 - LRB103 43117 RPS 76377 b
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted

HB5909 - 39 - LRB103 43117 RPS 76377 b
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the

HB5909 - 40 - LRB103 43117 RPS 76377 b
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and

HB5909 - 41 - LRB103 43117 RPS 76377 b
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a

HB5909 - 42 - LRB103 43117 RPS 76377 b
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, except for
Section 1-163, the provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/1-163 new)
Sec. 1-163. Limitation on annual earnings, salary, or
wages for pension purposes for certain persons who first

HB5909 - 43 - LRB103 43117 RPS 76377 b
become participants on or after January 1, 2011.
(a) Notwithstanding any provision of law to the contrary,
including Section 1-160, this Section applies to a person who,
on or after January 1, 2011, first becomes a member or
participant under a pension fund or retirement system
established under any of Articles 3 through 17 of this Code. To
the extent that any provision of this Section conflicts with
any other provision of this Code, this Section controls,
except for a conflict that would diminish or impair a benefit
of membership in a pension or retirement system of the State.
(b) Beginning on January 1, 2025, for all purposes under
this Code (including, without limitation, the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed the
Social Security wage base for the applicable plan year. In
this subsection, "Social Security wage base" means the
contribution and benefit base calculated for the calendar year
in question by the Commissioner of Social Security under
Section 230 of the federal Social Security Act (42 U.S.C.
430).
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Code exceed any limitation
imposed on annual earnings, salary, or wages under Section
1-117. Under no circumstances shall the maximum amount of
annual earnings, salary, or wages be greater than the amount

HB5909 - 44 - LRB103 43117 RPS 76377 b
set forth in this subsection as a result of reciprocal service
or any provisions regarding reciprocal services, nor shall the
retirement system or pension fund be required to pay any
refund as a result of the application of this maximum annual
earnings, salary, and wage cap.
Nothing in this Section shall cause or otherwise result in
any retroactive adjustment of any employee contributions.
Nothing in this Section shall cause or otherwise result in any
retroactive adjustment of benefit payments made between
January 1, 2011 and January 1, 2025.
(c) With regard to a member's or participant's earnings,
salary, or wages received on or after January 1, 2011 and
before January 1, 2025, the limitation on annual earnings,
salary, or wages shall be retroactively increased to an amount
equal to the Social Security wage base for that year. This
subsection does not require a member or participant to make
any additional contribution to the pension fund or retirement
system for the period from January 1, 2011 to January 1, 2025.
This subsection applies only to a person who, on or after
January 1, 2025, is an active member or active participant of a
pension fund or retirement system established under this Code.
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.

HB5909 - 45 - LRB103 43117 RPS 76377 b
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the

HB5909 - 46 - LRB103 43117 RPS 76377 b
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889), the average monthly salary obtained by

HB5909 - 47 - LRB103 43117 RPS 76377 b
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, beginning
January 1, 2011 and until January 1, 2025, the highest salary
for annuity purposes may not exceed $106,800, except that that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) the annual unadjusted percentage increase (but not less
than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1. "Consumer
price index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the Board by November 1 of each year.
Beginning January 1, 2025, the highest salary for annuity
purposes shall not exceed the Social Security wage base for
the applicable plan year. In this subsection, "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430). However, in no event shall the

HB5909 - 48 - LRB103 43117 RPS 76377 b
highest salary for annuity purposes exceed any limitation
imposed on annual salary under Section 1-117. Under no
circumstances shall the maximum amount of annual earnings,
salary, or wages be greater than the amount set forth in this
subsection as a result of reciprocal service or any provisions
regarding reciprocal services, nor shall the System be
required to pay any refund as a result of the application of
the limitation on highest salary for annuity purposes.
Nothing in the changes made to this Section by this
amendatory Act of the 103rd General Assembly shall cause or
otherwise result in any retroactive adjustment of any employee
contributions. Nothing in this Section shall cause or
otherwise result in any retroactive adjustment of benefit
payments made between January 1, 2011 and January 1, 2025.
With regard to a participant's salary received on or after
January 1, 2011 and before January 1, 2025, if the participant
is in service on or after January 1, 2025, then the limitation
on highest salary for annuity purposes shall be retroactively
increased to an amount equal to the Social Security wage base
for that year. The retroactive increase in the salary
limitation under this paragraph does not require a participant
to make any additional contribution to the System.
(b) The earnings limitations of subsection (a) apply to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating a proportional annuity under this Article, except

HB5909 - 49 - LRB103 43117 RPS 76377 b
in the case of a person who first became a member of this
System before August 22, 1994 and has not, on or after the
effective date of this amendatory Act of the 97th General
Assembly, irrevocably elected to have those limitations apply.
The limitations of subsection (a) shall apply, however, to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating the proportional annuity of a person who first
became a member of this System before August 22, 1994 if, on or
after the effective date of this amendatory Act of the 97th
General Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/3-153 new)
Sec. 3-153. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section

HB5909 - 50 - LRB103 43117 RPS 76377 b
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/4-145 new)
Sec. 4-145. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/5-239 new)
Sec. 5-239. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/6-231 new)
Sec. 6-231. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/7-226 new)

HB5909 - 51 - LRB103 43117 RPS 76377 b
Sec. 7-226. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/8-251.5 new)
Sec. 8-251.5. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/9-242 new)
Sec. 9-242. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/10-110 new)
Sec. 10-110. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.

HB5909 - 52 - LRB103 43117 RPS 76377 b
(40 ILCS 5/11-233 new)
Sec. 11-233. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/12-196 new)
Sec. 12-196. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/13-217 new)
Sec. 13-217. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/14-157 new)
Sec. 14-157. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that

HB5909 - 53 - LRB103 43117 RPS 76377 b
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/15-203 new)
Sec. 15-203. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/16-207 new)
Sec. 16-207. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/17-160 new)
Sec. 17-160. Application of Section 1-163. To the extent
that any provision of this Article conflicts with Section
1-163, Section 1-163 controls, except for a conflict that
would diminish or impair a benefit of membership in a pension
or retirement system of the State.
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.

HB5909 - 54 - LRB103 43117 RPS 76377 b
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.

HB5909 - 55 - LRB103 43117 RPS 76377 b
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after

HB5909 - 56 - LRB103 43117 RPS 76377 b
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889),
final average salary shall be the average monthly salary
obtained by dividing the total salary of the judge during the
96 consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period; however, beginning
January 1, 2011 and until January 1, 2025, the annual salary
may not exceed $106,800, except that that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the Board

HB5909 - 57 - LRB103 43117 RPS 76377 b
by November 1st of each year.
Beginning January 1, 2025, for a participant who first
serves as a judge on or after January 1, 2011, the annual
salary shall not exceed the Social Security wage base for the
applicable plan year. In this subsection, "Social Security
wage base" means the contribution and benefit base calculated
for the calendar year in question by the Commissioner of
Social Security under Section 230 of the federal Social
Security Act (42 U.S.C. 430). However, in no event shall the
highest salary for annuity purposes exceed any limitation
imposed on annual salary under Section 1-117. Under no
circumstances shall the maximum amount of annual salary be
greater than the amount set forth in this subsection as a
result of reciprocal service or any provisions regarding
reciprocal services, nor shall the System be required to pay
any refund as a result of the application of the limitation on
annual salary.
Nothing in the changes made to this Section by this
amendatory Act of the 103rd General Assembly shall cause or
otherwise result in any retroactive adjustment of any employee
contributions. Nothing in this Section shall cause or
otherwise result in any retroactive adjustment of benefit
payments made between January 1, 2011 and January 1, 2025.
With regard to a participant's salary received on or after
January 1, 2011 and before January 1, 2025, if the participant
is in service on or after January 1, 2025, then the limitation

HB5909 - 58 - LRB103 43117 RPS 76377 b
on highest salary for annuity purposes shall be retroactively
increased to an amount equal to the Social Security wage base
for that year. The retroactive increase in the salary
limitation under this paragraph does not require a participant
to make any additional contribution to the System.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.

HB5909 - 59 - LRB103 43117 RPS 76377 b
(Source: P.A. 100-201, eff. 8-18-17.)
Article 2.
Section 2-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-108.1, 3-111, 4-109, 5-238, 6-229,
7-116, 7-142.1, 15-112, and 18-125 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section

HB5909 - 60 - LRB103 43117 RPS 76377 b
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.

HB5909 - 61 - LRB103 43117 RPS 76377 b
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final

HB5909 - 62 - LRB103 43117 RPS 76377 b
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means:
(1) For Articles 8, 9, 10, 11, and 12, the highest
average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the
date of withdrawal.
(2) For Article 13, the highest average monthly salary
as calculated by accumulating the salary for the highest
520 consecutive paid days of service within the last 10
years of service immediately preceding the date of
retirement and dividing by 24. If the employee is paid for
any portion of a workday, the fraction of the day worked
and the salary for that fraction of the day shall be
counted in accordance with the administrative rules of the
Fund established under Article 13.

HB5909 - 63 - LRB103 43117 RPS 76377 b
(3) For Article 14, unless the member or participant
is entitled to an annuity under Section 14-110 and has at
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly compensation obtained by
dividing the total compensation of an employee 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 such period; however, for purposes of a
retirement annuity, the average compensation for the last
12 months of the 48-month period shall not exceed the
final average compensation by more than 25%.
(4) For Article 14, if the member or participant is
entitled to an annuity under Section 14-110 and has at
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly rate of compensation
received by the member or participant on the last day of
eligible creditable service (but not to exceed 115% of the
average monthly compensation received by the member or
participant for the last 24 months of service) or the
average monthly compensation received by the member or
participant for the last 48 months of service prior to
retirement, whichever is greater.
(5) For Article 17, the average annual rate of salary
for the 4 consecutive years of validated service within

HB5909 - 64 - LRB103 43117 RPS 76377 b
the last 10 years of service when such average annual rate
was highest.
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all

HB5909 - 65 - LRB103 43117 RPS 76377 b
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or

HB5909 - 66 - LRB103 43117 RPS 76377 b
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to

HB5909 - 67 - LRB103 43117 RPS 76377 b
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to

HB5909 - 68 - LRB103 43117 RPS 76377 b
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in

HB5909 - 69 - LRB103 43117 RPS 76377 b
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be

HB5909 - 70 - LRB103 43117 RPS 76377 b
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price

HB5909 - 71 - LRB103 43117 RPS 76377 b
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be

HB5909 - 72 - LRB103 43117 RPS 76377 b
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement

HB5909 - 73 - LRB103 43117 RPS 76377 b
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the

HB5909 - 74 - LRB103 43117 RPS 76377 b
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.
(i) (Blank).

HB5909 - 75 - LRB103 43117 RPS 76377 b
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be

HB5909 - 76 - LRB103 43117 RPS 76377 b
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6

HB5909 - 77 - LRB103 43117 RPS 76377 b
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).

HB5909 - 78 - LRB103 43117 RPS 76377 b
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means:
(1) For Articles 8, 9, 10, 11, and 12, the highest
average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the
date of withdrawal.
(2) For Article 13, the highest average monthly salary
as calculated by accumulating the salary for the highest
520 consecutive paid days of service within the last 10
years of service immediately preceding the date of
retirement and dividing by 24. If the employee is paid for
any portion of a workday, the fraction of the day worked
and the salary for that fraction of the day shall be
counted in accordance with the administrative rules of the
Fund established under Article 13.
(3) For Article 14, unless the member or participant
is entitled to an annuity under Section 14-110 and has at

HB5909 - 79 - LRB103 43117 RPS 76377 b
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly compensation obtained by
dividing the total compensation of an employee 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 such period; however, for purposes of a
retirement annuity, the average compensation for the last
12 months of the 48-month period shall not exceed the
final average compensation by more than 25%.
(4) For Article 14, if the member or participant is
entitled to an annuity under Section 14-110 and has at
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly rate of compensation
received by the member or participant on the last day of
eligible creditable service (but not to exceed 115% of the
average monthly compensation received by the member or
participant for the last 24 months of service) or the
average monthly compensation received by the member or
participant for the last 48 months of service prior to
retirement, whichever is greater.
(5) For Article 17, the average annual rate of salary
for the 4 consecutive years of validated service within
the last 10 years of service when such average annual rate
was highest.

HB5909 - 80 - LRB103 43117 RPS 76377 b
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer

HB5909 - 81 - LRB103 43117 RPS 76377 b
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under

HB5909 - 82 - LRB103 43117 RPS 76377 b
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or

HB5909 - 83 - LRB103 43117 RPS 76377 b
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB5909 - 84 - LRB103 43117 RPS 76377 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in

HB5909 - 85 - LRB103 43117 RPS 76377 b
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section

HB5909 - 86 - LRB103 43117 RPS 76377 b
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted

HB5909 - 87 - LRB103 43117 RPS 76377 b
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the

HB5909 - 88 - LRB103 43117 RPS 76377 b
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the

HB5909 - 89 - LRB103 43117 RPS 76377 b
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a

HB5909 - 90 - LRB103 43117 RPS 76377 b
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a

HB5909 - 91 - LRB103 43117 RPS 76377 b
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection

HB5909 - 92 - LRB103 43117 RPS 76377 b
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) For a person who is not an affected member or

HB5909 - 93 - LRB103 43117 RPS 76377 b
participant, "final "Final average salary" means, except as
otherwise provided in this subsection, the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who is not an affected member or
participant first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
For an affected member or participant, "final average
salary" means:

HB5909 - 94 - LRB103 43117 RPS 76377 b
(1) For Articles 8, 9, 10, 11, and 12, the highest
average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the
date of withdrawal.
(2) For Article 13, the highest average monthly salary
as calculated by accumulating the salary for the highest
520 consecutive paid days of service within the last 10
years of service immediately preceding the date of
retirement and dividing by 24. If the employee is paid for
any portion of a workday, the fraction of the day worked
and the salary for that fraction of the day shall be
counted in accordance with the administrative rules of the
Fund established under Article 13.
(3) For Article 14, unless the member or participant
is entitled to an annuity under Section 14-110 and has at
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly compensation obtained by
dividing the total compensation of an employee 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 such period; however, for purposes of a
retirement annuity, the average compensation for the last
12 months of the 48-month period shall not exceed the
final average compensation by more than 25%.

HB5909 - 95 - LRB103 43117 RPS 76377 b
(4) For Article 14, if the member or participant is
entitled to an annuity under Section 14-110 and has at
least 20 years of eligible creditable service as defined
in Section 14-110, the monthly rate of compensation
received by the member or participant on the last day of
eligible creditable service (but not to exceed 115% of the
average monthly compensation received by the member or
participant for the last 24 months of service) or the
average monthly compensation received by the member or
participant for the last 48 months of service prior to
retirement, whichever is greater.
(5) For Article 17, the average annual rate of salary
for the 4 consecutive years of validated service within
the last 10 years of service when such average annual rate
was highest.
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total

HB5909 - 96 - LRB103 43117 RPS 76377 b
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
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

HB5909 - 97 - LRB103 43117 RPS 76377 b
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of

HB5909 - 98 - LRB103 43117 RPS 76377 b
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written

HB5909 - 99 - LRB103 43117 RPS 76377 b
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective

HB5909 - 100 - LRB103 43117 RPS 76377 b
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or

HB5909 - 101 - LRB103 43117 RPS 76377 b
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with

HB5909 - 102 - LRB103 43117 RPS 76377 b
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

HB5909 - 103 - LRB103 43117 RPS 76377 b
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the

HB5909 - 104 - LRB103 43117 RPS 76377 b
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity

HB5909 - 105 - LRB103 43117 RPS 76377 b
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and

HB5909 - 106 - LRB103 43117 RPS 76377 b
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public
Act 96-207):
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was

HB5909 - 107 - LRB103 43117 RPS 76377 b
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an

HB5909 - 108 - LRB103 43117 RPS 76377 b
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before January 1, 2011 (the effective
date of Public Act 96-889), the average monthly salary
obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
For a participant who first becomes a participant of this
System on or after January 1, 2011 (the effective date of
Public Act 96-889) and who is not in service on or after
January 1, 2025, the average monthly salary obtained by
dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, beginning
January 1, 2011, the highest salary for annuity purposes may
not exceed $106,800, except that that amount shall annually
thereafter be increased by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) the annual
unadjusted percentage increase (but not less than zero) in the

HB5909 - 109 - LRB103 43117 RPS 76377 b
consumer price index-u for the 12 months ending with the
September preceding each November 1. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the Board
by November 1 of each year.
Subject to any applicable limitation on the highest salary
for annuity purposes, for a participant who first becomes a
participant of this System on or after January 1, 2011 and who
is in service on or after January 1, 2025, "highest salary for
annuity purposes" means:
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest
salary that is prescribed by law, on the participant's
last day of service, for a member of the General Assembly
who is not an officer; plus, if the participant was
elected or appointed to serve as an officer of the General
Assembly for 2 or more years and has made contributions as
required under subsection (d) of Section 2-126, the
highest additional amount of compensation prescribed by
law, at the time of the participant's service as an
officer, for members of the General Assembly who serve in

HB5909 - 110 - LRB103 43117 RPS 76377 b
that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day
of service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(b) The earnings limitations of subsection (a) apply to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in

HB5909 - 111 - LRB103 43117 RPS 76377 b
calculating a proportional annuity under this Article, except
in the case of a person who first became a member of this
System before August 22, 1994 and has not, on or after the
effective date of this amendatory Act of the 97th General
Assembly, irrevocably elected to have those limitations apply.
The limitations of subsection (a) shall apply, however, to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating the proportional annuity of a person who first
became a member of this System before August 22, 1994 if, on or
after the effective date of this amendatory Act of the 97th
General Assembly, that member irrevocably elects to have those
limitations apply.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.

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

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

HB5909 - 114 - LRB103 43117 RPS 76377 b
one but less than 8 years of creditable service in a police
pension fund but meets the requirements of this subsection (c)
shall be eligible to receive a pension from that fund equal to
2.5% of the salary attached to the rank held on the last day of
service under that fund or for one year prior to that last day,
whichever is greater, for each year of creditable service in
that fund. The pension shall begin no earlier than upon
attainment of age 60 (or upon mandatory retirement from the
fund by operation of law due to age, if that occurs before age
60) and in no event before the effective date of this
amendatory Act of 1997.
In order to be eligible for a pension under this
subsection (c), the police officer must have at least 8 years
of creditable service in a second police pension fund under
this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police
officer need not be in service on or after the effective date
of this amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is
not a participant in the self-managed plan under Section
3-109.3 and who first becomes a police officer under this
Article on or after January 1, 2011.
A police officer age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a police officer

HB5909 - 115 - LRB103 43117 RPS 76377 b
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a police officer who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
police officer's age is under age 55.
The maximum pension under this subsection (d) shall be 75%
of final average salary.
For the purposes of this subsection (d), "final average
salary" means, for a police officer who is not an active police
officer on or after January 1, 2025, the greater of: (i) the
average monthly salary obtained by dividing the total salary
of the police officer during the 48 consecutive months of
service within the last 60 months of service in which the total
salary was the highest by the number of months of service in
that period; or (ii) the average monthly salary obtained by
dividing the total salary of the police officer during the 96
consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period. For the purposes of this
subsection (d), "final average salary" means, for a police
officer who is an active police officer on or after January 1,
2025, the salary attached to the rank held by the officer on
the police force for one year immediately prior to retirement
or the salary attached to the rank held on the last day of
service or for one year prior to the last day, whichever is

HB5909 - 116 - LRB103 43117 RPS 76377 b
greater.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the
monthly salary attached to the rank held by him or her in the
fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of

HB5909 - 117 - LRB103 43117 RPS 76377 b
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:
For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;

HB5909 - 118 - LRB103 43117 RPS 76377 b
For 17 years of service, 37.4% of salary;
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011.
A firefighter age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means, for a firefighter who is not an active
firefighter on or after January 1, 2025, the greater of: (i)
the average monthly salary obtained by dividing the total
salary of the firefighter during the 48 consecutive months of
service within the last 60 months of service in which the total
salary was the highest by the number of months of service in
that period; or (ii) the average monthly salary obtained by

HB5909 - 119 - LRB103 43117 RPS 76377 b
dividing the total salary of the firefighter during the 96
consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period. For the purposes of this
subsection (c), "final average salary" means, for a
firefighter who is an active firefighter on or after January
1, 2025, the monthly salary attached to the rank held by him or
her in the fire service at the date of retirement.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.

HB5909 - 120 - LRB103 43117 RPS 76377 b
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 or more, and has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a police officer. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the police officer's age at retirement is
under age 55. The Tier 2 monthly retirement annuity is in lieu
of any age and service annuity or other form of retirement
annuity under this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means, for a policeman who is not an active policeman
on or after January 1, 2025, the average monthly salary
obtained by dividing the total salary of the policeman during
the 96 consecutive months of service within the last 120

HB5909 - 121 - LRB103 43117 RPS 76377 b
months of service in which the total salary was the highest by
the number of months of service in that period. For the
purposes of this subsection (b), for a policeman who is an
active policeman on or after January 1, 2025, "final average
salary" means the average of the highest 4 consecutive years
of salary within the last 10 years of service.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
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.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this

HB5909 - 122 - LRB103 43117 RPS 76377 b
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; or (ii) 66 2/3% of
the Tier 2 monthly retirement annuity that the

HB5909 - 123 - LRB103 43117 RPS 76377 b
deceased policeman would have been eligible to receive
under subsection (b) of this Section, based upon the
actual service accrued through the day before the
policeman's death, but determined as though the
policeman was at least age 55 on the day before his or
her death and retired on that day.
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be in
the amount of 30% of the annual maximum salary
attached to the classified civil service position of a
first class patrolman at the time of his death.
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under

HB5909 - 124 - LRB103 43117 RPS 76377 b
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except
that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman's death was
caused by an intervening illness or injury unrelated
to the illness or injury that had prevented him from
subsequently resuming active service in the police
department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with
the September preceding each November 1, whichever is
less, of the originally granted Tier 2 surviving
spouse's annuity. If the unadjusted percentage change
in the consumer price index-u for a 12-month period

HB5909 - 125 - LRB103 43117 RPS 76377 b
ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of
Labor that measures the average change in prices of
goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of
the Department of Insurance and made available to the
boards of the pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the

HB5909 - 126 - LRB103 43117 RPS 76377 b
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
5-152 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier
2 parent's annuity shall be subject to the Tier 2 salary
cap provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,

HB5909 - 127 - LRB103 43117 RPS 76377 b
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this
Section as enacted by Public Act 96-1495, and are hereby
declared to represent and be consistent with the original and
continuing intent of this Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 99-905, eff. 11-29-16.)
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,

HB5909 - 128 - LRB103 43117 RPS 76377 b
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1,
2011, and to certain qualified survivors of such a fireman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A fireman who has withdrawn from service, has attained
age 50 or more, and has 10 or more years of service in that
capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a fireman. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the fireman's age at retirement is under age
55. The Tier 2 monthly retirement annuity is in lieu of any age
and service annuity or other form of retirement annuity under
this Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means, for a fireman who is not an active fireman on or
after January 1, 2025, the greater of (1) the average monthly
salary obtained by dividing the total salary of the fireman
during the 96 consecutive months of service within the last
120 months of service in which the total salary was the highest

HB5909 - 129 - LRB103 43117 RPS 76377 b
by the number of months of service in that period or (2) the
average monthly salary obtained by dividing the total salary
of the fireman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period. For the purposes of this subsection (b), for a fireman
who is an active fireman on or after January 1, 2025, "final
average salary" means the average of the fireman's highest 4
consecutive years of salary within the last 10 years of
service.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
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.
(b-5) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,

HB5909 - 130 - LRB103 43117 RPS 76377 b
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the retirement systems and pension funds by
November 1 of each year.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman under this Article on
or after January 1, 2011, eligibility for and the amount of the
annuity to which the qualified surviving spouse, children, and
parents of the fireman are entitled under this subsection (c)
shall be determined as follows:
(1) The surviving spouse of a deceased fireman to whom
this Section applies shall be deemed qualified to receive
a Tier 2 surviving spouse's annuity under this paragraph
(1) if: (i) the deceased fireman meets the requirements
specified under subdivision (A), (B), (C), or (D) of this
paragraph (1); and (ii) the surviving spouse would not
otherwise be excluded from receiving a widow's annuity
under the eligibility requirements for a widow's annuity
set forth in Section 6-142. The Tier 2 surviving spouse's
annuity is in lieu of the widow's annuity determined under
any other Section of this Article and is subject to the
requirements of Section 6-143.2.
As used in this subsection (c), "earned pension" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases

HB5909 - 131 - LRB103 43117 RPS 76377 b
the fireman had received pursuant to Section 6-164.
(A) If the deceased fireman was receiving an
earned pension at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the fireman's
earned pension at the date of death.
(B) If the deceased fireman was not receiving an
earned pension but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; or (ii) 66 2/3% of the
Tier 2 monthly retirement annuity that the deceased
fireman would have been eligible to receive under
subsection (b) of this Section, based upon the actual
service accrued through the day before the fireman's
death, but determined as though the fireman was at
least age 55 on the day before his or her death and
retired on that day.
(C) If the deceased fireman was an active fireman
with at least 1 1/2 but less than 10 years of service
at the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be in the
amount of 30% of the salary attached to the rank of
first class firefighter in the classified career

HB5909 - 132 - LRB103 43117 RPS 76377 b
service at the time of the fireman's death.
(D) Notwithstanding subdivisions (A), (B), and (C)
of this paragraph (1), if the performance of an act or
acts of duty results directly in the death of a fireman
subject to this Section, or prevents him from
subsequently resuming active service in the fire
department, then a surviving spouse who would
otherwise meet the eligibility requirements for a
death in the line of duty widow's annuity granted
under Section 6-140 shall be deemed to be qualified
for a Tier 2 surviving spouse's annuity under this
subdivision (D); except that no such annuity shall be
paid to the surviving spouse of a fireman who dies
while in receipt of disability benefits when the
fireman's death was caused by an intervening illness
or injury unrelated to the illness or injury that had
prevented him from subsequently resuming active
service in the fire department. The Tier 2 surviving
spouse's annuity calculated under this subdivision (D)
shall be in lieu of, but in the same amount and paid in
the same manner as, the widow's annuity provided under
Section 6-140; except that the salary used for
computing a Tier 2 surviving spouse's annuity under
this subdivision (D) shall be subject to the Tier 2
salary cap provided under subsection (b) of this
Section.

HB5909 - 133 - LRB103 43117 RPS 76377 b
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase in the consumer price index-u for
the 12 months ending with September preceding each
November 1, whichever is less, of the originally
granted Tier 2 surviving spouse's annuity. If the
annual unadjusted percentage change in the consumer
price index-u for a 12-month period ending in
September is zero or, when compared with the preceding
period, decreases, then the annuity shall not be
increased.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 6-128.4.
(2) Surviving children of a deceased fireman subject

HB5909 - 134 - LRB103 43117 RPS 76377 b
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
6-147 and 6-148 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
6-148 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
6-149 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
6-149; except that any salary used for computing a Tier 2
parent's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in

HB5909 - 135 - LRB103 43117 RPS 76377 b
Section 6-149 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 6-150, 6-158, 6-164 (except for
the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are enacted to clarify the provisions of this Section as
enacted by Public Act 96-1495, and are hereby declared to
represent and be consistent with the original and continuing
intent of this Section and Public Act 96-1495.
(e) The changes to Sections 6-150, 6-158, 6-164 (except
for the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are intended to be retroactive to January 1, 2011 (the
effective date of Public Act 96-1495) and, for the purposes of
Section 1-103.1 of this Code, they apply without regard to
whether the relevant fireman was in service on or after the
effective date of this amendatory Act of the 99th General
Assembly.

HB5909 - 136 - LRB103 43117 RPS 76377 b
(Source: P.A. 103-579, eff. 12-8-23.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) for Tier 1 regular
employees or Tier 2 regular employees who are in active
employment on or after January 1, 2025, the 48 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest, (2) for Tier 2
regular employees who are not in active employment on or after
January 1, 2025, the 96 consecutive months of service within
the last 120 months of service in which his total earnings were
the highest, or (3) the employee's total period of service, by
the number of months of service in such period.
(b) For death benefits, the higher of the rate determined
under paragraph (a) of this Section or total earnings received
in the last 12 months of service divided by twelve. If the
deceased employee has less than 12 months of service, the
monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the

HB5909 - 137 - LRB103 43117 RPS 76377 b
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 shall be considered equal to the rate of
earnings upon which the employee's disability benefits are
computed for such periods; (5) the earnings to be considered
for each of the final three months of the final earnings period
for persons who first became participants before January 1,
2012 and the earnings to be considered for each of the final 24
months for participants who first become participants on or
after January 1, 2012 shall not exceed 125% of the highest
earnings of any other month in the final earnings period; and
(6) the annual amount of final rate of earnings shall be the
monthly amount multiplied by the number of months of service
normally required by the position in a year.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.

HB5909 - 138 - LRB103 43117 RPS 76377 b
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying

HB5909 - 139 - LRB103 43117 RPS 76377 b
2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has

HB5909 - 140 - LRB103 43117 RPS 76377 b
service in any other capacity may convert up to 10 years of
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the

HB5909 - 141 - LRB103 43117 RPS 76377 b
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means, for a sheriff's law enforcement employee who

HB5909 - 142 - LRB103 43117 RPS 76377 b
is not an active sheriff's law enforcement employee on or
after January 1, 2025, the average monthly earnings obtained
by dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was
the highest by the number of months of service in that period.
For the purposes of this subsection (f) "final rate of
earnings" means, for a sheriff's law enforcement employee who
is an active sheriff's law enforcement employee on or after
January 1, 2025, the 48 consecutive months of service within
the last 120 months of service in which the sheriff's law
enforcement employee's total earnings were the highest.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall
not include overtime and shall not exceed $106,800; however,
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's

HB5909 - 143 - LRB103 43117 RPS 76377 b
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of age 60 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
annuity shall not be increased.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the

HB5909 - 144 - LRB103 43117 RPS 76377 b
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings":
(a) This subsection (a) applies only to a Tier 1 member or
a Tier 2 member who receives earnings on or after January 1,
2025.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of

HB5909 - 145 - LRB103 43117 RPS 76377 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 who does
not receive earnings on or after January 1, 2025.
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

HB5909 - 146 - LRB103 43117 RPS 76377 b
consecutive academic years of service, whichever is necessary,
the average earnings during his or her entire period of
service.
(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after August 22,
1997 (the effective date of Public Act 90-511) 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

HB5909 - 147 - LRB103 43117 RPS 76377 b
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this
Section.
(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year
by more than 20% 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.
Beginning September 1, 2024, this subsection (g) also applies
to an employee who has been employed at 1/2 time or less for 3
or more years.
(h) The following are not considered as earnings in
determining the final rate of earnings: (1) severance or
separation pay, (2) retirement pay, (3) payment for unused
sick leave, and (4) payments from an employer for the period
used in determining the final rate of earnings for any purpose
other than (i) services rendered, (ii) leave of absence or
vacation granted during that period, and (iii) vacation of up
to 56 work days allowed upon termination of employment; except
that, if the benefit has been collectively bargained between
the employer and the recognized collective bargaining agent

HB5909 - 148 - LRB103 43117 RPS 76377 b
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance
with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section. Any unused
sick leave considered as earnings under this Section shall not
be taken into account in calculating service credit under
Section 15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining the final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23; revised 7-18-24.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of
service.
(b) Except as provided in subsection (b-5), effective July
1, 1971, the retirement annuity for any participant in service
on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of
service, and 5% of such final average salary for each year of
service in excess of 10.
For purposes of this Section, final average salary for a
participant who first serves as a judge before August 10, 2009

HB5909 - 149 - LRB103 43117 RPS 76377 b
(the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of
credited service as a judge for a participant who
terminates service before July 1, 1975.
(2) for a participant who terminates service after
June 30, 1975 and before July 1, 1982, the salary on the
last day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before July 14, 1995 (the
effective date of Public Act 89-136), the salary on the
last day of employment as a judge.
(5) for a participant who terminates service on or
after July 14, 1995 (the effective date of Public Act
89-136), the salary on the last day of employment as a
judge, or the highest salary received by the participant
for employment as a judge in a position held by the
participant for at least 4 consecutive years, whichever is
greater.
However, in the case of a participant who elects to
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.

HB5909 - 150 - LRB103 43117 RPS 76377 b
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before January 1, 2011 (the effective date of Public Act
96-889), final average salary shall be the average monthly
salary obtained by dividing the total salary of the
participant during the period of: (1) the 48 consecutive
months of service within the last 120 months of service in
which the total compensation was the highest, or (2) the total
period of service, if less than 48 months, by the number of
months of service in that period.
The maximum retirement annuity for any participant shall
be 85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's final
average salary for each year of service. The maximum
retirement annuity payable shall be 60% of the participant's
final average salary.
For a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who does not serve as a judge on or after January 1, 2025,
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

HB5909 - 151 - LRB103 43117 RPS 76377 b
of months of service in that period; however, beginning
January 1, 2011, the annual salary may not exceed $106,800,
except that that amount shall annually thereafter be increased
by the lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the
12 months ending with the September preceding each November 1.
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100. The new amount resulting
from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the Board by November 1st of each year.
Subject to any applicable limitation on final average
salary, for a participant who first serves as a judge on or
after January 1, 2011 and serves as a judge on or after January
1, 2025, final average salary shall be 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.
(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

HB5909 - 152 - LRB103 43117 RPS 76377 b
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
December 10, 1999 (the effective date of Public Act 91-653),
the percentage reduction in retirement annuity imposed under
this subsection shall be reduced by 5/12 of 1% for every month
of service in this System in excess of 20 years, and therefore
a participant with at least 26 years of service in this System
may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on
account of disability.
(d) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62, the retirement annuity
shall be reduced by 1/2 of 1% for each month that the
participant's age is under age 67 at the time the annuity
commences.
(Source: P.A. 100-201, eff. 8-18-17.)
Article 3.
Section 3-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-119.1, 3-111.1, 4-109.1, 5-167.1,
6-164, 7-142, 7-142.1, 15-136, and 18-125.1 as follows:

HB5909 - 153 - LRB103 43117 RPS 76377 b
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of

HB5909 - 154 - LRB103 43117 RPS 76377 b
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise

HB5909 - 155 - LRB103 43117 RPS 76377 b
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the

HB5909 - 156 - LRB103 43117 RPS 76377 b
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of

HB5909 - 157 - LRB103 43117 RPS 76377 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.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal

HB5909 - 158 - LRB103 43117 RPS 76377 b
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive

HB5909 - 159 - LRB103 43117 RPS 76377 b
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or

HB5909 - 160 - LRB103 43117 RPS 76377 b
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made

HB5909 - 161 - LRB103 43117 RPS 76377 b
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain

HB5909 - 162 - LRB103 43117 RPS 76377 b
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.

HB5909 - 163 - LRB103 43117 RPS 76377 b
Beginning January 1, 2025, for persons to whom this
Section applies, each annual increase in a retirement annuity
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or

HB5909 - 164 - LRB103 43117 RPS 76377 b
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are

HB5909 - 165 - LRB103 43117 RPS 76377 b
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
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

HB5909 - 166 - LRB103 43117 RPS 76377 b
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that

HB5909 - 167 - LRB103 43117 RPS 76377 b
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything

HB5909 - 168 - LRB103 43117 RPS 76377 b
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under

HB5909 - 169 - LRB103 43117 RPS 76377 b
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of

HB5909 - 170 - LRB103 43117 RPS 76377 b
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,

HB5909 - 171 - LRB103 43117 RPS 76377 b
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution

HB5909 - 172 - LRB103 43117 RPS 76377 b
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)

HB5909 - 173 - LRB103 43117 RPS 76377 b
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,

HB5909 - 174 - LRB103 43117 RPS 76377 b
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section

HB5909 - 175 - LRB103 43117 RPS 76377 b
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or

HB5909 - 176 - LRB103 43117 RPS 76377 b
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of

HB5909 - 177 - LRB103 43117 RPS 76377 b
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
Beginning January 1, 2025, for persons to whom this
Section applies, each annual increase in a retirement annuity
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the

HB5909 - 178 - LRB103 43117 RPS 76377 b
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever

HB5909 - 179 - LRB103 43117 RPS 76377 b
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
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

HB5909 - 180 - LRB103 43117 RPS 76377 b
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and

HB5909 - 181 - LRB103 43117 RPS 76377 b
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,

HB5909 - 182 - LRB103 43117 RPS 76377 b
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.

HB5909 - 183 - LRB103 43117 RPS 76377 b
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last

HB5909 - 184 - LRB103 43117 RPS 76377 b
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of

HB5909 - 185 - LRB103 43117 RPS 76377 b
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual

HB5909 - 186 - LRB103 43117 RPS 76377 b
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the

HB5909 - 187 - LRB103 43117 RPS 76377 b
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB5909 - 188 - LRB103 43117 RPS 76377 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for

HB5909 - 189 - LRB103 43117 RPS 76377 b
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in

HB5909 - 190 - LRB103 43117 RPS 76377 b
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or

HB5909 - 191 - LRB103 43117 RPS 76377 b
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
Beginning January 1, 2025, for persons to whom this
Section applies, each annual increase in a retirement annuity
or supplemental annuity shall be calculated at 3% of the
originally granted retirement annuity.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).

HB5909 - 192 - LRB103 43117 RPS 76377 b
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
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

HB5909 - 193 - LRB103 43117 RPS 76377 b
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
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

HB5909 - 194 - LRB103 43117 RPS 76377 b
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before

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

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

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of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67, have
the amount of the retirement annuity then being paid increased
by 3% or the annual unadjusted percentage increase in the
Consumer Price Index for All Urban Consumers as determined by
the Public Pension Division of the Department of Insurance
under subsection (a) of Section 2-108.1, whichever is less;
except that, beginning January 1, 2025, each annual increase
under this subsection shall be calculated at 3% of the amount
of the retirement annuity then being paid.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.

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(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at

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

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1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in January of
each year thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).

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(f) Notwithstanding the other provisions of this Section,
beginning with increases granted on or after July 1, 1993, the
second and all subsequent automatic annual increases granted
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 60 or the first anniversary of the pension
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension; except that, beginning January 1, 2025, each annual
increase under this subsection shall be calculated at 3% of
the amount of the originally granted pension. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
pension shall not be increased.

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For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be

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

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

HB5909 - 205 - LRB103 43117 RPS 76377 b
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and

HB5909 - 206 - LRB103 43117 RPS 76377 b
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase
shall be calculated at 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, whichever is less, of the
originally granted pension; except that, beginning January 1,
2025, each annual increase under this subsection shall be
calculated at 3% of the amount of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,

HB5909 - 207 - LRB103 43117 RPS 76377 b
decreases, then the pension shall not be increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his

HB5909 - 208 - LRB103 43117 RPS 76377 b
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.

HB5909 - 209 - LRB103 43117 RPS 76377 b
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 94th General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,

HB5909 - 210 - LRB103 43117 RPS 76377 b
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate

HB5909 - 211 - LRB103 43117 RPS 76377 b
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2025, each annual increase under this subsection

HB5909 - 212 - LRB103 43117 RPS 76377 b
shall be calculated at 3% of the originally granted retirement
annuity. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(Source: P.A. 103-582, eff. 12-8-23.)
(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires

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from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,

HB5909 - 214 - LRB103 43117 RPS 76377 b
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of
his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an

HB5909 - 215 - LRB103 43117 RPS 76377 b
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is
age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January

HB5909 - 216 - LRB103 43117 RPS 76377 b
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.

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The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or
after (i) the attainment of age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2025, each annual increase under this subsection
shall be calculated at 3% of the originally granted retirement
annuity. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,

HB5909 - 218 - LRB103 43117 RPS 76377 b
decreases, then the annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities; amount annuities -
Amount.
(a) The amount of a retirement annuity shall be the sum of
the following, determined in accordance with the actuarial
tables in effect at the time of the grant of the annuity:
1. For Tier 1 regular employees with 8 or more years of

HB5909 - 219 - LRB103 43117 RPS 76377 b
service or for Tier 2 regular employees, an annuity
computed pursuant to subparagraphs a or b of this
subparagraph 1, whichever is the higher, and for employees
with less than 8 or 10 years of service, respectively, the
annuity computed pursuant to subparagraph a:
a. The monthly annuity which can be provided from
the total accumulated normal, municipality and prior
service credits, as of the attained age of the
employee on the date the annuity begins provided that
such annuity shall not exceed 75% of the final rate of
earnings of the employee.
b. (i) The monthly annuity amount determined as
follows by multiplying (a) 1 2/3% for annuitants with
not more than 15 years or (b) 1 2/3% for the first 15
years and 2% for each year in excess of 15 years for
annuitants with more than 15 years by the number of
years plus fractional years, prorated on a basis of
months, of creditable service and multiply the product
thereof by the employee's final rate of earnings.
(ii) For the sole purpose of computing the formula
(and not for the purposes of the limitations
hereinafter stated) $125 shall be considered the final
rate of earnings in all cases where the final rate of
earnings is less than such amount.
(iii) The monthly annuity computed in accordance
with this subparagraph b, shall not exceed an amount

HB5909 - 220 - LRB103 43117 RPS 76377 b
equal to 75% of the final rate of earnings.
(iv) For employees who have less than 35 years of
service, the annuity computed in accordance with this
subparagraph b (as reduced by application of
subparagraph (iii) above) shall be reduced by 0.25%
thereof (0.5% if service was terminated before January
1, 1988 or if the employee is a Tier 2 regular
employee) for each month or fraction thereof (1) that
the employee's age is less than 60 years for Tier 1
regular employees, (2) that the employee's age is less
than 67 years for Tier 2 regular employees, or (3) if
the employee has at least 30 years of service credit,
that the employee's service credit is less than 35
years, whichever is less, on the date the annuity
begins.
2. The annuity which can be provided from the total
accumulated additional credits as of the attained age of
the employee on the date the annuity begins.
(b) If payment of an annuity begins prior to the earliest
age at which the employee will become eligible for an old age
insurance benefit under the Federal Social Security Act, he
may elect that the annuity payments from this fund shall
exceed those payable after his attaining such age by an
amount, computed as determined by rules of the Board, but not
in excess of his estimated Social Security Benefit, determined
as of the effective date of the annuity, provided that in no

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case shall the total annuity payments made by this fund exceed
in actuarial value the annuity which would have been payable
had no such election been made.
(c) Beginning January 1, 1984 and each January 1
thereafter, the retirement annuity of a Tier 1 regular
employee shall be increased by 3% each year, not compounded.
This increase shall be computed from the effective date of the
retirement annuity, the first increase being 0.25% of the
monthly amount times the number of months from the effective
date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8,
1971.
A retirement annuity of a Tier 2 regular employee shall
receive annual increases on the January 1 occurring either on
or after the attainment of age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at the lesser of 3% or one-half
the annual unadjusted percentage increase (but not less than
zero) in the consumer price index-u for the 12 months ending
with the September preceding each November 1 of the originally
granted retirement annuity; except that, beginning January 1,
2025, each annual increase under this subsection shall be
calculated at 3% of the amount of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a

HB5909 - 222 - LRB103 43117 RPS 76377 b
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(d) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more

HB5909 - 223 - LRB103 43117 RPS 76377 b
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying
2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any

HB5909 - 224 - LRB103 43117 RPS 76377 b
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has
service in any other capacity may convert up to 10 years of
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the

HB5909 - 225 - LRB103 43117 RPS 76377 b
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)

HB5909 - 226 - LRB103 43117 RPS 76377 b
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was

HB5909 - 227 - LRB103 43117 RPS 76377 b
the highest by the number of months of service in that period.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall
not include overtime and shall not exceed $106,800; however,
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of age 60 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2025, each annual increase under this subsection
shall be calculated at 3% of the amount of the originally

HB5909 - 228 - LRB103 43117 RPS 76377 b
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall not be
increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding

HB5909 - 229 - LRB103 43117 RPS 76377 b
each November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities; amount annuities -
Amount. The provisions of this Section 15-136 apply only to
those participants who are participating in the traditional
benefit package or the portable benefit package and do not
apply to participants who are participating in the
self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable

HB5909 - 230 - LRB103 43117 RPS 76377 b
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for each
year of service in excess of 20 but not exceeding 30, and 2.30%
for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.

HB5909 - 231 - LRB103 43117 RPS 76377 b
With respect to a police officer or firefighter who
retires on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least

HB5909 - 232 - LRB103 43117 RPS 76377 b
$3,500 but less than $4,500, (3) $120 if the final rate of
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1. A Tier 2
member is eligible for a retirement annuity calculated under
Rule 4 only if that Tier 2 member meets the service
requirements for that benefit calculation as prescribed under

HB5909 - 233 - LRB103 43117 RPS 76377 b
this Rule 4 in addition to the applicable age requirement
under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that
transfer until the employee's next termination of service
with the University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided
under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
each month the participant is under age 60 at the time of
retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;

HB5909 - 234 - LRB103 43117 RPS 76377 b
(2) For a participant who has at least the number of
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(b-5) The retirement annuity of a Tier 2 member who is
retiring under Rule 1 or 3 after attaining age 62 with at least
10 years of service credit shall be reduced by 1/2 of 1% for
each full month that the member's age is under age 67.
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in his
or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of

HB5909 - 235 - LRB103 43117 RPS 76377 b
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.

HB5909 - 236 - LRB103 43117 RPS 76377 b
(d-5) A retirement annuity of a Tier 2 member shall
receive annual increases on the January 1 occurring either on
or after the attainment of age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity; except that, beginning
January 1, 2025, each annual increase under this subsection
shall be calculated at 3% of the amount of the originally
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for the 12
months ending with the September preceding each November 1 is
zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this subsection by this amendatory Act of the
103rd 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 103rd General
Assembly.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the

HB5909 - 237 - LRB103 43117 RPS 76377 b
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the
retirement annuity shall be increased as of January 1, 1987,
or the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant

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under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory
Act of the 101st General Assembly apply retroactively to
January 1, 2011.

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(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.
Notwithstanding any other provision of this Article, a
retirement annuity for a participant who first serves as a
judge on or after January 1, 2011 (the effective date of Public
Act 96-889) shall be increased in January of the year next
following the year in which the first anniversary of
retirement occurs, but in no event prior to age 67, and in
January of each year thereafter, by an amount equal to 3% or
the annual percentage increase in the consumer price index-u
as determined by the Public Pension Division of the Department
of Insurance under subsection (b-5) of Section 18-125,
whichever is less, of the retirement annuity then being paid;
except that, beginning January 1, 2025, each annual increase
under this subsection shall be calculated at 3% of the amount
of the retirement annuity then being paid.

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For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
103rd 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 103rd General
Assembly.
This Section is not applicable to a participant who
retires before he or she has made contributions at the rate
prescribed in Section 18-133 for automatic increases for not
less than the equivalent of one full year, unless such a
participant arranges to pay the system the amount required to
bring the total contributions for the automatic increase to
the equivalent of one year's contribution based upon his or
her last year's salary.
This Section is applicable to all participants in service
after June 30, 1969 unless a participant has elected, prior to
September 1, 1969, in a written direction filed with the board
not to be subject to the provisions of this Section. Any
participant in service on or after July 1, 1992 shall have the
option of electing prior to April 1, 1993, in a written
direction filed with the board, to be covered by the
provisions of the 1969 amendatory Act. Such participant shall
be required to make the aforesaid additional contributions
with compound interest at 4% per annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge

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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
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
Article 3A.
Section 3A-5. The Illinois Pension Code is amended by
changing Sections 1-160, 2-119, 2-119.01, 2-119.1, 3-111,
3-111.1, 4-109, 4-109.1, 5-167.1, 5-238, 6-164, 6-229, 7-142,
7-142.1, 14-110, 15-135, 15-136, 18-124, and 18-125.1 as
follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension

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

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under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)

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

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

HB5909 - 246 - LRB103 43117 RPS 76377 b
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay

HB5909 - 247 - LRB103 43117 RPS 76377 b
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) For a member or participant who is not an affected
member or participant, a A member or participant is entitled
to a retirement annuity upon written application if he or she
has attained age 67 (age 65, with respect to service under
Article 12 that is subject to this Section, for a member or
participant under Article 12 who first becomes a member or
participant under Article 12 on or after January 1, 2022 or who
makes the election under item (i) of subsection (d-15) of this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
For an affected member or participant, the age and service
eligibility requirements for a retirement annuity are the age
and service eligibility requirements applicable to a member or
participant who first became a member or participant under the
applicable Article on December 31, 2010.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to

HB5909 - 248 - LRB103 43117 RPS 76377 b
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section. This paragraph does not apply to an affected
member or participant.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
This subsection does not apply to an affected member or
participant.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

HB5909 - 249 - LRB103 43117 RPS 76377 b
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
This subsection does not apply to an affected member or
participant.
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
This subsection does not apply to an affected member or
participant.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee

HB5909 - 250 - LRB103 43117 RPS 76377 b
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
This subsection does not apply to an affected member or
participant.
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age

HB5909 - 251 - LRB103 43117 RPS 76377 b
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
This subsection does not apply to an affected member or
participant.
(e) For a member or participant who is not an affected
member or participant, any Any retirement annuity or
supplemental annuity shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 (age 65, with respect to service under Article 12 that

HB5909 - 252 - LRB103 43117 RPS 76377 b
is subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15); and beginning on
July 6, 2017 (the effective date of Public Act 100-23), age 65
with respect to service under Article 8 or Article 11 for
eligible persons who: (i) are subject to subsection (c-5) of
this Section; or (ii) made the election under item (i) of
subsection (d-10) of this Section) or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.
For an affected member or participant, any retirement
annuity or supplemental annuity shall be subject to annual
increases on the January 1 occurring either on or after the
attainment of the retirement age under the Article applicable
to that member or participant or the first anniversary of the
annuity start date, whichever is later.
For the purposes of Section 1-103.1 of this Code, the

HB5909 - 253 - LRB103 43117 RPS 76377 b
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1

HB5909 - 254 - LRB103 43117 RPS 76377 b
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, a security employee of the
Department of Innovation and Technology, a security employee
of the Department of Human Services, an investigator for the
Department of the Lottery, a State policeman, an investigator
for the Secretary of State, a conservation police officer, an
investigator for the Department of Revenue or the Illinois
Gaming Board, an investigator for the Office of the Attorney
General, a Commerce Commission police officer, an arson
investigator, or a State highway maintenance worker a fire
fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are

HB5909 - 255 - LRB103 43117 RPS 76377 b
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if (i) the person has withdrawn from service
with not less than 25 20 years of eligible creditable service
and has attained age 50 60, regardless of whether the
attainment of age 50 60 occurs while the person is still in
service, or (ii) the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 55, regardless of whether the attainment of age
55 occurs while the person is still in service.
(g-5) (Blank). The benefits in Section 14-110 apply if the
person is a State policeman, investigator for the Secretary of
State, conservation police officer, investigator for the
Department of Revenue or the Illinois Gaming Board,
investigator for the Office of the Attorney General, Commerce
Commission police officer, or arson investigator, as those
terms are defined in subsection (b) and subsection (c) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or
minimum retirement annuity, only if the person has withdrawn
from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is

HB5909 - 256 - LRB103 43117 RPS 76377 b
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an

HB5909 - 257 - LRB103 43117 RPS 76377 b
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any

HB5909 - 258 - LRB103 43117 RPS 76377 b
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161

HB5909 - 259 - LRB103 43117 RPS 76377 b
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under

HB5909 - 260 - LRB103 43117 RPS 76377 b
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the

HB5909 - 261 - LRB103 43117 RPS 76377 b
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
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

HB5909 - 262 - LRB103 43117 RPS 76377 b
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause

HB5909 - 263 - LRB103 43117 RPS 76377 b
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) For a member or participant who is not an affected
member or participant, a A member or participant is entitled
to a retirement annuity upon written application if he or she
has attained age 67 (age 65, with respect to service under
Article 12 that is subject to this Section, for a member or
participant under Article 12 who first becomes a member or
participant under Article 12 on or after January 1, 2022 or who
makes the election under item (i) of subsection (d-15) of this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
For an affected member or participant, the age and service
eligibility requirements for a retirement annuity are the age
and service eligibility requirements applicable to a member or
participant who first became a member or participant under the
applicable Article on December 31, 2010.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the

HB5909 - 264 - LRB103 43117 RPS 76377 b
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section. This paragraph does not apply to an affected
member or participant.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
This subsection does not apply to an affected member or
participant.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a

HB5909 - 265 - LRB103 43117 RPS 76377 b
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
This subsection does not apply to an affected member or
participant.
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
This subsection does not apply to an affected member or
participant.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

HB5909 - 266 - LRB103 43117 RPS 76377 b
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
This subsection does not apply to an affected member or
participant.
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or

HB5909 - 267 - LRB103 43117 RPS 76377 b
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
This subsection does not apply to an affected member or
participant.
(e) For a member or participant who is not an affected
member or participant, any Any retirement annuity or
supplemental annuity shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 (age 65, with respect to service under Article 12 that
is subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15); and beginning on
July 6, 2017 (the effective date of Public Act 100-23), age 65

HB5909 - 268 - LRB103 43117 RPS 76377 b
with respect to service under Article 8 or Article 11 for
eligible persons who: (i) are subject to subsection (c-5) of
this Section; or (ii) made the election under item (i) of
subsection (d-10) of this Section) or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.
For an affected member or participant, any retirement
annuity or supplemental annuity shall be subject to annual
increases on the January 1 occurring either on or after the
attainment of the retirement age under the Article applicable
to that member or participant or the first anniversary of the
annuity start date, whichever is later.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the

HB5909 - 269 - LRB103 43117 RPS 76377 b
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever

HB5909 - 270 - LRB103 43117 RPS 76377 b
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a fire fighter in the fire protection service of a
department, a security employee of the Department of
Corrections or the Department of Juvenile Justice, a security
employee of the Department of Innovation and Technology, a
security employee of the Department of Human Services, an
investigator for the Department of the Lottery, a State
policeman, an investigator for the Secretary of State, a
conservation police officer, an investigator for the
Department of Revenue or the Illinois Gaming Board, an
investigator for the Office of the Attorney General, a
Commerce Commission police officer, an arson investigator, or
a State highway maintenance worker a State policeman, a fire
fighter in the fire protection service of a department, a
conservation police officer, an investigator for the Secretary
of State, an arson investigator, a Commerce Commission police
officer, investigator for the Department of Revenue or the
Illinois Gaming Board, a security employee of the Department
of Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and

HB5909 - 271 - LRB103 43117 RPS 76377 b
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if (i) the
person has withdrawn from service with not less than 25 20
years of eligible creditable service and has attained age 50
60, regardless of whether the attainment of age 50 60 occurs
while the person is still in service, or (ii) the person has
withdrawn from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.

HB5909 - 272 - LRB103 43117 RPS 76377 b
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)

HB5909 - 273 - LRB103 43117 RPS 76377 b
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of

HB5909 - 274 - LRB103 43117 RPS 76377 b
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(a-5) In this Section, "affected member or participant"

HB5909 - 275 - LRB103 43117 RPS 76377 b
means a member or participant to whom this Section applies and
who is an active member or participant on or after January 1,
2025; except that "affected member or participant" does not
include a member or participant under Article 22.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by

HB5909 - 276 - LRB103 43117 RPS 76377 b
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$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

HB5909 - 277 - LRB103 43117 RPS 76377 b
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any

HB5909 - 278 - LRB103 43117 RPS 76377 b
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) For a member or participant who is not an affected
member or participant, a A member or participant is entitled
to a retirement annuity upon written application if he or she
has attained age 67 (age 65, with respect to service under
Article 12 that is subject to this Section, for a member or
participant under Article 12 who first becomes a member or
participant under Article 12 on or after January 1, 2022 or who
makes the election under item (i) of subsection (d-15) of this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
For an affected member or participant, the age and service

HB5909 - 279 - LRB103 43117 RPS 76377 b
eligibility requirements for a retirement annuity are the age
and service eligibility requirements applicable to a member or
participant who first became a member or participant under the
applicable Article on December 31, 2010.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
This subsection does not apply to an affected member or
participant.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
This subsection does not apply to an affected member or

HB5909 - 280 - LRB103 43117 RPS 76377 b
participant.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section). This paragraph does not apply to an
affected member or participant.
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
This subsection does not apply to an affected member or
participant.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective

HB5909 - 281 - LRB103 43117 RPS 76377 b
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
This subsection does not apply to an affected member or

HB5909 - 282 - LRB103 43117 RPS 76377 b
participant.
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
This subsection does not apply to an affected member or

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

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

HB5909 - 285 - LRB103 43117 RPS 76377 b
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a fire fighter in the fire protection service of a
department, a security employee of the Department of
Corrections or the Department of Juvenile Justice, a security
employee of the Department of Innovation and Technology, a
security employee of the Department of Human Services, an
investigator for the Department of the Lottery, a State
policeman, an investigator for the Secretary of State, a
conservation police officer, an investigator for the
Department of Revenue or the Illinois Gaming Board, an

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

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

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such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 2-119. Retirement annuity - conditions for
eligibility.
(a) A participant whose service as a member is terminated,
regardless of age or cause, is entitled to a retirement
annuity beginning on the date specified by the participant in
a written application subject to the following conditions:
1. The date the annuity begins does not precede the
date of final termination of service, or is not more than
30 days before the receipt of the application by the board
in the case of annuities based on disability or one year

HB5909 - 289 - LRB103 43117 RPS 76377 b
before the receipt of the application in the case of
annuities based on attained age;
2. The participant meets one of the following
eligibility requirements:
For a participant who first becomes a participant of
this System before January 1, 2011 (the effective date of
Public Act 96-889) or a participant who first became a
participant of this System on or after January 1, 2011 and
was in service on or after January 1, 2025:
(A) He or she has attained age 55 and has at least
8 years of service credit;
(B) He or she has attained age 62 and terminated
service after July 1, 1971 with at least 4 years of
service credit; or
(C) He or she has completed 8 years of service and
has become permanently disabled and as a consequence,
is unable to perform the duties of his or her office.
For a participant who first becomes a participant of
this System on or after January 1, 2011 (the effective
date of Public Act 96-889) and who is not in service on or
after January 1, 2025, he or she has attained age 67 and
has at least 8 years of service credit.
(a-5) A participant who first becomes a participant of
this System on or after January 1, 2011 (the effective date of
Public Act 96-889) who is not in service on or after January 1,
2025, has attained age 62, and has at least 8 years of service

HB5909 - 290 - LRB103 43117 RPS 76377 b
credit may elect to receive the lower retirement annuity
provided in paragraph (d) (c) of Section 2-119.01 of this
Code.
(b) A participant shall be considered permanently disabled
only if: (1) disability occurs while in service and is of such
a nature as to prevent him or her from reasonably performing
the duties of his or her office at the time; and (2) the board
has received a written certificate by at least 2 licensed
physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
Sec. 2-119.01. Retirement annuities; amount annuities -
Amount.
(a) For a participant in service after June 30, 1977 who
has not made contributions to this System after January 1,
1982, the annual retirement annuity is 3% for each of the first
8 years of service, plus 4% for each of the next 4 years of
service, plus 5% for each year of service in excess of 12
years, based on the participant's highest salary for annuity
purposes. The maximum retirement annuity payable shall be 80%
of the participant's highest salary for annuity purposes.
(b) For a participant in service after June 30, 1977 who
has made contributions to this System on or after January 1,
1982, the annual retirement annuity is 3% for each of the first

HB5909 - 291 - LRB103 43117 RPS 76377 b
4 years of service, plus 3 1/2% for each of the next 2 years of
service, plus 4% for each of the next 2 years of service, plus
4 1/2% for each of the next 4 years of service, plus 5% for
each year of service in excess of 12 years, of the
participant's highest salary for annuity purposes. The maximum
retirement annuity payable shall be 85% of the participant's
highest salary for annuity purposes.
(c) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889), the
annual retirement annuity is 3% of the participant's highest
salary for annuity purposes for each year of service. The
maximum retirement annuity payable shall be 60% of the
participant's highest salary for annuity purposes.
(d) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889) and
who is retiring after attaining age 62 with at least 8 years of
service credit, the retirement annuity shall be reduced by
one-half of 1% for each month that the member's age is under
age 67. This subsection does not apply to a participant who is
in service on or after January 1, 2025.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITHOUT the changes made by P.A. 98-599,

HB5909 - 292 - LRB103 43117 RPS 76377 b
which has been held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary
of retirement. For any person who has service credit in the
System for the entire period from January 15, 1969 through

HB5909 - 293 - LRB103 43117 RPS 76377 b
December 31, 1992, regardless of the date of termination of
service, the reference to age 55 in clause (1) of this
subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month
of each year thereafter, but in no event prior to age 67 (age
62 if the participant was in service on or after January 1,
2025 and has at least 4 years of service credit or age 55 if
the participant was in service on or after January 1, 2025 and
has at least 8 years of service credit), have the amount of the
retirement annuity then being paid increased by 3% or the
annual unadjusted percentage increase in the Consumer Price
Index for All Urban Consumers as determined by the Public
Pension Division of the Department of Insurance under
subsection (a) of Section 2-108.1, whichever is less.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible

HB5909 - 294 - LRB103 43117 RPS 76377 b
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.

HB5909 - 295 - LRB103 43117 RPS 76377 b
(a) A police officer age 50 or more with 20 or more years
of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer
in service as a police officer, shall receive a pension of 1/2
of the salary attached to the rank held by the officer on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater. The pension shall be increased by 2.5%
of such salary for each additional year of service over 20
years of service through 30 years of service, to a maximum of
75% of such salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30,
1973 shall be less than $200 per month. Beginning July 1, 1987,
the minimum retirement pension for a police officer having at
least 20 years of creditable service shall be $400 per month,
without regard to whether or not retirement occurred prior to

HB5909 - 296 - LRB103 43117 RPS 76377 b
that date. If the minimum pension established in Section
3-113.1 is greater than the minimum provided in this
subsection, the Section 3-113.1 minimum controls.
(b) A police officer mandatorily retired from service due
to age by operation of law, having at least 8 but less than 20
years of creditable service, shall receive a pension equal to
2 1/2% of the salary attached to the rank he or she held on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater, for each year of creditable service.
A police officer who retires or is separated from service
having at least 8 years but less than 20 years of creditable
service, who is not mandatorily retired due to age by
operation of law, and who does not apply for a refund of
contributions at his or her last separation from police
service, shall receive a pension upon attaining age 60 equal
to 2.5% of the salary attached to the rank held by the police
officer on the police force for one year immediately prior to
retirement or, beginning July 1, 1987 for persons terminating
service on or after that date, the salary attached to the rank
held on the last day of service or for one year prior to the
last day, whichever is greater, for each year of creditable
service.
(c) A police officer no longer in service who has at least

HB5909 - 297 - LRB103 43117 RPS 76377 b
one but less than 8 years of creditable service in a police
pension fund but meets the requirements of this subsection (c)
shall be eligible to receive a pension from that fund equal to
2.5% of the salary attached to the rank held on the last day of
service under that fund or for one year prior to that last day,
whichever is greater, for each year of creditable service in
that fund. The pension shall begin no earlier than upon
attainment of age 60 (or upon mandatory retirement from the
fund by operation of law due to age, if that occurs before age
60) and in no event before the effective date of this
amendatory Act of 1997.
In order to be eligible for a pension under this
subsection (c), the police officer must have at least 8 years
of creditable service in a second police pension fund under
this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police
officer need not be in service on or after the effective date
of this amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is
not a participant in the self-managed plan under Section
3-109.3 and who first becomes a police officer under this
Article on or after January 1, 2011.
A police officer age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a police officer

HB5909 - 298 - LRB103 43117 RPS 76377 b
computed by multiplying 2.5% for each year of such service by
his or her final average salary; except that, for a police
officer who is in service on or after January 1, 2025, the age
and service eligibility requirements for a monthly pension for
service as a police officer are the age and service
eligibility requirements applicable to a police officer who
first became a police officer on December 31, 2010.
The pension of a police officer who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
police officer's age is under age 55. This paragraph does not
apply to a police officer who is in service on or after January
1, 2025.
The maximum pension under this subsection (d) shall be 75%
of final average salary.
For the purposes of this subsection (d), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the police officer
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the police officer during the 96 consecutive months of
service within the last 120 months of service in which the
total salary was the highest by the number of months of service
in that period.

HB5909 - 299 - LRB103 43117 RPS 76377 b
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following
attainment of age 60 if it occurs after the first anniversary
of retirement, by 3% of the originally granted pension and by

HB5909 - 300 - LRB103 43117 RPS 76377 b
an additional 3% of the originally granted pension in January
of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by
1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in January of

HB5909 - 301 - LRB103 43117 RPS 76377 b
each year thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) Notwithstanding the other provisions of this Section,
beginning with increases granted on or after July 1, 1993, the
second and all subsequent automatic annual increases granted

HB5909 - 302 - LRB103 43117 RPS 76377 b
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of the retirement age applicable to that police
officer under this Article age 60 or the first anniversary of
the pension start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services

HB5909 - 303 - LRB103 43117 RPS 76377 b
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the
monthly salary attached to the rank held by him or her in the
fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.

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

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computed by multiplying 2.5% for each year of such service by
his or her final average salary; except that, for a
firefighter who is in service on or after January 1, 2025, the
age and service eligibility requirements for a monthly pension
for service as a firefighter are the age and service
eligibility requirements applicable to a firefighter who first
became a firefighter on December 31, 2010.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55. This paragraph does not
apply to a firefighter who is in service on or after January 1,
2025.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the firefighter
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the firefighter during the 96 consecutive months of service
within the last 120 months of service in which the total salary
was the highest by the number of months of service in that
period.

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

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

HB5909 - 308 - LRB103 43117 RPS 76377 b
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that

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

HB5909 - 310 - LRB103 43117 RPS 76377 b
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of the retirement age applicable to that
firefighter under this Article age 60 or the first anniversary
of the pension start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.
For the purposes of this subsection (g), "consumer price

HB5909 - 311 - LRB103 43117 RPS 76377 b
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
Sec. 5-167.1. Automatic increase in annuity; retirement
from service after September 1, 1967.
(a) A policeman who retires from service after September
1, 1967 with at least 20 years of service credit shall, upon
either the first of the month following the first anniversary
of his date of retirement if he is age 55 or over on that
anniversary date, or upon the first of the month following his
attainment of age 55 if it occurs after the first anniversary
of his retirement date, have his then fixed and payable
monthly annuity increased by 3% and such first fixed annuity
as granted at retirement increased by an additional 3% in
January of each year thereafter.
Any policeman born before January 1, 1945 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection

HB5909 - 312 - LRB103 43117 RPS 76377 b
before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by Public Act 89-12 apply beginning January 1, 1996 and
without regard to whether the policeman or annuitant
terminated service before the effective date of that Act.
Any policeman born before January 1, 1950 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2000 is entitled to receive the initial
increase under this subsection on (1) January 1, 2000, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 92nd General Assembly apply
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1955 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2005 is entitled to receive the initial
increase under this subsection on (1) January 1, 2005, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 94th General Assembly apply

HB5909 - 313 - LRB103 43117 RPS 76377 b
without regard to whether the policeman or annuitant
terminated service before the effective date of this
amendatory Act.
Any policeman born before January 1, 1966 who qualifies
for a minimum annuity and retires after September 1, 1967 but
has not received the initial increase under this subsection
before January 1, 2017 is entitled to receive an initial
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to 3% for
each complete year following the date of retirement or
attainment of age 55, whichever occurs later. The changes to
this subsection made by this amendatory Act of the 99th
General Assembly apply without regard to whether the policeman
or annuitant terminated service before the effective date of
this amendatory Act.
Any policeman born on or after January 1, 1966 who
qualifies for a minimum annuity and retires after September 1,
1967 but has not received the initial increase under this
subsection before January 1, 2023 is entitled to receive the
initial increase under this subsection on (1) January 1, 2023,
(2) the first anniversary of the date of retirement, or (3)
attainment of age 55, whichever occurs last. The changes to
this Section made by this amendatory Act of the 103rd General
Assembly apply without regard to whether the policeman or
annuitant terminated service before the effective date of this

HB5909 - 314 - LRB103 43117 RPS 76377 b
amendatory Act of the 103rd General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1967, from
each payment of salary to a policeman, 1/2 of 1% of each salary
payment concurrently with and in addition to the salary
deductions otherwise made for annuity purposes.
The city, in addition to the contributions otherwise made
by it for annuity purposes under other provisions of this
Article, shall make matching contributions concurrently with
such salary deductions.
Each such 1/2 of 1% deduction from salary and each such
contribution by the city of 1/2 of 1% of salary shall be
credited to the Automatic Increase Reserve, to be used to
defray the cost of the annuity increase provided by this
Section. Any balance in such reserve as of the beginning of
each calendar year shall be credited with interest at the rate
of 3% per annum.
Such deductions from salary and city contributions shall
continue while the policeman is in service.
The salary deductions provided in this Section are not
subject to refund, except to the policeman himself, in any
case in which: (i) the policeman withdraws prior to
qualification for minimum annuity or Tier 2 monthly retirement
annuity and applies for refund, (ii) the policeman applies for

HB5909 - 315 - LRB103 43117 RPS 76377 b
an annuity of a type that is not subject to annual increases
under this Section, or (iii) a term annuity becomes payable.
In such cases, the total of such salary deductions shall be
refunded to the policeman, without interest, and charged to
the Automatic Increase Reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a policeman under this Article on or after the
effective date of this amendatory Act of the 97th General
Assembly shall be increased on the January 1 occurring either
on or after (i) the attainment of the retirement age
applicable to that policeman under this Article age 60 or (ii)
the first anniversary of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for a 12-month period ending in September is zero or,
when compared with the preceding period, decreases, then the
annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services

HB5909 - 316 - LRB103 43117 RPS 76377 b
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 103-582, eff. 12-8-23.)
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires; Tier 2.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011, and to certain qualified survivors of such a policeman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A policeman who has withdrawn from service, has
attained age 50 or more, and has 10 or more years of service in
that capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a police officer; except that, for a
policeman who is in service on or after January 1, 2025, the
age and service eligibility requirements for a Tier 2 monthly
retirement annuity for service as a police officer are the age
and service eligibility requirements applicable to a policeman
who first became a policeman on December 31, 2010. The Tier 2

HB5909 - 317 - LRB103 43117 RPS 76377 b
monthly retirement annuity shall be computed by multiplying
2.5% for each year of such service by his or her final average
salary, subject to an annuity reduction factor of one-half of
1% for each month that the police officer's age at retirement
is under age 55. The annuity reduction factor does not apply to
a policeman who is in service on or after January 1, 2025. The
Tier 2 monthly retirement annuity is in lieu of any age and
service annuity or other form of retirement annuity under this
Article.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the policeman during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, 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

HB5909 - 318 - LRB103 43117 RPS 76377 b
ending with the September preceding each November 1, including
all previous adjustments.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, eligibility for and the amount of
the annuity to which the qualified surviving spouse, children,
and parents are entitled under this subsection (c) shall be
determined as follows:
(1) The surviving spouse of a deceased policeman to
whom this Section applies shall be deemed qualified to
receive a Tier 2 surviving spouse's annuity under this
paragraph (1) if: (i) the deceased policeman meets the
requirements specified under subdivision (A), (B), (C), or
(D) of this paragraph (1); and (ii) the surviving spouse
would not otherwise be excluded from receiving a widow's
annuity under the eligibility requirements for a widow's
annuity set forth in Section 5-146. The Tier 2 surviving
spouse's annuity is in lieu of the widow's annuity
determined under any other Section of this Article and is
subject to the requirements of Section 5-147.1.
As used in this subsection (c), "earned annuity" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the policeman had received pursuant to Section 5-167.1.
(A) If the deceased policeman was receiving an
earned annuity at the date of his or her death, the

HB5909 - 319 - LRB103 43117 RPS 76377 b
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the
policeman's earned annuity at the date of death.
(B) If the deceased policeman was not receiving an
earned annuity but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the annual maximum salary attached to
the classified civil service position of a first class
patrolman at the time of his death; or (ii) 66 2/3% of
the Tier 2 monthly retirement annuity that the
deceased policeman would have been eligible to receive
under subsection (b) of this Section, based upon the
actual service accrued through the day before the
policeman's death, but determined as though the
policeman was at least age 55 on the day before his or
her death and retired on that day.
(C) If the deceased policeman was an active
policeman with at least 1 1/2 but less than 10 years of
service at the time of death, the Tier 2 surviving
spouse's annuity under this paragraph (1) shall be in
the amount of 30% of the annual maximum salary
attached to the classified civil service position of a
first class patrolman at the time of his death.
(D) If the performance of an act or acts of duty
results directly in the death of a policeman subject

HB5909 - 320 - LRB103 43117 RPS 76377 b
to this Section, or prevents him from subsequently
resuming active service in the police department, and
if the policeman's Tier 2 surviving spouse would
otherwise meet the eligibility requirements for a
compensation annuity or supplemental annuity granted
under Section 5-144, then in addition to the Tier 2
surviving spouse's annuity provided under subdivision
(A), (B), or (C) of this paragraph (1), whichever
applies, the Tier 2 surviving spouse shall be
qualified to receive compensation annuity or
supplemental annuity, as would be provided under
Section 5-144, in order to bring the total benefit up
to the applicable 75% salary limitation provided in
that Section, but subject to the Tier 2 salary cap
provided under subsection (b) of this Section; except
that no such annuity shall be paid to the surviving
spouse of a policeman who dies while in receipt of
disability benefits when the policeman's death was
caused by an intervening illness or injury unrelated
to the illness or injury that had prevented him from
subsequently resuming active service in the police
department.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring

HB5909 - 321 - LRB103 43117 RPS 76377 b
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with
the September preceding each November 1, whichever is
less, of the originally granted Tier 2 surviving
spouse's annuity. If the unadjusted percentage change
in the consumer price index-u for a 12-month period
ending in September is zero or, when compared with the
preceding period, decreases, then the annuity shall
not be increased.
For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of
Labor Statistics of the United States Department of
Labor that measures the average change in prices of
goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of
the Department of Insurance and made available to the
boards of the pension funds.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is

HB5909 - 322 - LRB103 43117 RPS 76377 b
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not
be less than the amount of the minimum widow's annuity
established from time to time under Section 5-167.4.
(2) Surviving children of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
5-151 and 5-152 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
5-152 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased policeman subject
to this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
5-152 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be

HB5909 - 323 - LRB103 43117 RPS 76377 b
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
5-152.1; except that any salary used for computing a Tier
2 parent's annuity shall be subject to the Tier 2 salary
cap provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 5-152.1 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this
Section as enacted by Public Act 96-1495, and are hereby
declared to represent and be consistent with the original and
continuing intent of this Section and Public Act 96-1495.
(e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1
(except for the changes to subsection (a) of that Section),
5-169, and 5-170 made by this amendatory Act of the 99th

HB5909 - 324 - LRB103 43117 RPS 76377 b
General Assembly are intended to be retroactive to January 1,
2011 (the effective date of Public Act 96-1495) and, for the
purposes of Section 1-103.1 of this Code, they apply without
regard to whether the relevant policeman was in service on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(Source: P.A. 99-905, eff. 11-29-16.)
(40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after
September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires
from service after September 1, 1959 shall, upon either the
first of the month following the first anniversary of his date
of retirement if he is age 55 or over on that anniversary date,
or upon the first of the month following his attainment of age
55 if that occurs after the first anniversary of his
retirement date, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by an additional 1 1/2% in
January of each year thereafter up to a maximum increase of
30%. Beginning July 1, 1982 for firemen born before January 1,
1930, and beginning January 1, 1990 for firemen born after
December 31, 1929 and before January 1, 1940, and beginning
January 1, 1996 for firemen born after December 31, 1939 but
before January 1, 1945, and beginning January 1, 2004, for

HB5909 - 325 - LRB103 43117 RPS 76377 b
firemen born after December 31, 1944 but before January 1,
1955, and beginning January 1, 2017, for firemen born after
December 31, 1954, such increases shall be 3% and such firemen
shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 1996 is entitled to receive the initial increase
under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of 1995 apply beginning January 1,
1996 and apply without regard to whether the fireman or
annuitant terminated service before the effective date of this
amendatory Act of 1995.
Any fireman born before January 1, 1955 who qualifies for
a minimum annuity and retires after September 1, 1967 but has
not received the initial increase under this subsection before
January 1, 2004 is entitled to receive the initial increase
under this subsection on (1) January 1, 2004, (2) the first
anniversary of the date of retirement, or (3) attainment of
age 55, whichever occurs last. The changes to this Section
made by this amendatory Act of the 93rd General Assembly apply
without regard to whether the fireman or annuitant terminated
service before the effective date of this amendatory Act.
Any fireman born after December 31, 1954 but before

HB5909 - 326 - LRB103 43117 RPS 76377 b
January 1, 1966 who qualifies for a minimum annuity and
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2017, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his then fixed and payable monthly annuity
upon the first of the month following the first anniversary of
his date of retirement if he is age 55 or over on that
anniversary date or upon the first of the month following his
attainment of age 55 if that date occurs after the first
anniversary of his retirement date and such first fixed
annuity as granted at retirement shall be increased by an
additional 3% in January of each year thereafter. In the case
of a fireman born after December 31, 1954 but before January 1,
1966 who received an increase in any year of 1.5%, that fireman
shall receive an increase for any such year so that the total
increase is equal to 3% for each year the fireman would have
been otherwise eligible had the fireman not received any
increase. The changes to this subsection made by this
amendatory Act of the 99th General Assembly apply without
regard to whether the fireman or annuitant terminated service
before the effective date of this amendatory Act. The changes
to this subsection made by this amendatory Act of the 100th
General Assembly are a declaration of existing law and shall
not be construed as a new enactment.
Any fireman who qualifies for a minimum annuity and

HB5909 - 327 - LRB103 43117 RPS 76377 b
retires after September 1, 1967 is entitled to receive an
increase under this subsection on (1) January 1, 2020, (2) the
first anniversary of the date of retirement, or (3) attainment
of age 55, whichever occurs last, in an amount equal to an
increase of 3% of his or her then fixed and payable monthly
annuity upon the first of the month following the first
anniversary of his or her date of retirement if he or she is
age 55 or over on that anniversary date or upon the first of
the month following his or her attainment of age 55 if that
date occurs after the first anniversary of his or her
retirement date and such first fixed annuity as granted at
retirement shall be increased by an additional 3% in January
of each year thereafter. In the case of a fireman who received
an increase in any year of 1.5%, that fireman shall receive an
increase for any such year so that the total increase is equal
to 3% for each year the fireman would have been otherwise
eligible had the fireman not received any increase. The
changes to this subsection made by this amendatory Act of the
101st General Assembly apply without regard to whether the
fireman or annuitant terminated service before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Subsection (a) of this Section is not applicable to an
employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity,
there shall be deducted, beginning September 1, 1959, from
each payment of salary to a fireman, 1/8 of 1% of each such

HB5909 - 328 - LRB103 43117 RPS 76377 b
salary payment and an additional 1/8 of 1% beginning on
September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions
otherwise made for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which
shall, on September 1, 1963, result in a total increase of 3/8
of 1% of salary, shall be credited to the Automatic Increase
Reserve, to be used, together with city contributions as
provided in this Article, to defray the cost of the annuity
increments specified in this Section. Any balance in such
reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not
subject to refund, except to the fireman himself in any case in
which: (i) the fireman withdraws prior to qualification for
minimum annuity or Tier 2 monthly retirement annuity and
applies for refund, (ii) the fireman applies for an annuity of
a type that is not subject to annual increases under this
Section, or (iii) a term annuity becomes payable. In such
cases, the total of such salary deductions shall be refunded
to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article,
the Tier 2 monthly retirement annuity of a person who first
becomes a fireman under this Article on or after January 1,
2011 shall be increased on the January 1 occurring either on or

HB5909 - 329 - LRB103 43117 RPS 76377 b
after (i) the attainment of the retirement age applicable to
that fireman under this Article age 60 or (ii) the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
annuity shall not be increased.
For the purposes of this subsection (d), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds by November 1 of each year.
(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17;
101-673, eff. 4-5-21.)
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires; Tier 2.

HB5909 - 330 - LRB103 43117 RPS 76377 b
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1,
2011, and to certain qualified survivors of such a fireman.
Such persons, and the benefits and restrictions that apply
specifically to them under this Article, may be referred to as
"Tier 2".
(b) A fireman who has withdrawn from service, has attained
age 50 or more, and has 10 or more years of service in that
capacity shall be entitled, upon proper application being
received by the Fund, to receive a Tier 2 monthly retirement
annuity for his service as a fireman; except that, for a
fireman who is in service on or after January 1, 2025, the age
and service eligibility requirements for a Tier 2 monthly
retirement annuity for service as a fireman are the age and
service eligibility requirements applicable to a fireman who
first became a fireman on December 31, 2010. The Tier 2 monthly
retirement annuity shall be computed by multiplying 2.5% for
each year of such service by his or her final average salary,
subject to an annuity reduction factor of one-half of 1% for
each month that the fireman's age at retirement is under age
55. The annuity reduction factor does not apply to a policeman
who is in service on or after January 1, 2025. The Tier 2
monthly retirement annuity is in lieu of any age and service
annuity or other form of retirement annuity under this
Article.

HB5909 - 331 - LRB103 43117 RPS 76377 b
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the greater of (1) the average monthly salary
obtained by dividing the total salary of the fireman during
the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period or (2) the
average monthly salary obtained by dividing the total salary
of the fireman during the 48 consecutive months of service
within the last 60 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, 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.
(b-5) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor

HB5909 - 332 - LRB103 43117 RPS 76377 b
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the retirement systems and pension funds by
November 1 of each year.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman under this Article on
or after January 1, 2011, eligibility for and the amount of the
annuity to which the qualified surviving spouse, children, and
parents of the fireman are entitled under this subsection (c)
shall be determined as follows:
(1) The surviving spouse of a deceased fireman to whom
this Section applies shall be deemed qualified to receive
a Tier 2 surviving spouse's annuity under this paragraph
(1) if: (i) the deceased fireman meets the requirements
specified under subdivision (A), (B), (C), or (D) of this
paragraph (1); and (ii) the surviving spouse would not
otherwise be excluded from receiving a widow's annuity
under the eligibility requirements for a widow's annuity
set forth in Section 6-142. The Tier 2 surviving spouse's
annuity is in lieu of the widow's annuity determined under
any other Section of this Article and is subject to the
requirements of Section 6-143.2.

HB5909 - 333 - LRB103 43117 RPS 76377 b
As used in this subsection (c), "earned pension" means
a Tier 2 monthly retirement annuity determined under
subsection (b) of this Section, including any increases
the fireman had received pursuant to Section 6-164.
(A) If the deceased fireman was receiving an
earned pension at the date of his or her death, the
Tier 2 surviving spouse's annuity under this paragraph
(1) shall be in the amount of 66 2/3% of the fireman's
earned pension at the date of death.
(B) If the deceased fireman was not receiving an
earned pension but had at least 10 years of service at
the time of death, the Tier 2 surviving spouse's
annuity under this paragraph (1) shall be the greater
of: (i) 30% of the salary attached to the rank of first
class firefighter in the classified career service at
the time of the fireman's death; or (ii) 66 2/3% of the
Tier 2 monthly retirement annuity that the deceased
fireman would have been eligible to receive under
subsection (b) of this Section, based upon the actual
service accrued through the day before the fireman's
death, but determined as though the fireman was at
least age 55 on the day before his or her death and
retired on that day.
(C) If the deceased fireman was an active fireman
with at least 1 1/2 but less than 10 years of service
at the time of death, the Tier 2 surviving spouse's

HB5909 - 334 - LRB103 43117 RPS 76377 b
annuity under this paragraph (1) shall be in the
amount of 30% of the salary attached to the rank of
first class firefighter in the classified career
service at the time of the fireman's death.
(D) Notwithstanding subdivisions (A), (B), and (C)
of this paragraph (1), if the performance of an act or
acts of duty results directly in the death of a fireman
subject to this Section, or prevents him from
subsequently resuming active service in the fire
department, then a surviving spouse who would
otherwise meet the eligibility requirements for a
death in the line of duty widow's annuity granted
under Section 6-140 shall be deemed to be qualified
for a Tier 2 surviving spouse's annuity under this
subdivision (D); except that no such annuity shall be
paid to the surviving spouse of a fireman who dies
while in receipt of disability benefits when the
fireman's death was caused by an intervening illness
or injury unrelated to the illness or injury that had
prevented him from subsequently resuming active
service in the fire department. The Tier 2 surviving
spouse's annuity calculated under this subdivision (D)
shall be in lieu of, but in the same amount and paid in
the same manner as, the widow's annuity provided under
Section 6-140; except that the salary used for
computing a Tier 2 surviving spouse's annuity under

HB5909 - 335 - LRB103 43117 RPS 76377 b
this subdivision (D) shall be subject to the Tier 2
salary cap provided under subsection (b) of this
Section.
(E) Notwithstanding any other provision of this
Article, the monthly Tier 2 surviving spouse's annuity
under subdivision (A) or (B) of this paragraph (1)
shall be increased on the January 1 next occurring
after (i) attainment of age 60 by the recipient of the
Tier 2 surviving spouse's annuity or (ii) the first
anniversary of the Tier 2 surviving spouse's annuity
start date, whichever is later, and on each January 1
thereafter, by 3% or one-half the annual unadjusted
percentage increase in the consumer price index-u for
the 12 months ending with September preceding each
November 1, whichever is less, of the originally
granted Tier 2 surviving spouse's annuity. If the
annual unadjusted percentage change in the consumer
price index-u for a 12-month period ending in
September is zero or, when compared with the preceding
period, decreases, then the annuity shall not be
increased.
(F) Notwithstanding the other provisions of this
paragraph (1), for a qualified surviving spouse who is
entitled to a Tier 2 surviving spouse's annuity under
subdivision (A), (B), (C), or (D) of this paragraph
(1), that Tier 2 surviving spouse's annuity shall not

HB5909 - 336 - LRB103 43117 RPS 76377 b
be less than the amount of the minimum widow's annuity
established from time to time under Section 6-128.4.
(2) Surviving children of a deceased fireman subject
to this Section who would otherwise meet the eligibility
requirements for a child's annuity set forth in Sections
6-147 and 6-148 shall be deemed qualified to receive a
Tier 2 child's annuity under this subsection (c), which
shall be in lieu of, but in the same amount and paid in the
same manner as, the child's annuity provided under those
Sections; except that any salary used for computing a Tier
2 child's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For
purposes of determining any pro rata reduction in child's
annuities under this subsection (c), references in Section
6-148 to the combined annuities of the family shall be
deemed to refer to the combined Tier 2 surviving spouse's
annuity, if any, and the Tier 2 child's annuities payable
under this subsection (c).
(3) Surviving parents of a deceased fireman subject to
this Section who would otherwise meet the eligibility
requirements for a parent's annuity set forth in Section
6-149 shall be deemed qualified to receive a Tier 2
parent's annuity under this subsection (c), which shall be
in lieu of, but in the same amount and paid in the same
manner as, the parent's annuity provided under Section
6-149; except that any salary used for computing a Tier 2

HB5909 - 337 - LRB103 43117 RPS 76377 b
parent's annuity shall be subject to the Tier 2 salary cap
provided under subsection (b) of this Section. For the
purposes of this Section, a reference to "annuity" in
Section 6-149 includes: (i) in the context of a widow, a
Tier 2 surviving spouse's annuity and (ii) in the context
of a child, a Tier 2 child's annuity.
(d) The General Assembly finds and declares that the
provisions of this Section, as enacted by Public Act 96-1495,
require clarification relating to necessary eligibility
standards and the manner of determining and paying the
intended Tier 2 benefits and contributions in order to enable
the Fund to unambiguously implement and administer benefits
for Tier 2 members. The changes to this Section and the
conforming changes to Sections 6-150, 6-158, 6-164 (except for
the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are enacted to clarify the provisions of this Section as
enacted by Public Act 96-1495, and are hereby declared to
represent and be consistent with the original and continuing
intent of this Section and Public Act 96-1495.
(e) The changes to Sections 6-150, 6-158, 6-164 (except
for the changes to subsection (a) of that Section), 6-166, and
6-167 made by this amendatory Act of the 99th General Assembly
are intended to be retroactive to January 1, 2011 (the
effective date of Public Act 96-1495) and, for the purposes of
Section 1-103.1 of this Code, they apply without regard to

HB5909 - 338 - LRB103 43117 RPS 76377 b
whether the relevant fireman was in service on or after the
effective date of this amendatory Act of the 99th General
Assembly.
(Source: P.A. 103-579, eff. 12-8-23.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities; amount annuities -
Amount.
(a) The amount of a retirement annuity shall be the sum of
the following, determined in accordance with the actuarial
tables in effect at the time of the grant of the annuity:
1. For Tier 1 regular employees with 8 or more years of
service or for Tier 2 regular employees, an annuity
computed pursuant to subparagraphs a or b of this
subparagraph 1, whichever is the higher, and for employees
with less than 8 or 10 years of service, respectively, the
annuity computed pursuant to subparagraph a:
a. The monthly annuity which can be provided from
the total accumulated normal, municipality and prior
service credits, as of the attained age of the
employee on the date the annuity begins provided that
such annuity shall not exceed 75% of the final rate of
earnings of the employee.
b. (i) The monthly annuity amount determined as
follows by multiplying (a) 1 2/3% for annuitants with
not more than 15 years or (b) 1 2/3% for the first 15

HB5909 - 339 - LRB103 43117 RPS 76377 b
years and 2% for each year in excess of 15 years for
annuitants with more than 15 years by the number of
years plus fractional years, prorated on a basis of
months, of creditable service and multiply the product
thereof by the employee's final rate of earnings.
(ii) For the sole purpose of computing the formula
(and not for the purposes of the limitations
hereinafter stated) $125 shall be considered the final
rate of earnings in all cases where the final rate of
earnings is less than such amount.
(iii) The monthly annuity computed in accordance
with this subparagraph b, shall not exceed an amount
equal to 75% of the final rate of earnings.
(iv) For employees who have less than 35 years of
service, the annuity computed in accordance with this
subparagraph b (as reduced by application of
subparagraph (iii) above) shall be reduced by 0.25%
thereof (0.5% if service was terminated before January
1, 1988 or if the employee is a Tier 2 regular
employee) for each month or fraction thereof (1) that
the employee's age is less than 60 years for Tier 1
regular employees, (2) that the employee's age is less
than 67 years for Tier 2 regular employees, or (3) if
the employee has at least 30 years of service credit,
that the employee's service credit is less than 35
years, whichever is less, on the date the annuity

HB5909 - 340 - LRB103 43117 RPS 76377 b
begins.
2. The annuity which can be provided from the total
accumulated additional credits as of the attained age of
the employee on the date the annuity begins.
(b) If payment of an annuity begins prior to the earliest
age at which the employee will become eligible for an old age
insurance benefit under the Federal Social Security Act, he
may elect that the annuity payments from this fund shall
exceed those payable after his attaining such age by an
amount, computed as determined by rules of the Board, but not
in excess of his estimated Social Security Benefit, determined
as of the effective date of the annuity, provided that in no
case shall the total annuity payments made by this fund exceed
in actuarial value the annuity which would have been payable
had no such election been made.
(c) Beginning January 1, 1984 and each January 1
thereafter, the retirement annuity of a Tier 1 regular
employee shall be increased by 3% each year, not compounded.
This increase shall be computed from the effective date of the
retirement annuity, the first increase being 0.25% of the
monthly amount times the number of months from the effective
date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8,
1971.
A retirement annuity of a Tier 2 regular employee shall
receive annual increases on the January 1 occurring either on

HB5909 - 341 - LRB103 43117 RPS 76377 b
or after the attainment of the retirement age applicable to
that Tier 2 regular employee under this Article age 67 or the
first anniversary of the annuity start date, whichever is
later. Each annual increase shall be calculated at the lesser
of 3% or one-half the annual unadjusted percentage increase
(but not less than zero) in the consumer price index-u for the
12 months ending with the September preceding each November 1
of the originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each
November 1 is zero or there is a decrease, then the annuity
shall not be increased.
(d) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 102-210, eff. 1-1-22.)

HB5909 - 342 - LRB103 43117 RPS 76377 b
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option

HB5909 - 343 - LRB103 43117 RPS 76377 b
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying
2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service

HB5909 - 344 - LRB103 43117 RPS 76377 b
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has
service in any other capacity may convert up to 10 years of
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the

HB5909 - 345 - LRB103 43117 RPS 76377 b
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55. This paragraph does not apply to a
sheriff's law enforcement employee who is an active sheriff's
law enforcement employee on or after January 1, 2025.

HB5909 - 346 - LRB103 43117 RPS 76377 b
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was
the highest by the number of months of service in that period.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall
not include overtime and shall not exceed $106,800; however,
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of the retirement age
applicable to that sheriff's law enforcement employee under

HB5909 - 347 - LRB103 43117 RPS 76377 b
this Article age 60 or the first anniversary of the annuity
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted

HB5909 - 348 - LRB103 43117 RPS 76377 b
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
(Text of Section from P.A. 102-813 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,

HB5909 - 349 - LRB103 43117 RPS 76377 b
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee

HB5909 - 350 - LRB103 43117 RPS 76377 b
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's

HB5909 - 351 - LRB103 43117 RPS 76377 b
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an

HB5909 - 352 - LRB103 43117 RPS 76377 b
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or

HB5909 - 353 - LRB103 43117 RPS 76377 b
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.

HB5909 - 354 - LRB103 43117 RPS 76377 b
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and

HB5909 - 355 - LRB103 43117 RPS 76377 b
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the

HB5909 - 356 - LRB103 43117 RPS 76377 b
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),

HB5909 - 357 - LRB103 43117 RPS 76377 b
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any

HB5909 - 358 - LRB103 43117 RPS 76377 b
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead

HB5909 - 359 - LRB103 43117 RPS 76377 b
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar

HB5909 - 360 - LRB103 43117 RPS 76377 b
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless

HB5909 - 361 - LRB103 43117 RPS 76377 b
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for

HB5909 - 362 - LRB103 43117 RPS 76377 b
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,

HB5909 - 363 - LRB103 43117 RPS 76377 b
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by

HB5909 - 364 - LRB103 43117 RPS 76377 b
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's

HB5909 - 365 - LRB103 43117 RPS 76377 b
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service

HB5909 - 366 - LRB103 43117 RPS 76377 b
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law

HB5909 - 367 - LRB103 43117 RPS 76377 b
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that

HB5909 - 368 - LRB103 43117 RPS 76377 b
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,

HB5909 - 369 - LRB103 43117 RPS 76377 b
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o), and (r) of this Section shall not
exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,

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and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the

HB5909 - 371 - LRB103 43117 RPS 76377 b
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be

HB5909 - 372 - LRB103 43117 RPS 76377 b
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the

HB5909 - 373 - LRB103 43117 RPS 76377 b
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under

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subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of

HB5909 - 375 - LRB103 43117 RPS 76377 b
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(q) A security employee of the Department of Human
Services who is subject to subsection (g) of Section 1-160 may
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 103rd
General Assembly as a security employee of the Department of
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 103rd General
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State
highway maintenance worker subject to subsection (g) of

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Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 103rd General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 103rd General Assembly, accompanied by
payment of an amount to be determined by the Board equal to (i)
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-856 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of

HB5909 - 377 - LRB103 43117 RPS 76377 b
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.

HB5909 - 378 - LRB103 43117 RPS 76377 b
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney

HB5909 - 379 - LRB103 43117 RPS 76377 b
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.

HB5909 - 380 - LRB103 43117 RPS 76377 b
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,

HB5909 - 381 - LRB103 43117 RPS 76377 b
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The

HB5909 - 382 - LRB103 43117 RPS 76377 b
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police

HB5909 - 383 - LRB103 43117 RPS 76377 b
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under

HB5909 - 384 - LRB103 43117 RPS 76377 b
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic

HB5909 - 385 - LRB103 43117 RPS 76377 b
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is vested with such law enforcement duties
as render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full-time basis under the

HB5909 - 386 - LRB103 43117 RPS 76377 b
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:

HB5909 - 387 - LRB103 43117 RPS 76377 b
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the

HB5909 - 388 - LRB103 43117 RPS 76377 b
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health

HB5909 - 389 - LRB103 43117 RPS 76377 b
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring

HB5909 - 390 - LRB103 43117 RPS 76377 b
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of

HB5909 - 391 - LRB103 43117 RPS 76377 b
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State

HB5909 - 392 - LRB103 43117 RPS 76377 b
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State

HB5909 - 393 - LRB103 43117 RPS 76377 b
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such

HB5909 - 394 - LRB103 43117 RPS 76377 b
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of

HB5909 - 395 - LRB103 43117 RPS 76377 b
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board

HB5909 - 396 - LRB103 43117 RPS 76377 b
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for

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

HB5909 - 398 - LRB103 43117 RPS 76377 b
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of
State, or arson investigator may elect to convert service
credit earned under this Article to eligible creditable
service, as defined by this Section, by filing a written
election with the Board within 6 months after the effective
date of this amendatory Act of the 102nd General Assembly and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee
contributions originally paid for that service and the amounts
that would have been contributed had such contributions been
made at the rates applicable to investigators for the
Department of Revenue, investigators for the Illinois Gaming
Board, investigators for the Secretary of State, or arson
investigators, plus (ii) the difference between the employer's
normal cost of the credit prior to the conversion authorized
by this amendatory Act of the 102nd General Assembly and the

HB5909 - 399 - LRB103 43117 RPS 76377 b
employer's normal cost of the credit converted in accordance
with this amendatory Act of the 102nd General Assembly, plus
(iii) interest thereon at the actuarially assumed rate for
each year, compounded annually, from the date of service to
the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o), and (r) of this Section shall not
exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to

HB5909 - 400 - LRB103 43117 RPS 76377 b
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the

HB5909 - 401 - LRB103 43117 RPS 76377 b
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being

HB5909 - 402 - LRB103 43117 RPS 76377 b
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable

HB5909 - 403 - LRB103 43117 RPS 76377 b
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at

HB5909 - 404 - LRB103 43117 RPS 76377 b
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(q) A security employee of the Department of Human

HB5909 - 405 - LRB103 43117 RPS 76377 b
Services who is subject to subsection (g) of Section 1-160 may
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 103rd
General Assembly as a security employee of the Department of
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 103rd General
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State
highway maintenance worker subject to subsection (g) of
Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 103rd General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 103rd General Assembly, accompanied by

HB5909 - 406 - LRB103 43117 RPS 76377 b
payment of an amount to be determined by the Board equal to (i)
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-956 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable

HB5909 - 407 - LRB103 43117 RPS 76377 b
service; if retirement occurs before January 1, 2001, 2
1/4% of final average compensation for each of the first
10 years of creditable service, 2 1/2% for each year above
10 years to and including 20 years of creditable service,
and 2 3/4% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
1, 2001, 1.67% of final average compensation for each of
the first 10 years of such service, 1.90% for each of the
next 10 years of such service, 2.10% for each year of such
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in

HB5909 - 408 - LRB103 43117 RPS 76377 b
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;

HB5909 - 409 - LRB103 43117 RPS 76377 b
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service for
service credit earned under this Article while undergoing the
basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and

HB5909 - 410 - LRB103 43117 RPS 76377 b
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois State Police is
vested by law with duties to maintain public order,
investigate violations of the criminal law of this State,
enforce the laws of this State, make arrests and recover
property. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary

HB5909 - 411 - LRB103 43117 RPS 76377 b
of State and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the
Department of Natural Resources and vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social

HB5909 - 412 - LRB103 43117 RPS 76377 b
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act.
(8) The term "security employee of the Department of
Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the Department
that includes a security unit and is regularly scheduled
to work at least 50% of his or her working hours within
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D) and

HB5909 - 413 - LRB103 43117 RPS 76377 b
218(l)(1) of that Act. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) For a member who first became an employee under
this Article before July 1, 2005, the term "security
employee of the Department of Corrections or the
Department of Juvenile Justice" means any employee of the
Department of Corrections or the Department of Juvenile
Justice or the former Department of Personnel, and any
member or employee of the Prisoner Review Board, who has
daily contact with inmates or youth by working within a

HB5909 - 414 - LRB103 43117 RPS 76377 b
correctional facility or Juvenile facility operated by the
Department of Juvenile Justice or who is a parole officer
or an employee who has direct contact with committed
persons in the performance of his or her job duties. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois State
Police who is vested under Section 4 of the Narcotic
Control Division Abolition Act with such law enforcement
powers as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such

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

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218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who was
employed as an arson investigator on January 1, 1995 and
is no longer in service but not yet receiving a retirement
annuity may convert his or her creditable service for
employment as an arson investigator into eligible
creditable service by paying to the System the difference
between the employee contributions actually paid for that
service and the amounts that would have been contributed
if the applicant were contributing at the rate applicable
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the

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actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order

HB5909 - 418 - LRB103 43117 RPS 76377 b
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or

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(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,

HB5909 - 420 - LRB103 43117 RPS 76377 b
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior
to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to

HB5909 - 421 - LRB103 43117 RPS 76377 b
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to establish
eligible creditable service for up to 10 years of his service
as a member of the County Police Department under Article 9, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and employer
contributions transferred to the System under Section 9-121.10

HB5909 - 422 - LRB103 43117 RPS 76377 b
and the amounts that would have been contributed had those
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 5-236, and the amounts that would
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a sheriff's
law enforcement employee under Article 7, by filing a written
election with the Board on or before January 31, 1993, and
paying to the System by January 31, 1994 an amount to be
determined by the Board, equal to (i) the difference between

HB5909 - 423 - LRB103 43117 RPS 76377 b
the amount of employee and employer contributions transferred
to the System under Section 7-139.7, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 5 years of service as a police
officer under Article 3, a policeman under Article 5, a
sheriff's law enforcement employee under Article 7, a member
of the county police department under Article 9, or a police
officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to

HB5909 - 424 - LRB103 43117 RPS 76377 b
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, investigator for the
Office of the Attorney General, an investigator for the
Department of Revenue, or investigator for the Secretary of
State may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties, or law
enforcement officer employed on a full-time basis by a forest
preserve district under Article 7, a county corrections
officer, or a court services officer under Article 9, by
filing a written election with the Board within 6 months after

HB5909 - 425 - LRB103 43117 RPS 76377 b
August 25, 2009 (the effective date of Public Act 96-745) and
paying to the System an amount to be determined by the Board,
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 7-139.8 and 9-121.10 and the amounts that would have
been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 by
filing a written election with the Board within 6 months after
July 30, 2021 (the effective date of Public Act 102-210) and
paying to the System an amount to be determined by the Board
equal to (i) the difference between the amount of employee and
employer contributions transferred to the System under
Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
would have been contributed had such contributions been made
at the rates applicable to State policemen, plus (ii) interest
thereon at the actuarially assumed rate for each year,
compounded annually, from the date of service to the date of

HB5909 - 426 - LRB103 43117 RPS 76377 b
payment.
Subject to the limitation in subsection (i), a
conservation police officer may elect to establish eligible
creditable service for up to 5 years of service as a person
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, or a
court services officer under Article 9 by filing a written
election with the Board within 6 months after July 30, 2021
(the effective date of Public Act 102-210) and paying to the
System an amount to be determined by the Board equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Sections 7-139.8
and 9-121.10 and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after July 30,
2021 (the effective date of Public Act 102-210) and paying to
the System an amount to be determined by the Board equal to (i)
the difference between the amount of employee contributions
originally paid for that service and the amounts that would

HB5909 - 427 - LRB103 43117 RPS 76377 b
have been contributed had such contributions been made at the
rates applicable to State policemen, plus (ii) the difference
between the employer's normal cost of the credit prior to the
conversion authorized by Public Act 102-210 and the employer's
normal cost of the credit converted in accordance with Public
Act 102-210, plus (iii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), (o), and (p), and (r) of this Section shall
not exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to

HB5909 - 428 - LRB103 43117 RPS 76377 b
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board
and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable

HB5909 - 429 - LRB103 43117 RPS 76377 b
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after January 1, 2020 (the effective date of
Public Act 101-610), accompanied by evidence of eligibility
acceptable to the Board and payment of an amount to be
determined by the Board, equal to (1) employee contributions
for the credit being established, based upon the applicant's
salary on the first day as an alternative formula employee
after the employment for which credit is being established and

HB5909 - 430 - LRB103 43117 RPS 76377 b
the rates then applicable to alternative formula employees,
plus (2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in items
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university or, in the case of persons
who provide vocational training, who are required to have
adequate knowledge in the skill for which they are providing
the vocational training.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn

HB5909 - 431 - LRB103 43117 RPS 76377 b
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions
actually paid for that service and the amounts that would have
been contributed if the applicant were contributing at the
rate applicable to persons with the same Social Security
status earning eligible creditable service on the date of
application.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)

HB5909 - 432 - LRB103 43117 RPS 76377 b
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest

HB5909 - 433 - LRB103 43117 RPS 76377 b
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(p) Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General subject to
subsection (g) of Section 1-160 may elect to convert up to 8
years of service credit established before the effective date
of this amendatory Act of the 102nd General Assembly as an
investigator for the Office of the Attorney General under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after the
effective date of this amendatory Act of the 102nd General
Assembly, accompanied by payment of an amount to be determined
by the Board equal to (i) the difference between the amount of
the employee contributions actually paid for that service and
the amount of the employee contributions that would have been
paid had the employee contributions been made as a noncovered
employee serving in a position in which eligible creditable
service, as defined in this Section, may be earned, plus (ii)
interest thereon at the effective rate for each year,
compounded annually, from the date of service to the date of
payment.
(q) A security employee of the Department of Human
Services who is subject to subsection (g) of Section 1-160 may
elect to convert up to 13 years of service credit established
before the effective date of this amendatory Act of the 103rd
General Assembly as a security employee of the Department of

HB5909 - 434 - LRB103 43117 RPS 76377 b
Human Services to eligible creditable service by filing a
written election with the Board no later than one year after
the effective date of this amendatory Act of the 103rd General
Assembly, accompanied by payment of an amount, to be
determined by the Board, equal to (i) the difference between
the amount of the employee contributions actually paid for
that service and the amount of the employee contributions that
would have been paid had the employee contributions been made
as a covered employee serving in a position in which eligible
creditable service, as defined in this Section, may be earned,
plus (ii) interest thereon at the effective rate for each
year, compounded annually, from the date of service to the
date of payment.
(r) Subject to the limitation in subsection (i), a State
highway maintenance worker subject to subsection (g) of
Section 1-160 may elect to convert up to 8 years of service
credit established before the effective date of this
amendatory Act of the 103rd General Assembly as a State
highway maintenance work under this Article into eligible
creditable service by filing a written election with the Board
no later than one year after the effective date of this
amendatory Act of the 103rd General Assembly, accompanied by
payment of an amount to be determined by the Board equal to (i)
the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the

HB5909 - 435 - LRB103 43117 RPS 76377 b
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A
participant who retires in one of the following specified
years with the specified amount of service is entitled to a
retirement annuity at any age under the retirement program
applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement

HB5909 - 436 - LRB103 43117 RPS 76377 b
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(a-5) A Tier 2 member is entitled to a retirement annuity
upon written application if he or she has attained age 67 and
has at least 10 years of service credit and is otherwise
eligible under the requirements of this Article; except that,
for a Tier 2 member who is in service on or after January 1,
2025, the age and service eligibility requirements for a
retirement annuity are the age and service eligibility
requirements applicable to a Tier 1 member who first became a
participant on December 31, 2010. A Tier 2 member who has
attained age 62 and has at least 10 years of service credit and
is otherwise eligible under the requirements of this Article
may elect to receive the lower retirement annuity provided in
subsection (b-5) of Section 15-136 of this Article; except
that, a Tier 2 member who is in service on or after January 1,
2025 may not elect to receive the lower retirement annuity
provided in subsection (b-5) of Section 15-136.
(a-10) A Tier 2 member who was not in service on or after
January 1, 2025 and has at least 20 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity upon written application on or after the
attainment of age 60 if Rule 4 of Section 15-136 is applicable

HB5909 - 437 - LRB103 43117 RPS 76377 b
to the participant. The changes made to this subsection by
this amendatory Act of the 101st General Assembly apply
retroactively to January 1, 2011.
(b) The annuity payment period shall begin on the date
specified by the participant or the recipient of a disability
retirement annuity submitting a written application. For a
participant, the date on which the annuity payment period
begins shall not be prior to termination of employment or more
than one year before the application is received by the board;
however, if the participant is not an employee of an employer
participating in this System or in a participating system as
defined in Article 20 of this Code on April 1 of the calendar
year next following the calendar year in which the participant
attains the age specified under Section 401(a)(9) of the
Internal Revenue Code of 1986, as amended, the annuity payment
period shall begin on that date regardless of whether an
application has been filed. For a recipient of a disability
retirement annuity, the date on which the annuity payment
period begins shall not be prior to the discontinuation of the
disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under
Section 15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities; amount annuities -

HB5909 - 438 - LRB103 43117 RPS 76377 b
Amount. The provisions of this Section 15-136 apply only to
those participants who are participating in the traditional
benefit package or the portable benefit package and do not
apply to participants who are participating in the
self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for each
year of service in excess of 20 but not exceeding 30, and 2.30%
for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an

HB5909 - 439 - LRB103 43117 RPS 76377 b
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who
retires on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.

HB5909 - 440 - LRB103 43117 RPS 76377 b
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of

HB5909 - 441 - LRB103 43117 RPS 76377 b
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1. A Tier 2
member who was not in service on or after January 1, 2025 is
eligible for a retirement annuity calculated under Rule 4 only
if that Tier 2 member meets the service requirements for that
benefit calculation as prescribed under this Rule 4 in
addition to the applicable age requirement under subsection
(a-10) of Section 15-135. A Tier 2 member who was in service on
or after January 1, 2025 is not subject to subsection (a-10) of
Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that

HB5909 - 442 - LRB103 43117 RPS 76377 b
transfer until the employee's next termination of service
with the University of Illinois.
(b) For a Tier 1 member or a Tier 2 member who was in
service on or after January 1, 2025, the retirement annuity
provided under Rules 1 and 3 above shall be reduced by 1/2 of
1% for each month the participant is under age 60 at the time
of retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(b-5) The retirement annuity of a Tier 2 member who was not
in service on or after January 1, 2025 and who is retiring
under Rule 1 or 3 after attaining age 62 with at least 10 years
of service credit shall be reduced by 1/2 of 1% for each full
month that the member's age is under age 67.

HB5909 - 443 - LRB103 43117 RPS 76377 b
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in his
or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during

HB5909 - 444 - LRB103 43117 RPS 76377 b
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.
(d-5) A retirement annuity of a Tier 2 member shall
receive annual increases on the January 1 occurring either on
or after the attainment of the retirement age applicable to
that Tier 2 member under this Article age 67 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one half 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

HB5909 - 445 - LRB103 43117 RPS 76377 b
shall not be increased.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the
retirement annuity shall be increased as of January 1, 1987,
or the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as

HB5909 - 446 - LRB103 43117 RPS 76377 b
defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢

HB5909 - 447 - LRB103 43117 RPS 76377 b
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory
Act of the 101st General Assembly apply retroactively to
January 1, 2011.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
Sec. 18-124. Retirement annuities; conditions annuities -
conditions for eligibility.
(a) This subsection (a) applies to a participant who first
serves as a judge before January 1, 2011 (the effective date of
Public Act 96-889) or a judge who serves as a judge on or after
January 1, 2025 this amendatory Act of the 96th General
Assembly.
A participant whose employment as a judge is terminated,
regardless of age or cause is entitled to a retirement annuity
beginning on the date specified in a written application
subject to the following:
(1) the date the annuity begins is subsequent to the
date of final termination of employment, or the date 30
days prior to the receipt of the application by the board
for annuities based on disability, or one year before the
receipt of the application by the board for annuities
based on attained age;
(2) the participant is at least age 55, or has become

HB5909 - 448 - LRB103 43117 RPS 76377 b
permanently disabled and as a consequence is unable to
perform the duties of his or her office;
(3) the participant has at least 10 years of service
credit except that a participant terminating service after
June 30 1975, with at least 6 years of service credit,
shall be entitled to a retirement annuity at age 62 or
over;
(4) the participant is not receiving or entitled to
receive, at the date of retirement, any salary from an
employer for service currently performed.
(b) This subsection (b) applies to a participant who first
serves as a judge on or after January 1, 2011 (the effective
date of Public Act 96-889) and who does not serve as a judge on
or after January 1, 2025 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.
(Source: P.A. 96-889, 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

HB5909 - 449 - LRB103 43117 RPS 76377 b
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.
Notwithstanding any other provision of this Article, a
retirement annuity for a participant who first serves as a
judge on or after January 1, 2011 (the effective date of Public
Act 96-889) shall be increased in January of the year next
following the year in which the first anniversary of
retirement occurs, but in no event prior to the retirement age
applicable to that judge under this Article 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 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

HB5909 - 450 - LRB103 43117 RPS 76377 b
the equivalent of one year's contribution based upon his or
her last year's salary.
This Section is applicable to all participants in service
after June 30, 1969 unless a participant has elected, prior to
September 1, 1969, in a written direction filed with the board
not to be subject to the provisions of this Section. Any
participant in service on or after July 1, 1992 shall have the
option of electing prior to April 1, 1993, in a written
direction filed with the board, to be covered by the
provisions of the 1969 amendatory Act. Such participant shall
be required to make the aforesaid additional contributions
with compound interest at 4% per annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge
after receiving a retirement annuity under this Article shall
have the amount of his or her retirement annuity increased by
3% of the originally granted annuity amount for each year of
such resumed service, beginning in January of the year next
following the date of such resumed service, upon subsequent
termination of such resumed service.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

HB5909 - 451 - LRB103 43117 RPS 76377 b
Article 3B.
Section 3B-5. The Illinois Pension Code is amended by
changing Section 1-160 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system, regardless
of when that reciprocal retirement system became a reciprocal
retirement system, or pension fund established under this
Code, other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this
Code, notwithstanding any other provision of this Code to the
contrary, but do not apply to any self-managed plan
established under this Code or to any participant of the
retirement plan established under Section 22-101; except that
this Section applies to a person who elected to establish
alternative credits by electing in writing after January 1,
2011, but before August 8, 2011, under Section 7-145.1 of this
Code. Notwithstanding anything to the contrary in this
Section, for purposes of this Section, a person who is a Tier 1
regular employee as defined in Section 7-109.4 of this Code or
who participated in a retirement system under Article 15 prior

HB5909 - 452 - LRB103 43117 RPS 76377 b
to January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a

HB5909 - 453 - LRB103 43117 RPS 76377 b
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".

HB5909 - 454 - LRB103 43117 RPS 76377 b
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be

HB5909 - 455 - LRB103 43117 RPS 76377 b
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.

HB5909 - 456 - LRB103 43117 RPS 76377 b
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,

HB5909 - 457 - LRB103 43117 RPS 76377 b
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month

HB5909 - 458 - LRB103 43117 RPS 76377 b
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall

HB5909 - 459 - LRB103 43117 RPS 76377 b
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in

HB5909 - 460 - LRB103 43117 RPS 76377 b
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage

HB5909 - 461 - LRB103 43117 RPS 76377 b
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the

HB5909 - 462 - LRB103 43117 RPS 76377 b
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of

HB5909 - 463 - LRB103 43117 RPS 76377 b
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of

HB5909 - 464 - LRB103 43117 RPS 76377 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.

HB5909 - 465 - LRB103 43117 RPS 76377 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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system, regardless
of when that reciprocal retirement system became a reciprocal
retirement system, or pension fund established under this
Code, other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this
Code, notwithstanding any other provision of this Code to the
contrary, but do not apply to any self-managed plan
established under this Code or to any participant of the
retirement plan established under Section 22-101; except that
this Section applies to a person who elected to establish
alternative credits by electing in writing after January 1,
2011, but before August 8, 2011, under Section 7-145.1 of this
Code. Notwithstanding anything to the contrary in this
Section, for purposes of this Section, a person who is a Tier 1

HB5909 - 466 - LRB103 43117 RPS 76377 b
regular employee as defined in Section 7-109.4 of this Code or
who participated in a retirement system under Article 15 prior
to January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits

HB5909 - 467 - LRB103 43117 RPS 76377 b
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".

HB5909 - 468 - LRB103 43117 RPS 76377 b
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or

HB5909 - 469 - LRB103 43117 RPS 76377 b
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the

HB5909 - 470 - LRB103 43117 RPS 76377 b
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise

HB5909 - 471 - LRB103 43117 RPS 76377 b
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

HB5909 - 472 - LRB103 43117 RPS 76377 b
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or

HB5909 - 473 - LRB103 43117 RPS 76377 b
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection

HB5909 - 474 - LRB103 43117 RPS 76377 b
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start

HB5909 - 475 - LRB103 43117 RPS 76377 b
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member

HB5909 - 476 - LRB103 43117 RPS 76377 b
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois

HB5909 - 477 - LRB103 43117 RPS 76377 b
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.

HB5909 - 478 - LRB103 43117 RPS 76377 b
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22; 103-529, eff. 8-11-23.)

HB5909 - 479 - LRB103 43117 RPS 76377 b
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system, regardless
of when that reciprocal retirement system became a reciprocal
retirement system, or pension fund established under this
Code, other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this
Code, notwithstanding any other provision of this Code to the
contrary, but do not apply to any self-managed plan
established under this Code or to any participant of the
retirement plan established under Section 22-101; except that
this Section applies to a person who elected to establish
alternative credits by electing in writing after January 1,
2011, but before August 8, 2011, under Section 7-145.1 of this
Code. Notwithstanding anything to the contrary in this
Section, for purposes of this Section, a person who is a Tier 1
regular employee as defined in Section 7-109.4 of this Code or
who participated in a retirement system under Article 15 prior
to January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be

HB5909 - 480 - LRB103 43117 RPS 76377 b
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under

HB5909 - 481 - LRB103 43117 RPS 76377 b
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom

HB5909 - 482 - LRB103 43117 RPS 76377 b
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.

HB5909 - 483 - LRB103 43117 RPS 76377 b
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the

HB5909 - 484 - LRB103 43117 RPS 76377 b
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years

HB5909 - 485 - LRB103 43117 RPS 76377 b
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection

HB5909 - 486 - LRB103 43117 RPS 76377 b
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of

HB5909 - 487 - LRB103 43117 RPS 76377 b
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made

HB5909 - 488 - LRB103 43117 RPS 76377 b
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the

HB5909 - 489 - LRB103 43117 RPS 76377 b
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each

HB5909 - 490 - LRB103 43117 RPS 76377 b
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity

HB5909 - 491 - LRB103 43117 RPS 76377 b
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then

HB5909 - 492 - LRB103 43117 RPS 76377 b
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
Article 4.
Section 4-5. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.55 as follows:

HB5909 - 493 - LRB103 43117 RPS 76377 b
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; accelerated pension
benefit payments. To provide for the expeditious and timely
implementation of accelerated pension benefit payments under
Articles 2 and 18 of the Illinois Pension Code, emergency
rules implementing the accelerated pension benefit payments
under Article 2 may be adopted in accordance with Section 5-45
by the Board of Trustees established under Article 2 of the
Illinois Pension Code and emergency rules implementing the
accelerated pension benefit payments under Article 18 may be
adopted in accordance with Section 5-45 by the Board of
Trustees established under Article 18 of the Illinois Pension
Code. The adoption of emergency rules authorized by Section
5-45 and this Section is deemed to be necessary for the public
interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
Section 4-15. The Illinois Pension Code is amended by
adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11,
18-161.5, and 18-161.6 as follows:
(40 ILCS 5/2-154.5 new)
Sec. 2-154.5. Accelerated pension benefit payment in lieu
of any pension benefit.
(a) As used in this Section:

HB5909 - 494 - LRB103 43117 RPS 76377 b
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a retirement annuity under this
Article;
(3) has not received any retirement annuity under this
Article; and
(4) has not made the election under Section 2-154.6.
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable
survivor's or disability benefits.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the System shall
calculate, using actuarial tables and other assumptions
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the
System to be equal to 60% of the present value of his or her
pension benefits in lieu of receiving any pension benefit. The
offer shall specify the dollar amount that the eligible person
will receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar

HB5909 - 495 - LRB103 43117 RPS 76377 b
year. The System shall make a good faith effort to contact
every eligible person to notify him or her of the election.
Until January 1, 2030, an eligible person may irrevocably
elect to receive an accelerated pension benefit payment in the
amount that the System offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other benefit; except that to the extent that
participation, benefits, or premiums under the State Employees
Group Insurance Act of 1971 are based on the amount of service
credit, the terminated service credit shall be used for that
purpose.
(d) If a person who has received an accelerated pension
benefit payment under this Section returns to active service
under this Article, then:
(1) Any benefits under the System earned as a result
of that return to active service shall be based solely on
the person's creditable service arising from the return to
active service.

HB5909 - 496 - LRB103 43117 RPS 76377 b
(2) The accelerated pension benefit payment may not be
repaid to the System, and the terminated creditable
service may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(g) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.

HB5909 - 497 - LRB103 43117 RPS 76377 b
(40 ILCS 5/2-154.6 new)
Sec. 2-154.6. Accelerated pension benefit payment for a
reduction in annual retirement annuity and survivor's annuity
increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 participant's
retirement annuity and survivor's annuity using the formula
applicable to the Tier 1 participant and the present value of
the automatic annual increases to the Tier 1 participant's
retirement annuity using the formula provided under subsection
(b-5) and survivor's annuity using the formula provided under
subsection (b-6).
"Eligible person" means a person who:
(1) is a Tier 1 participant;
(2) has submitted an application for a retirement
annuity under this Article;
(3) meets the age and service requirements for
receiving a retirement annuity under this Article;
(4) has not received any retirement annuity under this
Article; and
(5) has not made the election under Section 2-154.5.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until January

HB5909 - 498 - LRB103 43117 RPS 76377 b
1, 2030, the System shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the System shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in retirement
annuity calculated in accordance with the formula provided
under subsection (b-5) and any increases in survivor's annuity
payable to his or her survivor's annuity beneficiary
calculated in accordance with the formula provided under
subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of
a retirement annuity otherwise payable under this Article.
(b-5) Notwithstanding any other provision of law, the
retirement annuity of a person who made the election under
subsection (b) shall be subject to annual increases on the
January 1 occurring either on or after the attainment of age 67
or the first anniversary of the annuity start date, whichever
is later. Each annual increase shall be calculated at 1.5% of
the originally granted retirement annuity.
(b-6) Notwithstanding any other provision of law, a
survivor's annuity payable to a survivor's annuity beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or

HB5909 - 499 - LRB103 43117 RPS 76377 b
after the first anniversary of the commencement of the
annuity. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's annuity.
(c) If a person who has received an accelerated pension
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in retirement annuity shall be calculated in
accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the System.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(d-5) Upon receipt of a participant's irrevocable election
to receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the participant's accelerated pension benefit

HB5909 - 500 - LRB103 43117 RPS 76377 b
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
(40 ILCS 5/17-156.10 new)
Sec. 17-156.10. Accelerated pension benefit payment in
lieu of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a service retirement pension under
this Article;
(3) has not received any service retirement pension
under this Article; and
(4) has not made the election under Section 17-156.11.
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable

HB5909 - 501 - LRB103 43117 RPS 76377 b
survivor's pensions, duty disability pensions, and disability
retirement pensions.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the Fund shall
calculate, using actuarial tables and other assumptions
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the Fund
to be equal to 60% of the present value of his or her pension
benefits in lieu of receiving any pension benefit. The offer
shall specify the dollar amount that the eligible person will
receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar
year. The Fund shall make a good faith effort to contact every
eligible person to notify him or her of the election. Until
January 1, 2030, an eligible person may irrevocably elect to
receive an accelerated pension benefit payment in the amount
that the Fund offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated

HB5909 - 502 - LRB103 43117 RPS 76377 b
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other pension benefit; except that to the extent
that participation, benefits, or premiums under the State
Employees Group Insurance Act of 1971 are based on the amount
of service credit, the terminated service credit shall be used
for that purpose.
(d) If a person who has received an accelerated pension
benefit payment under this Section returns to active service
under this Article, then:
(1) Any benefits under the Fund earned as a result of
that return to active service shall be based solely on the
person's creditable service arising from the return to
active service.
(2) The accelerated pension benefit payment may not be
repaid to the Fund, and the terminated creditable service
may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the Fund to pay all of that payment as a

HB5909 - 503 - LRB103 43117 RPS 76377 b
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the Fund shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the Fund, and the Fund
shall transfer the amount into the member's eligible
retirement plan or qualified account.
(g) The Board shall adopt any rules necessary to implement
this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan
under the Internal Revenue Code of 1986.
(40 ILCS 5/17-156.11 new)
Sec. 17-156.11. Accelerated pension benefit payment for a
reduction in annual service retirement pension and survivor's
pension increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 member's service
retirement pension and survivor's pension using the formula
applicable to the Tier 1 member and the present value of the

HB5909 - 504 - LRB103 43117 RPS 76377 b
automatic annual increases to the Tier 1 member's service
retirement pension using the formula provided under subsection
(b-5) and survivor's pension using the formula provided under
subsection (b-6).
"Eligible person" means a person who:
(1) is a Tier 1 member;
(2) has submitted an application for a service
retirement pension under this Article;
(3) meets the age and service requirements for
receiving a service retirement pension under this Article;
(4) has not received any service retirement pension
under this Article; and
(5) has not made the election under Section 17-156.10.
"Tier 1 member" means a person who first became a member
before January 1, 2011.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until January
1, 2030, the Fund shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the Fund shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in service
retirement pension calculated in accordance with the formula
provided under subsection (b-5) and any increases in

HB5909 - 505 - LRB103 43117 RPS 76377 b
survivor's pension payable to his or her survivor's pension
beneficiary calculated in accordance with the formula provided
under subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of
a service retirement pension otherwise payable under this
Article.
(b-5) Notwithstanding any other provision of law, the
service retirement pension of a person who made the election
under subsection (b) shall be subject to annual increases on
the January 1 occurring either on or after the attainment of
age 67 or the first anniversary of the pension start date,
whichever is later. Each annual increase shall be calculated
at 1.5% of the originally granted service retirement pension.
(b-6) Notwithstanding any other provision of law, a
survivor's pension payable to a survivor's pension beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or
after the first anniversary of the commencement of the
pension. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's pension.
(c) If a person who has received an accelerated pension
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in service retirement pension shall be calculated

HB5909 - 506 - LRB103 43117 RPS 76377 b
in accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the Fund.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the Fund to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(d-5) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the Fund shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the Fund, and the Fund
shall transfer the amount into the member's eligible
retirement plan or qualified account.
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan

HB5909 - 507 - LRB103 43117 RPS 76377 b
under the Internal Revenue Code of 1986.
(40 ILCS 5/18-161.5 new)
Sec. 18-161.5. Accelerated pension benefit payment in lieu
of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be
eligible to receive a retirement annuity under this
Article;
(3) has not received any retirement annuity under this
Article; and
(4) has not made the election under Section 18-161.6.
"Pension benefit" means the benefits under this Article,
including any anticipated annual increases, that an eligible
person is entitled to upon attainment of the applicable
retirement age. "Pension benefit" also includes applicable
survivor's or disability benefits.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly, the System shall
calculate, using actuarial tables and other assumptions
adopted by the Board, the present value of pension benefits
for each eligible person who requests that information and
shall offer each eligible person the opportunity to
irrevocably elect to receive an amount determined by the

HB5909 - 508 - LRB103 43117 RPS 76377 b
System to be equal to 60% of the present value of his or her
pension benefits in lieu of receiving any pension benefit. The
offer shall specify the dollar amount that the eligible person
will receive if he or she so elects and shall expire when a
subsequent offer is made to an eligible person. An eligible
person is limited to one calculation and offer per calendar
year. The System shall make a good faith effort to contact
every eligible person to notify him or her of the election.
Until January 1, 2030, an eligible person may irrevocably
elect to receive an accelerated pension benefit payment in the
amount that the System offers under this subsection in lieu of
receiving any pension benefit. A person who elects to receive
an accelerated pension benefit payment under this Section may
not elect to proceed under the Retirement Systems Reciprocal
Act with respect to service under this Article.
(c) A person's creditable service under this Article shall
be terminated upon the person's receipt of an accelerated
pension benefit payment under this Section, and no other
benefit shall be paid under this Article based on the
terminated creditable service, including any retirement,
survivor, or other benefit; except that to the extent that
participation, benefits, or premiums under the State Employees
Group Insurance Act of 1971 are based on the amount of service
credit, the terminated service credit shall be used for that
purpose.
(d) If a person who has received an accelerated pension

HB5909 - 509 - LRB103 43117 RPS 76377 b
benefit payment under this Section returns to active service
under this Article, then:
(1) Any benefits under the System earned as a result
of that return to active service shall be based solely on
the person's creditable service arising from the return to
active service.
(2) The accelerated pension benefit payment may not be
repaid to the System, and the terminated creditable
service may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(f) Upon receipt of a member's irrevocable election to
receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the member's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible

HB5909 - 510 - LRB103 43117 RPS 76377 b
retirement plan or qualified account.
(g) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(h) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
(40 ILCS 5/18-161.6 new)
Sec. 18-161.6. Accelerated pension benefit payment for a
reduction in annual retirement annuity and survivor's annuity
increases.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum
payment equal to 70% of the difference of the present value of
the automatic annual increases to a Tier 1 participant's
retirement annuity and survivor's annuity using the formula
applicable to the Tier 1 participant and the present value of
the automatic annual increases to the Tier 1 participant's
retirement annuity using the formula provided under subsection
(b-5) and survivor's annuity using the formula provided under
subsection (b-6).
"Eligible person" means a person who:
(1) is a Tier 1 participant;
(2) has submitted an application for a retirement
annuity under this Article;
(3) meets the age and service requirements for

HB5909 - 511 - LRB103 43117 RPS 76377 b
receiving a retirement annuity under this Article;
(4) has not received any retirement annuity under this
Article; and
(5) has not made the election under Section 18-161.5.
"Tier 1 participant" means a person who first became a
participant before January 1, 2011.
(b) As soon as practical after the effective date of this
amendatory Act of the 103rd General Assembly and until January
1, 2030, the System shall implement an accelerated pension
benefit payment option for eligible persons. Upon the request
of an eligible person, the System shall calculate, using
actuarial tables and other assumptions adopted by the Board,
an accelerated pension benefit payment amount and shall offer
that eligible person the opportunity to irrevocably elect to
have his or her automatic annual increases in retirement
annuity calculated in accordance with the formula provided
under subsection (b-5) and any increases in survivor's annuity
payable to his or her survivor's annuity beneficiary
calculated in accordance with the formula provided under
subsection (b-6) in exchange for the accelerated pension
benefit payment. The election under this subsection must be
made before the eligible person receives the first payment of
a retirement annuity otherwise payable under this Article.
(b-5) Notwithstanding any other provision of law, the
retirement annuity of a person who made the election under
subsection (b) shall be subject to annual increases on the

HB5909 - 512 - LRB103 43117 RPS 76377 b
January 1 occurring either on or after the attainment of age 67
or the first anniversary of the annuity start date, whichever
is later. Each annual increase shall be calculated at 1.5% of
the originally granted retirement annuity.
(b-6) Notwithstanding any other provision of law, a
survivor's annuity payable to a survivor's annuity beneficiary
of a person who made the election under subsection (b) shall be
subject to annual increases on the January 1 occurring on or
after the first anniversary of the commencement of the
annuity. Each annual increase shall be calculated at 1.5% of
the originally granted survivor's annuity.
(c) If a person who has received an accelerated pension
benefit payment returns to active service under this Article,
then:
(1) the calculation of any future automatic annual
increase in retirement annuity shall be calculated in
accordance with the formula provided under subsection
(b-5); and
(2) the accelerated pension benefit payment may not be
repaid to the System.
(d) As a condition of receiving an accelerated pension
benefit payment, the accelerated pension benefit payment must
be transferred into a tax qualified retirement plan or
account. The accelerated pension benefit payment under this
Section may be subject to withholding or payment of applicable
taxes, but to the extent permitted by federal law, a person who

HB5909 - 513 - LRB103 43117 RPS 76377 b
receives an accelerated pension benefit payment under this
Section must direct the System to pay all of that payment as a
rollover into another retirement plan or account qualified
under the Internal Revenue Code of 1986, as amended.
(d-5) Upon receipt of a participant's irrevocable election
to receive an accelerated pension benefit payment under this
Section, the System shall submit a voucher to the Comptroller
for payment of the participant's accelerated pension benefit
payment. The Comptroller shall transfer the amount of the
voucher from the General Revenue Fund to the System, and the
System shall transfer the amount into the member's eligible
retirement plan or qualified account.
(e) The Board shall adopt any rules, including emergency
rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a
way that would cause the applicable System to cease to be a
qualified plan under the Internal Revenue Code of 1986.
Article 5.
Section 5-5. The Illinois Pension Code is amended by
adding Sections 3-144.3, 4-138.15, 5-240, and 6-232 as
follows:
(40 ILCS 5/3-144.3 new)
Sec. 3-144.3. Retirement Systems Reciprocal Act. The

HB5909 - 514 - LRB103 43117 RPS 76377 b
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/4-138.15 new)
Sec. 4-138.15. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/5-240 new)
Sec. 5-240. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect

HB5909 - 515 - LRB103 43117 RPS 76377 b
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/6-232 new)
Sec. 6-232. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
Article 7.
Section 7-5. The Illinois Pension Code is amended by
changing Section 7-109.3 as follows:
(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)

HB5909 - 516 - LRB103 43117 RPS 76377 b
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" or "SLEP" means:
(1) A county sheriff and all deputies, other than
special deputies, employed on a full time basis in the
office of the sheriff.
(2) A person who has elected to participate in this
Fund under Section 3-109.1 of this Code, and who is
employed by a participating municipality to perform police
duties.
(3) A law enforcement officer employed on a full time
basis by a Forest Preserve District, provided that such
officer shall be deemed a "sheriff's law enforcement
employee" for the purposes of this Article, and service in
that capacity shall be deemed to be service as a sheriff's
law enforcement employee, only if the board of
commissioners of the District have so elected by adoption
of an affirmative resolution. Such election, once made,
may not be rescinded.
(4) A person not eligible to participate in a fund
established under Article 3 of this Code who is employed
on a full-time basis by a participating municipality or
participating instrumentality to perform police duties at
an airport, but only if the governing authority of the
employer has approved sheriff's law enforcement employee
status for its airport police employees by adoption of an
affirmative resolution. Such approval, once given, may not

HB5909 - 517 - LRB103 43117 RPS 76377 b
be rescinded.
(5) A person first hired on or after January 1, 2011
who (i) is employed by a participating municipality that
has both 30 or more full-time police officers and 50 or
more full-time firefighters and has not established a fund
under Article 3 or Article 4 of this Code and (ii) is
employed on a full-time basis by that participating
municipality to perform police duties or firefighting and
EMS duties; but only if the governing authority of that
municipality has approved sheriff's law enforcement
employee status for its police officer or firefighter
employees by adoption of an affirmative resolution. The
resolution must specify that SLEP status shall be
applicable to such employment occurring on or after the
adoption of the resolution. Such resolution shall be
irrevocable, but shall automatically terminate upon the
establishment of an Article 3 or 4 fund by the
municipality.
(6) A person who is a county correctional officer or
probation officer.
(7) A person who participates in the Fund and
qualifies as a firefighter, as defined in Section 3 of the
Public Safety Employee Benefits Act.
(8) A person who is a sworn law enforcement officer
for a municipal employer that has not established a
pension fund under Article 3.

HB5909 - 518 - LRB103 43117 RPS 76377 b
(b) An employee who is a sheriff's law enforcement
employee and is granted military leave or authorized leave of
absence shall receive service credit in that capacity.
Sheriff's law enforcement employees shall not be entitled to
out-of-State service credit under Section 7-139.
(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)
Article 8.
Section 8-5. The Illinois Pension Code is amended by
changing Section 4-106 as follows:
(40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
Sec. 4-106. Firefighter, firefighters. "Firefighter,
firefighters":
(a) In municipalities which have adopted Division 1 of
Article 10 of the Illinois Municipal Code, any person employed
in the municipality's fire service as a firefighter, fire
engineer, marine engineer, fire pilot, bomb technician or
scuba diver; and in any of these positions where such person's
duties also include those of a firefighter as classified by
the Civil Service Commission of that city, and whose duty is to
participate in the work of controlling and extinguishing fires
at the location of any such fires.
(b) In municipalities which are subject to Division 2.1 of
Article 10 of the Illinois Municipal Code, any person employed

HB5909 - 519 - LRB103 43117 RPS 76377 b
by a city in its fire service as a firefighter, fire engineer,
marine engineer, fire pilot, bomb technician, or scuba diver;
and, in any of these positions whose duties also include those
of a firefighter and are certified in the same manner as a
firefighter in that city.
(c) Any person employed in a municipality's or fire
protection district's fire service as a de facto firefighter.
In this definition, "de facto firefighter" means a
firefighter:
(1) who spends a majority of the firefighter's working
time participating in the work of controlling and
extinguishing fires at the location of any such fires,
preparing for such work or waiting to respond to such
calls for work; and
(2) whose scheduled or actual work hours are
commensurate in duration and frequency with firefighters
who are subject to Division 1 or Division 2.1 of Article 10
of the Illinois Municipal Code.
"De facto firefighter" does not include part-time
firefighters who are not covered under this Section;
auxiliary, reserve, or voluntary firefighters, including
paid-on-call firefighters; and clerks, dispatchers, or other
civilian employees of a fire department or fire protection
district who are not routinely expected to perform firefighter
duties. In municipalities which are subject to neither
Division 1 nor Division 2.1 of Article 10 of the Illinois

HB5909 - 520 - LRB103 43117 RPS 76377 b
Municipal Code, any person who would have been included as a
firefighter under sub-paragraph (a) or (b) above except that
he served as a de facto and not as a de jure firefighter.
(d) Notwithstanding the other provisions of this Section,
"firefighter" does not include any person who is actively
participating in the State Universities Retirement System
under subsection (h) of Section 15-107 with respect to the
employment for which he or she is a participating employee in
that System.
(e) This amendatory Act of 1977 does not affect persons
covered by this Article prior to September 22, 1977.
The changes made to this Section by this amendatory Act of
the 103rd General Assembly do not affect persons covered by
this Article before the effective date of this amendatory Act
of the 103rd General Assembly.
(Source: P.A. 90-576, eff. 3-31-98.)
Article 9.
Section 9-5. The Illinois Pension Code is amended by
changing Section 4-109.1 as follows:
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and

HB5909 - 521 - LRB103 43117 RPS 76377 b
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each
year the firefighter received pension payments. In each
January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of

HB5909 - 522 - LRB103 43117 RPS 76377 b
the annual increase shall be 3%. Notwithstanding any other
provision of this Article, this subsection applies to a
firefighter regardless of whether that firefighter first
became a firefighter on or after January 1, 2011.
Notwithstanding Section 1-103.1, the changes made to this
Section apply without regard to whether the firefighter is in
service on or after the effective date of this amendatory Act
of the 103rd General Assembly.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor

HB5909 - 523 - LRB103 43117 RPS 76377 b
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary

HB5909 - 524 - LRB103 43117 RPS 76377 b
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or

HB5909 - 525 - LRB103 43117 RPS 76377 b
after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase
shall be calculated at 3% or one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
Article 10.
Section 10-5. The Illinois Pension Code is amended by
changing Section 4-109.2 as follows:

HB5909 - 526 - LRB103 43117 RPS 76377 b
(40 ILCS 5/4-109.2) (from Ch. 108 1/2, par. 4-109.2)
Sec. 4-109.2. Minimum pension.
(a) Beginning January 1, 1984, the minimum disability
pension granted under Section 4-110 or 4-111, the minimum
surviving spouse's pension, and the minimum retirement pension
granted to a firefighter with 20 or more years of creditable
service, shall be $300 per month, without regard to whether
the death, disability or retirement of the firefighter
occurred prior to that date.
Beginning July 1, 1987, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110 or 4-111, and the minimum surviving spouse's pension
shall be $400 per month, without regard to whether the death,
retirement or disability of the firefighter occurred prior to
that date.
Beginning July 1, 1993, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service and the minimum surviving spouse's pension shall be
$475 per month, without regard to whether the firefighter was
in service on or after the effective date of this amendatory
Act of 1993.
(b) Beginning January 1, 1999, the minimum retirement
pension payable to a firefighter with 20 or more years of
creditable service, the minimum disability pension payable

HB5909 - 527 - LRB103 43117 RPS 76377 b
under Section 4-110, 4-110.1, or 4-111, and the minimum
surviving spouse's pension shall be $600 per month, without
regard to whether the firefighter was in service on or after
the effective date of this amendatory Act of the 91st General
Assembly.
In the case of a pensioner whose pension began before the
effective date of this amendatory Act and is subject to
increase under this subsection (b), the pensioner shall be
entitled to a lump sum payment of the amount of that increase
accruing from January 1, 1999 (or the date the pension began,
if later) to the effective date of this amendatory Act.
(c) Beginning January 1, 2000, the minimum retirement
pension payable to a firefighter with 20 or more years of
creditable service, the minimum disability pension payable
under Section 4-110, 4-110.1, or 4-111, and the minimum
surviving spouse's pension shall be $800 per month, without
regard to whether the firefighter was in service on or after
the effective date of this amendatory Act of the 91st General
Assembly.
(d) Beginning January 1, 2001, the minimum retirement
pension payable to a firefighter with 20 or more years of
creditable service, the minimum disability pension payable
under Section 4-110, 4-110.1, or 4-111, and the minimum
surviving spouse's pension shall be $1000 per month, without
regard to whether the firefighter was in service on or after
the effective date of this amendatory Act of the 91st General

HB5909 - 528 - LRB103 43117 RPS 76377 b
Assembly.
(e) Beginning July 1, 2004, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be $1030 per month, without regard to whether
the firefighter was in service on or after the effective date
of this amendatory Act of the 93rd General Assembly.
(f) Beginning July 1, 2005, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be $1060.90 per month, without regard to whether
the firefighter was in service on or after the effective date
of this amendatory Act of the 93rd General Assembly.
(g) Beginning July 1, 2006, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be $1092.73 per month, without regard to whether
the firefighter was in service on or after the effective date
of this amendatory Act of the 93rd General Assembly.
(h) Beginning July 1, 2007, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's

HB5909 - 529 - LRB103 43117 RPS 76377 b
pension shall be $1125.51 per month, without regard to whether
the firefighter was in service on or after the effective date
of this amendatory Act of the 93rd General Assembly.
(i) Beginning July 1, 2008, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be $1159.27 per month, without regard to whether
the firefighter was in service on or after the effective date
of this amendatory Act of the 93rd General Assembly.
(j) Beginning July 1, 2025, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be $1,822.50 per month, without regard to
whether the firefighter was in service on or after the
effective date of this amendatory Act of the 103rd General
Assembly. A one-time payment of $62,471.40 shall be paid to
each active member or participant subject to the minimum
retirement pension adjustment in this subsection.
(k) Beginning July 1, 2026, the minimum retirement pension
payable to a firefighter with 20 or more years of creditable
service, the minimum disability pension payable under Section
4-110, 4-110.1, or 4-111, and the minimum surviving spouse's
pension shall be no less than 150% of the federal poverty level
for all persons receiving annuities on or after that date

HB5909 - 530 - LRB103 43117 RPS 76377 b
without regard to whether the firefighter was in service on or
after the effective date of this amendatory Act of the 103rd
General Assembly.
(l) For purposes of this Section, "federal poverty level"
means the poverty guidelines applicable to an individual in a
single-person household located in Illinois, as updated
periodically in the Federal Register by the United States
Department of Health and Human Services under the authority of
42 U.S.C. 9902(2).
(Source: P.A. 93-689, eff. 7-1-04.)
Article 11.
Section 11-5. The Illinois Pension Code is amended by
changing Sections 1-160, 8-174, 11-170, and 12-150 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any

HB5909 - 531 - LRB103 43117 RPS 76377 b
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the

HB5909 - 532 - LRB103 43117 RPS 76377 b
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section

HB5909 - 533 - LRB103 43117 RPS 76377 b
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)

HB5909 - 534 - LRB103 43117 RPS 76377 b
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the

HB5909 - 535 - LRB103 43117 RPS 76377 b
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement

HB5909 - 536 - LRB103 43117 RPS 76377 b
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) (Blank). A person who first becomes a member or a
participant subject to this Section on or after July 6, 2017
(the effective date of Public Act 100-23), notwithstanding any
other provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,

HB5909 - 537 - LRB103 43117 RPS 76377 b
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) (Blank). The retirement annuity payable under
Article 8 or Article 11 to an eligible person subject to
subsection (c-5) of this Section who is retiring at age 60 with
at least 10 years of service credit shall be reduced by
one-half of 1% for each full month that the member's age is
under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:

HB5909 - 538 - LRB103 43117 RPS 76377 b
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election, except that an election
made under this subsection is rescinded by operation of law
and such person is subject to the provisions otherwise
applicable to a participant who first became a participant
under Article 8 or Article 11 on or after January 1, 2011. A
person subject to this subsection who fails for any reason to
make the required election within the time specified in this

HB5909 - 539 - LRB103 43117 RPS 76377 b
subsection shall be deemed to have made the election under
item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election, except that an election made under
this subsection is rescinded by operation of law and such
person is subject to the provisions otherwise applicable to a
participant who first became a participant under Article 12 on

HB5909 - 540 - LRB103 43117 RPS 76377 b
or after January 1, 2011. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.

HB5909 - 541 - LRB103 43117 RPS 76377 b
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a

HB5909 - 542 - LRB103 43117 RPS 76377 b
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,

HB5909 - 543 - LRB103 43117 RPS 76377 b
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.

HB5909 - 544 - LRB103 43117 RPS 76377 b
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22; 103-529, eff. 8-11-23.)

HB5909 - 545 - LRB103 43117 RPS 76377 b
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of

HB5909 - 546 - LRB103 43117 RPS 76377 b
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise

HB5909 - 547 - LRB103 43117 RPS 76377 b
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the

HB5909 - 548 - LRB103 43117 RPS 76377 b
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of

HB5909 - 549 - LRB103 43117 RPS 76377 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.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal

HB5909 - 550 - LRB103 43117 RPS 76377 b
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive

HB5909 - 551 - LRB103 43117 RPS 76377 b
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) (Blank). A person who first becomes a member or a
participant subject to this Section on or after July 6, 2017
(the effective date of Public Act 100-23), notwithstanding any
other provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) (Blank). The retirement annuity payable under

HB5909 - 552 - LRB103 43117 RPS 76377 b
Article 8 or Article 11 to an eligible person subject to
subsection (c-5) of this Section who is retiring at age 60 with
at least 10 years of service credit shall be reduced by
one-half of 1% for each full month that the member's age is
under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).

HB5909 - 553 - LRB103 43117 RPS 76377 b
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election, except that an election
made under this subsection is rescinded by operation of law
and such person is subject to the provisions otherwise
applicable to a participant who first became a participant
under Article 8 or Article 11 on or after January 1, 2011. A
person subject to this subsection who fails for any reason to
make the required election within the time specified in this
subsection shall be deemed to have made the election under
item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be

HB5909 - 554 - LRB103 43117 RPS 76377 b
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election, except that an election made under
this subsection is rescinded by operation of law and such
person is subject to the provisions otherwise applicable to a
participant who first became a participant under Article 12 on
or after January 1, 2011. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of

HB5909 - 555 - LRB103 43117 RPS 76377 b
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or

HB5909 - 556 - LRB103 43117 RPS 76377 b
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,

HB5909 - 557 - LRB103 43117 RPS 76377 b
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the

HB5909 - 558 - LRB103 43117 RPS 76377 b
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.

HB5909 - 559 - LRB103 43117 RPS 76377 b
5-13-22; 103-529, eff. 8-11-23.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective

HB5909 - 560 - LRB103 43117 RPS 76377 b
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.

HB5909 - 561 - LRB103 43117 RPS 76377 b
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the

HB5909 - 562 - LRB103 43117 RPS 76377 b
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"

HB5909 - 563 - LRB103 43117 RPS 76377 b
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of

HB5909 - 564 - LRB103 43117 RPS 76377 b
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the

HB5909 - 565 - LRB103 43117 RPS 76377 b
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) (Blank). A person who first becomes a member or a
participant subject to this Section on or after July 6, 2017
(the effective date of Public Act 100-23), notwithstanding any
other provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).

HB5909 - 566 - LRB103 43117 RPS 76377 b
(d-5) (Blank). The retirement annuity payable under
Article 8 or Article 11 to an eligible person subject to
subsection (c-5) of this Section who is retiring at age 60 with
at least 10 years of service credit shall be reduced by
one-half of 1% for each full month that the member's age is
under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of

HB5909 - 567 - LRB103 43117 RPS 76377 b
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election, except that an election
made under this subsection is rescinded by operation of law
and such person is subject to the provisions otherwise
applicable to a participant who first became a participant
under Article 8 or Article 11 on or after January 1, 2011. A
person subject to this subsection who fails for any reason to
make the required election within the time specified in this
subsection shall be deemed to have made the election under
item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in

HB5909 - 568 - LRB103 43117 RPS 76377 b
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election, except that an election made under
this subsection is rescinded by operation of law and such
person is subject to the provisions otherwise applicable to a
participant who first became a participant under Article 12 on
or after January 1, 2011. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or

HB5909 - 569 - LRB103 43117 RPS 76377 b
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the

HB5909 - 570 - LRB103 43117 RPS 76377 b
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an

HB5909 - 571 - LRB103 43117 RPS 76377 b
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement

HB5909 - 572 - LRB103 43117 RPS 76377 b
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.

HB5909 - 573 - LRB103 43117 RPS 76377 b
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)
(40 ILCS 5/8-174) (from Ch. 108 1/2, par. 8-174)
Sec. 8-174. Contributions for age and service annuities
for present employees and future entrants.
(a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953, and prior to January
1, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each
payment of the salary of each present employee and future
entrant, except as provided in subsection (a-5) and (a-10),
shall be contributed to the fund as a deduction from salary for
age and service annuity.
(a-5) Except as provided in subsection (a-10), for an
employee who made the election under item (i) of subsection
(d-10) of Section 1-160: prior to the effective date of this
amendatory Act of the 100th General Assembly, 6.5%; and
beginning on the effective date of this amendatory Act of the
100th General Assembly and prior to January 1, 2018, 7.5%; and
beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the election under
item (i) of subsection (d-10) of Section 1-160 shall be the
lesser of: (i) the total normal cost, calculated using the

HB5909 - 574 - LRB103 43117 RPS 76377 b
entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who
first became members or participants on or after the effective
date of this amendatory Act of the 100th General Assembly and
to those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee
contributions provided for in subsection (b) of Section 8-137
and Section 8-182 of this Article; or (ii) the aggregate
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for
in subsection (b) of Section 8-137 and 8-182 of this Article.
For the one-year period beginning with the first pay
period in January of each year after the date when the funded
ratio of the fund as determined in the annual actuarial
valuation is first determined to have reached the 90% funding
goal, and each subsequent one-year period thereafter for as
long as the fund maintains a funding ratio of 75% or more,
employee contributions for age and service annuity for those
employees who made the election under item (i) of subsection
(d-10) of Section 1-160 shall be 5.5% of each payment of
salary. If the funding ratio falls below 75%, then employee
contributions for age and service annuity for those employees
who made the election under item (i) of subsection (d-10)
shall revert to the lesser of: (A) the total normal cost,

HB5909 - 575 - LRB103 43117 RPS 76377 b
calculated using the entry age normal actuarial method,
projected for the prior fiscal year for the benefits and
expenses of the plan of benefits applicable to those members
and participants who first became members or participants on
or after the effective date of this amendatory Act of the 100th
General Assembly and to those employees who made the election
under item (i) of subsection (d-10) of Section 1-160, but not
less than 6.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 8-137 and Section 8-182 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 8-137 and 8-182 of
this Article. If the fund once again is determined to have
reached a funding ratio of 75%, the 5.5% of salary
contribution for age and service annuity shall resume. An
employee who made the election under item (ii) of subsection
(d-10) of Section 1-160 shall continue to have the
contributions for age and service annuity determined under
subsection (a) of this Section.
If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for that fiscal year.
The normal cost, for the purposes of this subsection (a-5)

HB5909 - 576 - LRB103 43117 RPS 76377 b
and subsection (a-10), shall be calculated by an independent
enrolled actuary mutually agreed upon by the fund and the
City. The fees and expenses of the independent actuary shall
be the responsibility of the City. For purposes of this
subsection (a-5), the fund and the City shall both be
considered to be the clients of the actuary, and the actuary
shall utilize participant data and actuarial standards to
calculate the normal cost. The fund shall provide information
that the actuary requests in order to calculate the applicable
normal cost.
(a-10) For each employee subject to subsection (c-5) of
Section 1-160, 9.5% of each payment of salary shall be
contributed to the fund as a deduction from salary for age and
service annuity. Beginning January 1, 2018 and each year
thereafter, employee contributions for each employee subject
to this subsection (a-10) shall be the lesser of: (i) the total
normal cost, calculated using the entry age normal actuarial
method, projected for the prior fiscal year for the benefits
and expenses of the plan of benefits applicable to those
members and participants who first become members or
participants on or after the effective date of this amendatory
Act of the 100th General Assembly and to those employees who
made the election under item (i) of subsection (d-10) of
Section 1-160, but not less than 6.5% of each payment of salary
combined with the employee contributions provided for in
subsection (b) of Section 8-137 and Section 8-182 of this

HB5909 - 577 - LRB103 43117 RPS 76377 b
Article; or (ii) the aggregate employee contribution
consisting of 9.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of
Section 8-137 and Section 8-182 of this Article.
For the one-year period beginning with the first pay
period in January of each year after the date when the funded
ratio of the fund as determined in the annual actuarial
valuation is first determined to have reached the 90% funding
goal, and each subsequent one-year period thereafter for as
long as the fund maintains a funding ratio of 75% or more,
employee contributions for age and service annuity for each
employee subject to this subsection (a-10) shall be 5.5% of
each payment of salary. If the funding ratio falls below 75%,
then employee contributions for age and service annuity for
each employee subject to this subsection (a-10) shall revert
to the lesser of: (A) the total normal cost, calculated using
the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who
first become members or participants on or after the effective
date of this amendatory Act of the 100th General Assembly and
to those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee
contributions provided for in subsection (b) of Section 8-137
and Section 8-182 of this Article; or (B) the aggregate

HB5909 - 578 - LRB103 43117 RPS 76377 b
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for
in subsection (b) of Section 8-137 and Section 8-182 of this
Article. If the fund once again is determined to have reached a
funding ratio of 75%, the 5.5% of salary contribution for age
and service annuity shall resume.
If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for that fiscal year.
Such deductions beginning on the effective date and prior
to July 1, 1947 shall be made for a future entrant while he is
in the service until he attains age 65 and for a present
employee while he is in the service until the amount so
deducted from his salary with the amount deducted from his
salary or paid by him according to law to any municipal pension
fund in force on the effective date with interest on both such
amounts at 4% per annum equals the sum that would have been to
his credit from sums deducted from his salary if deductions at
the rate herein stated had been made during his entire service
until he attained age 65 with interest at 4% per annum for the
period subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
(b) Concurrently with each employee contribution, the city

HB5909 - 579 - LRB103 43117 RPS 76377 b
shall contribute beginning on the effective date and prior to
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
6, 2017, 6% of each payment of such salary until the employee
attains age 65. Beginning July 6, 2017, the Fund shall credit
sums equal to 6% of each payment of such salary for annuity
purposes. The amounts credited for annuity purposes shall not
be credited for refund purposes.
(c) Each employee contribution made prior to the date the
age and service annuity for an employee is fixed and each
corresponding city contribution shall be credited to the
employee and allocated to the account of the employee for
whose benefit it is made.
(d) The changes made to this subsection by this amendatory
Act of the 103rd General Assembly do not entitle an employee to
any refund of contributions already made. However, the changes
made to this subsection by this amendatory Act of the 103rd
General Assembly are not intended to limit an employee's
entitlement to a refund under any other provision of this
Code. Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 100th General
Assembly apply regardless of whether the employee was in
active service on or after the effective date of this
amendatory Act of the 100th General Assembly.
(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.)

HB5909 - 580 - LRB103 43117 RPS 76377 b
(40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
Sec. 11-170. Contributions for age and service annuities
for present employees, future entrants and re-entrants.
(a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
1972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
of the salary of each present employee, future entrant, and
re-entrant, except as provided in subsection (a-5) and (a-10),
shall be contributed to the fund as a deduction from salary for
age and service annuity.
(a-5) Except as provided in subsection (a-10), for an
employee who made the election under item (i) of subsection
(d-10) of Section 1-160: prior to the effective date of this
amendatory Act of the 100th General Assembly, 6.5%; and
beginning on the effective date of this amendatory Act of the
100th General Assembly and prior to January 1, 2018, 7.5%; and
beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the election under
item (i) of subsection (d-10) of Section 1-160 shall be the
lesser of: (i) the total normal cost, calculated using the
entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who
first became members or participants on or after the effective

HB5909 - 581 - LRB103 43117 RPS 76377 b
date of this amendatory Act of the 100th General Assembly and
to those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee
contributions provided for in subsection (b) of Section
11-134.1 and Section 11-174 of this Article; or (ii) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174
of this Article.
For the one-year period beginning with the first pay
period in January of each year the date when the funded ratio
of the fund as determined in the annual actuarial valuation is
first determined to have reached the 90% funding goal, and
each subsequent one-year period thereafter for as long as the
fund maintains a funding ratio of 75% or more, employee
contributions for age and service annuity for those employees
who made the election under item (i) of subsection (d-10) of
Section 1-160 shall be 5.5% of each payment of salary. If the
funding ratio falls below 75%, then employee contributions for
age and service annuity for those employees who made the
election under item (i) of subsection (d-10) shall revert to
the lesser of: (A) the total normal cost, calculated using the
entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who

HB5909 - 582 - LRB103 43117 RPS 76377 b
first became members or participants on or after the effective
date of this amendatory Act of the 100th General Assembly and
to those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee
contributions provided for in subsection (b) of Section
11-134.1 and Section 11-174 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174
of this Article. If the fund once again is determined to have
reached a funding ratio of 75%, the 5.5% of salary
contribution for age and service annuity shall resume. An
employee who made the election under item (ii) of subsection
(d-10) of Section 1-160 shall continue to have the
contributions for age and service annuity determined under
subsection (a) of this Section.
If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for that fiscal year.
The normal cost, for the purposes of this subsection (a-5)
and subsection (a-10), shall be calculated by an independent
enrolled actuary mutually agreed upon by the fund and the
City. The fees and expenses of the independent actuary shall

HB5909 - 583 - LRB103 43117 RPS 76377 b
be the responsibility of the City. For purposes of this
subsection (a-5), the fund and the City shall both be
considered to be the clients of the actuary, and the actuary
shall utilize participant data and actuarial standards to
calculate the normal cost. The fund shall provide information
that the actuary requests in order to calculate the applicable
normal cost.
(a-10) For each employee subject to subsection (c-5) of
Section 1-160, 9.5% of each payment of salary shall be
contributed to the fund as a deduction from salary for age and
service annuity. Beginning January 1, 2018 and each year
thereafter, employee contributions for each employee subject
to this subsection (a-10) shall be the lesser of: (i) the total
normal cost, calculated using the entry age normal actuarial
method, projected for the prior fiscal year for the benefits
and expenses of the plan of benefits applicable to those
members and participants who first become members or
participants on or after the effective date of this amendatory
Act of the 100th General Assembly and to those employees who
made the election under item (i) of subsection (d-10) of
Section 1-160, but not less than 6.5% of each payment of salary
combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and Section 11-174 of this
Article; or (ii) the aggregate employee contribution
consisting of 9.5% of each payment of salary combined with the
employee contributions provided for in subsection (b) of

HB5909 - 584 - LRB103 43117 RPS 76377 b
Section 11-134.1 and Section 11-174 of this Article.
For the one-year period beginning with the first pay
period in January of each year after the date when the funded
ratio of the fund as determined in the annual actuarial
valuation is first determined to have reached the 90% funding
goal, and each subsequent one-year period thereafter for as
long as the fund maintains a funding ratio of 75% or more,
employee contributions for age and service annuity for each
employee subject to this subsection (a-10) shall be 5.5% of
each payment of salary. If the funding ratio falls below 75%,
then employee contributions for age and service annuity for
each employee subject to this subsection (a-10) shall revert
to the lesser of: (A) the total normal cost, calculated using
the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who
first become members or participants on or after the effective
date of this amendatory Act of the 100th General Assembly and
to those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee
contributions provided for in subsection (b) of Section
11-134.1 and Section 11-174 of this Article; or (B) the
aggregate employee contribution consisting of 9.5% of each
payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section

HB5909 - 585 - LRB103 43117 RPS 76377 b
11-174 of this Article. If the fund once again is determined to
have reached a funding ratio of 75%, the 5.5% of salary
contribution for age and service annuity shall resume.
If contributions are reduced to less than the aggregate
employee contribution described in item (ii) or item (B) of
this subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be
consistent for that fiscal year.
Such deductions beginning on the effective date and prior
to June 30, 1947, inclusive shall be made for a future entrant
while he is in service until he attains age 65, and for a
present employee while he is in service until the amount so
deducted from his salary with interest at the rate of 4% per
annum shall be equal to the sum which would have accumulated to
his credit from sums deducted from his salary if deductions at
the rate herein stated had been made during his entire service
until he attained age 65 with interest at 4% per annum for the
period subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
(b) Concurrently with each employee contribution, the city
shall contribute beginning on the effective date and prior to
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
6, 2017, 6% of each payment of such salary until the employee
attains age 65. Beginning July 6, 2017, the Fund shall credit

HB5909 - 586 - LRB103 43117 RPS 76377 b
sums equal to 6% of each payment of such salary for annuity
purposes. The amounts credited for annuity purposes shall not
be credited for refund purposes.
(c) Each employee contribution made prior to the date age
and service annuity for an employee is fixed and each
corresponding city contribution shall be allocated to the
account of and credited to the employee for whose benefit it is
made.
(d) The changes made to this subsection by this amendatory
Act of the 103rd General Assembly do not entitle an employee to
any refund of contributions already made. However, the changes
made to this subsection by this amendatory Act of the 103rd
General Assembly are not intended to limit an employee's
entitlement to a refund under any other provision of this
Code. Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 100th General
Assembly apply regardless of whether the employee was in
active service on or after the effective date of this
amendatory Act.
(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.)
(40 ILCS 5/12-150) (from Ch. 108 1/2, par. 12-150)
Sec. 12-150. Contributions by employees for service
annuity.
(a) From each payment of salary to a present employee
beginning August 4, 1961, and prior to September 1, 1971,

HB5909 - 587 - LRB103 43117 RPS 76377 b
there shall be deducted as contributions for service annuity
6% of such payment. Beginning September 1, 1971, the deduction
shall be 6 1/2% of salary. These contributions shall continue
until the amounts thus deducted will provide an accumulation,
at regular interest, at least equal to the amount that would be
provided on such date from employee contributions, assuming
regular interest to such date, if such employee had been
contributing in accordance with the provisions of "The 1919
Act" and this Article from the beginning of his service and the
salary of the employee during his prior service was the same as
it was on July 1, 1919, or on July 1, 1937 in the case of an
employee of the board.
(b) From each payment of salary to a future entrant
beginning August 4, 1961, and prior to September 1, 1971,
there shall be deducted as contributions for service annuity
6% of such payment. Beginning September 1, 1971, the deduction
shall be 6 1/2% of salary. Beginning January 1, 1990, the
deduction shall be 7% of salary, except that the deduction
shall be 9% of salary for a person who first becomes an
employee on or after January 1, 2022 or who makes the election
under item (i) of subsection (d-15) of Section 1-160.
The changes made to this subsection by this amendatory Act
of the 103rd General Assembly do not entitle an employee to any
refund of contributions already made. However, the changes
made to this subsection by this amendatory Act of the 103rd
General Assembly are not intended to limit an employee's

HB5909 - 588 - LRB103 43117 RPS 76377 b
entitlement to a refund under any other provision of this
Code.
(c) For service rendered prior to August 4, 1961, the
rates of contribution by employees for service annuity shall
be as follows: July 1, 1919 to July 20, 1947, inclusive, 4% of
salary; July 21, 1947 to August 3, 1961, inclusive, 5% of
salary.
For the period from July 1, 1919, to August 4, 1961 such
deductions for a present employee shall continue until such
date as the amounts deducted will provide an accumulation at
least equal to that which would be provided on such date,
assuming regular interest to such date, from deductions from
salary of such employee if such employee had been under the
provisions of "The 1919 Act" and this Article from the
beginning of his service and the salary of such employee
during his period of prior service was the same as it was on
July 1, 1919 or on July 1, 1937 in the case of an employee of
the board.
(d) Any employee shall have the option to contribute for
service annuity an amount, together with regular interest,
equal to the difference between the amount he had accumulated
in the fund on June 30, 1947, from contributions at the rate of
4% of salary, together with regular interest, and the amount
he would have accumulated, together with regular interest, if
he had made contributions at the rate of 5% of salary. All such
contributions shall be subject to salary limitations and other

HB5909 - 589 - LRB103 43117 RPS 76377 b
conditions in effect prior to July 1, 1947. Upon making such
contribution the employer of such employee shall contribute in
the ratio of 2 to 1 with such employee.
(Source: P.A. 102-263, eff. 8-6-21.)
Article 12.
Section 12-5. The Illinois Pension Code is amended by
changing Section 15-113.4 as follows:
(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 participant 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 full calendar days and 60
through 119 full work days, 1/2 of a year of service; 181

HB5909 - 590 - LRB103 43117 RPS 76377 b
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.
Notwithstanding any other law to the contrary, a participant
is entitled to a maximum of 2 years of service credit 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. 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.

HB5909 - 591 - LRB103 43117 RPS 76377 b
This period of unused sick leave shall not be considered in
determining the date the retirement annuity begins.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
Article 13.
Section 13-5. The Illinois Pension Code is amended by
changing Sections 15-155 and 16-158 as follows:
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (a-1).
(a-1) For State fiscal years 2012 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to

HB5909 - 592 - LRB103 43117 RPS 76377 b
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first

HB5909 - 593 - LRB103 43117 RPS 76377 b
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $252,064,100.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $702,514,000 and shall be made from the State Pensions Fund

HB5909 - 594 - LRB103 43117 RPS 76377 b
and proceeds of bonds sold in fiscal year 2010 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the
System's share of total bond proceeds, (ii) any amounts
received from the General Revenue Fund in fiscal year 2010,
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to Section 15-165 and shall be made from the
State Pensions Fund and proceeds of bonds sold in fiscal year
2011 pursuant to Section 7.2 of the General Obligation Bond
Act, less (i) the pro rata share of bond sale expenses
determined by the System's share of total bond proceeds, (ii)
any amounts received from the General Revenue Fund in fiscal
year 2011, and (iii) any reduction in bond proceeds due to the
issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State

HB5909 - 595 - LRB103 43117 RPS 76377 b
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under Section
15-165, shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal

HB5909 - 596 - LRB103 43117 RPS 76377 b
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(a-2) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (c) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of liabilities

HB5909 - 597 - LRB103 43117 RPS 76377 b
attributable to the employer's account under Section
15-155.2, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (a-2)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
As used in this subsection, "academic year" means the
12-month period beginning September 1.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income
funds, or service enterprise funds are not required to pay
such contributions on behalf of those employees. The local

HB5909 - 598 - LRB103 43117 RPS 76377 b
auxiliary funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of
the actuary, and shall be expressed as a percentage of salary
for each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or
other funds, in accordance with actuarial procedures approved
by the Board. State of Illinois contributions for employers

HB5909 - 599 - LRB103 43117 RPS 76377 b
receiving State appropriations for personal services shall be
payable from appropriations made to the employers or to the
System. The contributions for Class I community colleges
covering earnings other than those paid from trust and federal
funds, shall be payable solely from appropriations to the
Illinois Community College Board or the System for employer
contributions.
(d) Beginning in State fiscal year 1996, the required
State contributions to the System shall be appropriated
directly to the System and shall be payable through vouchers
issued in accordance with subsection (c) of Section 15-165,
except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System
because of the credits earned for service rendered by the
participants during the fiscal year and expenses of
administering the System, but shall not include the principal
of or any redemption premium or interest on any bonds issued by
the Board or any expenses incurred or deposits required in
connection therewith.
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,

HB5909 - 600 - LRB103 43117 RPS 76377 b
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the
System, the present value of the increase in benefits
resulting from the portion of the increase in earnings that is
in excess of 6%. This present value shall be computed by the
System on the basis of the actuarial assumptions and tables
used in the most recent actuarial valuation of the System that
is available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection (g), the System shall calculate
the amount of the payment and bill the employer for that
amount. The bill shall specify the calculations used to
determine the amount due. If the employer disputes the amount
of the bill, it may, within 30 days after receipt of the bill,
apply to the System in writing for a recalculation. The
application must specify in detail the grounds of the dispute
and, if the employer asserts that the calculation is subject
to subsection (h), (h-5), or (i) of this Section, must include
an affidavit setting forth and attesting to all facts within
the employer's knowledge that are pertinent to the

HB5909 - 601 - LRB103 43117 RPS 76377 b
applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(g) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
When assessing payment for any amount due under this
subsection (g), the System shall include earnings, to the
extent not established by a participant under Section
15-113.11 or 15-113.12, that would have been paid to the
participant had the participant not taken (i) periods of
voluntary or involuntary furlough occurring on or after July
1, 2015 and on or before June 30, 2017 or (ii) periods of
voluntary pay reduction in lieu of furlough occurring on or
after July 1, 2015 and on or before June 30, 2017. Determining
earnings that would have been paid to a participant had the
participant not taken periods of voluntary or involuntary
furlough or periods of voluntary pay reduction shall be the
responsibility of the employer, and shall be reported in a
manner prescribed by the System.

HB5909 - 602 - LRB103 43117 RPS 76377 b
This subsection (g) does not apply to (1) Tier 2 hybrid
plan members and (2) Tier 2 defined benefit members who first
participate under this Article on or after the implementation
date of the Optional Hybrid Plan.
(g-1) (Blank).
(h) This subsection (h) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting
from overload work, including a contract for summer teaching,
or overtime when the employer has certified to the System, and
the System has approved the certification, that: (i) in the
case of overloads (A) the overload work is for the sole purpose
of academic instruction in excess of the standard number of

HB5909 - 603 - LRB103 43117 RPS 76377 b
instruction hours for a full-time employee occurring during
the academic year that the overload is paid and (B) the
earnings increases are equal to or less than the rate of pay
for academic instruction computed using the participant's
current salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in
academic rank for a tenured or tenure-track faculty position,
or (iii) a promotion that the Illinois Community College Board
has recommended in accordance with subsection (k) of this
Section. These earnings increases shall be excluded only if
the promotion is to a position that has existed and been filled
by a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(h-5) When assessing payment for any amount due under
subsection (g), the System shall exclude any earnings increase
paid in an academic year beginning on or after July 1, 2020
resulting from overload work performed in an academic year
subsequent to an academic year in which the employer was

HB5909 - 604 - LRB103 43117 RPS 76377 b
unable to offer or allow to be conducted overload work due to
an emergency declaration limiting such activities.
(i) (Blank). When assessing payment for any amount due
under subsection (g), the System shall exclude any salary
increase described in subsection (h) of this Section given on
or after July 1, 2011 but before July 1, 2014 under a contract
or collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Except as provided in subsection (h-5), any payments made or
salary increases given after June 30, 2014 shall be used in
assessing payment for any amount due under subsection (g) of
this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution

HB5909 - 605 - LRB103 43117 RPS 76377 b
resulting from the changes made to this Section by Public
Act 94-1057.
(j-5) For State fiscal years beginning on or after July 1,
2017, if the amount of a participant's earnings for any State
fiscal year exceeds the amount of the salary set by law for the
Governor that is in effect on July 1 of that fiscal year, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
earnings in excess of the amount of the salary set by law for
the Governor. This amount shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is
available at the time of the computation. The System may
require the employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculation used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must

HB5909 - 606 - LRB103 43117 RPS 76377 b
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
issuance of the bill. If the employer contributions are not
paid within 90 days after issuance of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after issuance of the bill. All
payments must be received within 3 years after issuance of the
bill. If the employer fails to make complete payment,
including applicable interest, within 3 years, then the System
may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the
Comptroller shall thereupon deduct the certified delinquent
amount from State funds payable to the employer and pay them
instead to the System.
This subsection (j-5) does not apply to a participant's
earnings to the extent an employer pays the employer normal
cost of such earnings.
The changes made to this subsection (j-5) by Public Act
100-624 are intended to apply retroactively to July 6, 2017
(the effective date of Public Act 100-23).
(k) The Illinois Community College Board shall adopt rules

HB5909 - 607 - LRB103 43117 RPS 76377 b
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for
State universities by the State Universities Civil Service
System. The Illinois Community College Board shall file a copy
of its findings with the System. The System shall consider the
findings of the Illinois Community College Board when making
determinations under this Section. The System shall not
exclude any earnings increases resulting from a promotion when
the promotion was not submitted by a community college.
Nothing in this subsection (k) shall require any community
college to submit any information to the Community College
Board.
(l) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.

HB5909 - 608 - LRB103 43117 RPS 76377 b
(m) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
5-13-22.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15 until November
15, 2011, the Board shall certify to the Governor the amount of

HB5909 - 609 - LRB103 43117 RPS 76377 b
the required State contribution for the coming fiscal year.
The certification under this subsection (a-1) shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by Public Act 94-4.
On or before April 1, 2011, the Board shall recalculate
and recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011,
applying the changes made by Public Act 96-889 to the System's
assets and liabilities as of June 30, 2009 as though Public Act
96-889 was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed
certification of the amount of the required State contribution

HB5909 - 610 - LRB103 43117 RPS 76377 b
to the System for the next fiscal year, along with all of the
actuarial assumptions, calculations, and data upon which that
proposed certification is based. On or before January 1 of
each year, beginning January 1, 2013, the State Actuary shall
issue a preliminary report concerning the proposed
certification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. On or before January 15, 2013 and each January
15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The Board's certification must note
any deviations from the State Actuary's recommended changes,
the reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-10) By November 1, 2017, the Board shall recalculate
and recertify to the State Actuary, the Governor, and the
General Assembly the amount of the State contribution to the
System for State fiscal year 2018, taking into account the
changes in required State contributions made by Public Act
100-23. The State Actuary shall review the assumptions and
valuations underlying the Board's revised certification and
issue a preliminary report concerning the proposed
recertification and identifying, if necessary, recommended

HB5909 - 611 - LRB103 43117 RPS 76377 b
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. The Board's final certification must note any
deviations from the State Actuary's recommended changes, the
reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-15) On or after June 15, 2019, but no later than June
30, 2019, the Board shall recalculate and recertify to the
Governor and the General Assembly the amount of the State
contribution to the System for State fiscal year 2019, taking
into account the changes in required State contributions made
by Public Act 100-587. The recalculation shall be made using
assumptions adopted by the Board for the original fiscal year
2019 certification. The monthly voucher for the 12th month of
fiscal year 2019 shall be paid by the Comptroller after the
recertification required pursuant to this subsection is
submitted to the Governor, Comptroller, and General Assembly.
The recertification submitted to the General Assembly shall be
filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.

HB5909 - 612 - LRB103 43117 RPS 76377 b
(b-1) Unless otherwise directed by the Comptroller under
subsection (b-1.1), the Board shall submit vouchers for
payment of State contributions to the System for the
applicable month on the 15th day of each month, or as soon
thereafter as may be practicable. The amount vouchered for a
monthly payment shall total one-twelfth of the required annual
State contribution certified under subsection (a-1).
(b-1.1) Beginning in State fiscal year 2025, if the
Comptroller requests that the Board submit, during a State
fiscal year, vouchers for multiple monthly payments for the
advance payment of State contributions due to the System for
that State fiscal year, then the Board shall submit those
additional vouchers as directed by the Comptroller,
notwithstanding subsection (b-1). Unless an act of
appropriations provides otherwise, nothing in this Section
authorizes the Board to submit, in a State fiscal year,
vouchers for the payment of State contributions to the System
in an amount that exceeds the rate of payroll that is certified
by the System under this Section for that State fiscal year.
(b-1.2) The vouchers described in subsections (b-1) and
(b-1.1) shall be paid by the State Comptroller and Treasurer
by warrants drawn on the funds appropriated to the System for
that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section

HB5909 - 613 - LRB103 43117 RPS 76377 b
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal years 2012 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and

HB5909 - 614 - LRB103 43117 RPS 76377 b
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a State

HB5909 - 615 - LRB103 43117 RPS 76377 b
contribution in excess of the amount otherwise required under
this subsection and subsection (a), and notwithstanding any
contrary certification made under subsection (a-1) before May
27, 1998 (the effective date of Public Act 90-582): 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $738,014,500.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the Common School

HB5909 - 616 - LRB103 43117 RPS 76377 b
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to subsection (a-1) of this Section and shall be
made from the proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by
the System's share of total bond proceeds, (ii) any amounts
received from the Common School Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable. This amount shall include, in
addition to the amount certified by the System, an amount
necessary to meet employer contributions required by the State
as an employer under paragraph (e) of this Section, which may
also be used by the System for contributions required by
paragraph (a) of Section 16-127.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not

HB5909 - 617 - LRB103 43117 RPS 76377 b
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under subsection
(a-1), shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the
amount referred to in item (i) shall be increased, as a

HB5909 - 618 - LRB103 43117 RPS 76377 b
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(b-4) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; plus
(ii) the amount required for that fiscal year to
amortize any unfunded actuarial accrued liability

HB5909 - 619 - LRB103 43117 RPS 76377 b
associated with the present value of liabilities
attributable to the employer's account under Section
16-158.3, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (b-4)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and
all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the

HB5909 - 620 - LRB103 43117 RPS 76377 b
System from such funds the full accruing retirement costs
based upon that service, which, beginning July 1, 2017, shall
be at a rate, expressed as a percentage of salary, equal to the
total employer's normal cost, expressed as a percentage of
payroll, as determined by the System. Employer contributions,
based on salary paid to members from federal funds, may be
forwarded by the distributing agency of the State of Illinois
to the System prior to allocation, in an amount determined in
accordance with guidelines established by such agency and the
System. Any contribution for fiscal year 2015 collected as a
result of the change made by Public Act 98-674 shall be
considered a State contribution under subsection (b-3) of this
Section.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of

HB5909 - 621 - LRB103 43117 RPS 76377 b
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from Public Act 90-582.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,

HB5909 - 622 - LRB103 43117 RPS 76377 b
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by Public Act 90-582 is the responsibility of
the teacher and not the teacher's employer, unless the
employer agrees, through collective bargaining or otherwise,
to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments

HB5909 - 623 - LRB103 43117 RPS 76377 b
required under this Section and in accordance with guidelines
established by the System, the present value of the increase
in benefits resulting from the portion of the increase in
salary that is in excess of 6%. This present value shall be
computed by the System on the basis of the actuarial
assumptions and tables used in the most recent actuarial
valuation of the System that is available at the time of the
computation. If a teacher's salary for the 2005-2006 school
year is used to determine final average salary under this
subsection (f), then the changes made to this subsection (f)
by Public Act 94-1057 shall apply in calculating whether the
increase in his or her salary is in excess of 6%. For the
purposes of this Section, change in employment under Section
10-21.12 of the School Code on or after June 1, 2005 shall
constitute a change in employer. The System may require the
employer to provide any pertinent information or
documentation. The changes made to this subsection (f) by
Public Act 94-1111 apply without regard to whether the teacher
was in service on or after its effective date.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must

HB5909 - 624 - LRB103 43117 RPS 76377 b
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
must include an affidavit setting forth and attesting to all
facts within the employer's knowledge that are pertinent to
the applicability of that subsection. Upon receiving a timely
application for recalculation, the System shall review the
application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(f-1) (Blank).
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to
teachers under contracts or collective bargaining agreements

HB5909 - 625 - LRB103 43117 RPS 76377 b
entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases
are equal to or less than the rate of pay for classroom
instruction computed on the teacher's current salary and work
schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the

HB5909 - 626 - LRB103 43117 RPS 76377 b
average salary paid for other similar positions in the
district requiring the same certification or the amount
stipulated in the collective bargaining agreement for a
similar position requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final
average salary.
(g-5) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from overload or stipend work performed in a school
year subsequent to a school year in which the employer was
unable to offer or allow to be conducted overload or stipend
work due to an emergency declaration limiting such activities.
(g-10) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from increased instructional time that exceeded the
instructional time required during the 2019-2020 school year
or any school year thereafter.
(g-15) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from teaching summer school on or after May 1, 2021
and before September 15, 2022.
(g-20) When assessing payment for any amount due under

HB5909 - 627 - LRB103 43117 RPS 76377 b
subsection (f), the System shall exclude salary increases
necessary to bring a school board in compliance with Public
Act 101-443 or this amendatory Act of the 103rd General
Assembly.
(h) (Blank). When assessing payment for any amount due
under subsection (f), the System shall exclude any salary
increase described in subsection (g) of this Section given on
or after July 1, 2011 but before July 1, 2014 under a contract
or collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by

HB5909 - 628 - LRB103 43117 RPS 76377 b
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(i-5) For school years beginning on or after July 1, 2017,
if the amount of a participant's salary for any school year
exceeds the amount of the salary set for the Governor, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
salary in excess of the amount of the salary set for the
Governor. This amount shall be computed by the System on the
basis of the actuarial assumptions and tables used in the most
recent actuarial valuation of the System that is available at
the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the

HB5909 - 629 - LRB103 43117 RPS 76377 b
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(k) For purposes of determining the required State

HB5909 - 630 - LRB103 43117 RPS 76377 b
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;
102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
8-11-23; 103-588, eff. 6-5-24.)
Article 14.
Section 14-5. The Illinois Pension Code is amended by
changing Section 7-142.1 as follows:
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.

HB5909 - 631 - LRB103 43117 RPS 76377 b
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
on or after July 1, 2004 shall be entitled at his or her option
to receive a monthly retirement annuity for service as a
sheriff's law enforcement employee computed by multiplying
2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after

HB5909 - 632 - LRB103 43117 RPS 76377 b
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the
total monthly premium for such continued group insurance
coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any
monthly pension benefit otherwise payable to such person
pursuant to this Section, to be remitted by the Fund to the
insurance company or other entity providing the group
insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this
amendatory Act of the 97th General Assembly and who has
service in any other capacity may convert up to 10 years of
that service into service as a sheriff's law enforcement
employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section
7-173.1, plus (2) the additional employer contribution
required under Section 7-172, plus (3) interest on items (1)
and (2) at the prescribed rate from the date of the service to
the date of payment. Application must be received by the Board
while the employee is an active participant in the Fund.
Payment must be received while the member is an active
participant, except that one payment will be permitted after

HB5909 - 633 - LRB103 43117 RPS 76377 b
termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of
the 94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011 and does not have any prior

HB5909 - 634 - LRB103 43117 RPS 76377 b
service with any other pension fund or retirement system
established under this Code.
A sheriff's law enforcement employee age 55 or more who
has 10 or more years of service in that capacity shall be
entitled at his option to receive a monthly retirement annuity
for his or her service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service by
his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within
the last 120 months of service in which the total earnings was
the highest by the number of months of service in that period.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's
law enforcement employee to whom this Section applies shall

HB5909 - 635 - LRB103 43117 RPS 76377 b
not include overtime and shall not exceed $106,800; however,
that amount shall annually thereafter be increased by the
lesser of (i) 3% of that amount, including all previous
adjustments, or (ii) one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after
January 1, 2011 shall be increased on the January 1 occurring
either on or after the attainment of age 60 or the first
anniversary of the annuity start date, whichever is later.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when
compared with the preceding period, decreases, then the
annuity shall not be increased.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents

HB5909 - 636 - LRB103 43117 RPS 76377 b
are entitled under this subsection (h) shall be in the amount
of 66 2/3% of the sheriff's law enforcement employee's earned
annuity at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's
annuity and each January 1 thereafter by 3% or one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)

HB5909 - 637 - LRB103 43117 RPS 76377 b
Article 90.
Section 90-5. The Illinois Pension Code is amended by
changing Sections 2-162, 12-195, 14-152.1, 15-198, 16-203, and
18-169 as follows:
(40 ILCS 5/2-162)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional

HB5909 - 638 - LRB103 43117 RPS 76377 b
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires

HB5909 - 639 - LRB103 43117 RPS 76377 b
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.)
(40 ILCS 5/12-195)
Sec. 12-195. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 98th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon

HB5909 - 640 - LRB103 43117 RPS 76377 b
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the Fund of additional
funding at least sufficient to fund the resulting annual
increase in cost to the Fund as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection (c). The State Actuary shall analyze whether
adequate additional funding has been provided for the new
benefit increase. A new benefit increase created by a Public
Act that does not include the additional funding required
under this subsection (c) is null and void. If the State
Actuary determines that the additional funding provided for a
new benefit increase under this subsection (c) is or has
become inadequate, it may so certify to the Governor and the
State Comptroller and, in the absence of corrective action by
the General Assembly, the new benefit increase shall expire at
the end of the fiscal year in which the certification is made.
(Source: P.A. 102-263, eff. 8-6-21.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for

HB5909 - 641 - LRB103 43117 RPS 76377 b
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, or this
amendatory Act of the 103rd General Assembly this amendatory
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by

HB5909 - 642 - LRB103 43117 RPS 76377 b
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;

HB5909 - 643 - LRB103 43117 RPS 76377 b
101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
100-23, Public Act 100-587, Public Act 100-769, Public Act
101-10, Public Act 101-610, Public Act 102-16, Public Act
103-80, or Public Act 103-548, or this amendatory Act of the
103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual

HB5909 - 644 - LRB103 43117 RPS 76377 b
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied

HB5909 - 645 - LRB103 43117 RPS 76377 b
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
103-548, eff. 8-11-23; 103-605, eff. 7-1-24.)
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
95-910, Public Act 100-23, Public Act 100-587, Public Act
100-743, Public Act 100-769, Public Act 101-10, Public Act
101-49, Public Act 102-16, or Public Act 102-871, or this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or

HB5909 - 646 - LRB103 43117 RPS 76377 b
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified

HB5909 - 647 - LRB103 43117 RPS 76377 b
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
6-30-23.)
(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit
increases.
(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

HB5909 - 648 - LRB103 43117 RPS 76377 b
amendatory Act of the 94th General Assembly. "New benefit
increase", however, does not include any benefit increase
resulting from the changes made to this Article by this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action

HB5909 - 649 - LRB103 43117 RPS 76377 b
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.)
Section 90-90. The State Mandates Act is amended by adding
Section 8.48 as follows:
(30 ILCS 805/8.48 new)
Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and

HB5909 - 650 - LRB103 43117 RPS 76377 b
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Article 99.
Section 99-99. Effective date. This Act takes effect upon
becoming law.
HB5909 - 651 - LRB103 43117 RPS 76377 b
INDEX
Statutes amended in order of appearance
40 ILCS 5/1-160
40 ILCS 5/1-163 new
40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/3-153 new
40 ILCS 5/4-145 new
40 ILCS 5/5-239 new
40 ILCS 5/6-231 new
40 ILCS 5/7-226 new
40 ILCS 5/8-251.5 new
40 ILCS 5/9-242 new
40 ILCS 5/10-110 new
40 ILCS 5/11-233 new
40 ILCS 5/12-196 new
40 ILCS 5/13-217 new
40 ILCS 5/14-157 new
40 ILCS 5/15-203 new
40 ILCS 5/16-207 new
40 ILCS 5/17-160 new
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/1-160
40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
HB5909 - 652 - LRB103 43117 RPS 76377 b
40 ILCS 5/5-238
40 ILCS 5/6-229
40 ILCS 5/7-116 from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/1-160
40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
40 ILCS 5/7-142 from Ch. 108 1/2, par. 7-142
40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/1-160
40 ILCS 5/2-119 from Ch. 108 1/2, par. 2-119
40 ILCS 5/2-119.01 from Ch. 108 1/2, par. 2-119.01
40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
40 ILCS 5/5-238
HB5909 - 653 - LRB103 43117 RPS 76377 b
40 ILCS 5/6-164 from Ch. 108 1/2, par. 6-164
40 ILCS 5/6-229
40 ILCS 5/7-142 from Ch. 108 1/2, par. 7-142
40 ILCS 5/7-142.1 from Ch. 108 1/2, par. 7-142.1
40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/18-124 from Ch. 108 1/2, par. 18-124
40 ILCS 5/18-125.1 from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/1-160
5 ILCS 100/5-45.55 new
40 ILCS 5/2-154.5 new
40 ILCS 5/2-154.6 new
40 ILCS 5/17-156.10 new
40 ILCS 5/17-156.11 new
40 ILCS 5/18-161.5 new
40 ILCS 5/18-161.6 new
40 ILCS 5/3-144.3 new
40 ILCS 5/4-138.15 new
40 ILCS 5/5-240 new
40 ILCS 5/6-232 new
40 ILCS 5/7-109.3 from Ch. 108 1/2, par. 7-109.3
40 ILCS 5/4-106 from Ch. 108 1/2, par. 4-106
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/4-109.2 from Ch. 108 1/2, par. 4-109.2
40 ILCS 5/1-160
HB5909 - 654 - LRB103 43117 RPS 76377 b