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
 
HB5909LRB103 43117 RPS 76377 b


1 AN ACT concerning public employee benefits.

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

4
Article 1. 


5 Section 1-5. The Illinois Pension Code is amended by 
6changing Sections 1-160, 2-108.1, and 18-125 and by adding 
7Sections 1-163, 3-153, 4-145, 5-239, 6-231, 7-226, 8-251.5, 
89-242, 10-110, 11-233, 12-196, 13-217, 14-157, 15-203, 16-207, 
917-160, and 18-175 as follows:

10 (40 ILCS 5/1-160)
11 (Text of Section from P.A. 102-719)
12 Sec. 1-160. Provisions applicable to new hires. 
13 (a) The provisions of this Section apply to a person who, 
14on or after January 1, 2011, first becomes a member or a 
15participant under any reciprocal retirement system or pension 
16fund established under this Code, other than a retirement 
17system or pension fund established under Article 2, 3, 4, 5, 6, 
187, 15, or 18 of this Code, notwithstanding any other provision 
19of this Code to the contrary, but do not apply to any 
20self-managed plan established under this Code or to any 
21participant of the retirement plan established under Section 
2222-101; except that this Section applies to a person who 
 
 
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1elected to establish alternative credits by electing in 
2writing after January 1, 2011, but before August 8, 2011, 
3under Section 7-145.1 of this Code. Notwithstanding anything 
4to the contrary in this Section, for purposes of this Section, 
5a person who is a Tier 1 regular employee as defined in Section 
67-109.4 of this Code or who participated in a retirement 
7system under Article 15 prior to January 1, 2011 shall be 
8deemed a person who first became a member or participant prior 
9to January 1, 2011 under any retirement system or pension fund 
10subject to this Section. The changes made to this Section by 
11Public Act 98-596 are a clarification of existing law and are 
12intended to be retroactive to January 1, 2011 (the effective 
13date of Public Act 96-889), notwithstanding the provisions of 
14Section 1-103.1 of this Code.
15 This Section does not apply to a person who first becomes a 
16noncovered employee under Article 14 on or after the 
17implementation date of the plan created under Section 1-161 
18for that Article, unless that person elects under subsection 
19(b) of Section 1-161 to instead receive the benefits provided 
20under this Section and the applicable provisions of that 
21Article.
22 This Section does not apply to a person who first becomes a 
23member or participant under Article 16 on or after the 
24implementation date of the plan created under Section 1-161 
25for that Article, unless that person elects under subsection 
26(b) of Section 1-161 to instead receive the benefits provided 
 
 
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1under this Section and the applicable provisions of that 
2Article.
3 This Section does not apply to a person who elects under 
4subsection (c-5) of Section 1-161 to receive the benefits 
5under Section 1-161. 
6 This Section does not apply to a person who first becomes a 
7member or participant of an affected pension fund on or after 6 
8months after the resolution or ordinance date, as defined in 
9Section 1-162, unless that person elects under subsection (c) 
10of Section 1-162 to receive the benefits provided under this 
11Section and the applicable provisions of the Article under 
12which he or she is a member or participant. 
13 (b) "Final average salary" means, except as otherwise 
14provided in this subsection, the average monthly (or annual) 
15salary obtained by dividing the total salary or earnings 
16calculated under the Article applicable to the member or 
17participant during the 96 consecutive months (or 8 consecutive 
18years) of service within the last 120 months (or 10 years) of 
19service in which the total salary or earnings calculated under 
20the applicable Article was the highest by the number of months 
21(or years) of service in that period. For the purposes of a 
22person who first becomes a member or participant of any 
23retirement system or pension fund to which this Section 
24applies on or after January 1, 2011, in this Code, "final 
25average salary" shall be substituted for the following:
26  (1) (Blank).
 
 
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1  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
2 annual salary for any 4 consecutive years within the last 
3 10 years of service immediately preceding the date of 
4 withdrawal". 
5  (3) In Article 13, "average final salary". 
6  (4) In Article 14, "final average compensation". 
7  (5) In Article 17, "average salary". 
8  (6) In Section 22-207, "wages or salary received by 
9 him at the date of retirement or discharge". 
10 A member of the Teachers' Retirement System of the State 
11of Illinois who retires on or after June 1, 2021 and for whom 
12the 2020-2021 school year is used in the calculation of the 
13member's final average salary shall use the higher of the 
14following for the purpose of determining the member's final 
15average salary:
16  (A) the amount otherwise calculated under the first 
17 paragraph of this subsection; or
18  (B) an amount calculated by the Teachers' Retirement 
19 System of the State of Illinois using the average of the 
20 monthly (or annual) salary obtained by dividing the total 
21 salary or earnings calculated under Article 16 applicable 
22 to the member or participant during the 96 months (or 8 
23 years) of service within the last 120 months (or 10 years) 
24 of service in which the total salary or earnings 
25 calculated under the Article was the highest by the number 
26 of months (or years) of service in that period.
 
 
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1 (b-5) Beginning on January 1, 2011, for all purposes under 
2this Code (including without limitation the calculation of 
3benefits and employee contributions), the annual earnings, 
4salary, or wages (based on the plan year) of a member or 
5participant to whom this Section applies shall not exceed 
6$106,800; however, that amount shall annually thereafter be 
7increased by the lesser of (i) 3% of that amount, including all 
8previous adjustments, or (ii) one-half the annual unadjusted 
9percentage increase (but not less than zero) in the consumer 
10price index-u for the 12 months ending with the September 
11preceding each November 1, including all previous adjustments.
12 For the purposes of this Section, "consumer price index-u" 
13means the index published by the Bureau of Labor Statistics of 
14the United States Department of Labor that measures the 
15average change in prices of goods and services purchased by 
16all urban consumers, United States city average, all items, 
171982-84 = 100. The new amount resulting from each annual 
18adjustment shall be determined by the Public Pension Division 
19of the Department of Insurance and made available to the 
20boards of the retirement systems and pension funds by November 
211 of each year. 
22 (b-10) Beginning on January 1, 2024, for all purposes 
23under this Code (including, without limitation, the 
24calculation of benefits and employee contributions), the 
25annual earnings, salary, or wages (based on the plan year) of a 
26member or participant under Article 9 to whom this Section 
 
 
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1applies shall include an annual earnings, salary, or wage cap 
2that tracks the Social Security wage base. Maximum annual 
3earnings, wages, or salary shall be the annual contribution 
4and benefit base established for the applicable year by the 
5Commissioner of the Social Security Administration under the 
6federal Social Security Act. 
7 However, in no event shall the annual earnings, salary, or 
8wages for the purposes of this Article and Article 9 exceed any 
9limitation imposed on annual earnings, salary, or wages under 
10Section 1-117. Under no circumstances shall the maximum amount 
11of annual earnings, salary, or wages be greater than the 
12amount set forth in this subsection (b-10) as a result of 
13reciprocal service or any provisions regarding reciprocal 
14services, nor shall the Fund under Article 9 be required to pay 
15any refund as a result of the application of this maximum 
16annual earnings, salary, and wage cap. 
17 Nothing in this subsection (b-10) shall cause or otherwise 
18result in any retroactive adjustment of any employee 
19contributions. Nothing in this subsection (b-10) shall cause 
20or otherwise result in any retroactive adjustment of 
21disability or other payments made between January 1, 2011 and 
22January 1, 2024. 
23 (c) A member or participant is entitled to a retirement 
24annuity upon written application if he or she has attained age 
2567 (age 65, with respect to service under Article 12 that is 
26subject to this Section, for a member or participant under 
 
 
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1Article 12 who first becomes a member or participant under 
2Article 12 on or after January 1, 2022 or who makes the 
3election under item (i) of subsection (d-15) of this Section) 
4and has at least 10 years of service credit and is otherwise 
5eligible under the requirements of the applicable Article. 
6 A member or participant who has attained age 62 (age 60, 
7with respect to service under Article 12 that is subject to 
8this Section, for a member or participant under Article 12 who 
9first becomes a member or participant under Article 12 on or 
10after January 1, 2022 or who makes the election under item (i) 
11of subsection (d-15) of this Section) and has at least 10 years 
12of service credit and is otherwise eligible under the 
13requirements of the applicable Article may elect to receive 
14the lower retirement annuity provided in subsection (d) of 
15this Section. 
16 (c-5) A person who first becomes a member or a participant 
17subject to this Section on or after July 6, 2017 (the effective 
18date of Public Act 100-23), notwithstanding any other 
19provision of this Code to the contrary, is entitled to a 
20retirement annuity under Article 8 or Article 11 upon written 
21application if he or she has attained age 65 and has at least 
2210 years of service credit and is otherwise eligible under the 
23requirements of Article 8 or Article 11 of this Code, 
24whichever is applicable. 
25 (d) The retirement annuity of a member or participant who 
26is retiring after attaining age 62 (age 60, with respect to 
 
 
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1service under Article 12 that is subject to this Section, for a 
2member or participant under Article 12 who first becomes a 
3member or participant under Article 12 on or after January 1, 
42022 or who makes the election under item (i) of subsection 
5(d-15) of this Section) with at least 10 years of service 
6credit shall be reduced by one-half of 1% for each full month 
7that the member's age is under age 67 (age 65, with respect to 
8service under Article 12 that is subject to this Section, for a 
9member or participant under Article 12 who first becomes a 
10member or participant under Article 12 on or after January 1, 
112022 or who makes the election under item (i) of subsection 
12(d-15) of this Section).
13 (d-5) The retirement annuity payable under Article 8 or 
14Article 11 to an eligible person subject to subsection (c-5) 
15of this Section who is retiring at age 60 with at least 10 
16years of service credit shall be reduced by one-half of 1% for 
17each full month that the member's age is under age 65. 
18 (d-10) Each person who first became a member or 
19participant under Article 8 or Article 11 of this Code on or 
20after January 1, 2011 and prior to July 6, 2017 (the effective 
21date of Public Act 100-23) shall make an irrevocable election 
22either:
23  (i) to be eligible for the reduced retirement age 
24 provided in subsections (c-5) and (d-5) of this Section, 
25 the eligibility for which is conditioned upon the member 
26 or participant agreeing to the increases in employee 
 
 
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1 contributions for age and service annuities provided in 
2 subsection (a-5) of Section 8-174 of this Code (for 
3 service under Article 8) or subsection (a-5) of Section 
4 11-170 of this Code (for service under Article 11); or 
5  (ii) to not agree to item (i) of this subsection 
6 (d-10), in which case the member or participant shall 
7 continue to be subject to the retirement age provisions in 
8 subsections (c) and (d) of this Section and the employee 
9 contributions for age and service annuity as provided in 
10 subsection (a) of Section 8-174 of this Code (for service 
11 under Article 8) or subsection (a) of Section 11-170 of 
12 this Code (for service under Article 11). 
13 The election provided for in this subsection shall be made 
14between October 1, 2017 and November 15, 2017. A person 
15subject to this subsection who makes the required election 
16shall remain bound by that election. A person subject to this 
17subsection who fails for any reason to make the required 
18election within the time specified in this subsection shall be 
19deemed to have made the election under item (ii). 
20 (d-15) Each person who first becomes a member or 
21participant under Article 12 on or after January 1, 2011 and 
22prior to January 1, 2022 shall make an irrevocable election 
23either: 
24  (i) to be eligible for the reduced retirement age 
25 specified in subsections (c) and (d) of this Section, the 
26 eligibility for which is conditioned upon the member or 
 
 
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1 participant agreeing to the increase in employee 
2 contributions for service annuities specified in 
3 subsection (b) of Section 12-150; or
4  (ii) to not agree to item (i) of this subsection 
5 (d-15), in which case the member or participant shall not 
6 be eligible for the reduced retirement age specified in 
7 subsections (c) and (d) of this Section and shall not be 
8 subject to the increase in employee contributions for 
9 service annuities specified in subsection (b) of Section 
10 12-150. 
11 The election provided for in this subsection shall be made 
12between January 1, 2022 and April 1, 2022. A person subject to 
13this subsection who makes the required election shall remain 
14bound by that election. A person subject to this subsection 
15who fails for any reason to make the required election within 
16the time specified in this subsection shall be deemed to have 
17made the election under item (ii). 
18 (e) Any retirement annuity or supplemental annuity shall 
19be subject to annual increases on the January 1 occurring 
20either on or after the attainment of age 67 (age 65, with 
21respect to service under Article 12 that is subject to this 
22Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15); and beginning on July 6, 2017 (the 
26effective date of Public Act 100-23), age 65 with respect to 
 
 
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1service under Article 8 or Article 11 for eligible persons 
2who: (i) are subject to subsection (c-5) of this Section; or 
3(ii) made the election under item (i) of subsection (d-10) of 
4this Section) or the first anniversary of the annuity start 
5date, whichever is later. Each annual increase shall be 
6calculated at 3% or one-half the annual unadjusted percentage 
7increase (but not less than zero) in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1, whichever is less, of the originally granted 
10retirement annuity. If the annual unadjusted percentage change 
11in the consumer price index-u for the 12 months ending with the 
12September preceding each November 1 is zero or there is a 
13decrease, then the annuity shall not be increased. 
14 For the purposes of Section 1-103.1 of this Code, the 
15changes made to this Section by Public Act 102-263 are 
16applicable without regard to whether the employee was in 
17active service on or after August 6, 2021 (the effective date 
18of Public Act 102-263). 
19 For the purposes of Section 1-103.1 of this Code, the 
20changes made to this Section by Public Act 100-23 are 
21applicable without regard to whether the employee was in 
22active service on or after July 6, 2017 (the effective date of 
23Public Act 100-23). 
24 (f) The initial survivor's or widow's annuity of an 
25otherwise eligible survivor or widow of a retired member or 
26participant who first became a member or participant on or 
 
 
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1after January 1, 2011 shall be in the amount of 66 2/3% of the 
2retired member's or participant's retirement annuity at the 
3date of death. In the case of the death of a member or 
4participant who has not retired and who first became a member 
5or participant on or after January 1, 2011, eligibility for a 
6survivor's or widow's annuity shall be determined by the 
7applicable Article of this Code. The initial benefit shall be 
866 2/3% of the earned annuity without a reduction due to age. A 
9child's annuity of an otherwise eligible child shall be in the 
10amount prescribed under each Article if applicable. Any 
11survivor's or widow's annuity shall be increased (1) on each 
12January 1 occurring on or after the commencement of the 
13annuity if the deceased member died while receiving a 
14retirement annuity or (2) in other cases, on each January 1 
15occurring after the first anniversary of the commencement of 
16the annuity. Each annual increase shall be calculated at 3% or 
17one-half the annual unadjusted percentage increase (but not 
18less than zero) in the consumer price index-u for the 12 months 
19ending with the September preceding each November 1, whichever 
20is less, of the originally granted survivor's annuity. If the 
21annual unadjusted percentage change in the consumer price 
22index-u for the 12 months ending with the September preceding 
23each November 1 is zero or there is a decrease, then the 
24annuity shall not be increased. 
25 (g) The benefits in Section 14-110 apply if the person is a 
26fire fighter in the fire protection service of a department, a 
 
 
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1security employee of the Department of Corrections or the 
2Department of Juvenile Justice, or a security employee of the 
3Department of Innovation and Technology, as those terms are 
4defined in subsection (b) and subsection (c) of Section 
514-110. A person who meets the requirements of this Section is 
6entitled to an annuity calculated under the provisions of 
7Section 14-110, in lieu of the regular or minimum retirement 
8annuity, only if the person has withdrawn from service with 
9not less than 20 years of eligible creditable service and has 
10attained age 60, regardless of whether the attainment of age 
1160 occurs while the person is still in service. 
12 (g-5) The benefits in Section 14-110 apply if the person 
13is a State policeman, investigator for the Secretary of State, 
14conservation police officer, investigator for the Department 
15of Revenue or the Illinois Gaming Board, investigator for the 
16Office of the Attorney General, Commerce Commission police 
17officer, or arson investigator, as those terms are defined in 
18subsection (b) and subsection (c) of Section 14-110. A person 
19who meets the requirements of this Section is entitled to an 
20annuity calculated under the provisions of Section 14-110, in 
21lieu of the regular or minimum retirement annuity, only if the 
22person has withdrawn from service with not less than 20 years 
23of eligible creditable service and has attained age 55, 
24regardless of whether the attainment of age 55 occurs while 
25the person is still in service. 
26 (h) If a person who first becomes a member or a participant 
 
 
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1of a retirement system or pension fund subject to this Section 
2on or after January 1, 2011 is receiving a retirement annuity 
3or retirement pension under that system or fund and becomes a 
4member or participant under any other system or fund created 
5by this Code and is employed on a full-time basis, except for 
6those members or participants exempted from the provisions of 
7this Section under subsection (a) of this Section, then the 
8person's retirement annuity or retirement pension under that 
9system or fund shall be suspended during that employment. Upon 
10termination of that employment, the person's retirement 
11annuity or retirement pension payments shall resume and be 
12recalculated if recalculation is provided for under the 
13applicable Article of this Code.
14 If a person who first becomes a member of a retirement 
15system or pension fund subject to this Section on or after 
16January 1, 2012 and is receiving a retirement annuity or 
17retirement pension under that system or fund and accepts on a 
18contractual basis a position to provide services to a 
19governmental entity from which he or she has retired, then 
20that person's annuity or retirement pension earned as an 
21active employee of the employer shall be suspended during that 
22contractual service. A person receiving an annuity or 
23retirement pension under this Code shall notify the pension 
24fund or retirement system from which he or she is receiving an 
25annuity or retirement pension, as well as his or her 
26contractual employer, of his or her retirement status before 
 
 
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1accepting contractual employment. A person who fails to submit 
2such notification shall be guilty of a Class A misdemeanor and 
3required to pay a fine of $1,000. Upon termination of that 
4contractual employment, the person's retirement annuity or 
5retirement pension payments shall resume and, if appropriate, 
6be recalculated under the applicable provisions of this Code. 
7 (i) (Blank). 
8 (j) In the case of a conflict between the provisions of 
9this Section and any other provision of this Code, except for 
10Section 1-163, the provisions of this Section shall control.
11(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
12102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
135-6-22; 103-529, eff. 8-11-23.)

14 (Text of Section from P.A. 102-813)
15 Sec. 1-160. Provisions applicable to new hires. 
16 (a) The provisions of this Section apply to a person who, 
17on or after January 1, 2011, first becomes a member or a 
18participant under any reciprocal retirement system or pension 
19fund established under this Code, other than a retirement 
20system or pension fund established under Article 2, 3, 4, 5, 6, 
217, 15, or 18 of this Code, notwithstanding any other provision 
22of this Code to the contrary, but do not apply to any 
23self-managed plan established under this Code or to any 
24participant of the retirement plan established under Section 
2522-101; except that this Section applies to a person who 
 
 
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1elected to establish alternative credits by electing in 
2writing after January 1, 2011, but before August 8, 2011, 
3under Section 7-145.1 of this Code. Notwithstanding anything 
4to the contrary in this Section, for purposes of this Section, 
5a person who is a Tier 1 regular employee as defined in Section 
67-109.4 of this Code or who participated in a retirement 
7system under Article 15 prior to January 1, 2011 shall be 
8deemed a person who first became a member or participant prior 
9to January 1, 2011 under any retirement system or pension fund 
10subject to this Section. The changes made to this Section by 
11Public Act 98-596 are a clarification of existing law and are 
12intended to be retroactive to January 1, 2011 (the effective 
13date of Public Act 96-889), notwithstanding the provisions of 
14Section 1-103.1 of this Code.
15 This Section does not apply to a person who first becomes a 
16noncovered employee under Article 14 on or after the 
17implementation date of the plan created under Section 1-161 
18for that Article, unless that person elects under subsection 
19(b) of Section 1-161 to instead receive the benefits provided 
20under this Section and the applicable provisions of that 
21Article.
22 This Section does not apply to a person who first becomes a 
23member or participant under Article 16 on or after the 
24implementation date of the plan created under Section 1-161 
25for that Article, unless that person elects under subsection 
26(b) of Section 1-161 to instead receive the benefits provided 
 
 
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1under this Section and the applicable provisions of that 
2Article.
3 This Section does not apply to a person who elects under 
4subsection (c-5) of Section 1-161 to receive the benefits 
5under Section 1-161. 
6 This Section does not apply to a person who first becomes a 
7member or participant of an affected pension fund on or after 6 
8months after the resolution or ordinance date, as defined in 
9Section 1-162, unless that person elects under subsection (c) 
10of Section 1-162 to receive the benefits provided under this 
11Section and the applicable provisions of the Article under 
12which he or she is a member or participant. 
13 (b) "Final average salary" means, except as otherwise 
14provided in this subsection, the average monthly (or annual) 
15salary obtained by dividing the total salary or earnings 
16calculated under the Article applicable to the member or 
17participant during the 96 consecutive months (or 8 consecutive 
18years) of service within the last 120 months (or 10 years) of 
19service in which the total salary or earnings calculated under 
20the applicable Article was the highest by the number of months 
21(or years) of service in that period. For the purposes of a 
22person who first becomes a member or participant of any 
23retirement system or pension fund to which this Section 
24applies on or after January 1, 2011, in this Code, "final 
25average salary" shall be substituted for the following:
26  (1) (Blank).
 
 
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1  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
2 annual salary for any 4 consecutive years within the last 
3 10 years of service immediately preceding the date of 
4 withdrawal". 
5  (3) In Article 13, "average final salary". 
6  (4) In Article 14, "final average compensation". 
7  (5) In Article 17, "average salary". 
8  (6) In Section 22-207, "wages or salary received by 
9 him at the date of retirement or discharge". 
10 A member of the Teachers' Retirement System of the State 
11of Illinois who retires on or after June 1, 2021 and for whom 
12the 2020-2021 school year is used in the calculation of the 
13member's final average salary shall use the higher of the 
14following for the purpose of determining the member's final 
15average salary:
16  (A) the amount otherwise calculated under the first 
17 paragraph of this subsection; or
18  (B) an amount calculated by the Teachers' Retirement 
19 System of the State of Illinois using the average of the 
20 monthly (or annual) salary obtained by dividing the total 
21 salary or earnings calculated under Article 16 applicable 
22 to the member or participant during the 96 months (or 8 
23 years) of service within the last 120 months (or 10 years) 
24 of service in which the total salary or earnings 
25 calculated under the Article was the highest by the number 
26 of months (or years) of service in that period.
 
 
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1 (b-5) Beginning on January 1, 2011, for all purposes under 
2this Code (including without limitation the calculation of 
3benefits and employee contributions), the annual earnings, 
4salary, or wages (based on the plan year) of a member or 
5participant to whom this Section applies shall not exceed 
6$106,800; however, that amount shall annually thereafter be 
7increased by the lesser of (i) 3% of that amount, including all 
8previous adjustments, or (ii) one-half the annual unadjusted 
9percentage increase (but not less than zero) in the consumer 
10price index-u for the 12 months ending with the September 
11preceding each November 1, including all previous adjustments.
12 For the purposes of this Section, "consumer price index-u" 
13means the index published by the Bureau of Labor Statistics of 
14the United States Department of Labor that measures the 
15average change in prices of goods and services purchased by 
16all urban consumers, United States city average, all items, 
171982-84 = 100. The new amount resulting from each annual 
18adjustment shall be determined by the Public Pension Division 
19of the Department of Insurance and made available to the 
20boards of the retirement systems and pension funds by November 
211 of each year. 
22 (b-10) Beginning on January 1, 2024, for all purposes 
23under this Code (including, without limitation, the 
24calculation of benefits and employee contributions), the 
25annual earnings, salary, or wages (based on the plan year) of a 
26member or participant under Article 9 to whom this Section 
 
 
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1applies shall include an annual earnings, salary, or wage cap 
2that tracks the Social Security wage base. Maximum annual 
3earnings, wages, or salary shall be the annual contribution 
4and benefit base established for the applicable year by the 
5Commissioner of the Social Security Administration under the 
6federal Social Security Act. 
7 However, in no event shall the annual earnings, salary, or 
8wages for the purposes of this Article and Article 9 exceed any 
9limitation imposed on annual earnings, salary, or wages under 
10Section 1-117. Under no circumstances shall the maximum amount 
11of annual earnings, salary, or wages be greater than the 
12amount set forth in this subsection (b-10) as a result of 
13reciprocal service or any provisions regarding reciprocal 
14services, nor shall the Fund under Article 9 be required to pay 
15any refund as a result of the application of this maximum 
16annual earnings, salary, and wage cap. 
17 Nothing in this subsection (b-10) shall cause or otherwise 
18result in any retroactive adjustment of any employee 
19contributions. Nothing in this subsection (b-10) shall cause 
20or otherwise result in any retroactive adjustment of 
21disability or other payments made between January 1, 2011 and 
22January 1, 2024. 
23 (c) A member or participant is entitled to a retirement 
24annuity upon written application if he or she has attained age 
2567 (age 65, with respect to service under Article 12 that is 
26subject to this Section, for a member or participant under 
 
 
HB5909- 21 -LRB103 43117 RPS 76377 b


1Article 12 who first becomes a member or participant under 
2Article 12 on or after January 1, 2022 or who makes the 
3election under item (i) of subsection (d-15) of this Section) 
4and has at least 10 years of service credit and is otherwise 
5eligible under the requirements of the applicable Article. 
6 A member or participant who has attained age 62 (age 60, 
7with respect to service under Article 12 that is subject to 
8this Section, for a member or participant under Article 12 who 
9first becomes a member or participant under Article 12 on or 
10after January 1, 2022 or who makes the election under item (i) 
11of subsection (d-15) of this Section) and has at least 10 years 
12of service credit and is otherwise eligible under the 
13requirements of the applicable Article may elect to receive 
14the lower retirement annuity provided in subsection (d) of 
15this Section. 
16 (c-5) A person who first becomes a member or a participant 
17subject to this Section on or after July 6, 2017 (the effective 
18date of Public Act 100-23), notwithstanding any other 
19provision of this Code to the contrary, is entitled to a 
20retirement annuity under Article 8 or Article 11 upon written 
21application if he or she has attained age 65 and has at least 
2210 years of service credit and is otherwise eligible under the 
23requirements of Article 8 or Article 11 of this Code, 
24whichever is applicable. 
25 (d) The retirement annuity of a member or participant who 
26is retiring after attaining age 62 (age 60, with respect to 
 
 
HB5909- 22 -LRB103 43117 RPS 76377 b


1service under Article 12 that is subject to this Section, for a 
2member or participant under Article 12 who first becomes a 
3member or participant under Article 12 on or after January 1, 
42022 or who makes the election under item (i) of subsection 
5(d-15) of this Section) with at least 10 years of service 
6credit shall be reduced by one-half of 1% for each full month 
7that the member's age is under age 67 (age 65, with respect to 
8service under Article 12 that is subject to this Section, for a 
9member or participant under Article 12 who first becomes a 
10member or participant under Article 12 on or after January 1, 
112022 or who makes the election under item (i) of subsection 
12(d-15) of this Section).
13 (d-5) The retirement annuity payable under Article 8 or 
14Article 11 to an eligible person subject to subsection (c-5) 
15of this Section who is retiring at age 60 with at least 10 
16years of service credit shall be reduced by one-half of 1% for 
17each full month that the member's age is under age 65. 
18 (d-10) Each person who first became a member or 
19participant under Article 8 or Article 11 of this Code on or 
20after January 1, 2011 and prior to July 6, 2017 (the effective 
21date of Public Act 100-23) shall make an irrevocable election 
22either:
23  (i) to be eligible for the reduced retirement age 
24 provided in subsections (c-5) and (d-5) of this Section, 
25 the eligibility for which is conditioned upon the member 
26 or participant agreeing to the increases in employee 
 
 
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1 contributions for age and service annuities provided in 
2 subsection (a-5) of Section 8-174 of this Code (for 
3 service under Article 8) or subsection (a-5) of Section 
4 11-170 of this Code (for service under Article 11); or 
5  (ii) to not agree to item (i) of this subsection 
6 (d-10), in which case the member or participant shall 
7 continue to be subject to the retirement age provisions in 
8 subsections (c) and (d) of this Section and the employee 
9 contributions for age and service annuity as provided in 
10 subsection (a) of Section 8-174 of this Code (for service 
11 under Article 8) or subsection (a) of Section 11-170 of 
12 this Code (for service under Article 11). 
13 The election provided for in this subsection shall be made 
14between October 1, 2017 and November 15, 2017. A person 
15subject to this subsection who makes the required election 
16shall remain bound by that election. A person subject to this 
17subsection who fails for any reason to make the required 
18election within the time specified in this subsection shall be 
19deemed to have made the election under item (ii). 
20 (d-15) Each person who first becomes a member or 
21participant under Article 12 on or after January 1, 2011 and 
22prior to January 1, 2022 shall make an irrevocable election 
23either: 
24  (i) to be eligible for the reduced retirement age 
25 specified in subsections (c) and (d) of this Section, the 
26 eligibility for which is conditioned upon the member or 
 
 
HB5909- 24 -LRB103 43117 RPS 76377 b


1 participant agreeing to the increase in employee 
2 contributions for service annuities specified in 
3 subsection (b) of Section 12-150; or
4  (ii) to not agree to item (i) of this subsection 
5 (d-15), in which case the member or participant shall not 
6 be eligible for the reduced retirement age specified in 
7 subsections (c) and (d) of this Section and shall not be 
8 subject to the increase in employee contributions for 
9 service annuities specified in subsection (b) of Section 
10 12-150. 
11 The election provided for in this subsection shall be made 
12between January 1, 2022 and April 1, 2022. A person subject to 
13this subsection who makes the required election shall remain 
14bound by that election. A person subject to this subsection 
15who fails for any reason to make the required election within 
16the time specified in this subsection shall be deemed to have 
17made the election under item (ii). 
18 (e) Any retirement annuity or supplemental annuity shall 
19be subject to annual increases on the January 1 occurring 
20either on or after the attainment of age 67 (age 65, with 
21respect to service under Article 12 that is subject to this 
22Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15); and beginning on July 6, 2017 (the 
26effective date of Public Act 100-23), age 65 with respect to 
 
 
HB5909- 25 -LRB103 43117 RPS 76377 b


1service under Article 8 or Article 11 for eligible persons 
2who: (i) are subject to subsection (c-5) of this Section; or 
3(ii) made the election under item (i) of subsection (d-10) of 
4this Section) or the first anniversary of the annuity start 
5date, whichever is later. Each annual increase shall be 
6calculated at 3% or one-half the annual unadjusted percentage 
7increase (but not less than zero) in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1, whichever is less, of the originally granted 
10retirement annuity. If the annual unadjusted percentage change 
11in the consumer price index-u for the 12 months ending with the 
12September preceding each November 1 is zero or there is a 
13decrease, then the annuity shall not be increased. 
14 For the purposes of Section 1-103.1 of this Code, the 
15changes made to this Section by Public Act 102-263 are 
16applicable without regard to whether the employee was in 
17active service on or after August 6, 2021 (the effective date 
18of Public Act 102-263). 
19 For the purposes of Section 1-103.1 of this Code, the 
20changes made to this Section by Public Act 100-23 are 
21applicable without regard to whether the employee was in 
22active service on or after July 6, 2017 (the effective date of 
23Public Act 100-23). 
24 (f) The initial survivor's or widow's annuity of an 
25otherwise eligible survivor or widow of a retired member or 
26participant who first became a member or participant on or 
 
 
HB5909- 26 -LRB103 43117 RPS 76377 b


1after January 1, 2011 shall be in the amount of 66 2/3% of the 
2retired member's or participant's retirement annuity at the 
3date of death. In the case of the death of a member or 
4participant who has not retired and who first became a member 
5or participant on or after January 1, 2011, eligibility for a 
6survivor's or widow's annuity shall be determined by the 
7applicable Article of this Code. The initial benefit shall be 
866 2/3% of the earned annuity without a reduction due to age. A 
9child's annuity of an otherwise eligible child shall be in the 
10amount prescribed under each Article if applicable. Any 
11survivor's or widow's annuity shall be increased (1) on each 
12January 1 occurring on or after the commencement of the 
13annuity if the deceased member died while receiving a 
14retirement annuity or (2) in other cases, on each January 1 
15occurring after the first anniversary of the commencement of 
16the annuity. Each annual increase shall be calculated at 3% or 
17one-half the annual unadjusted percentage increase (but not 
18less than zero) in the consumer price index-u for the 12 months 
19ending with the September preceding each November 1, whichever 
20is less, of the originally granted survivor's annuity. If the 
21annual unadjusted percentage change in the consumer price 
22index-u for the 12 months ending with the September preceding 
23each November 1 is zero or there is a decrease, then the 
24annuity shall not be increased. 
25 (g) The benefits in Section 14-110 apply only if the 
26person is a State policeman, a fire fighter in the fire 
 
 
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1protection service of a department, a conservation police 
2officer, an investigator for the Secretary of State, an arson 
3investigator, a Commerce Commission police officer, 
4investigator for the Department of Revenue or the Illinois 
5Gaming Board, a security employee of the Department of 
6Corrections or the Department of Juvenile Justice, or a 
7security employee of the Department of Innovation and 
8Technology, as those terms are defined in subsection (b) and 
9subsection (c) of Section 14-110. A person who meets the 
10requirements of this Section is entitled to an annuity 
11calculated under the provisions of Section 14-110, in lieu of 
12the regular or minimum retirement annuity, only if the person 
13has withdrawn from service with not less than 20 years of 
14eligible creditable service and has attained age 60, 
15regardless of whether the attainment of age 60 occurs while 
16the person is still in service. 
17 (h) If a person who first becomes a member or a participant 
18of a retirement system or pension fund subject to this Section 
19on or after January 1, 2011 is receiving a retirement annuity 
20or retirement pension under that system or fund and becomes a 
21member or participant under any other system or fund created 
22by this Code and is employed on a full-time basis, except for 
23those members or participants exempted from the provisions of 
24this Section under subsection (a) of this Section, then the 
25person's retirement annuity or retirement pension under that 
26system or fund shall be suspended during that employment. Upon 
 
 
HB5909- 28 -LRB103 43117 RPS 76377 b


1termination of that employment, the person's retirement 
2annuity or retirement pension payments shall resume and be 
3recalculated if recalculation is provided for under the 
4applicable Article of this Code.
5 If a person who first becomes a member of a retirement 
6system or pension fund subject to this Section on or after 
7January 1, 2012 and is receiving a retirement annuity or 
8retirement pension under that system or fund and accepts on a 
9contractual basis a position to provide services to a 
10governmental entity from which he or she has retired, then 
11that person's annuity or retirement pension earned as an 
12active employee of the employer shall be suspended during that 
13contractual service. A person receiving an annuity or 
14retirement pension under this Code shall notify the pension 
15fund or retirement system from which he or she is receiving an 
16annuity or retirement pension, as well as his or her 
17contractual employer, of his or her retirement status before 
18accepting contractual employment. A person who fails to submit 
19such notification shall be guilty of a Class A misdemeanor and 
20required to pay a fine of $1,000. Upon termination of that 
21contractual employment, the person's retirement annuity or 
22retirement pension payments shall resume and, if appropriate, 
23be recalculated under the applicable provisions of this Code. 
24 (i) (Blank). 
25 (j) In the case of a conflict between the provisions of 
26this Section and any other provision of this Code, except for 
 
 
HB5909- 29 -LRB103 43117 RPS 76377 b


1Section 1-163, the provisions of this Section shall control.
2(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
3102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
45-13-22; 103-529, eff. 8-11-23.)

5 (Text of Section from P.A. 102-956)
6 Sec. 1-160. Provisions applicable to new hires. 
7 (a) The provisions of this Section apply to a person who, 
8on or after January 1, 2011, first becomes a member or a 
9participant under any reciprocal retirement system or pension 
10fund established under this Code, other than a retirement 
11system or pension fund established under Article 2, 3, 4, 5, 6, 
127, 15, or 18 of this Code, notwithstanding any other provision 
13of this Code to the contrary, but do not apply to any 
14self-managed plan established under this Code or to any 
15participant of the retirement plan established under Section 
1622-101; except that this Section applies to a person who 
17elected to establish alternative credits by electing in 
18writing after January 1, 2011, but before August 8, 2011, 
19under Section 7-145.1 of this Code. Notwithstanding anything 
20to the contrary in this Section, for purposes of this Section, 
21a person who is a Tier 1 regular employee as defined in Section 
227-109.4 of this Code or who participated in a retirement 
23system under Article 15 prior to January 1, 2011 shall be 
24deemed a person who first became a member or participant prior 
25to January 1, 2011 under any retirement system or pension fund 
 
 
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1subject to this Section. The changes made to this Section by 
2Public Act 98-596 are a clarification of existing law and are 
3intended to be retroactive to January 1, 2011 (the effective 
4date of Public Act 96-889), notwithstanding the provisions of 
5Section 1-103.1 of this Code.
6 This Section does not apply to a person who first becomes a 
7noncovered employee under Article 14 on or after the 
8implementation date of the plan created under Section 1-161 
9for that Article, unless that person elects under subsection 
10(b) of Section 1-161 to instead receive the benefits provided 
11under this Section and the applicable provisions of that 
12Article.
13 This Section does not apply to a person who first becomes a 
14member or participant under Article 16 on or after the 
15implementation date of the plan created under Section 1-161 
16for that Article, unless that person elects under subsection 
17(b) of Section 1-161 to instead receive the benefits provided 
18under this Section and the applicable provisions of that 
19Article.
20 This Section does not apply to a person who elects under 
21subsection (c-5) of Section 1-161 to receive the benefits 
22under Section 1-161. 
23 This Section does not apply to a person who first becomes a 
24member or participant of an affected pension fund on or after 6 
25months after the resolution or ordinance date, as defined in 
26Section 1-162, unless that person elects under subsection (c) 
 
 
HB5909- 31 -LRB103 43117 RPS 76377 b


1of Section 1-162 to receive the benefits provided under this 
2Section and the applicable provisions of the Article under 
3which he or she is a member or participant. 
4 (b) "Final average salary" means, except as otherwise 
5provided in this subsection, the average monthly (or annual) 
6salary obtained by dividing the total salary or earnings 
7calculated under the Article applicable to the member or 
8participant during the 96 consecutive months (or 8 consecutive 
9years) of service within the last 120 months (or 10 years) of 
10service in which the total salary or earnings calculated under 
11the applicable Article was the highest by the number of months 
12(or years) of service in that period. For the purposes of a 
13person who first becomes a member or participant of any 
14retirement system or pension fund to which this Section 
15applies on or after January 1, 2011, in this Code, "final 
16average salary" shall be substituted for the following:
17  (1) (Blank).
18  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
19 annual salary for any 4 consecutive years within the last 
20 10 years of service immediately preceding the date of 
21 withdrawal". 
22  (3) In Article 13, "average final salary". 
23  (4) In Article 14, "final average compensation". 
24  (5) In Article 17, "average salary". 
25  (6) In Section 22-207, "wages or salary received by 
26 him at the date of retirement or discharge". 
 
 
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1 A member of the Teachers' Retirement System of the State 
2of Illinois who retires on or after June 1, 2021 and for whom 
3the 2020-2021 school year is used in the calculation of the 
4member's final average salary shall use the higher of the 
5following for the purpose of determining the member's final 
6average salary:
7  (A) the amount otherwise calculated under the first 
8 paragraph of this subsection; or
9  (B) an amount calculated by the Teachers' Retirement 
10 System of the State of Illinois using the average of the 
11 monthly (or annual) salary obtained by dividing the total 
12 salary or earnings calculated under Article 16 applicable 
13 to the member or participant during the 96 months (or 8 
14 years) of service within the last 120 months (or 10 years) 
15 of service in which the total salary or earnings 
16 calculated under the Article was the highest by the number 
17 of months (or years) of service in that period.
18 (b-5) Beginning on January 1, 2011, for all purposes under 
19this Code (including without limitation the calculation of 
20benefits and employee contributions), the annual earnings, 
21salary, or wages (based on the plan year) of a member or 
22participant to whom this Section applies shall not exceed 
23$106,800; however, that amount shall annually thereafter be 
24increased by the lesser of (i) 3% of that amount, including all 
25previous adjustments, or (ii) one-half the annual unadjusted 
26percentage increase (but not less than zero) in the consumer 
 
 
HB5909- 33 -LRB103 43117 RPS 76377 b


1price index-u for the 12 months ending with the September 
2preceding each November 1, including all previous adjustments.
3 For the purposes of this Section, "consumer price index-u" 
4means the index published by the Bureau of Labor Statistics of 
5the United States Department of Labor that measures the 
6average change in prices of goods and services purchased by 
7all urban consumers, United States city average, all items, 
81982-84 = 100. The new amount resulting from each annual 
9adjustment shall be determined by the Public Pension Division 
10of the Department of Insurance and made available to the 
11boards of the retirement systems and pension funds by November 
121 of each year. 
13 (b-10) Beginning on January 1, 2024, for all purposes 
14under this Code (including, without limitation, the 
15calculation of benefits and employee contributions), the 
16annual earnings, salary, or wages (based on the plan year) of a 
17member or participant under Article 9 to whom this Section 
18applies shall include an annual earnings, salary, or wage cap 
19that tracks the Social Security wage base. Maximum annual 
20earnings, wages, or salary shall be the annual contribution 
21and benefit base established for the applicable year by the 
22Commissioner of the Social Security Administration under the 
23federal Social Security Act. 
24 However, in no event shall the annual earnings, salary, or 
25wages for the purposes of this Article and Article 9 exceed any 
26limitation imposed on annual earnings, salary, or wages under 
 
 
HB5909- 34 -LRB103 43117 RPS 76377 b


1Section 1-117. Under no circumstances shall the maximum amount 
2of annual earnings, salary, or wages be greater than the 
3amount set forth in this subsection (b-10) as a result of 
4reciprocal service or any provisions regarding reciprocal 
5services, nor shall the Fund under Article 9 be required to pay 
6any refund as a result of the application of this maximum 
7annual earnings, salary, and wage cap. 
8 Nothing in this subsection (b-10) shall cause or otherwise 
9result in any retroactive adjustment of any employee 
10contributions. Nothing in this subsection (b-10) shall cause 
11or otherwise result in any retroactive adjustment of 
12disability or other payments made between January 1, 2011 and 
13January 1, 2024. 
14 (c) A member or participant is entitled to a retirement 
15annuity upon written application if he or she has attained age 
1667 (age 65, with respect to service under Article 12 that is 
17subject to this Section, for a member or participant under 
18Article 12 who first becomes a member or participant under 
19Article 12 on or after January 1, 2022 or who makes the 
20election under item (i) of subsection (d-15) of this Section) 
21and has at least 10 years of service credit and is otherwise 
22eligible under the requirements of the applicable Article. 
23 A member or participant who has attained age 62 (age 60, 
24with respect to service under Article 12 that is subject to 
25this Section, for a member or participant under Article 12 who 
26first becomes a member or participant under Article 12 on or 
 
 
HB5909- 35 -LRB103 43117 RPS 76377 b


1after January 1, 2022 or who makes the election under item (i) 
2of subsection (d-15) of this Section) and has at least 10 years 
3of service credit and is otherwise eligible under the 
4requirements of the applicable Article may elect to receive 
5the lower retirement annuity provided in subsection (d) of 
6this Section. 
7 (c-5) A person who first becomes a member or a participant 
8subject to this Section on or after July 6, 2017 (the effective 
9date of Public Act 100-23), notwithstanding any other 
10provision of this Code to the contrary, is entitled to a 
11retirement annuity under Article 8 or Article 11 upon written 
12application if he or she has attained age 65 and has at least 
1310 years of service credit and is otherwise eligible under the 
14requirements of Article 8 or Article 11 of this Code, 
15whichever is applicable. 
16 (d) The retirement annuity of a member or participant who 
17is retiring after attaining age 62 (age 60, with respect to 
18service under Article 12 that is subject to this Section, for a 
19member or participant under Article 12 who first becomes a 
20member or participant under Article 12 on or after January 1, 
212022 or who makes the election under item (i) of subsection 
22(d-15) of this Section) with at least 10 years of service 
23credit shall be reduced by one-half of 1% for each full month 
24that the member's age is under age 67 (age 65, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
HB5909- 36 -LRB103 43117 RPS 76377 b


1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section).
4 (d-5) The retirement annuity payable under Article 8 or 
5Article 11 to an eligible person subject to subsection (c-5) 
6of this Section who is retiring at age 60 with at least 10 
7years of service credit shall be reduced by one-half of 1% for 
8each full month that the member's age is under age 65. 
9 (d-10) Each person who first became a member or 
10participant under Article 8 or Article 11 of this Code on or 
11after January 1, 2011 and prior to July 6, 2017 (the effective 
12date of Public Act 100-23) shall make an irrevocable election 
13either:
14  (i) to be eligible for the reduced retirement age 
15 provided in subsections (c-5) and (d-5) of this Section, 
16 the eligibility for which is conditioned upon the member 
17 or participant agreeing to the increases in employee 
18 contributions for age and service annuities provided in 
19 subsection (a-5) of Section 8-174 of this Code (for 
20 service under Article 8) or subsection (a-5) of Section 
21 11-170 of this Code (for service under Article 11); or 
22  (ii) to not agree to item (i) of this subsection 
23 (d-10), in which case the member or participant shall 
24 continue to be subject to the retirement age provisions in 
25 subsections (c) and (d) of this Section and the employee 
26 contributions for age and service annuity as provided in 
 
 
HB5909- 37 -LRB103 43117 RPS 76377 b


1 subsection (a) of Section 8-174 of this Code (for service 
2 under Article 8) or subsection (a) of Section 11-170 of 
3 this Code (for service under Article 11). 
4 The election provided for in this subsection shall be made 
5between October 1, 2017 and November 15, 2017. A person 
6subject to this subsection who makes the required election 
7shall remain bound by that election. A person subject to this 
8subsection who fails for any reason to make the required 
9election within the time specified in this subsection shall be 
10deemed to have made the election under item (ii). 
11 (d-15) Each person who first becomes a member or 
12participant under Article 12 on or after January 1, 2011 and 
13prior to January 1, 2022 shall make an irrevocable election 
14either: 
15  (i) to be eligible for the reduced retirement age 
16 specified in subsections (c) and (d) of this Section, the 
17 eligibility for which is conditioned upon the member or 
18 participant agreeing to the increase in employee 
19 contributions for service annuities specified in 
20 subsection (b) of Section 12-150; or
21  (ii) to not agree to item (i) of this subsection 
22 (d-15), in which case the member or participant shall not 
23 be eligible for the reduced retirement age specified in 
24 subsections (c) and (d) of this Section and shall not be 
25 subject to the increase in employee contributions for 
26 service annuities specified in subsection (b) of Section 
 
 
HB5909- 38 -LRB103 43117 RPS 76377 b


1 12-150. 
2 The election provided for in this subsection shall be made 
3between January 1, 2022 and April 1, 2022. A person subject to 
4this subsection who makes the required election shall remain 
5bound by that election. A person subject to this subsection 
6who fails for any reason to make the required election within 
7the time specified in this subsection shall be deemed to have 
8made the election under item (ii). 
9 (e) Any retirement annuity or supplemental annuity shall 
10be subject to annual increases on the January 1 occurring 
11either on or after the attainment of age 67 (age 65, with 
12respect to service under Article 12 that is subject to this 
13Section, for a member or participant under Article 12 who 
14first becomes a member or participant under Article 12 on or 
15after January 1, 2022 or who makes the election under item (i) 
16of subsection (d-15); and beginning on July 6, 2017 (the 
17effective date of Public Act 100-23), age 65 with respect to 
18service under Article 8 or Article 11 for eligible persons 
19who: (i) are subject to subsection (c-5) of this Section; or 
20(ii) made the election under item (i) of subsection (d-10) of 
21this Section) or the first anniversary of the annuity start 
22date, whichever is later. Each annual increase shall be 
23calculated at 3% or one-half the annual unadjusted percentage 
24increase (but not less than zero) in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1, whichever is less, of the originally granted 
 
 
HB5909- 39 -LRB103 43117 RPS 76377 b


1retirement annuity. If the annual unadjusted percentage change 
2in the consumer price index-u for the 12 months ending with the 
3September preceding each November 1 is zero or there is a 
4decrease, then the annuity shall not be increased. 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this Section by Public Act 102-263 are 
7applicable without regard to whether the employee was in 
8active service on or after August 6, 2021 (the effective date 
9of Public Act 102-263). 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by Public Act 100-23 are 
12applicable without regard to whether the employee was in 
13active service on or after July 6, 2017 (the effective date of 
14Public Act 100-23). 
15 (f) The initial survivor's or widow's annuity of an 
16otherwise eligible survivor or widow of a retired member or 
17participant who first became a member or participant on or 
18after January 1, 2011 shall be in the amount of 66 2/3% of the 
19retired member's or participant's retirement annuity at the 
20date of death. In the case of the death of a member or 
21participant who has not retired and who first became a member 
22or participant on or after January 1, 2011, eligibility for a 
23survivor's or widow's annuity shall be determined by the 
24applicable Article of this Code. The initial benefit shall be 
2566 2/3% of the earned annuity without a reduction due to age. A 
26child's annuity of an otherwise eligible child shall be in the 
 
 
HB5909- 40 -LRB103 43117 RPS 76377 b


1amount prescribed under each Article if applicable. Any 
2survivor's or widow's annuity shall be increased (1) on each 
3January 1 occurring on or after the commencement of the 
4annuity if the deceased member died while receiving a 
5retirement annuity or (2) in other cases, on each January 1 
6occurring after the first anniversary of the commencement of 
7the annuity. Each annual increase shall be calculated at 3% or 
8one-half the annual unadjusted percentage increase (but not 
9less than zero) in the consumer price index-u for the 12 months 
10ending with the September preceding each November 1, whichever 
11is less, of the originally granted survivor's annuity. If the 
12annual unadjusted percentage change in the consumer price 
13index-u for the 12 months ending with the September preceding 
14each November 1 is zero or there is a decrease, then the 
15annuity shall not be increased. 
16 (g) The benefits in Section 14-110 apply only if the 
17person is a State policeman, a fire fighter in the fire 
18protection service of a department, a conservation police 
19officer, an investigator for the Secretary of State, an 
20investigator for the Office of the Attorney General, an arson 
21investigator, a Commerce Commission police officer, 
22investigator for the Department of Revenue or the Illinois 
23Gaming Board, a security employee of the Department of 
24Corrections or the Department of Juvenile Justice, or a 
25security employee of the Department of Innovation and 
26Technology, as those terms are defined in subsection (b) and 
 
 
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1subsection (c) of Section 14-110. A person who meets the 
2requirements of this Section is entitled to an annuity 
3calculated under the provisions of Section 14-110, in lieu of 
4the regular or minimum retirement annuity, only if the person 
5has withdrawn from service with not less than 20 years of 
6eligible creditable service and has attained age 60, 
7regardless of whether the attainment of age 60 occurs while 
8the person is still in service. 
9 (h) If a person who first becomes a member or a participant 
10of a retirement system or pension fund subject to this Section 
11on or after January 1, 2011 is receiving a retirement annuity 
12or retirement pension under that system or fund and becomes a 
13member or participant under any other system or fund created 
14by this Code and is employed on a full-time basis, except for 
15those members or participants exempted from the provisions of 
16this Section under subsection (a) of this Section, then the 
17person's retirement annuity or retirement pension under that 
18system or fund shall be suspended during that employment. Upon 
19termination of that employment, the person's retirement 
20annuity or retirement pension payments shall resume and be 
21recalculated if recalculation is provided for under the 
22applicable Article of this Code.
23 If a person who first becomes a member of a retirement 
24system or pension fund subject to this Section on or after 
25January 1, 2012 and is receiving a retirement annuity or 
26retirement pension under that system or fund and accepts on a 
 
 
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1contractual basis a position to provide services to a 
2governmental entity from which he or she has retired, then 
3that person's annuity or retirement pension earned as an 
4active employee of the employer shall be suspended during that 
5contractual service. A person receiving an annuity or 
6retirement pension under this Code shall notify the pension 
7fund or retirement system from which he or she is receiving an 
8annuity or retirement pension, as well as his or her 
9contractual employer, of his or her retirement status before 
10accepting contractual employment. A person who fails to submit 
11such notification shall be guilty of a Class A misdemeanor and 
12required to pay a fine of $1,000. Upon termination of that 
13contractual employment, the person's retirement annuity or 
14retirement pension payments shall resume and, if appropriate, 
15be recalculated under the applicable provisions of this Code. 
16 (i) (Blank). 
17 (j) In the case of a conflict between the provisions of 
18this Section and any other provision of this Code, except for 
19Section 1-163, the provisions of this Section shall control.
20(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
21102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
228-11-23.)

23 (40 ILCS 5/1-163 new)
24 Sec. 1-163. Limitation on annual earnings, salary, or 
25wages for pension purposes for certain persons who first 
 
 
HB5909- 43 -LRB103 43117 RPS 76377 b


1become participants on or after January 1, 2011. 
2 (a) Notwithstanding any provision of law to the contrary, 
3including Section 1-160, this Section applies to a person who, 
4on or after January 1, 2011, first becomes a member or 
5participant under a pension fund or retirement system 
6established under any of Articles 3 through 17 of this Code. To 
7the extent that any provision of this Section conflicts with 
8any other provision of this Code, this Section controls, 
9except for a conflict that would diminish or impair a benefit 
10of membership in a pension or retirement system of the State.
11 (b) Beginning on January 1, 2025, for all purposes under 
12this Code (including, without limitation, the calculation of 
13benefits and employee contributions), the annual earnings, 
14salary, or wages (based on the plan year) of a member or 
15participant to whom this Section applies shall not exceed the 
16Social Security wage base for the applicable plan year. In 
17this subsection, "Social Security wage base" means the 
18contribution and benefit base calculated for the calendar year 
19in question by the Commissioner of Social Security under 
20Section 230 of the federal Social Security Act (42 U.S.C. 
21430).
22 However, in no event shall the annual earnings, salary, or 
23wages for the purposes of this Code exceed any limitation 
24imposed on annual earnings, salary, or wages under Section 
251-117. Under no circumstances shall the maximum amount of 
26annual earnings, salary, or wages be greater than the amount 
 
 
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1set forth in this subsection as a result of reciprocal service 
2or any provisions regarding reciprocal services, nor shall the 
3retirement system or pension fund be required to pay any 
4refund as a result of the application of this maximum annual 
5earnings, salary, and wage cap.
6 Nothing in this Section shall cause or otherwise result in 
7any retroactive adjustment of any employee contributions. 
8Nothing in this Section shall cause or otherwise result in any 
9retroactive adjustment of benefit payments made between 
10January 1, 2011 and January 1, 2025. 
11 (c) With regard to a member's or participant's earnings, 
12salary, or wages received on or after January 1, 2011 and 
13before January 1, 2025, the limitation on annual earnings, 
14salary, or wages shall be retroactively increased to an amount 
15equal to the Social Security wage base for that year. This 
16subsection does not require a member or participant to make 
17any additional contribution to the pension fund or retirement 
18system for the period from January 1, 2011 to January 1, 2025. 
19This subsection applies only to a person who, on or after 
20January 1, 2025, is an active member or active participant of a 
21pension fund or retirement system established under this Code. 

22 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
23 (Text of Section WITHOUT the changes made by P.A. 98-599, 
24which has been held unconstitutional)
25 Sec. 2-108.1. Highest salary for annuity purposes. 
 
 
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1 (a) "Highest salary for annuity purposes" means whichever 
2of the following is applicable to the participant:
3 For a participant who first becomes a participant of this 
4System before August 10, 2009 (the effective date of Public 
5Act 96-207):  
6  (1) For a participant who is a member of the General 
7 Assembly on his or her last day of service: the highest 
8 salary that is prescribed by law, on the participant's 
9 last day of service, for a member of the General Assembly 
10 who is not an officer; plus, if the participant was 
11 elected or appointed to serve as an officer of the General 
12 Assembly for 2 or more years and has made contributions as 
13 required under subsection (d) of Section 2-126, the 
14 highest additional amount of compensation prescribed by 
15 law, at the time of the participant's service as an 
16 officer, for members of the General Assembly who serve in 
17 that office. 
18  (2) For a participant who holds one of the State 
19 executive offices specified in Section 2-105 on his or her 
20 last day of service: the highest salary prescribed by law 
21 for service in that office on the participant's last day 
22 of service. 
23  (3) For a participant who is Clerk or Assistant Clerk 
24 of the House of Representatives or Secretary or Assistant 
25 Secretary of the Senate on his or her last day of service: 
26 the salary received for service in that capacity on the 
 
 
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1 last day of service, but not to exceed the highest salary 
2 (including additional compensation for service as an 
3 officer) that is prescribed by law on the participant's 
4 last day of service for the highest paid officer of the 
5 General Assembly. 
6  (4) For a participant who is a continuing participant 
7 under Section 2-117.1 on his or her last day of service: 
8 the salary received for service in that capacity on the 
9 last day of service, but not to exceed the highest salary 
10 (including additional compensation for service as an 
11 officer) that is prescribed by law on the participant's 
12 last day of service for the highest paid officer of the 
13 General Assembly.
14 For a participant who first becomes a participant of this 
15System on or after August 10, 2009 (the effective date of 
16Public Act 96-207) and before January 1, 2011 (the effective 
17date of Public Act 96-889), the average monthly salary 
18obtained by dividing the total salary of the participant 
19during the period of: (1) the 48 consecutive months of service 
20within the last 120 months of service in which the total 
21compensation was the highest, or (2) the total period of 
22service, if less than 48 months, by the number of months of 
23service in that period. 
24 For a participant who first becomes a participant of this 
25System on or after January 1, 2011 (the effective date of 
26Public Act 96-889), the average monthly salary obtained by 
 
 
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1dividing the total salary of the participant during the 96 
2consecutive months of service within the last 120 months of 
3service in which the total compensation was the highest by the 
4number of months of service in that period; however, beginning 
5January 1, 2011 and until January 1, 2025, the highest salary 
6for annuity purposes may not exceed $106,800, except that that 
7amount shall annually thereafter be increased by the lesser of 
8(i) 3% of that amount, including all previous adjustments, or 
9(ii) the annual unadjusted percentage increase (but not less 
10than zero) in the consumer price index-u for the 12 months 
11ending with the September preceding each November 1. "Consumer 
12price index-u" means the index published by the Bureau of 
13Labor Statistics of the United States Department of Labor that 
14measures the average change in prices of goods and services 
15purchased by all urban consumers, United States city average, 
16all items, 1982-84 = 100. The new amount resulting from each 
17annual adjustment shall be determined by the Public Pension 
18Division of the Department of Insurance and made available to 
19the Board by November 1 of each year. 
20 Beginning January 1, 2025, the highest salary for annuity 
21purposes shall not exceed the Social Security wage base for 
22the applicable plan year. In this subsection, "Social Security 
23wage base" means the contribution and benefit base calculated 
24for the calendar year in question by the Commissioner of 
25Social Security under Section 230 of the federal Social 
26Security Act (42 U.S.C. 430). However, in no event shall the 
 
 
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1highest salary for annuity purposes exceed any limitation 
2imposed on annual salary under Section 1-117. Under no 
3circumstances shall the maximum amount of annual earnings, 
4salary, or wages be greater than the amount set forth in this 
5subsection as a result of reciprocal service or any provisions 
6regarding reciprocal services, nor shall the System be 
7required to pay any refund as a result of the application of 
8the limitation on highest salary for annuity purposes. 
9 Nothing in the changes made to this Section by this 
10amendatory Act of the 103rd General Assembly shall cause or 
11otherwise result in any retroactive adjustment of any employee 
12contributions. Nothing in this Section shall cause or 
13otherwise result in any retroactive adjustment of benefit 
14payments made between January 1, 2011 and January 1, 2025. 
15 With regard to a participant's salary received on or after 
16January 1, 2011 and before January 1, 2025, if the participant 
17is in service on or after January 1, 2025, then the limitation 
18on highest salary for annuity purposes shall be retroactively 
19increased to an amount equal to the Social Security wage base 
20for that year. The retroactive increase in the salary 
21limitation under this paragraph does not require a participant 
22to make any additional contribution to the System. 
23 (b) The earnings limitations of subsection (a) apply to 
24earnings under any other participating system under the 
25Retirement Systems Reciprocal Act that are considered in 
26calculating a proportional annuity under this Article, except 
 
 
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1in the case of a person who first became a member of this 
2System before August 22, 1994 and has not, on or after the 
3effective date of this amendatory Act of the 97th General 
4Assembly, irrevocably elected to have those limitations apply. 
5The limitations of subsection (a) shall apply, however, to 
6earnings under any other participating system under the 
7Retirement Systems Reciprocal Act that are considered in 
8calculating the proportional annuity of a person who first 
9became a member of this System before August 22, 1994 if, on or 
10after the effective date of this amendatory Act of the 97th 
11General Assembly, that member irrevocably elects to have those 
12limitations apply.
13 (c) In calculating the subsection (a) earnings limitation 
14to be applied to earnings under any other participating system 
15under the Retirement Systems Reciprocal Act for the purpose of 
16calculating a proportional annuity under this Article, the 
17participant's last day of service shall be deemed to mean the 
18last day of service in any participating system from which the 
19person has applied for a proportional annuity under the 
20Retirement Systems Reciprocal Act.
21(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 
2296-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)

23 (40 ILCS 5/3-153 new)
24 Sec. 3-153. Application of Section 1-163. To the extent 
25that any provision of this Article conflicts with Section 
 
 
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11-163, Section 1-163 controls, except for a conflict that 
2would diminish or impair a benefit of membership in a pension 
3or retirement system of the State.

4 (40 ILCS 5/4-145 new)
5 Sec. 4-145. Application of Section 1-163. To the extent 
6that any provision of this Article conflicts with Section 
71-163, Section 1-163 controls, except for a conflict that 
8would diminish or impair a benefit of membership in a pension 
9or retirement system of the State.

10 (40 ILCS 5/5-239 new)
11 Sec. 5-239. Application of Section 1-163. To the extent 
12that any provision of this Article conflicts with Section 
131-163, Section 1-163 controls, except for a conflict that 
14would diminish or impair a benefit of membership in a pension 
15or retirement system of the State.

16 (40 ILCS 5/6-231 new)
17 Sec. 6-231. Application of Section 1-163. To the extent 
18that any provision of this Article conflicts with Section 
191-163, Section 1-163 controls, except for a conflict that 
20would diminish or impair a benefit of membership in a pension 
21or retirement system of the State.

22 (40 ILCS 5/7-226 new)
 
 
HB5909- 51 -LRB103 43117 RPS 76377 b


1 Sec. 7-226. Application of Section 1-163. To the extent 
2that any provision of this Article conflicts with Section 
31-163, Section 1-163 controls, except for a conflict that 
4would diminish or impair a benefit of membership in a pension 
5or retirement system of the State.

6 (40 ILCS 5/8-251.5 new)
7 Sec. 8-251.5. Application of Section 1-163. To the extent 
8that any provision of this Article conflicts with Section 
91-163, Section 1-163 controls, except for a conflict that 
10would diminish or impair a benefit of membership in a pension 
11or retirement system of the State.

12 (40 ILCS 5/9-242 new)
13 Sec. 9-242. Application of Section 1-163. To the extent 
14that any provision of this Article conflicts with Section 
151-163, Section 1-163 controls, except for a conflict that 
16would diminish or impair a benefit of membership in a pension 
17or retirement system of the State.

18 (40 ILCS 5/10-110 new)
19 Sec. 10-110. Application of Section 1-163. To the extent 
20that any provision of this Article conflicts with Section 
211-163, Section 1-163 controls, except for a conflict that 
22would diminish or impair a benefit of membership in a pension 
23or retirement system of the State.

 
 
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1 (40 ILCS 5/11-233 new)
2 Sec. 11-233. Application of Section 1-163. To the extent 
3that any provision of this Article conflicts with Section 
41-163, Section 1-163 controls, except for a conflict that 
5would diminish or impair a benefit of membership in a pension 
6or retirement system of the State.

7 (40 ILCS 5/12-196 new)
8 Sec. 12-196. Application of Section 1-163. To the extent 
9that any provision of this Article conflicts with Section 
101-163, Section 1-163 controls, except for a conflict that 
11would diminish or impair a benefit of membership in a pension 
12or retirement system of the State.

13 (40 ILCS 5/13-217 new)
14 Sec. 13-217. Application of Section 1-163. To the extent 
15that any provision of this Article conflicts with Section 
161-163, Section 1-163 controls, except for a conflict that 
17would diminish or impair a benefit of membership in a pension 
18or retirement system of the State.

19 (40 ILCS 5/14-157 new)
20 Sec. 14-157. Application of Section 1-163. To the extent 
21that any provision of this Article conflicts with Section 
221-163, Section 1-163 controls, except for a conflict that 
 
 
HB5909- 53 -LRB103 43117 RPS 76377 b


1would diminish or impair a benefit of membership in a pension 
2or retirement system of the State.

3 (40 ILCS 5/15-203 new)
4 Sec. 15-203. Application of Section 1-163. To the extent 
5that any provision of this Article conflicts with Section 
61-163, Section 1-163 controls, except for a conflict that 
7would diminish or impair a benefit of membership in a pension 
8or retirement system of the State.

9 (40 ILCS 5/16-207 new)
10 Sec. 16-207. Application of Section 1-163. To the extent 
11that any provision of this Article conflicts with Section 
121-163, Section 1-163 controls, except for a conflict that 
13would diminish or impair a benefit of membership in a pension 
14or retirement system of the State.

15 (40 ILCS 5/17-160 new)
16 Sec. 17-160. Application of Section 1-163. To the extent 
17that any provision of this Article conflicts with Section 
181-163, Section 1-163 controls, except for a conflict that 
19would diminish or impair a benefit of membership in a pension 
20or retirement system of the State.

21 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
22 Sec. 18-125. Retirement annuity amount. 
 
 
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1 (a) The annual retirement annuity for a participant who 
2terminated service as a judge prior to July 1, 1971 shall be 
3based on the law in effect at the time of termination of 
4service.
5 (b) Except as provided in subsection (b-5), effective July 
61, 1971, the retirement annuity for any participant in service 
7on or after such date shall be 3 1/2% of final average salary, 
8as defined in this Section, for each of the first 10 years of 
9service, and 5% of such final average salary for each year of 
10service in excess of 10.
11 For purposes of this Section, final average salary for a 
12participant who first serves as a judge before August 10, 2009 
13(the effective date of Public Act 96-207) shall be:
14  (1) the average salary for the last 4 years of 
15 credited service as a judge for a participant who 
16 terminates service before July 1, 1975.
17  (2) for a participant who terminates service after 
18 June 30, 1975 and before July 1, 1982, the salary on the 
19 last day of employment as a judge.
20  (3) for any participant who terminates service after 
21 June 30, 1982 and before January 1, 1990, the average 
22 salary for the final year of service as a judge.
23  (4) for a participant who terminates service on or 
24 after January 1, 1990 but before July 14, 1995 (the 
25 effective date of Public Act 89-136), the salary on the 
26 last day of employment as a judge.
 
 
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1  (5) for a participant who terminates service on or 
2 after July 14, 1995 (the effective date of Public Act 
3 89-136), the salary on the last day of employment as a 
4 judge, or the highest salary received by the participant 
5 for employment as a judge in a position held by the 
6 participant for at least 4 consecutive years, whichever is 
7 greater.
8 However, in the case of a participant who elects to 
9discontinue contributions as provided in subdivision (a)(2) of 
10Section 18-133, the time of such election shall be considered 
11the last day of employment in the determination of final 
12average salary under this subsection.
13 For a participant who first serves as a judge on or after 
14August 10, 2009 (the effective date of Public Act 96-207) and 
15before January 1, 2011 (the effective date of Public Act 
1696-889), final average salary shall be the average monthly 
17salary obtained by dividing the total salary of the 
18participant during the period of: (1) the 48 consecutive 
19months of service within the last 120 months of service in 
20which the total compensation was the highest, or (2) the total 
21period of service, if less than 48 months, by the number of 
22months of service in that period. 
23 The maximum retirement annuity for any participant shall 
24be 85% of final average salary.
25 (b-5) Notwithstanding any other provision of this Article, 
26for a participant who first serves as a judge on or after 
 
 
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1January 1, 2011 (the effective date of Public Act 96-889), the 
2annual retirement annuity is 3% of the participant's final 
3average salary for each year of service. The maximum 
4retirement annuity payable shall be 60% of the participant's 
5final average salary. 
6 For a participant who first serves as a judge on or after 
7January 1, 2011 (the effective date of Public Act 96-889), 
8final average salary shall be the average monthly salary 
9obtained by dividing the total salary of the judge during the 
1096 consecutive months of service within the last 120 months of 
11service in which the total salary was the highest by the number 
12of months of service in that period; however, beginning 
13January 1, 2011 and until January 1, 2025, the annual salary 
14may not exceed $106,800, except that that amount shall 
15annually thereafter be increased by the lesser of (i) 3% of 
16that amount, including all previous adjustments, or (ii) the 
17annual unadjusted percentage increase (but not less than zero) 
18in the consumer price index-u for the 12 months ending with the 
19September preceding each November 1. "Consumer price index-u" 
20means the index published by the Bureau of Labor Statistics of 
21the United States Department of Labor that measures the 
22average change in prices of goods and services purchased by 
23all urban consumers, United States city average, all items, 
241982-84 = 100. The new amount resulting from each annual 
25adjustment shall be determined by the Public Pension Division 
26of the Department of Insurance and made available to the Board 
 
 
HB5909- 57 -LRB103 43117 RPS 76377 b


1by November 1st of each year. 
2 Beginning January 1, 2025, for a participant who first 
3serves as a judge on or after January 1, 2011, the annual 
4salary shall not exceed the Social Security wage base for the 
5applicable plan year. In this subsection, "Social Security 
6wage base" means the contribution and benefit base calculated 
7for the calendar year in question by the Commissioner of 
8Social Security under Section 230 of the federal Social 
9Security Act (42 U.S.C. 430). However, in no event shall the 
10highest salary for annuity purposes exceed any limitation 
11imposed on annual salary under Section 1-117. Under no 
12circumstances shall the maximum amount of annual salary be 
13greater than the amount set forth in this subsection as a 
14result of reciprocal service or any provisions regarding 
15reciprocal services, nor shall the System be required to pay 
16any refund as a result of the application of the limitation on 
17annual salary. 
18 Nothing in the changes made to this Section by this 
19amendatory Act of the 103rd General Assembly shall cause or 
20otherwise result in any retroactive adjustment of any employee 
21contributions. Nothing in this Section shall cause or 
22otherwise result in any retroactive adjustment of benefit 
23payments made between January 1, 2011 and January 1, 2025. 
24 With regard to a participant's salary received on or after 
25January 1, 2011 and before January 1, 2025, if the participant 
26is in service on or after January 1, 2025, then the limitation 
 
 
HB5909- 58 -LRB103 43117 RPS 76377 b


1on highest salary for annuity purposes shall be retroactively 
2increased to an amount equal to the Social Security wage base 
3for that year. The retroactive increase in the salary 
4limitation under this paragraph does not require a participant 
5to make any additional contribution to the System. 
6 (c) The retirement annuity for a participant who retires 
7prior to age 60 with less than 28 years of service in the 
8System shall be reduced 1/2 of 1% for each month that the 
9participant's age is under 60 years at the time the annuity 
10commences. However, for a participant who retires on or after 
11December 10, 1999 (the effective date of Public Act 91-653), 
12the percentage reduction in retirement annuity imposed under 
13this subsection shall be reduced by 5/12 of 1% for every month 
14of service in this System in excess of 20 years, and therefore 
15a participant with at least 26 years of service in this System 
16may retire at age 55 without any reduction in annuity.
17 The reduction in retirement annuity imposed by this 
18subsection shall not apply in the case of retirement on 
19account of disability.
20 (d) Notwithstanding any other provision of this Article, 
21for a participant who first serves as a judge on or after 
22January 1, 2011 (the effective date of Public Act 96-889) and 
23who is retiring after attaining age 62, the retirement annuity 
24shall be reduced by 1/2 of 1% for each month that the 
25participant's age is under age 67 at the time the annuity 
26commences. 
 
 
HB5909- 59 -LRB103 43117 RPS 76377 b


1(Source: P.A. 100-201, eff. 8-18-17.)

2
Article 2. 


3 Section 2-5. The Illinois Pension Code is amended by 
4changing Sections 1-160, 2-108.1, 3-111, 4-109, 5-238, 6-229, 
57-116, 7-142.1, 15-112, and 18-125 as follows:

6 (40 ILCS 5/1-160)
7 (Text of Section from P.A. 102-719)
8 Sec. 1-160. Provisions applicable to new hires. 
9 (a) The provisions of this Section apply to a person who, 
10on or after January 1, 2011, first becomes a member or a 
11participant under any reciprocal retirement system or pension 
12fund established under this Code, other than a retirement 
13system or pension fund established under Article 2, 3, 4, 5, 6, 
147, 15, or 18 of this Code, notwithstanding any other provision 
15of this Code to the contrary, but do not apply to any 
16self-managed plan established under this Code or to any 
17participant of the retirement plan established under Section 
1822-101; except that this Section applies to a person who 
19elected to establish alternative credits by electing in 
20writing after January 1, 2011, but before August 8, 2011, 
21under Section 7-145.1 of this Code. Notwithstanding anything 
22to the contrary in this Section, for purposes of this Section, 
23a person who is a Tier 1 regular employee as defined in Section 
 
 
HB5909- 60 -LRB103 43117 RPS 76377 b


17-109.4 of this Code or who participated in a retirement 
2system under Article 15 prior to January 1, 2011 shall be 
3deemed a person who first became a member or participant prior 
4to January 1, 2011 under any retirement system or pension fund 
5subject to this Section. The changes made to this Section by 
6Public Act 98-596 are a clarification of existing law and are 
7intended to be retroactive to January 1, 2011 (the effective 
8date of Public Act 96-889), notwithstanding the provisions of 
9Section 1-103.1 of this Code.
10 This Section does not apply to a person who first becomes a 
11noncovered employee under Article 14 on or after the 
12implementation date of the plan created under Section 1-161 
13for that Article, unless that person elects under subsection 
14(b) of Section 1-161 to instead receive the benefits provided 
15under this Section and the applicable provisions of that 
16Article.
17 This Section does not apply to a person who first becomes a 
18member or participant under Article 16 on or after the 
19implementation date of the plan created under Section 1-161 
20for that Article, unless that person elects under subsection 
21(b) of Section 1-161 to instead receive the benefits provided 
22under this Section and the applicable provisions of that 
23Article.
24 This Section does not apply to a person who elects under 
25subsection (c-5) of Section 1-161 to receive the benefits 
26under Section 1-161. 
 
 
HB5909- 61 -LRB103 43117 RPS 76377 b


1 This Section does not apply to a person who first becomes a 
2member or participant of an affected pension fund on or after 6 
3months after the resolution or ordinance date, as defined in 
4Section 1-162, unless that person elects under subsection (c) 
5of Section 1-162 to receive the benefits provided under this 
6Section and the applicable provisions of the Article under 
7which he or she is a member or participant. 
8 (a-5) In this Section, "affected member or participant" 
9means a member or participant to whom this Section applies and 
10who is an active member or participant on or after January 1, 
112025; except that "affected member or participant" does not 
12include a member or participant under Article 22. 
13 (b) For a person who is not an affected member or 
14participant, "final "Final average salary" means, except as 
15otherwise provided in this subsection, the average monthly (or 
16annual) salary obtained by dividing the total salary or 
17earnings calculated under the Article applicable to the member 
18or participant during the 96 consecutive months (or 8 
19consecutive years) of service within the last 120 months (or 
2010 years) of service in which the total salary or earnings 
21calculated under the applicable Article was the highest by the 
22number of months (or years) of service in that period. For the 
23purposes of a person who is not an affected member or 
24participant first becomes a member or participant of any 
25retirement system or pension fund to which this Section 
26applies on or after January 1, 2011, in this Code, "final 
 
 
HB5909- 62 -LRB103 43117 RPS 76377 b


1average salary" shall be substituted for the following:
2  (1) (Blank).
3  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
4 annual salary for any 4 consecutive years within the last 
5 10 years of service immediately preceding the date of 
6 withdrawal". 
7  (3) In Article 13, "average final salary". 
8  (4) In Article 14, "final average compensation". 
9  (5) In Article 17, "average salary". 
10  (6) In Section 22-207, "wages or salary received by 
11 him at the date of retirement or discharge". 
12 For an affected member or participant, "final average 
13salary" means:
14  (1) For Articles 8, 9, 10, 11, and 12, the highest 
15 average annual salary for any 4 consecutive years within 
16 the last 10 years of service immediately preceding the 
17 date of withdrawal. 
18  (2) For Article 13, the highest average monthly salary 
19 as calculated by accumulating the salary for the highest 
20 520 consecutive paid days of service within the last 10 
21 years of service immediately preceding the date of 
22 retirement and dividing by 24. If the employee is paid for 
23 any portion of a workday, the fraction of the day worked 
24 and the salary for that fraction of the day shall be 
25 counted in accordance with the administrative rules of the 
26 Fund established under Article 13. 
 
 
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1  (3) For Article 14, unless the member or participant 
2 is entitled to an annuity under Section 14-110 and has at 
3 least 20 years of eligible creditable service as defined 
4 in Section 14-110, the monthly compensation obtained by 
5 dividing the total compensation of an employee during the 
6 period of: (1) the 48 consecutive months of service within 
7 the last 120 months of service in which the total 
8 compensation was the highest or (2) the total period of 
9 service, if less than 48 months, by the number of months of 
10 service in such period; however, for purposes of a 
11 retirement annuity, the average compensation for the last 
12 12 months of the 48-month period shall not exceed the 
13 final average compensation by more than 25%.
14  (4) For Article 14, if the member or participant is 
15 entitled to an annuity under Section 14-110 and has at 
16 least 20 years of eligible creditable service as defined 
17 in Section 14-110, the monthly rate of compensation 
18 received by the member or participant on the last day of 
19 eligible creditable service (but not to exceed 115% of the 
20 average monthly compensation received by the member or 
21 participant for the last 24 months of service) or the 
22 average monthly compensation received by the member or 
23 participant for the last 48 months of service prior to 
24 retirement, whichever is greater. 
25  (5) For Article 17, the average annual rate of salary 
26 for the 4 consecutive years of validated service within 
 
 
HB5909- 64 -LRB103 43117 RPS 76377 b


1 the last 10 years of service when such average annual rate 
2 was highest. 
3 A member of the Teachers' Retirement System of the State 
4of Illinois who retires on or after June 1, 2021 and for whom 
5the 2020-2021 school year is used in the calculation of the 
6member's final average salary shall use the higher of the 
7following for the purpose of determining the member's final 
8average salary:
9  (A) the amount otherwise calculated under the first 
10 paragraph of this subsection; or
11  (B) an amount calculated by the Teachers' Retirement 
12 System of the State of Illinois using the average of the 
13 monthly (or annual) salary obtained by dividing the total 
14 salary or earnings calculated under Article 16 applicable 
15 to the member or participant during the 96 months (or 8 
16 years) of service within the last 120 months (or 10 years) 
17 of service in which the total salary or earnings 
18 calculated under the Article was the highest by the number 
19 of months (or years) of service in that period.
20 (b-5) Beginning on January 1, 2011, for all purposes under 
21this Code (including without limitation the calculation of 
22benefits and employee contributions), the annual earnings, 
23salary, or wages (based on the plan year) of a member or 
24participant to whom this Section applies shall not exceed 
25$106,800; however, that amount shall annually thereafter be 
26increased by the lesser of (i) 3% of that amount, including all 
 
 
HB5909- 65 -LRB103 43117 RPS 76377 b


1previous adjustments, or (ii) one-half the annual unadjusted 
2percentage increase (but not less than zero) in the consumer 
3price index-u for the 12 months ending with the September 
4preceding each November 1, including all previous adjustments.
5 For the purposes of this Section, "consumer price index-u" 
6means the index published by the Bureau of Labor Statistics of 
7the United States Department of Labor that measures the 
8average change in prices of goods and services purchased by 
9all urban consumers, United States city average, all items, 
101982-84 = 100. The new amount resulting from each annual 
11adjustment shall be determined by the Public Pension Division 
12of the Department of Insurance and made available to the 
13boards of the retirement systems and pension funds by November 
141 of each year. 
15 (b-10) Beginning on January 1, 2024, for all purposes 
16under this Code (including, without limitation, the 
17calculation of benefits and employee contributions), the 
18annual earnings, salary, or wages (based on the plan year) of a 
19member or participant under Article 9 to whom this Section 
20applies shall include an annual earnings, salary, or wage cap 
21that tracks the Social Security wage base. Maximum annual 
22earnings, wages, or salary shall be the annual contribution 
23and benefit base established for the applicable year by the 
24Commissioner of the Social Security Administration under the 
25federal Social Security Act. 
26 However, in no event shall the annual earnings, salary, or 
 
 
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1wages for the purposes of this Article and Article 9 exceed any 
2limitation imposed on annual earnings, salary, or wages under 
3Section 1-117. Under no circumstances shall the maximum amount 
4of annual earnings, salary, or wages be greater than the 
5amount set forth in this subsection (b-10) as a result of 
6reciprocal service or any provisions regarding reciprocal 
7services, nor shall the Fund under Article 9 be required to pay 
8any refund as a result of the application of this maximum 
9annual earnings, salary, and wage cap. 
10 Nothing in this subsection (b-10) shall cause or otherwise 
11result in any retroactive adjustment of any employee 
12contributions. Nothing in this subsection (b-10) shall cause 
13or otherwise result in any retroactive adjustment of 
14disability or other payments made between January 1, 2011 and 
15January 1, 2024. 
16 (c) A member or participant is entitled to a retirement 
17annuity upon written application if he or she has attained age 
1867 (age 65, with respect to service under Article 12 that is 
19subject to this Section, for a member or participant under 
20Article 12 who first becomes a member or participant under 
21Article 12 on or after January 1, 2022 or who makes the 
22election under item (i) of subsection (d-15) of this Section) 
23and has at least 10 years of service credit and is otherwise 
24eligible under the requirements of the applicable Article. 
25 A member or participant who has attained age 62 (age 60, 
26with respect to service under Article 12 that is subject to 
 
 
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1this Section, for a member or participant under Article 12 who 
2first becomes a member or participant under Article 12 on or 
3after January 1, 2022 or who makes the election under item (i) 
4of subsection (d-15) of this Section) and has at least 10 years 
5of service credit and is otherwise eligible under the 
6requirements of the applicable Article may elect to receive 
7the lower retirement annuity provided in subsection (d) of 
8this Section. 
9 (c-5) A person who first becomes a member or a participant 
10subject to this Section on or after July 6, 2017 (the effective 
11date of Public Act 100-23), notwithstanding any other 
12provision of this Code to the contrary, is entitled to a 
13retirement annuity under Article 8 or Article 11 upon written 
14application if he or she has attained age 65 and has at least 
1510 years of service credit and is otherwise eligible under the 
16requirements of Article 8 or Article 11 of this Code, 
17whichever is applicable. 
18 (d) The retirement annuity of a member or participant who 
19is retiring after attaining age 62 (age 60, with respect to 
20service under Article 12 that is subject to this Section, for a 
21member or participant under Article 12 who first becomes a 
22member or participant under Article 12 on or after January 1, 
232022 or who makes the election under item (i) of subsection 
24(d-15) of this Section) with at least 10 years of service 
25credit shall be reduced by one-half of 1% for each full month 
26that the member's age is under age 67 (age 65, with respect to 
 
 
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1service under Article 12 that is subject to this Section, for a 
2member or participant under Article 12 who first becomes a 
3member or participant under Article 12 on or after January 1, 
42022 or who makes the election under item (i) of subsection 
5(d-15) of this Section).
6 (d-5) The retirement annuity payable under Article 8 or 
7Article 11 to an eligible person subject to subsection (c-5) 
8of this Section who is retiring at age 60 with at least 10 
9years of service credit shall be reduced by one-half of 1% for 
10each full month that the member's age is under age 65. 
11 (d-10) Each person who first became a member or 
12participant under Article 8 or Article 11 of this Code on or 
13after January 1, 2011 and prior to July 6, 2017 (the effective 
14date of Public Act 100-23) shall make an irrevocable election 
15either:
16  (i) to be eligible for the reduced retirement age 
17 provided in subsections (c-5) and (d-5) of this Section, 
18 the eligibility for which is conditioned upon the member 
19 or participant agreeing to the increases in employee 
20 contributions for age and service annuities provided in 
21 subsection (a-5) of Section 8-174 of this Code (for 
22 service under Article 8) or subsection (a-5) of Section 
23 11-170 of this Code (for service under Article 11); or 
24  (ii) to not agree to item (i) of this subsection 
25 (d-10), in which case the member or participant shall 
26 continue to be subject to the retirement age provisions in 
 
 
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1 subsections (c) and (d) of this Section and the employee 
2 contributions for age and service annuity as provided in 
3 subsection (a) of Section 8-174 of this Code (for service 
4 under Article 8) or subsection (a) of Section 11-170 of 
5 this Code (for service under Article 11). 
6 The election provided for in this subsection shall be made 
7between October 1, 2017 and November 15, 2017. A person 
8subject to this subsection who makes the required election 
9shall remain bound by that election. A person subject to this 
10subsection who fails for any reason to make the required 
11election within the time specified in this subsection shall be 
12deemed to have made the election under item (ii). 
13 (d-15) Each person who first becomes a member or 
14participant under Article 12 on or after January 1, 2011 and 
15prior to January 1, 2022 shall make an irrevocable election 
16either: 
17  (i) to be eligible for the reduced retirement age 
18 specified in subsections (c) and (d) of this Section, the 
19 eligibility for which is conditioned upon the member or 
20 participant agreeing to the increase in employee 
21 contributions for service annuities specified in 
22 subsection (b) of Section 12-150; or
23  (ii) to not agree to item (i) of this subsection 
24 (d-15), in which case the member or participant shall not 
25 be eligible for the reduced retirement age specified in 
26 subsections (c) and (d) of this Section and shall not be 
 
 
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1 subject to the increase in employee contributions for 
2 service annuities specified in subsection (b) of Section 
3 12-150. 
4 The election provided for in this subsection shall be made 
5between January 1, 2022 and April 1, 2022. A person subject to 
6this subsection who makes the required election shall remain 
7bound by that election. A person subject to this subsection 
8who fails for any reason to make the required election within 
9the time specified in this subsection shall be deemed to have 
10made the election under item (ii). 
11 (e) Any retirement annuity or supplemental annuity shall 
12be subject to annual increases on the January 1 occurring 
13either on or after the attainment of age 67 (age 65, with 
14respect to service under Article 12 that is subject to this 
15Section, for a member or participant under Article 12 who 
16first becomes a member or participant under Article 12 on or 
17after January 1, 2022 or who makes the election under item (i) 
18of subsection (d-15); and beginning on July 6, 2017 (the 
19effective date of Public Act 100-23), age 65 with respect to 
20service under Article 8 or Article 11 for eligible persons 
21who: (i) are subject to subsection (c-5) of this Section; or 
22(ii) made the election under item (i) of subsection (d-10) of 
23this Section) or the first anniversary of the annuity start 
24date, whichever is later. Each annual increase shall be 
25calculated at 3% or one-half the annual unadjusted percentage 
26increase (but not less than zero) in the consumer price 
 
 
HB5909- 71 -LRB103 43117 RPS 76377 b


1index-u for the 12 months ending with the September preceding 
2each November 1, whichever is less, of the originally granted 
3retirement annuity. If the annual unadjusted percentage change 
4in the consumer price index-u for the 12 months ending with the 
5September preceding each November 1 is zero or there is a 
6decrease, then the annuity shall not be increased. 
7 For the purposes of Section 1-103.1 of this Code, the 
8changes made to this Section by Public Act 102-263 are 
9applicable without regard to whether the employee was in 
10active service on or after August 6, 2021 (the effective date 
11of Public Act 102-263). 
12 For the purposes of Section 1-103.1 of this Code, the 
13changes made to this Section by Public Act 100-23 are 
14applicable without regard to whether the employee was in 
15active service on or after July 6, 2017 (the effective date of 
16Public Act 100-23). 
17 (f) The initial survivor's or widow's annuity of an 
18otherwise eligible survivor or widow of a retired member or 
19participant who first became a member or participant on or 
20after January 1, 2011 shall be in the amount of 66 2/3% of the 
21retired member's or participant's retirement annuity at the 
22date of death. In the case of the death of a member or 
23participant who has not retired and who first became a member 
24or participant on or after January 1, 2011, eligibility for a 
25survivor's or widow's annuity shall be determined by the 
26applicable Article of this Code. The initial benefit shall be 
 
 
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166 2/3% of the earned annuity without a reduction due to age. A 
2child's annuity of an otherwise eligible child shall be in the 
3amount prescribed under each Article if applicable. Any 
4survivor's or widow's annuity shall be increased (1) on each 
5January 1 occurring on or after the commencement of the 
6annuity if the deceased member died while receiving a 
7retirement annuity or (2) in other cases, on each January 1 
8occurring after the first anniversary of the commencement of 
9the annuity. Each annual increase shall be calculated at 3% or 
10one-half the annual unadjusted percentage increase (but not 
11less than zero) in the consumer price index-u for the 12 months 
12ending with the September preceding each November 1, whichever 
13is less, of the originally granted survivor's annuity. If the 
14annual unadjusted percentage change in the consumer price 
15index-u for the 12 months ending with the September preceding 
16each November 1 is zero or there is a decrease, then the 
17annuity shall not be increased. 
18 (g) The benefits in Section 14-110 apply if the person is a 
19fire fighter in the fire protection service of a department, a 
20security employee of the Department of Corrections or the 
21Department of Juvenile Justice, or a security employee of the 
22Department of Innovation and Technology, as those terms are 
23defined in subsection (b) and subsection (c) of Section 
2414-110. A person who meets the requirements of this Section is 
25entitled to an annuity calculated under the provisions of 
26Section 14-110, in lieu of the regular or minimum retirement 
 
 
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1annuity, only if the person has withdrawn from service with 
2not less than 20 years of eligible creditable service and has 
3attained age 60, regardless of whether the attainment of age 
460 occurs while the person is still in service. 
5 (g-5) The benefits in Section 14-110 apply if the person 
6is a State policeman, investigator for the Secretary of State, 
7conservation police officer, investigator for the Department 
8of Revenue or the Illinois Gaming Board, investigator for the 
9Office of the Attorney General, Commerce Commission police 
10officer, or arson investigator, as those terms are defined in 
11subsection (b) and subsection (c) of Section 14-110. A person 
12who meets the requirements of this Section is entitled to an 
13annuity calculated under the provisions of Section 14-110, in 
14lieu of the regular or minimum retirement annuity, only if the 
15person has withdrawn from service with not less than 20 years 
16of eligible creditable service and has attained age 55, 
17regardless of whether the attainment of age 55 occurs while 
18the person is still in service. 
19 (h) If a person who first becomes a member or a participant 
20of a retirement system or pension fund subject to this Section 
21on or after January 1, 2011 is receiving a retirement annuity 
22or retirement pension under that system or fund and becomes a 
23member or participant under any other system or fund created 
24by this Code and is employed on a full-time basis, except for 
25those members or participants exempted from the provisions of 
26this Section under subsection (a) of this Section, then the 
 
 
HB5909- 74 -LRB103 43117 RPS 76377 b


1person's retirement annuity or retirement pension under that 
2system or fund shall be suspended during that employment. Upon 
3termination of that employment, the person's retirement 
4annuity or retirement pension payments shall resume and be 
5recalculated if recalculation is provided for under the 
6applicable Article of this Code.
7 If a person who first becomes a member of a retirement 
8system or pension fund subject to this Section on or after 
9January 1, 2012 and is receiving a retirement annuity or 
10retirement pension under that system or fund and accepts on a 
11contractual basis a position to provide services to a 
12governmental entity from which he or she has retired, then 
13that person's annuity or retirement pension earned as an 
14active employee of the employer shall be suspended during that 
15contractual service. A person receiving an annuity or 
16retirement pension under this Code shall notify the pension 
17fund or retirement system from which he or she is receiving an 
18annuity or retirement pension, as well as his or her 
19contractual employer, of his or her retirement status before 
20accepting contractual employment. A person who fails to submit 
21such notification shall be guilty of a Class A misdemeanor and 
22required to pay a fine of $1,000. Upon termination of that 
23contractual employment, the person's retirement annuity or 
24retirement pension payments shall resume and, if appropriate, 
25be recalculated under the applicable provisions of this Code. 
26 (i) (Blank). 
 
 
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1 (j) In the case of a conflict between the provisions of 
2this Section and any other provision of this Code, the 
3provisions of this Section shall control.
4(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
5102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
65-6-22.)

7 (Text of Section from P.A. 102-813)
8 Sec. 1-160. Provisions applicable to new hires. 
9 (a) The provisions of this Section apply to a person who, 
10on or after January 1, 2011, first becomes a member or a 
11participant under any reciprocal retirement system or pension 
12fund established under this Code, other than a retirement 
13system or pension fund established under Article 2, 3, 4, 5, 6, 
147, 15, or 18 of this Code, notwithstanding any other provision 
15of this Code to the contrary, but do not apply to any 
16self-managed plan established under this Code or to any 
17participant of the retirement plan established under Section 
1822-101; except that this Section applies to a person who 
19elected to establish alternative credits by electing in 
20writing after January 1, 2011, but before August 8, 2011, 
21under Section 7-145.1 of this Code. Notwithstanding anything 
22to the contrary in this Section, for purposes of this Section, 
23a person who is a Tier 1 regular employee as defined in Section 
247-109.4 of this Code or who participated in a retirement 
25system under Article 15 prior to January 1, 2011 shall be 
 
 
HB5909- 76 -LRB103 43117 RPS 76377 b


1deemed a person who first became a member or participant prior 
2to January 1, 2011 under any retirement system or pension fund 
3subject to this Section. The changes made to this Section by 
4Public Act 98-596 are a clarification of existing law and are 
5intended to be retroactive to January 1, 2011 (the effective 
6date of Public Act 96-889), notwithstanding the provisions of 
7Section 1-103.1 of this Code.
8 This Section does not apply to a person who first becomes a 
9noncovered employee under Article 14 on or after the 
10implementation date of the plan created under Section 1-161 
11for that Article, unless that person elects under subsection 
12(b) of Section 1-161 to instead receive the benefits provided 
13under this Section and the applicable provisions of that 
14Article.
15 This Section does not apply to a person who first becomes a 
16member or participant under Article 16 on or after the 
17implementation date of the plan created under Section 1-161 
18for that Article, unless that person elects under subsection 
19(b) of Section 1-161 to instead receive the benefits provided 
20under this Section and the applicable provisions of that 
21Article.
22 This Section does not apply to a person who elects under 
23subsection (c-5) of Section 1-161 to receive the benefits 
24under Section 1-161. 
25 This Section does not apply to a person who first becomes a 
26member or participant of an affected pension fund on or after 6 
 
 
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1months after the resolution or ordinance date, as defined in 
2Section 1-162, unless that person elects under subsection (c) 
3of Section 1-162 to receive the benefits provided under this 
4Section and the applicable provisions of the Article under 
5which he or she is a member or participant. 
6 (a-5) In this Section, "affected member or participant" 
7means a member or participant to whom this Section applies and 
8who is an active member or participant on or after January 1, 
92025; except that "affected member or participant" does not 
10include a member or participant under Article 22. 
11 (b) For a person who is not an affected member or 
12participant, "final "Final average salary" means, except as 
13otherwise provided in this subsection, the average monthly (or 
14annual) salary obtained by dividing the total salary or 
15earnings calculated under the Article applicable to the member 
16or participant during the 96 consecutive months (or 8 
17consecutive years) of service within the last 120 months (or 
1810 years) of service in which the total salary or earnings 
19calculated under the applicable Article was the highest by the 
20number of months (or years) of service in that period. For the 
21purposes of a person who is not an affected member or 
22participant first becomes a member or participant of any 
23retirement system or pension fund to which this Section 
24applies on or after January 1, 2011, in this Code, "final 
25average salary" shall be substituted for the following:
26  (1) (Blank).
 
 
HB5909- 78 -LRB103 43117 RPS 76377 b


1  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
2 annual salary for any 4 consecutive years within the last 
3 10 years of service immediately preceding the date of 
4 withdrawal". 
5  (3) In Article 13, "average final salary". 
6  (4) In Article 14, "final average compensation". 
7  (5) In Article 17, "average salary". 
8  (6) In Section 22-207, "wages or salary received by 
9 him at the date of retirement or discharge". 
10 For an affected member or participant, "final average 
11salary" means:
12  (1) For Articles 8, 9, 10, 11, and 12, the highest 
13 average annual salary for any 4 consecutive years within 
14 the last 10 years of service immediately preceding the 
15 date of withdrawal. 
16  (2) For Article 13, the highest average monthly salary 
17 as calculated by accumulating the salary for the highest 
18 520 consecutive paid days of service within the last 10 
19 years of service immediately preceding the date of 
20 retirement and dividing by 24. If the employee is paid for 
21 any portion of a workday, the fraction of the day worked 
22 and the salary for that fraction of the day shall be 
23 counted in accordance with the administrative rules of the 
24 Fund established under Article 13. 
25  (3) For Article 14, unless the member or participant 
26 is entitled to an annuity under Section 14-110 and has at 
 
 
HB5909- 79 -LRB103 43117 RPS 76377 b


1 least 20 years of eligible creditable service as defined 
2 in Section 14-110, the monthly compensation obtained by 
3 dividing the total compensation of an employee during the 
4 period of: (1) the 48 consecutive months of service within 
5 the last 120 months of service in which the total 
6 compensation was the highest or (2) the total period of 
7 service, if less than 48 months, by the number of months of 
8 service in such period; however, for purposes of a 
9 retirement annuity, the average compensation for the last 
10 12 months of the 48-month period shall not exceed the 
11 final average compensation by more than 25%.
12  (4) For Article 14, if the member or participant is 
13 entitled to an annuity under Section 14-110 and has at 
14 least 20 years of eligible creditable service as defined 
15 in Section 14-110, the monthly rate of compensation 
16 received by the member or participant on the last day of 
17 eligible creditable service (but not to exceed 115% of the 
18 average monthly compensation received by the member or 
19 participant for the last 24 months of service) or the 
20 average monthly compensation received by the member or 
21 participant for the last 48 months of service prior to 
22 retirement, whichever is greater. 
23  (5) For Article 17, the average annual rate of salary 
24 for the 4 consecutive years of validated service within 
25 the last 10 years of service when such average annual rate 
26 was highest. 
 
 
HB5909- 80 -LRB103 43117 RPS 76377 b


1 A member of the Teachers' Retirement System of the State 
2of Illinois who retires on or after June 1, 2021 and for whom 
3the 2020-2021 school year is used in the calculation of the 
4member's final average salary shall use the higher of the 
5following for the purpose of determining the member's final 
6average salary:
7  (A) the amount otherwise calculated under the first 
8 paragraph of this subsection; or
9  (B) an amount calculated by the Teachers' Retirement 
10 System of the State of Illinois using the average of the 
11 monthly (or annual) salary obtained by dividing the total 
12 salary or earnings calculated under Article 16 applicable 
13 to the member or participant during the 96 months (or 8 
14 years) of service within the last 120 months (or 10 years) 
15 of service in which the total salary or earnings 
16 calculated under the Article was the highest by the number 
17 of months (or years) of service in that period.
18 (b-5) Beginning on January 1, 2011, for all purposes under 
19this Code (including without limitation the calculation of 
20benefits and employee contributions), the annual earnings, 
21salary, or wages (based on the plan year) of a member or 
22participant to whom this Section applies shall not exceed 
23$106,800; however, that amount shall annually thereafter be 
24increased by the lesser of (i) 3% of that amount, including all 
25previous adjustments, or (ii) one-half the annual unadjusted 
26percentage increase (but not less than zero) in the consumer 
 
 
HB5909- 81 -LRB103 43117 RPS 76377 b


1price index-u for the 12 months ending with the September 
2preceding each November 1, including all previous adjustments.
3 For the purposes of this Section, "consumer price index-u" 
4means the index published by the Bureau of Labor Statistics of 
5the United States Department of Labor that measures the 
6average change in prices of goods and services purchased by 
7all urban consumers, United States city average, all items, 
81982-84 = 100. The new amount resulting from each annual 
9adjustment shall be determined by the Public Pension Division 
10of the Department of Insurance and made available to the 
11boards of the retirement systems and pension funds by November 
121 of each year. 
13 (b-10) Beginning on January 1, 2024, for all purposes 
14under this Code (including, without limitation, the 
15calculation of benefits and employee contributions), the 
16annual earnings, salary, or wages (based on the plan year) of a 
17member or participant under Article 9 to whom this Section 
18applies shall include an annual earnings, salary, or wage cap 
19that tracks the Social Security wage base. Maximum annual 
20earnings, wages, or salary shall be the annual contribution 
21and benefit base established for the applicable year by the 
22Commissioner of the Social Security Administration under the 
23federal Social Security Act. 
24 However, in no event shall the annual earnings, salary, or 
25wages for the purposes of this Article and Article 9 exceed any 
26limitation imposed on annual earnings, salary, or wages under 
 
 
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1Section 1-117. Under no circumstances shall the maximum amount 
2of annual earnings, salary, or wages be greater than the 
3amount set forth in this subsection (b-10) as a result of 
4reciprocal service or any provisions regarding reciprocal 
5services, nor shall the Fund under Article 9 be required to pay 
6any refund as a result of the application of this maximum 
7annual earnings, salary, and wage cap. 
8 Nothing in this subsection (b-10) shall cause or otherwise 
9result in any retroactive adjustment of any employee 
10contributions. Nothing in this subsection (b-10) shall cause 
11or otherwise result in any retroactive adjustment of 
12disability or other payments made between January 1, 2011 and 
13January 1, 2024. 
14 (c) A member or participant is entitled to a retirement 
15annuity upon written application if he or she has attained age 
1667 (age 65, with respect to service under Article 12 that is 
17subject to this Section, for a member or participant under 
18Article 12 who first becomes a member or participant under 
19Article 12 on or after January 1, 2022 or who makes the 
20election under item (i) of subsection (d-15) of this Section) 
21and has at least 10 years of service credit and is otherwise 
22eligible under the requirements of the applicable Article. 
23 A member or participant who has attained age 62 (age 60, 
24with respect to service under Article 12 that is subject to 
25this Section, for a member or participant under Article 12 who 
26first becomes a member or participant under Article 12 on or 
 
 
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1after January 1, 2022 or who makes the election under item (i) 
2of subsection (d-15) of this Section) and has at least 10 years 
3of service credit and is otherwise eligible under the 
4requirements of the applicable Article may elect to receive 
5the lower retirement annuity provided in subsection (d) of 
6this Section. 
7 (c-5) A person who first becomes a member or a participant 
8subject to this Section on or after July 6, 2017 (the effective 
9date of Public Act 100-23), notwithstanding any other 
10provision of this Code to the contrary, is entitled to a 
11retirement annuity under Article 8 or Article 11 upon written 
12application if he or she has attained age 65 and has at least 
1310 years of service credit and is otherwise eligible under the 
14requirements of Article 8 or Article 11 of this Code, 
15whichever is applicable. 
16 (d) The retirement annuity of a member or participant who 
17is retiring after attaining age 62 (age 60, with respect to 
18service under Article 12 that is subject to this Section, for a 
19member or participant under Article 12 who first becomes a 
20member or participant under Article 12 on or after January 1, 
212022 or who makes the election under item (i) of subsection 
22(d-15) of this Section) with at least 10 years of service 
23credit shall be reduced by one-half of 1% for each full month 
24that the member's age is under age 67 (age 65, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
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1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section).
4 (d-5) The retirement annuity payable under Article 8 or 
5Article 11 to an eligible person subject to subsection (c-5) 
6of this Section who is retiring at age 60 with at least 10 
7years of service credit shall be reduced by one-half of 1% for 
8each full month that the member's age is under age 65. 
9 (d-10) Each person who first became a member or 
10participant under Article 8 or Article 11 of this Code on or 
11after January 1, 2011 and prior to July 6, 2017 (the effective 
12date of Public Act 100-23) shall make an irrevocable election 
13either:
14  (i) to be eligible for the reduced retirement age 
15 provided in subsections (c-5) and (d-5) of this Section, 
16 the eligibility for which is conditioned upon the member 
17 or participant agreeing to the increases in employee 
18 contributions for age and service annuities provided in 
19 subsection (a-5) of Section 8-174 of this Code (for 
20 service under Article 8) or subsection (a-5) of Section 
21 11-170 of this Code (for service under Article 11); or 
22  (ii) to not agree to item (i) of this subsection 
23 (d-10), in which case the member or participant shall 
24 continue to be subject to the retirement age provisions in 
25 subsections (c) and (d) of this Section and the employee 
26 contributions for age and service annuity as provided in 
 
 
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1 subsection (a) of Section 8-174 of this Code (for service 
2 under Article 8) or subsection (a) of Section 11-170 of 
3 this Code (for service under Article 11). 
4 The election provided for in this subsection shall be made 
5between October 1, 2017 and November 15, 2017. A person 
6subject to this subsection who makes the required election 
7shall remain bound by that election. A person subject to this 
8subsection who fails for any reason to make the required 
9election within the time specified in this subsection shall be 
10deemed to have made the election under item (ii). 
11 (d-15) Each person who first becomes a member or 
12participant under Article 12 on or after January 1, 2011 and 
13prior to January 1, 2022 shall make an irrevocable election 
14either: 
15  (i) to be eligible for the reduced retirement age 
16 specified in subsections (c) and (d) of this Section, the 
17 eligibility for which is conditioned upon the member or 
18 participant agreeing to the increase in employee 
19 contributions for service annuities specified in 
20 subsection (b) of Section 12-150; or
21  (ii) to not agree to item (i) of this subsection 
22 (d-15), in which case the member or participant shall not 
23 be eligible for the reduced retirement age specified in 
24 subsections (c) and (d) of this Section and shall not be 
25 subject to the increase in employee contributions for 
26 service annuities specified in subsection (b) of Section 
 
 
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1 12-150. 
2 The election provided for in this subsection shall be made 
3between January 1, 2022 and April 1, 2022. A person subject to 
4this subsection who makes the required election shall remain 
5bound by that election. A person subject to this subsection 
6who fails for any reason to make the required election within 
7the time specified in this subsection shall be deemed to have 
8made the election under item (ii). 
9 (e) Any retirement annuity or supplemental annuity shall 
10be subject to annual increases on the January 1 occurring 
11either on or after the attainment of age 67 (age 65, with 
12respect to service under Article 12 that is subject to this 
13Section, for a member or participant under Article 12 who 
14first becomes a member or participant under Article 12 on or 
15after January 1, 2022 or who makes the election under item (i) 
16of subsection (d-15); and beginning on July 6, 2017 (the 
17effective date of Public Act 100-23), age 65 with respect to 
18service under Article 8 or Article 11 for eligible persons 
19who: (i) are subject to subsection (c-5) of this Section; or 
20(ii) made the election under item (i) of subsection (d-10) of 
21this Section) or the first anniversary of the annuity start 
22date, whichever is later. Each annual increase shall be 
23calculated at 3% or one-half the annual unadjusted percentage 
24increase (but not less than zero) in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1, whichever is less, of the originally granted 
 
 
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1retirement annuity. If the annual unadjusted percentage change 
2in the consumer price index-u for the 12 months ending with the 
3September preceding each November 1 is zero or there is a 
4decrease, then the annuity shall not be increased. 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this Section by Public Act 102-263 are 
7applicable without regard to whether the employee was in 
8active service on or after August 6, 2021 (the effective date 
9of Public Act 102-263). 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by Public Act 100-23 are 
12applicable without regard to whether the employee was in 
13active service on or after July 6, 2017 (the effective date of 
14Public Act 100-23). 
15 (f) The initial survivor's or widow's annuity of an 
16otherwise eligible survivor or widow of a retired member or 
17participant who first became a member or participant on or 
18after January 1, 2011 shall be in the amount of 66 2/3% of the 
19retired member's or participant's retirement annuity at the 
20date of death. In the case of the death of a member or 
21participant who has not retired and who first became a member 
22or participant on or after January 1, 2011, eligibility for a 
23survivor's or widow's annuity shall be determined by the 
24applicable Article of this Code. The initial benefit shall be 
2566 2/3% of the earned annuity without a reduction due to age. A 
26child's annuity of an otherwise eligible child shall be in the 
 
 
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1amount prescribed under each Article if applicable. Any 
2survivor's or widow's annuity shall be increased (1) on each 
3January 1 occurring on or after the commencement of the 
4annuity if the deceased member died while receiving a 
5retirement annuity or (2) in other cases, on each January 1 
6occurring after the first anniversary of the commencement of 
7the annuity. Each annual increase shall be calculated at 3% or 
8one-half the annual unadjusted percentage increase (but not 
9less than zero) in the consumer price index-u for the 12 months 
10ending with the September preceding each November 1, whichever 
11is less, of the originally granted survivor's annuity. If the 
12annual unadjusted percentage change in the consumer price 
13index-u for the 12 months ending with the September preceding 
14each November 1 is zero or there is a decrease, then the 
15annuity shall not be increased. 
16 (g) The benefits in Section 14-110 apply only if the 
17person is a State policeman, a fire fighter in the fire 
18protection service of a department, a conservation police 
19officer, an investigator for the Secretary of State, an arson 
20investigator, a Commerce Commission police officer, 
21investigator for the Department of Revenue or the Illinois 
22Gaming Board, a security employee of the Department of 
23Corrections or the Department of Juvenile Justice, or a 
24security employee of the Department of Innovation and 
25Technology, as those terms are defined in subsection (b) and 
26subsection (c) of Section 14-110. A person who meets the 
 
 
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1requirements of this Section is entitled to an annuity 
2calculated under the provisions of Section 14-110, in lieu of 
3the regular or minimum retirement annuity, only if the person 
4has withdrawn from service with not less than 20 years of 
5eligible creditable service and has attained age 60, 
6regardless of whether the attainment of age 60 occurs while 
7the person is still in service. 
8 (h) If a person who first becomes a member or a participant 
9of a retirement system or pension fund subject to this Section 
10on or after January 1, 2011 is receiving a retirement annuity 
11or retirement pension under that system or fund and becomes a 
12member or participant under any other system or fund created 
13by this Code and is employed on a full-time basis, except for 
14those members or participants exempted from the provisions of 
15this Section under subsection (a) of this Section, then the 
16person's retirement annuity or retirement pension under that 
17system or fund shall be suspended during that employment. Upon 
18termination of that employment, the person's retirement 
19annuity or retirement pension payments shall resume and be 
20recalculated if recalculation is provided for under the 
21applicable Article of this Code.
22 If a person who first becomes a member of a retirement 
23system or pension fund subject to this Section on or after 
24January 1, 2012 and is receiving a retirement annuity or 
25retirement pension under that system or fund and accepts on a 
26contractual basis a position to provide services to a 
 
 
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1governmental entity from which he or she has retired, then 
2that person's annuity or retirement pension earned as an 
3active employee of the employer shall be suspended during that 
4contractual service. A person receiving an annuity or 
5retirement pension under this Code shall notify the pension 
6fund or retirement system from which he or she is receiving an 
7annuity or retirement pension, as well as his or her 
8contractual employer, of his or her retirement status before 
9accepting contractual employment. A person who fails to submit 
10such notification shall be guilty of a Class A misdemeanor and 
11required to pay a fine of $1,000. Upon termination of that 
12contractual employment, the person's retirement annuity or 
13retirement pension payments shall resume and, if appropriate, 
14be recalculated under the applicable provisions of this Code. 
15 (i) (Blank). 
16 (j) In the case of a conflict between the provisions of 
17this Section and any other provision of this Code, the 
18provisions of this Section shall control.
19(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
20102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
215-13-22.)

22 (Text of Section from P.A. 102-956)
23 Sec. 1-160. Provisions applicable to new hires. 
24 (a) The provisions of this Section apply to a person who, 
25on or after January 1, 2011, first becomes a member or a 
 
 
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1participant under any reciprocal retirement system or pension 
2fund established under this Code, other than a retirement 
3system or pension fund established under Article 2, 3, 4, 5, 6, 
47, 15, or 18 of this Code, notwithstanding any other provision 
5of this Code to the contrary, but do not apply to any 
6self-managed plan established under this Code or to any 
7participant of the retirement plan established under Section 
822-101; except that this Section applies to a person who 
9elected to establish alternative credits by electing in 
10writing after January 1, 2011, but before August 8, 2011, 
11under Section 7-145.1 of this Code. Notwithstanding anything 
12to the contrary in this Section, for purposes of this Section, 
13a person who is a Tier 1 regular employee as defined in Section 
147-109.4 of this Code or who participated in a retirement 
15system under Article 15 prior to January 1, 2011 shall be 
16deemed a person who first became a member or participant prior 
17to January 1, 2011 under any retirement system or pension fund 
18subject to this Section. The changes made to this Section by 
19Public Act 98-596 are a clarification of existing law and are 
20intended to be retroactive to January 1, 2011 (the effective 
21date of Public Act 96-889), notwithstanding the provisions of 
22Section 1-103.1 of this Code.
23 This Section does not apply to a person who first becomes a 
24noncovered employee under Article 14 on or after the 
25implementation date of the plan created under Section 1-161 
26for that Article, unless that person elects under subsection 
 
 
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1(b) of Section 1-161 to instead receive the benefits provided 
2under this Section and the applicable provisions of that 
3Article.
4 This Section does not apply to a person who first becomes a 
5member or participant under Article 16 on or after the 
6implementation date of the plan created under Section 1-161 
7for that Article, unless that person elects under subsection 
8(b) of Section 1-161 to instead receive the benefits provided 
9under this Section and the applicable provisions of that 
10Article.
11 This Section does not apply to a person who elects under 
12subsection (c-5) of Section 1-161 to receive the benefits 
13under Section 1-161. 
14 This Section does not apply to a person who first becomes a 
15member or participant of an affected pension fund on or after 6 
16months after the resolution or ordinance date, as defined in 
17Section 1-162, unless that person elects under subsection (c) 
18of Section 1-162 to receive the benefits provided under this 
19Section and the applicable provisions of the Article under 
20which he or she is a member or participant. 
21 (a-5) In this Section, "affected member or participant" 
22means a member or participant to whom this Section applies and 
23who is an active member or participant on or after January 1, 
242025; except that "affected member or participant" does not 
25include a member or participant under Article 22. 
26 (b) For a person who is not an affected member or 
 
 
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1participant, "final "Final average salary" means, except as 
2otherwise provided in this subsection, the average monthly (or 
3annual) salary obtained by dividing the total salary or 
4earnings calculated under the Article applicable to the member 
5or participant during the 96 consecutive months (or 8 
6consecutive years) of service within the last 120 months (or 
710 years) of service in which the total salary or earnings 
8calculated under the applicable Article was the highest by the 
9number of months (or years) of service in that period. For the 
10purposes of a person who is not an affected member or 
11participant first becomes a member or participant of any 
12retirement system or pension fund to which this Section 
13applies on or after January 1, 2011, in this Code, "final 
14average salary" shall be substituted for the following:
15  (1) (Blank).
16  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
17 annual salary for any 4 consecutive years within the last 
18 10 years of service immediately preceding the date of 
19 withdrawal". 
20  (3) In Article 13, "average final salary". 
21  (4) In Article 14, "final average compensation". 
22  (5) In Article 17, "average salary". 
23  (6) In Section 22-207, "wages or salary received by 
24 him at the date of retirement or discharge". 
25 For an affected member or participant, "final average 
26salary" means:
 
 
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1  (1) For Articles 8, 9, 10, 11, and 12, the highest 
2 average annual salary for any 4 consecutive years within 
3 the last 10 years of service immediately preceding the 
4 date of withdrawal. 
5  (2) For Article 13, the highest average monthly salary 
6 as calculated by accumulating the salary for the highest 
7 520 consecutive paid days of service within the last 10 
8 years of service immediately preceding the date of 
9 retirement and dividing by 24. If the employee is paid for 
10 any portion of a workday, the fraction of the day worked 
11 and the salary for that fraction of the day shall be 
12 counted in accordance with the administrative rules of the 
13 Fund established under Article 13. 
14  (3) For Article 14, unless the member or participant 
15 is entitled to an annuity under Section 14-110 and has at 
16 least 20 years of eligible creditable service as defined 
17 in Section 14-110, the monthly compensation obtained by 
18 dividing the total compensation of an employee during the 
19 period of: (1) the 48 consecutive months of service within 
20 the last 120 months of service in which the total 
21 compensation was the highest or (2) the total period of 
22 service, if less than 48 months, by the number of months of 
23 service in such period; however, for purposes of a 
24 retirement annuity, the average compensation for the last 
25 12 months of the 48-month period shall not exceed the 
26 final average compensation by more than 25%.
 
 
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1  (4) For Article 14, if the member or participant is 
2 entitled to an annuity under Section 14-110 and has at 
3 least 20 years of eligible creditable service as defined 
4 in Section 14-110, the monthly rate of compensation 
5 received by the member or participant on the last day of 
6 eligible creditable service (but not to exceed 115% of the 
7 average monthly compensation received by the member or 
8 participant for the last 24 months of service) or the 
9 average monthly compensation received by the member or 
10 participant for the last 48 months of service prior to 
11 retirement, whichever is greater. 
12  (5) For Article 17, the average annual rate of salary 
13 for the 4 consecutive years of validated service within 
14 the last 10 years of service when such average annual rate 
15 was highest. 
16 A member of the Teachers' Retirement System of the State 
17of Illinois who retires on or after June 1, 2021 and for whom 
18the 2020-2021 school year is used in the calculation of the 
19member's final average salary shall use the higher of the 
20following for the purpose of determining the member's final 
21average salary:
22  (A) the amount otherwise calculated under the first 
23 paragraph of this subsection; or
24  (B) an amount calculated by the Teachers' Retirement 
25 System of the State of Illinois using the average of the 
26 monthly (or annual) salary obtained by dividing the total 
 
 
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1 salary or earnings calculated under Article 16 applicable 
2 to the member or participant during the 96 months (or 8 
3 years) of service within the last 120 months (or 10 years) 
4 of service in which the total salary or earnings 
5 calculated under the Article was the highest by the number 
6 of months (or years) of service in that period.
7 (b-5) Beginning on January 1, 2011, for all purposes under 
8this Code (including without limitation the calculation of 
9benefits and employee contributions), the annual earnings, 
10salary, or wages (based on the plan year) of a member or 
11participant to whom this Section applies shall not exceed 
12$106,800; however, that amount shall annually thereafter be 
13increased by the lesser of (i) 3% of that amount, including all 
14previous adjustments, or (ii) one-half the annual unadjusted 
15percentage increase (but not less than zero) in the consumer 
16price index-u for the 12 months ending with the September 
17preceding each November 1, including all previous adjustments.
18 For the purposes of this Section, "consumer price index-u" 
19means the index published by the Bureau of Labor Statistics of 
20the United States Department of Labor that measures the 
21average change in prices of goods and services purchased by 
22all urban consumers, United States city average, all items, 
231982-84 = 100. The new amount resulting from each annual 
24adjustment shall be determined by the Public Pension Division 
25of the Department of Insurance and made available to the 
26boards of the retirement systems and pension funds by November 
 
 
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11 of each year. 
2 (b-10) Beginning on January 1, 2024, for all purposes 
3under this Code (including, without limitation, the 
4calculation of benefits and employee contributions), the 
5annual earnings, salary, or wages (based on the plan year) of a 
6member or participant under Article 9 to whom this Section 
7applies shall include an annual earnings, salary, or wage cap 
8that tracks the Social Security wage base. Maximum annual 
9earnings, wages, or salary shall be the annual contribution 
10and benefit base established for the applicable year by the 
11Commissioner of the Social Security Administration under the 
12federal Social Security Act. 
13 However, in no event shall the annual earnings, salary, or 
14wages for the purposes of this Article and Article 9 exceed any 
15limitation imposed on annual earnings, salary, or wages under 
16Section 1-117. Under no circumstances shall the maximum amount 
17of annual earnings, salary, or wages be greater than the 
18amount set forth in this subsection (b-10) as a result of 
19reciprocal service or any provisions regarding reciprocal 
20services, nor shall the Fund under Article 9 be required to pay 
21any refund as a result of the application of this maximum 
22annual earnings, salary, and wage cap. 
23 Nothing in this subsection (b-10) shall cause or otherwise 
24result in any retroactive adjustment of any employee 
25contributions. Nothing in this subsection (b-10) shall cause 
26or otherwise result in any retroactive adjustment of 
 
 
HB5909- 98 -LRB103 43117 RPS 76377 b


1disability or other payments made between January 1, 2011 and 
2January 1, 2024. 
3 (c) A member or participant is entitled to a retirement 
4annuity upon written application if he or she has attained age 
567 (age 65, with respect to service under Article 12 that is 
6subject to this Section, for a member or participant under 
7Article 12 who first becomes a member or participant under 
8Article 12 on or after January 1, 2022 or who makes the 
9election under item (i) of subsection (d-15) of this Section) 
10and has at least 10 years of service credit and is otherwise 
11eligible under the requirements of the applicable Article. 
12 A member or participant who has attained age 62 (age 60, 
13with respect to service under Article 12 that is subject to 
14this Section, for a member or participant under Article 12 who 
15first becomes a member or participant under Article 12 on or 
16after January 1, 2022 or who makes the election under item (i) 
17of subsection (d-15) of this Section) and has at least 10 years 
18of service credit and is otherwise eligible under the 
19requirements of the applicable Article may elect to receive 
20the lower retirement annuity provided in subsection (d) of 
21this Section. 
22 (c-5) A person who first becomes a member or a participant 
23subject to this Section on or after July 6, 2017 (the effective 
24date of Public Act 100-23), notwithstanding any other 
25provision of this Code to the contrary, is entitled to a 
26retirement annuity under Article 8 or Article 11 upon written 
 
 
HB5909- 99 -LRB103 43117 RPS 76377 b


1application if he or she has attained age 65 and has at least 
210 years of service credit and is otherwise eligible under the 
3requirements of Article 8 or Article 11 of this Code, 
4whichever is applicable. 
5 (d) The retirement annuity of a member or participant who 
6is retiring after attaining age 62 (age 60, with respect to 
7service under Article 12 that is subject to this Section, for a 
8member or participant under Article 12 who first becomes a 
9member or participant under Article 12 on or after January 1, 
102022 or who makes the election under item (i) of subsection 
11(d-15) of this Section) with at least 10 years of service 
12credit shall be reduced by one-half of 1% for each full month 
13that the member's age is under age 67 (age 65, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section).
19 (d-5) The retirement annuity payable under Article 8 or 
20Article 11 to an eligible person subject to subsection (c-5) 
21of this Section who is retiring at age 60 with at least 10 
22years of service credit shall be reduced by one-half of 1% for 
23each full month that the member's age is under age 65. 
24 (d-10) Each person who first became a member or 
25participant under Article 8 or Article 11 of this Code on or 
26after January 1, 2011 and prior to July 6, 2017 (the effective 
 
 
HB5909- 100 -LRB103 43117 RPS 76377 b


1date of Public Act 100-23) shall make an irrevocable election 
2either:
3  (i) to be eligible for the reduced retirement age 
4 provided in subsections (c-5) and (d-5) of this Section, 
5 the eligibility for which is conditioned upon the member 
6 or participant agreeing to the increases in employee 
7 contributions for age and service annuities provided in 
8 subsection (a-5) of Section 8-174 of this Code (for 
9 service under Article 8) or subsection (a-5) of Section 
10 11-170 of this Code (for service under Article 11); or 
11  (ii) to not agree to item (i) of this subsection 
12 (d-10), in which case the member or participant shall 
13 continue to be subject to the retirement age provisions in 
14 subsections (c) and (d) of this Section and the employee 
15 contributions for age and service annuity as provided in 
16 subsection (a) of Section 8-174 of this Code (for service 
17 under Article 8) or subsection (a) of Section 11-170 of 
18 this Code (for service under Article 11). 
19 The election provided for in this subsection shall be made 
20between October 1, 2017 and November 15, 2017. A person 
21subject to this subsection who makes the required election 
22shall remain bound by that election. A person subject to this 
23subsection who fails for any reason to make the required 
24election within the time specified in this subsection shall be 
25deemed to have made the election under item (ii). 
26 (d-15) Each person who first becomes a member or 
 
 
HB5909- 101 -LRB103 43117 RPS 76377 b


1participant under Article 12 on or after January 1, 2011 and 
2prior to January 1, 2022 shall make an irrevocable election 
3either: 
4  (i) to be eligible for the reduced retirement age 
5 specified in subsections (c) and (d) of this Section, the 
6 eligibility for which is conditioned upon the member or 
7 participant agreeing to the increase in employee 
8 contributions for service annuities specified in 
9 subsection (b) of Section 12-150; or
10  (ii) to not agree to item (i) of this subsection 
11 (d-15), in which case the member or participant shall not 
12 be eligible for the reduced retirement age specified in 
13 subsections (c) and (d) of this Section and shall not be 
14 subject to the increase in employee contributions for 
15 service annuities specified in subsection (b) of Section 
16 12-150. 
17 The election provided for in this subsection shall be made 
18between January 1, 2022 and April 1, 2022. A person subject to 
19this subsection who makes the required election shall remain 
20bound by that election. A person subject to this subsection 
21who fails for any reason to make the required election within 
22the time specified in this subsection shall be deemed to have 
23made the election under item (ii). 
24 (e) Any retirement annuity or supplemental annuity shall 
25be subject to annual increases on the January 1 occurring 
26either on or after the attainment of age 67 (age 65, with 
 
 
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1respect to service under Article 12 that is subject to this 
2Section, for a member or participant under Article 12 who 
3first becomes a member or participant under Article 12 on or 
4after January 1, 2022 or who makes the election under item (i) 
5of subsection (d-15); and beginning on July 6, 2017 (the 
6effective date of Public Act 100-23), age 65 with respect to 
7service under Article 8 or Article 11 for eligible persons 
8who: (i) are subject to subsection (c-5) of this Section; or 
9(ii) made the election under item (i) of subsection (d-10) of 
10this Section) or the first anniversary of the annuity start 
11date, whichever is later. Each annual increase shall be 
12calculated at 3% or one-half the annual unadjusted percentage 
13increase (but not less than zero) in the consumer price 
14index-u for the 12 months ending with the September preceding 
15each November 1, whichever is less, of the originally granted 
16retirement annuity. If the annual unadjusted percentage change 
17in the consumer price index-u for the 12 months ending with the 
18September preceding each November 1 is zero or there is a 
19decrease, then the annuity shall not be increased. 
20 For the purposes of Section 1-103.1 of this Code, the 
21changes made to this Section by Public Act 102-263 are 
22applicable without regard to whether the employee was in 
23active service on or after August 6, 2021 (the effective date 
24of Public Act 102-263). 
25 For the purposes of Section 1-103.1 of this Code, the 
26changes made to this Section by Public Act 100-23 are 
 
 
HB5909- 103 -LRB103 43117 RPS 76377 b


1applicable without regard to whether the employee was in 
2active service on or after July 6, 2017 (the effective date of 
3Public Act 100-23). 
4 (f) The initial survivor's or widow's annuity of an 
5otherwise eligible survivor or widow of a retired member or 
6participant who first became a member or participant on or 
7after January 1, 2011 shall be in the amount of 66 2/3% of the 
8retired member's or participant's retirement annuity at the 
9date of death. In the case of the death of a member or 
10participant who has not retired and who first became a member 
11or participant on or after January 1, 2011, eligibility for a 
12survivor's or widow's annuity shall be determined by the 
13applicable Article of this Code. The initial benefit shall be 
1466 2/3% of the earned annuity without a reduction due to age. A 
15child's annuity of an otherwise eligible child shall be in the 
16amount prescribed under each Article if applicable. Any 
17survivor's or widow's annuity shall be increased (1) on each 
18January 1 occurring on or after the commencement of the 
19annuity if the deceased member died while receiving a 
20retirement annuity or (2) in other cases, on each January 1 
21occurring after the first anniversary of the commencement of 
22the annuity. Each annual increase shall be calculated at 3% or 
23one-half the annual unadjusted percentage increase (but not 
24less than zero) in the consumer price index-u for the 12 months 
25ending with the September preceding each November 1, whichever 
26is less, of the originally granted survivor's annuity. If the 
 
 
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1annual unadjusted percentage change in the consumer price 
2index-u for the 12 months ending with the September preceding 
3each November 1 is zero or there is a decrease, then the 
4annuity shall not be increased. 
5 (g) The benefits in Section 14-110 apply only if the 
6person is a State policeman, a fire fighter in the fire 
7protection service of a department, a conservation police 
8officer, an investigator for the Secretary of State, an 
9investigator for the Office of the Attorney General, an arson 
10investigator, a Commerce Commission police officer, 
11investigator for the Department of Revenue or the Illinois 
12Gaming Board, a security employee of the Department of 
13Corrections or the Department of Juvenile Justice, or a 
14security employee of the Department of Innovation and 
15Technology, as those terms are defined in subsection (b) and 
16subsection (c) of Section 14-110. A person who meets the 
17requirements of this Section is entitled to an annuity 
18calculated under the provisions of Section 14-110, in lieu of 
19the regular or minimum retirement annuity, only if the person 
20has withdrawn from service with not less than 20 years of 
21eligible creditable service and has attained age 60, 
22regardless of whether the attainment of age 60 occurs while 
23the person is still in service. 
24 (h) If a person who first becomes a member or a participant 
25of a retirement system or pension fund subject to this Section 
26on or after January 1, 2011 is receiving a retirement annuity 
 
 
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1or retirement pension under that system or fund and becomes a 
2member or participant under any other system or fund created 
3by this Code and is employed on a full-time basis, except for 
4those members or participants exempted from the provisions of 
5this Section under subsection (a) of this Section, then the 
6person's retirement annuity or retirement pension under that 
7system or fund shall be suspended during that employment. Upon 
8termination of that employment, the person's retirement 
9annuity or retirement pension payments shall resume and be 
10recalculated if recalculation is provided for under the 
11applicable Article of this Code.
12 If a person who first becomes a member of a retirement 
13system or pension fund subject to this Section on or after 
14January 1, 2012 and is receiving a retirement annuity or 
15retirement pension under that system or fund and accepts on a 
16contractual basis a position to provide services to a 
17governmental entity from which he or she has retired, then 
18that person's annuity or retirement pension earned as an 
19active employee of the employer shall be suspended during that 
20contractual service. A person receiving an annuity or 
21retirement pension under this Code shall notify the pension 
22fund or retirement system from which he or she is receiving an 
23annuity or retirement pension, as well as his or her 
24contractual employer, of his or her retirement status before 
25accepting contractual employment. A person who fails to submit 
26such notification shall be guilty of a Class A misdemeanor and 
 
 
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1required to pay a fine of $1,000. Upon termination of that 
2contractual employment, the person's retirement annuity or 
3retirement pension payments shall resume and, if appropriate, 
4be recalculated under the applicable provisions of this Code. 
5 (i) (Blank). 
6 (j) In the case of a conflict between the provisions of 
7this Section and any other provision of this Code, the 
8provisions of this Section shall control.
9(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
10102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
118-11-23.)

12 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
13 (Text of Section WITHOUT the changes made by P.A. 98-599, 
14which has been held unconstitutional)
15 Sec. 2-108.1. Highest salary for annuity purposes. 
16 (a) "Highest salary for annuity purposes" means whichever 
17of the following is applicable to the participant:
18 For a participant who first becomes a participant of this 
19System before August 10, 2009 (the effective date of Public 
20Act 96-207):  
21  (1) For a participant who is a member of the General 
22 Assembly on his or her last day of service: the highest 
23 salary that is prescribed by law, on the participant's 
24 last day of service, for a member of the General Assembly 
25 who is not an officer; plus, if the participant was 
 
 
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1 elected or appointed to serve as an officer of the General 
2 Assembly for 2 or more years and has made contributions as 
3 required under subsection (d) of Section 2-126, the 
4 highest additional amount of compensation prescribed by 
5 law, at the time of the participant's service as an 
6 officer, for members of the General Assembly who serve in 
7 that office. 
8  (2) For a participant who holds one of the State 
9 executive offices specified in Section 2-105 on his or her 
10 last day of service: the highest salary prescribed by law 
11 for service in that office on the participant's last day 
12 of service. 
13  (3) For a participant who is Clerk or Assistant Clerk 
14 of the House of Representatives or Secretary or Assistant 
15 Secretary of the Senate on his or her last day of service: 
16 the salary received for service in that capacity on the 
17 last day of service, but not to exceed the highest salary 
18 (including additional compensation for service as an 
19 officer) that is prescribed by law on the participant's 
20 last day of service for the highest paid officer of the 
21 General Assembly. 
22  (4) For a participant who is a continuing participant 
23 under Section 2-117.1 on his or her last day of service: 
24 the salary received for service in that capacity on the 
25 last day of service, but not to exceed the highest salary 
26 (including additional compensation for service as an 
 
 
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1 officer) that is prescribed by law on the participant's 
2 last day of service for the highest paid officer of the 
3 General Assembly.
4 For a participant who first becomes a participant of this 
5System on or after August 10, 2009 (the effective date of 
6Public Act 96-207) and before January 1, 2011 (the effective 
7date of Public Act 96-889), the average monthly salary 
8obtained by dividing the total salary of the participant 
9during the period of: (1) the 48 consecutive months of service 
10within the last 120 months of service in which the total 
11compensation was the highest, or (2) the total period of 
12service, if less than 48 months, by the number of months of 
13service in that period. 
14 For a participant who first becomes a participant of this 
15System on or after January 1, 2011 (the effective date of 
16Public Act 96-889) and who is not in service on or after 
17January 1, 2025, the average monthly salary obtained by 
18dividing the total salary of the participant during the 96 
19consecutive months of service within the last 120 months of 
20service in which the total compensation was the highest by the 
21number of months of service in that period; however, beginning 
22January 1, 2011, the highest salary for annuity purposes may 
23not exceed $106,800, except that that amount shall annually 
24thereafter be increased by the lesser of (i) 3% of that amount, 
25including all previous adjustments, or (ii) the annual 
26unadjusted percentage increase (but not less than zero) in the 
 
 
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1consumer price index-u for the 12 months ending with the 
2September preceding each November 1. "Consumer price index-u" 
3means the index published by the Bureau of Labor Statistics of 
4the United States Department of Labor that measures the 
5average change in prices of goods and services purchased by 
6all urban consumers, United States city average, all items, 
71982-84 = 100. The new amount resulting from each annual 
8adjustment shall be determined by the Public Pension Division 
9of the Department of Insurance and made available to the Board 
10by November 1 of each year. 
11 Subject to any applicable limitation on the highest salary 
12for annuity purposes, for a participant who first becomes a 
13participant of this System on or after January 1, 2011 and who 
14is in service on or after January 1, 2025, "highest salary for 
15annuity purposes" means: 
16  (1) For a participant who is a member of the General 
17 Assembly on his or her last day of service: the highest 
18 salary that is prescribed by law, on the participant's 
19 last day of service, for a member of the General Assembly 
20 who is not an officer; plus, if the participant was 
21 elected or appointed to serve as an officer of the General 
22 Assembly for 2 or more years and has made contributions as 
23 required under subsection (d) of Section 2-126, the 
24 highest additional amount of compensation prescribed by 
25 law, at the time of the participant's service as an 
26 officer, for members of the General Assembly who serve in 
 
 
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1 that office.
2  (2) For a participant who holds one of the State 
3 executive offices specified in Section 2-105 on his or her 
4 last day of service: the highest salary prescribed by law 
5 for service in that office on the participant's last day 
6 of service. 
7  (3) For a participant who is Clerk or Assistant Clerk 
8 of the House of Representatives or Secretary or Assistant 
9 Secretary of the Senate on his or her last day of service: 
10 the salary received for service in that capacity on the 
11 last day of service, but not to exceed the highest salary 
12 (including additional compensation for service as an 
13 officer) that is prescribed by law on the participant's 
14 last day of service for the highest paid officer of the 
15 General Assembly.
16  (4) For a participant who is a continuing participant 
17 under Section 2-117.1 on his or her last day of service: 
18 the salary received for service in that capacity on the 
19 last day of service, but not to exceed the highest salary 
20 (including additional compensation for service as an 
21 officer) that is prescribed by law on the participant's 
22 last day of service for the highest paid officer of the 
23 General Assembly. 
24 (b) The earnings limitations of subsection (a) apply to 
25earnings under any other participating system under the 
26Retirement Systems Reciprocal Act that are considered in 
 
 
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1calculating a proportional annuity under this Article, except 
2in the case of a person who first became a member of this 
3System before August 22, 1994 and has not, on or after the 
4effective date of this amendatory Act of the 97th General 
5Assembly, irrevocably elected to have those limitations apply. 
6The limitations of subsection (a) shall apply, however, to 
7earnings under any other participating system under the 
8Retirement Systems Reciprocal Act that are considered in 
9calculating the proportional annuity of a person who first 
10became a member of this System before August 22, 1994 if, on or 
11after the effective date of this amendatory Act of the 97th 
12General Assembly, that member irrevocably elects to have those 
13limitations apply.
14 (c) In calculating the subsection (a) earnings limitation 
15to be applied to earnings under any other participating system 
16under the Retirement Systems Reciprocal Act for the purpose of 
17calculating a proportional annuity under this Article, the 
18participant's last day of service shall be deemed to mean the 
19last day of service in any participating system from which the 
20person has applied for a proportional annuity under the 
21Retirement Systems Reciprocal Act.
22(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 
2396-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)

24 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
25 Sec. 3-111. Pension. 
 
 
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1 (a) A police officer age 50 or more with 20 or more years 
2of creditable service, who is not a participant in the 
3self-managed plan under Section 3-109.3 and who is no longer 
4in service as a police officer, shall receive a pension of 1/2 
5of the salary attached to the rank held by the officer on the 
6police force for one year immediately prior to retirement or, 
7beginning July 1, 1987 for persons terminating service on or 
8after that date, the salary attached to the rank held on the 
9last day of service or for one year prior to the last day, 
10whichever is greater. The pension shall be increased by 2.5% 
11of such salary for each additional year of service over 20 
12years of service through 30 years of service, to a maximum of 
1375% of such salary.
14 The changes made to this subsection (a) by this amendatory 
15Act of the 91st General Assembly apply to all pensions that 
16become payable under this subsection on or after January 1, 
171999. All pensions payable under this subsection that began on 
18or after January 1, 1999 and before the effective date of this 
19amendatory Act shall be recalculated, and the amount of the 
20increase accruing for that period shall be payable to the 
21pensioner in a lump sum.
22 (a-5) No pension in effect on or granted after June 30, 
231973 shall be less than $200 per month. Beginning July 1, 1987, 
24the minimum retirement pension for a police officer having at 
25least 20 years of creditable service shall be $400 per month, 
26without regard to whether or not retirement occurred prior to 
 
 
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1that date. If the minimum pension established in Section 
23-113.1 is greater than the minimum provided in this 
3subsection, the Section 3-113.1 minimum controls.
4 (b) A police officer mandatorily retired from service due 
5to age by operation of law, having at least 8 but less than 20 
6years of creditable service, shall receive a pension equal to 
72 1/2% of the salary attached to the rank he or she held on the 
8police force for one year immediately prior to retirement or, 
9beginning July 1, 1987 for persons terminating service on or 
10after that date, the salary attached to the rank held on the 
11last day of service or for one year prior to the last day, 
12whichever is greater, for each year of creditable service.
13 A police officer who retires or is separated from service 
14having at least 8 years but less than 20 years of creditable 
15service, who is not mandatorily retired due to age by 
16operation of law, and who does not apply for a refund of 
17contributions at his or her last separation from police 
18service, shall receive a pension upon attaining age 60 equal 
19to 2.5% of the salary attached to the rank held by the police 
20officer on the police force for one year immediately prior to 
21retirement or, beginning July 1, 1987 for persons terminating 
22service on or after that date, the salary attached to the rank 
23held on the last day of service or for one year prior to the 
24last day, whichever is greater, for each year of creditable 
25service.
26 (c) A police officer no longer in service who has at least 
 
 
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1one but less than 8 years of creditable service in a police 
2pension fund but meets the requirements of this subsection (c) 
3shall be eligible to receive a pension from that fund equal to 
42.5% of the salary attached to the rank held on the last day of 
5service under that fund or for one year prior to that last day, 
6whichever is greater, for each year of creditable service in 
7that fund. The pension shall begin no earlier than upon 
8attainment of age 60 (or upon mandatory retirement from the 
9fund by operation of law due to age, if that occurs before age 
1060) and in no event before the effective date of this 
11amendatory Act of 1997.
12 In order to be eligible for a pension under this 
13subsection (c), the police officer must have at least 8 years 
14of creditable service in a second police pension fund under 
15this Article and be receiving a pension under subsection (a) 
16or (b) of this Section from that second fund. The police 
17officer need not be in service on or after the effective date 
18of this amendatory Act of 1997.
19 (d) Notwithstanding any other provision of this Article, 
20the provisions of this subsection (d) apply to a person who is 
21not a participant in the self-managed plan under Section 
223-109.3 and who first becomes a police officer under this 
23Article on or after January 1, 2011.
24 A police officer age 55 or more who has 10 or more years of 
25service in that capacity shall be entitled at his option to 
26receive a monthly pension for his service as a police officer 
 
 
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1computed by multiplying 2.5% for each year of such service by 
2his or her final average salary.
3 The pension of a police officer who is retiring after 
4attaining age 50 with 10 or more years of creditable service 
5shall be reduced by one-half of 1% for each month that the 
6police officer's age is under age 55.
7 The maximum pension under this subsection (d) shall be 75% 
8of final average salary.
9 For the purposes of this subsection (d), "final average 
10salary" means, for a police officer who is not an active police 
11officer on or after January 1, 2025, the greater of: (i) the 
12average monthly salary obtained by dividing the total salary 
13of the police officer during the 48 consecutive months of 
14service within the last 60 months of service in which the total 
15salary was the highest by the number of months of service in 
16that period; or (ii) the average monthly salary obtained by 
17dividing the total salary of the police officer during the 96 
18consecutive months of service within the last 120 months of 
19service in which the total salary was the highest by the number 
20of months of service in that period. For the purposes of this 
21subsection (d), "final average salary" means, for a police 
22officer who is an active police officer on or after January 1, 
232025, the salary attached to the rank held by the officer on 
24the police force for one year immediately prior to retirement 
25or the salary attached to the rank held on the last day of 
26service or for one year prior to the last day, whichever is 
 
 
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1greater. 
2 Beginning on January 1, 2011, for all purposes under this 
3Code (including without limitation the calculation of benefits 
4and employee contributions), the annual salary based on the 
5plan year of a member or participant to whom this Section 
6applies shall not exceed $106,800; however, that amount shall 
7annually thereafter be increased by the lesser of (i) 3% of 
8that amount, including all previous adjustments, or (ii) the 
9annual unadjusted percentage increase (but not less than zero) 
10in the consumer price index-u for the 12 months ending with the 
11September preceding each November 1, including all previous 
12adjustments. 
13 Nothing in this amendatory Act of the 101st General 
14Assembly shall cause or otherwise result in any retroactive 
15adjustment of any employee contributions. 
16(Source: P.A. 101-610, eff. 1-1-20.)

17 (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
18 Sec. 4-109. Pension. 
19 (a) A firefighter age 50 or more with 20 or more years of 
20creditable service, who is no longer in service as a 
21firefighter, shall receive a monthly pension of 1/2 the 
22monthly salary attached to the rank held by him or her in the 
23fire service at the date of retirement.
24 The monthly pension shall be increased by 1/12 of 2.5% of 
25such monthly salary for each additional month over 20 years of 
 
 
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1service through 30 years of service, to a maximum of 75% of 
2such monthly salary.
3 The changes made to this subsection (a) by this amendatory 
4Act of the 91st General Assembly apply to all pensions that 
5become payable under this subsection on or after January 1, 
61999. All pensions payable under this subsection that began on 
7or after January 1, 1999 and before the effective date of this 
8amendatory Act shall be recalculated, and the amount of the 
9increase accruing for that period shall be payable to the 
10pensioner in a lump sum.
11 (b) A firefighter who retires or is separated from service 
12having at least 10 but less than 20 years of creditable 
13service, who is not entitled to receive a disability pension, 
14and who did not apply for a refund of contributions at his or 
15her last separation from service shall receive a monthly 
16pension upon attainment of age 60 based on the monthly salary 
17attached to his or her rank in the fire service on the date of 
18retirement or separation from service according to the 
19following schedule:
20 For 10 years of service, 15% of salary;

21 For 11 years of service, 17.6% of salary;

22 For 12 years of service, 20.4% of salary;

23 For 13 years of service, 23.4% of salary;

24 For 14 years of service, 26.6% of salary;

25 For 15 years of service, 30% of salary;

26 For 16 years of service, 33.6% of salary;

 
 
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1 For 17 years of service, 37.4% of salary;

2 For 18 years of service, 41.4% of salary;

3 For 19 years of service, 45.6% of salary.
4 (c) Notwithstanding any other provision of this Article, 
5the provisions of this subsection (c) apply to a person who 
6first becomes a firefighter under this Article on or after 
7January 1, 2011.
8 A firefighter age 55 or more who has 10 or more years of 
9service in that capacity shall be entitled at his option to 
10receive a monthly pension for his service as a firefighter 
11computed by multiplying 2.5% for each year of such service by 
12his or her final average salary.
13 The pension of a firefighter who is retiring after 
14attaining age 50 with 10 or more years of creditable service 
15shall be reduced by one-half of 1% for each month that the 
16firefighter's age is under age 55.
17 The maximum pension under this subsection (c) shall be 75% 
18of final average salary.
19 For the purposes of this subsection (c), "final average 
20salary" means, for a firefighter who is not an active 
21firefighter on or after January 1, 2025, the greater of: (i) 
22the average monthly salary obtained by dividing the total 
23salary of the firefighter during the 48 consecutive months of 
24service within the last 60 months of service in which the total 
25salary was the highest by the number of months of service in 
26that period; or (ii) the average monthly salary obtained by 
 
 
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1dividing the total salary of the firefighter during the 96 
2consecutive months of service within the last 120 months of 
3service in which the total salary was the highest by the number 
4of months of service in that period. For the purposes of this 
5subsection (c), "final average salary" means, for a 
6firefighter who is an active firefighter on or after January 
71, 2025, the monthly salary attached to the rank held by him or 
8her in the fire service at the date of retirement. 
9 Beginning on January 1, 2011, for all purposes under this 
10Code (including without limitation the calculation of benefits 
11and employee contributions), the annual salary based on the 
12plan year of a member or participant to whom this Section 
13applies shall not exceed $106,800; however, that amount shall 
14annually thereafter be increased by the lesser of (i) 3% of 
15that amount, including all previous adjustments, or (ii) the 
16annual unadjusted percentage increase (but not less than zero) 
17in the consumer price index-u for the 12 months ending with the 
18September preceding each November 1, including all previous 
19adjustments. 
20 Nothing in this amendatory Act of the 101st General 
21Assembly shall cause or otherwise result in any retroactive 
22adjustment of any employee contributions. 
23(Source: P.A. 101-610, eff. 1-1-20.)

24 (40 ILCS 5/5-238)
25 Sec. 5-238. Provisions applicable to new hires; Tier 2. 
 
 
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1 (a) Notwithstanding any other provision of this Article, 
2the provisions of this Section apply to a person who first 
3becomes a policeman under this Article on or after January 1, 
42011, and to certain qualified survivors of such a policeman. 
5Such persons, and the benefits and restrictions that apply 
6specifically to them under this Article, may be referred to as 
7"Tier 2".
8 (b) A policeman who has withdrawn from service, has 
9attained age 50 or more, and has 10 or more years of service in 
10that capacity shall be entitled, upon proper application being 
11received by the Fund, to receive a Tier 2 monthly retirement 
12annuity for his service as a police officer. The Tier 2 monthly 
13retirement annuity shall be computed by multiplying 2.5% for 
14each year of such service by his or her final average salary, 
15subject to an annuity reduction factor of one-half of 1% for 
16each month that the police officer's age at retirement is 
17under age 55. The Tier 2 monthly retirement annuity is in lieu 
18of any age and service annuity or other form of retirement 
19annuity under this Article.
20 The maximum retirement annuity under this subsection (b) 
21shall be 75% of final average salary.
22 For the purposes of this subsection (b), "final average 
23salary" means, for a policeman who is not an active policeman 
24on or after January 1, 2025, the average monthly salary 
25obtained by dividing the total salary of the policeman during 
26the 96 consecutive months of service within the last 120 
 
 
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1months of service in which the total salary was the highest by 
2the number of months of service in that period. For the 
3purposes of this subsection (b), for a policeman who is an 
4active policeman on or after January 1, 2025, "final average 
5salary" means the average of the highest 4 consecutive years 
6of salary within the last 10 years of service. 
7 Beginning on January 1, 2011, for all purposes under this 
8Code (including without limitation the calculation of benefits 
9and employee contributions), the annual salary based on the 
10plan year of a member or participant to whom this Section 
11applies shall not exceed $106,800; however, that amount shall 
12annually thereafter be increased by the lesser of (i) 3% of 
13that amount, including all previous adjustments, or (ii) 
14one-half the annual unadjusted percentage increase (but not 
15less than zero) in the consumer price index-u for the 12 months 
16ending with the September preceding each November 1, including 
17all previous adjustments. 
18 (c) Notwithstanding any other provision of this Article, 
19for a person who first becomes a policeman under this Article 
20on or after January 1, 2011, eligibility for and the amount of 
21the annuity to which the qualified surviving spouse, children, 
22and parents are entitled under this subsection (c) shall be 
23determined as follows:
24  (1) The surviving spouse of a deceased policeman to 
25 whom this Section applies shall be deemed qualified to 
26 receive a Tier 2 surviving spouse's annuity under this 
 
 
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1 paragraph (1) if: (i) the deceased policeman meets the 
2 requirements specified under subdivision (A), (B), (C), or 
3 (D) of this paragraph (1); and (ii) the surviving spouse 
4 would not otherwise be excluded from receiving a widow's 
5 annuity under the eligibility requirements for a widow's 
6 annuity set forth in Section 5-146. The Tier 2 surviving 
7 spouse's annuity is in lieu of the widow's annuity 
8 determined under any other Section of this Article and is 
9 subject to the requirements of Section 5-147.1.
10  As used in this subsection (c), "earned annuity" means 
11 a Tier 2 monthly retirement annuity determined under 
12 subsection (b) of this Section, including any increases 
13 the policeman had received pursuant to Section 5-167.1. 
14   (A) If the deceased policeman was receiving an 
15 earned annuity at the date of his or her death, the 
16 Tier 2 surviving spouse's annuity under this paragraph 
17 (1) shall be in the amount of 66 2/3% of the 
18 policeman's earned annuity at the date of death.
19   (B) If the deceased policeman was not receiving an 
20 earned annuity but had at least 10 years of service at 
21 the time of death, the Tier 2 surviving spouse's 
22 annuity under this paragraph (1) shall be the greater 
23 of: (i) 30% of the annual maximum salary attached to 
24 the classified civil service position of a first class 
25 patrolman at the time of his death; or (ii) 66 2/3% of 
26 the Tier 2 monthly retirement annuity that the 
 
 
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1 deceased policeman would have been eligible to receive 
2 under subsection (b) of this Section, based upon the 
3 actual service accrued through the day before the 
4 policeman's death, but determined as though the 
5 policeman was at least age 55 on the day before his or 
6 her death and retired on that day.
7   (C) If the deceased policeman was an active 
8 policeman with at least 1 1/2 but less than 10 years of 
9 service at the time of death, the Tier 2 surviving 
10 spouse's annuity under this paragraph (1) shall be in 
11 the amount of 30% of the annual maximum salary 
12 attached to the classified civil service position of a 
13 first class patrolman at the time of his death.
14   (D) If the performance of an act or acts of duty 
15 results directly in the death of a policeman subject 
16 to this Section, or prevents him from subsequently 
17 resuming active service in the police department, and 
18 if the policeman's Tier 2 surviving spouse would 
19 otherwise meet the eligibility requirements for a 
20 compensation annuity or supplemental annuity granted 
21 under Section 5-144, then in addition to the Tier 2 
22 surviving spouse's annuity provided under subdivision 
23 (A), (B), or (C) of this paragraph (1), whichever 
24 applies, the Tier 2 surviving spouse shall be 
25 qualified to receive compensation annuity or 
26 supplemental annuity, as would be provided under 
 
 
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1 Section 5-144, in order to bring the total benefit up 
2 to the applicable 75% salary limitation provided in 
3 that Section, but subject to the Tier 2 salary cap 
4 provided under subsection (b) of this Section; except 
5 that no such annuity shall be paid to the surviving 
6 spouse of a policeman who dies while in receipt of 
7 disability benefits when the policeman's death was 
8 caused by an intervening illness or injury unrelated 
9 to the illness or injury that had prevented him from 
10 subsequently resuming active service in the police 
11 department. 
12   (E) Notwithstanding any other provision of this 
13 Article, the monthly Tier 2 surviving spouse's annuity 
14 under subdivision (A) or (B) of this paragraph (1) 
15 shall be increased on the January 1 next occurring 
16 after (i) attainment of age 60 by the recipient of the 
17 Tier 2 surviving spouse's annuity or (ii) the first 
18 anniversary of the Tier 2 surviving spouse's annuity 
19 start date, whichever is later, and on each January 1 
20 thereafter, by 3% or one-half the annual unadjusted 
21 percentage increase (but not less than zero) in the 
22 consumer price index-u for the 12 months ending with 
23 the September preceding each November 1, whichever is 
24 less, of the originally granted Tier 2 surviving 
25 spouse's annuity. If the unadjusted percentage change 
26 in the consumer price index-u for a 12-month period 
 
 
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1 ending in September is zero or, when compared with the 
2 preceding period, decreases, then the annuity shall 
3 not be increased.
4   For the purposes of this Section, "consumer price 
5 index-u" means the index published by the Bureau of 
6 Labor Statistics of the United States Department of 
7 Labor that measures the average change in prices of 
8 goods and services purchased by all urban consumers, 
9 United States city average, all items, 1982-84 = 100. 
10 The new amount resulting from each annual adjustment 
11 shall be determined by the Public Pension Division of 
12 the Department of Insurance and made available to the 
13 boards of the pension funds.
14   (F) Notwithstanding the other provisions of this 
15 paragraph (1), for a qualified surviving spouse who is 
16 entitled to a Tier 2 surviving spouse's annuity under 
17 subdivision (A), (B), (C), or (D) of this paragraph 
18 (1), that Tier 2 surviving spouse's annuity shall not 
19 be less than the amount of the minimum widow's annuity 
20 established from time to time under Section 5-167.4.
21  (2) Surviving children of a deceased policeman subject 
22 to this Section who would otherwise meet the eligibility 
23 requirements for a child's annuity set forth in Sections 
24 5-151 and 5-152 shall be deemed qualified to receive a 
25 Tier 2 child's annuity under this subsection (c), which 
26 shall be in lieu of, but in the same amount and paid in the 
 
 
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1 same manner as, the child's annuity provided under those 
2 Sections; except that any salary used for computing a Tier 
3 2 child's annuity shall be subject to the Tier 2 salary cap 
4 provided under subsection (b) of this Section. For 
5 purposes of determining any pro rata reduction in child's 
6 annuities under this subsection (c), references in Section 
7 5-152 to the combined annuities of the family shall be 
8 deemed to refer to the combined Tier 2 surviving spouse's 
9 annuity, if any, and the Tier 2 child's annuities payable 
10 under this subsection (c).
11  (3) Surviving parents of a deceased policeman subject 
12 to this Section who would otherwise meet the eligibility 
13 requirements for a parent's annuity set forth in Section 
14 5-152 shall be deemed qualified to receive a Tier 2 
15 parent's annuity under this subsection (c), which shall be 
16 in lieu of, but in the same amount and paid in the same 
17 manner as, the parent's annuity provided under Section 
18 5-152.1; except that any salary used for computing a Tier 
19 2 parent's annuity shall be subject to the Tier 2 salary 
20 cap provided under subsection (b) of this Section. For the 
21 purposes of this Section, a reference to "annuity" in 
22 Section 5-152.1 includes: (i) in the context of a widow, a 
23 Tier 2 surviving spouse's annuity and (ii) in the context 
24 of a child, a Tier 2 child's annuity.
25 (d) The General Assembly finds and declares that the 
26provisions of this Section, as enacted by Public Act 96-1495, 
 
 
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1require clarification relating to necessary eligibility 
2standards and the manner of determining and paying the 
3intended Tier 2 benefits and contributions in order to enable 
4the Fund to unambiguously implement and administer benefits 
5for Tier 2 members. The changes to this Section and the 
6conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1 
7(except for the changes to subsection (a) of that Section), 
85-169, and 5-170 made by this amendatory Act of the 99th 
9General Assembly are enacted to clarify the provisions of this 
10Section as enacted by Public Act 96-1495, and are hereby 
11declared to represent and be consistent with the original and 
12continuing intent of this Section and Public Act 96-1495.
13 (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1 
14(except for the changes to subsection (a) of that Section), 
155-169, and 5-170 made by this amendatory Act of the 99th 
16General Assembly are intended to be retroactive to January 1, 
172011 (the effective date of Public Act 96-1495) and, for the 
18purposes of Section 1-103.1 of this Code, they apply without 
19regard to whether the relevant policeman was in service on or 
20after the effective date of this amendatory Act of the 99th 
21General Assembly. 
22(Source: P.A. 99-905, eff. 11-29-16.)

23 (40 ILCS 5/6-229)
24 Sec. 6-229. Provisions applicable to new hires; Tier 2.
25 (a) Notwithstanding any other provision of this Article, 
 
 
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1the provisions of this Section apply to a person who first 
2becomes a fireman under this Article on or after January 1, 
32011, and to certain qualified survivors of such a fireman. 
4Such persons, and the benefits and restrictions that apply 
5specifically to them under this Article, may be referred to as 
6"Tier 2".
7 (b) A fireman who has withdrawn from service, has attained 
8age 50 or more, and has 10 or more years of service in that 
9capacity shall be entitled, upon proper application being 
10received by the Fund, to receive a Tier 2 monthly retirement 
11annuity for his service as a fireman. The Tier 2 monthly 
12retirement annuity shall be computed by multiplying 2.5% for 
13each year of such service by his or her final average salary, 
14subject to an annuity reduction factor of one-half of 1% for 
15each month that the fireman's age at retirement is under age 
1655. The Tier 2 monthly retirement annuity is in lieu of any age 
17and service annuity or other form of retirement annuity under 
18this Article.
19 The maximum retirement annuity under this subsection (b) 
20shall be 75% of final average salary.
21 For the purposes of this subsection (b), "final average 
22salary" means, for a fireman who is not an active fireman on or 
23after January 1, 2025, the greater of (1) the average monthly 
24salary obtained by dividing the total salary of the fireman 
25during the 96 consecutive months of service within the last 
26120 months of service in which the total salary was the highest 
 
 
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1by the number of months of service in that period or (2) the 
2average monthly salary obtained by dividing the total salary 
3of the fireman during the 48 consecutive months of service 
4within the last 60 months of service in which the total salary 
5was the highest by the number of months of service in that 
6period. For the purposes of this subsection (b), for a fireman 
7who is an active fireman on or after January 1, 2025, "final 
8average salary" means the average of the fireman's highest 4 
9consecutive years of salary within the last 10 years of 
10service. 
11 Beginning on January 1, 2011, for all purposes under this 
12Code (including without limitation the calculation of benefits 
13and employee contributions), the annual salary based on the 
14plan year of a member or participant to whom this Section 
15applies shall not exceed $106,800; however, that amount shall 
16annually thereafter be increased by the lesser of (i) 3% of 
17that amount, including all previous adjustments, or (ii) 
18one-half the annual unadjusted percentage increase (but not 
19less than zero) in the consumer price index-u for the 12 months 
20ending with the September preceding each November 1, including 
21all previous adjustments.
22 (b-5) For the purposes of this Section, "consumer price 
23index-u" means the index published by the Bureau of Labor 
24Statistics of the United States Department of Labor that 
25measures the average change in prices of goods and services 
26purchased by all urban consumers, United States city average, 
 
 
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1all items, 1982-84 = 100. The new amount resulting from each 
2annual adjustment shall be determined by the Public Pension 
3Division of the Department of Insurance and made available to 
4the boards of the retirement systems and pension funds by 
5November 1 of each year. 
6 (c) Notwithstanding any other provision of this Article, 
7for a person who first becomes a fireman under this Article on 
8or after January 1, 2011, eligibility for and the amount of the 
9annuity to which the qualified surviving spouse, children, and 
10parents of the fireman are entitled under this subsection (c) 
11shall be determined as follows:
12  (1) The surviving spouse of a deceased fireman to whom 
13 this Section applies shall be deemed qualified to receive 
14 a Tier 2 surviving spouse's annuity under this paragraph 
15 (1) if: (i) the deceased fireman meets the requirements 
16 specified under subdivision (A), (B), (C), or (D) of this 
17 paragraph (1); and (ii) the surviving spouse would not 
18 otherwise be excluded from receiving a widow's annuity 
19 under the eligibility requirements for a widow's annuity 
20 set forth in Section 6-142. The Tier 2 surviving spouse's 
21 annuity is in lieu of the widow's annuity determined under 
22 any other Section of this Article and is subject to the 
23 requirements of Section 6-143.2.
24  As used in this subsection (c), "earned pension" means 
25 a Tier 2 monthly retirement annuity determined under 
26 subsection (b) of this Section, including any increases 
 
 
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1 the fireman had received pursuant to Section 6-164. 
2   (A) If the deceased fireman was receiving an 
3 earned pension at the date of his or her death, the 
4 Tier 2 surviving spouse's annuity under this paragraph 
5 (1) shall be in the amount of 66 2/3% of the fireman's 
6 earned pension at the date of death.
7   (B) If the deceased fireman was not receiving an 
8 earned pension but had at least 10 years of service at 
9 the time of death, the Tier 2 surviving spouse's 
10 annuity under this paragraph (1) shall be the greater 
11 of: (i) 30% of the salary attached to the rank of first 
12 class firefighter in the classified career service at 
13 the time of the fireman's death; or (ii) 66 2/3% of the 
14 Tier 2 monthly retirement annuity that the deceased 
15 fireman would have been eligible to receive under 
16 subsection (b) of this Section, based upon the actual 
17 service accrued through the day before the fireman's 
18 death, but determined as though the fireman was at 
19 least age 55 on the day before his or her death and 
20 retired on that day.
21   (C) If the deceased fireman was an active fireman 
22 with at least 1 1/2 but less than 10 years of service 
23 at the time of death, the Tier 2 surviving spouse's 
24 annuity under this paragraph (1) shall be in the 
25 amount of 30% of the salary attached to the rank of 
26 first class firefighter in the classified career 
 
 
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1 service at the time of the fireman's death.
2   (D) Notwithstanding subdivisions (A), (B), and (C) 
3 of this paragraph (1), if the performance of an act or 
4 acts of duty results directly in the death of a fireman 
5 subject to this Section, or prevents him from 
6 subsequently resuming active service in the fire 
7 department, then a surviving spouse who would 
8 otherwise meet the eligibility requirements for a 
9 death in the line of duty widow's annuity granted 
10 under Section 6-140 shall be deemed to be qualified 
11 for a Tier 2 surviving spouse's annuity under this 
12 subdivision (D); except that no such annuity shall be 
13 paid to the surviving spouse of a fireman who dies 
14 while in receipt of disability benefits when the 
15 fireman's death was caused by an intervening illness 
16 or injury unrelated to the illness or injury that had 
17 prevented him from subsequently resuming active 
18 service in the fire department. The Tier 2 surviving 
19 spouse's annuity calculated under this subdivision (D) 
20 shall be in lieu of, but in the same amount and paid in 
21 the same manner as, the widow's annuity provided under 
22 Section 6-140; except that the salary used for 
23 computing a Tier 2 surviving spouse's annuity under 
24 this subdivision (D) shall be subject to the Tier 2 
25 salary cap provided under subsection (b) of this 
26 Section.
 
 
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1   (E) Notwithstanding any other provision of this 
2 Article, the monthly Tier 2 surviving spouse's annuity 
3 under subdivision (A) or (B) of this paragraph (1) 
4 shall be increased on the January 1 next occurring 
5 after (i) attainment of age 60 by the recipient of the 
6 Tier 2 surviving spouse's annuity or (ii) the first 
7 anniversary of the Tier 2 surviving spouse's annuity 
8 start date, whichever is later, and on each January 1 
9 thereafter, by 3% or one-half the annual unadjusted 
10 percentage increase in the consumer price index-u for 
11 the 12 months ending with September preceding each 
12 November 1, whichever is less, of the originally 
13 granted Tier 2 surviving spouse's annuity. If the 
14 annual unadjusted percentage change in the consumer 
15 price index-u for a 12-month period ending in 
16 September is zero or, when compared with the preceding 
17 period, decreases, then the annuity shall not be 
18 increased.
19   (F) Notwithstanding the other provisions of this 
20 paragraph (1), for a qualified surviving spouse who is 
21 entitled to a Tier 2 surviving spouse's annuity under 
22 subdivision (A), (B), (C), or (D) of this paragraph 
23 (1), that Tier 2 surviving spouse's annuity shall not 
24 be less than the amount of the minimum widow's annuity 
25 established from time to time under Section 6-128.4.
26  (2) Surviving children of a deceased fireman subject 
 
 
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1 to this Section who would otherwise meet the eligibility 
2 requirements for a child's annuity set forth in Sections 
3 6-147 and 6-148 shall be deemed qualified to receive a 
4 Tier 2 child's annuity under this subsection (c), which 
5 shall be in lieu of, but in the same amount and paid in the 
6 same manner as, the child's annuity provided under those 
7 Sections; except that any salary used for computing a Tier 
8 2 child's annuity shall be subject to the Tier 2 salary cap 
9 provided under subsection (b) of this Section. For 
10 purposes of determining any pro rata reduction in child's 
11 annuities under this subsection (c), references in Section 
12 6-148 to the combined annuities of the family shall be 
13 deemed to refer to the combined Tier 2 surviving spouse's 
14 annuity, if any, and the Tier 2 child's annuities payable 
15 under this subsection (c).
16  (3) Surviving parents of a deceased fireman subject to 
17 this Section who would otherwise meet the eligibility 
18 requirements for a parent's annuity set forth in Section 
19 6-149 shall be deemed qualified to receive a Tier 2 
20 parent's annuity under this subsection (c), which shall be 
21 in lieu of, but in the same amount and paid in the same 
22 manner as, the parent's annuity provided under Section 
23 6-149; except that any salary used for computing a Tier 2 
24 parent's annuity shall be subject to the Tier 2 salary cap 
25 provided under subsection (b) of this Section. For the 
26 purposes of this Section, a reference to "annuity" in 
 
 
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1 Section 6-149 includes: (i) in the context of a widow, a 
2 Tier 2 surviving spouse's annuity and (ii) in the context 
3 of a child, a Tier 2 child's annuity.
4 (d) The General Assembly finds and declares that the 
5provisions of this Section, as enacted by Public Act 96-1495, 
6require clarification relating to necessary eligibility 
7standards and the manner of determining and paying the 
8intended Tier 2 benefits and contributions in order to enable 
9the Fund to unambiguously implement and administer benefits 
10for Tier 2 members. The changes to this Section and the 
11conforming changes to Sections 6-150, 6-158, 6-164 (except for 
12the changes to subsection (a) of that Section), 6-166, and 
136-167 made by this amendatory Act of the 99th General Assembly 
14are enacted to clarify the provisions of this Section as 
15enacted by Public Act 96-1495, and are hereby declared to 
16represent and be consistent with the original and continuing 
17intent of this Section and Public Act 96-1495.
18 (e) The changes to Sections 6-150, 6-158, 6-164 (except 
19for the changes to subsection (a) of that Section), 6-166, and 
206-167 made by this amendatory Act of the 99th General Assembly 
21are intended to be retroactive to January 1, 2011 (the 
22effective date of Public Act 96-1495) and, for the purposes of 
23Section 1-103.1 of this Code, they apply without regard to 
24whether the relevant fireman was in service on or after the 
25effective date of this amendatory Act of the 99th General 
26Assembly. 
 
 
HB5909- 136 -LRB103 43117 RPS 76377 b


1(Source: P.A. 103-579, eff. 12-8-23.)

2 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
3 Sec. 7-116. "Final rate of earnings": 
4 (a) For retirement and survivor annuities, the monthly 
5earnings obtained by dividing the total earnings received by 
6the employee during the period of either (1) for Tier 1 regular 
7employees or Tier 2 regular employees who are in active 
8employment on or after January 1, 2025, the 48 consecutive 
9months of service within the last 120 months of service in 
10which his total earnings were the highest, (2) for Tier 2 
11regular employees who are not in active employment on or after 
12January 1, 2025, the 96 consecutive months of service within 
13the last 120 months of service in which his total earnings were 
14the highest, or (3) the employee's total period of service, by 
15the number of months of service in such period.
16 (b) For death benefits, the higher of the rate determined 
17under paragraph (a) of this Section or total earnings received 
18in the last 12 months of service divided by twelve. If the 
19deceased employee has less than 12 months of service, the 
20monthly final rate shall be the monthly rate of pay the 
21employee was receiving when he began service.
22 (c) For disability benefits, the total earnings of a 
23participating employee in the last 12 calendar months of 
24service prior to the date he becomes disabled divided by 12.
25 (d) In computing the final rate of earnings: (1) the 
 
 
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1earnings rate for all periods of prior service shall be 
2considered equal to the average earnings rate for the last 3 
3calendar years of prior service for which creditable service 
4is received under Section 7-139 or, if there is less than 3 
5years of creditable prior service, the average for the total 
6prior service period for which creditable service is received 
7under Section 7-139; (2) for out of state service and 
8authorized leave, the earnings rate shall be the rate upon 
9which service credits are granted; (3) periods of military 
10leave shall not be considered; (4) the earnings rate for all 
11periods of disability shall be considered equal to the rate of 
12earnings upon which the employee's disability benefits are 
13computed for such periods; (5) the earnings to be considered 
14for each of the final three months of the final earnings period 
15for persons who first became participants before January 1, 
162012 and the earnings to be considered for each of the final 24 
17months for participants who first become participants on or 
18after January 1, 2012 shall not exceed 125% of the highest 
19earnings of any other month in the final earnings period; and 
20(6) the annual amount of final rate of earnings shall be the 
21monthly amount multiplied by the number of months of service 
22normally required by the position in a year.
23(Source: P.A. 102-210, eff. 1-1-22.)

24 (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
25 Sec. 7-142.1. Sheriff's law enforcement employees. 
 
 
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1 (a) In lieu of the retirement annuity provided by 
2subparagraph 1 of paragraph (a) of Section 7-142: 
3 Any sheriff's law enforcement employee who has 20 or more 
4years of service in that capacity and who terminates service 
5prior to January 1, 1988 shall be entitled at his option to 
6receive a monthly retirement annuity for his service as a 
7sheriff's law enforcement employee computed by multiplying 2% 
8for each year of such service up to 10 years, 2 1/4% for each 
9year of such service above 10 years and up to 20 years, and 2 
101/2% for each year of such service above 20 years, by his 
11annual final rate of earnings and dividing by 12. 
12 Any sheriff's law enforcement employee who has 20 or more 
13years of service in that capacity and who terminates service 
14on or after January 1, 1988 and before July 1, 2004 shall be 
15entitled at his option to receive a monthly retirement annuity 
16for his service as a sheriff's law enforcement employee 
17computed by multiplying 2.5% for each year of such service up 
18to 20 years, 2% for each year of such service above 20 years 
19and up to 30 years, and 1% for each year of such service above 
2030 years, by his annual final rate of earnings and dividing by 
2112. 
22 Any sheriff's law enforcement employee who has 20 or more 
23years of service in that capacity and who terminates service 
24on or after July 1, 2004 shall be entitled at his or her option 
25to receive a monthly retirement annuity for service as a 
26sheriff's law enforcement employee computed by multiplying 
 
 
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12.5% for each year of such service by his annual final rate of 
2earnings and dividing by 12. 
3 If a sheriff's law enforcement employee has service in any 
4other capacity, his retirement annuity for service as a 
5sheriff's law enforcement employee may be computed under this 
6Section and the retirement annuity for his other service under 
7Section 7-142. 
8 In no case shall the total monthly retirement annuity for 
9persons who retire before July 1, 2004 exceed 75% of the 
10monthly final rate of earnings. In no case shall the total 
11monthly retirement annuity for persons who retire on or after 
12July 1, 2004 exceed 80% of the monthly final rate of earnings. 
13 (b) Whenever continued group insurance coverage is elected 
14in accordance with the provisions of Section 367h of the 
15Illinois Insurance Code, as now or hereafter amended, the 
16total monthly premium for such continued group insurance 
17coverage or such portion thereof as is not paid by the 
18municipality shall, upon request of the person electing such 
19continued group insurance coverage, be deducted from any 
20monthly pension benefit otherwise payable to such person 
21pursuant to this Section, to be remitted by the Fund to the 
22insurance company or other entity providing the group 
23insurance coverage. 
24 (c) A sheriff's law enforcement employee who began service 
25in that capacity prior to the effective date of this 
26amendatory Act of the 97th General Assembly and who has 
 
 
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1service in any other capacity may convert up to 10 years of 
2that service into service as a sheriff's law enforcement 
3employee by paying to the Fund an amount equal to (1) the 
4additional employee contribution required under Section 
57-173.1, plus (2) the additional employer contribution 
6required under Section 7-172, plus (3) interest on items (1) 
7and (2) at the prescribed rate from the date of the service to 
8the date of payment. Application must be received by the Board 
9while the employee is an active participant in the Fund. 
10Payment must be received while the member is an active 
11participant, except that one payment will be permitted after 
12termination of participation. 
13 (d) The changes to subsections (a) and (b) of this Section 
14made by this amendatory Act of the 94th General Assembly apply 
15only to persons in service on or after July 1, 2004. In the 
16case of such a person who begins to receive a retirement 
17annuity before the effective date of this amendatory Act of 
18the 94th General Assembly, the annuity shall be recalculated 
19prospectively to reflect those changes, with the resulting 
20increase beginning to accrue on the first annuity payment date 
21following the effective date of this amendatory Act. 
22 (e) Any elected county officer who was entitled to receive 
23a stipend from the State on or after July 1, 2009 and on or 
24before June 30, 2010 may establish earnings credit for the 
25amount of stipend not received, if the elected county official 
26applies in writing to the fund within 6 months after the 
 
 
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1effective date of this amendatory Act of the 96th General 
2Assembly and pays to the fund an amount equal to (i) employee 
3contributions on the amount of stipend not received, (ii) 
4employer contributions determined by the Board equal to the 
5employer's normal cost of the benefit on the amount of stipend 
6not received, plus (iii) interest on items (i) and (ii) at the 
7actuarially assumed rate. 
8 (f) Notwithstanding any other provision of this Article, 
9the provisions of this subsection (f) apply to a person who 
10first becomes a sheriff's law enforcement employee under this 
11Article on or after January 1, 2011.
12 A sheriff's law enforcement employee age 55 or more who 
13has 10 or more years of service in that capacity shall be 
14entitled at his option to receive a monthly retirement annuity 
15for his or her service as a sheriff's law enforcement employee 
16computed by multiplying 2.5% for each year of such service by 
17his or her final rate of earnings.
18 The retirement annuity of a sheriff's law enforcement 
19employee who is retiring after attaining age 50 with 10 or more 
20years of creditable service shall be reduced by one-half of 1% 
21for each month that the sheriff's law enforcement employee's 
22age is under age 55.
23 The maximum retirement annuity under this subsection (f) 
24shall be 75% of final rate of earnings.
25 For the purposes of this subsection (f), "final rate of 
26earnings" means, for a sheriff's law enforcement employee who 
 
 
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1is not an active sheriff's law enforcement employee on or 
2after January 1, 2025, the average monthly earnings obtained 
3by dividing the total salary of the sheriff's law enforcement 
4employee during the 96 consecutive months of service within 
5the last 120 months of service in which the total earnings was 
6the highest by the number of months of service in that period. 
7For the purposes of this subsection (f) "final rate of 
8earnings" means, for a sheriff's law enforcement employee who 
9is an active sheriff's law enforcement employee on or after 
10January 1, 2025, the 48 consecutive months of service within 
11the last 120 months of service in which the sheriff's law 
12enforcement employee's total earnings were the highest. 
13 Notwithstanding any other provision of this Article, 
14beginning on January 1, 2011, for all purposes under this Code 
15(including without limitation the calculation of benefits and 
16employee contributions), the annual earnings of a sheriff's 
17law enforcement employee to whom this Section applies shall 
18not include overtime and shall not exceed $106,800; however, 
19that amount shall annually thereafter be increased by the 
20lesser of (i) 3% of that amount, including all previous 
21adjustments, or (ii) one-half the annual unadjusted percentage 
22increase (but not less than zero) in the consumer price 
23index-u for the 12 months ending with the September preceding 
24each November 1, including all previous adjustments. 
25 (g) Notwithstanding any other provision of this Article, 
26the monthly annuity of a person who first becomes a sheriff's 
 
 
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1law enforcement employee under this Article on or after 
2January 1, 2011 shall be increased on the January 1 occurring 
3either on or after the attainment of age 60 or the first 
4anniversary of the annuity start date, whichever is later. 
5Each annual increase shall be calculated at 3% or one-half the 
6annual unadjusted percentage increase (but not less than zero) 
7in the consumer price index-u for the 12 months ending with the 
8September preceding each November 1, whichever is less, of the 
9originally granted retirement annuity. If the annual 
10unadjusted percentage change in the consumer price index-u for 
11a 12-month period ending in September is zero or, when 
12compared with the preceding period, decreases, then the 
13annuity shall not be increased. 
14 (h) Notwithstanding any other provision of this Article, 
15for a person who first becomes a sheriff's law enforcement 
16employee under this Article on or after January 1, 2011, the 
17annuity to which the surviving spouse, children, or parents 
18are entitled under this subsection (h) shall be in the amount 
19of 66 2/3% of the sheriff's law enforcement employee's earned 
20annuity at the date of death.
21 (i) Notwithstanding any other provision of this Article, 
22the monthly annuity of a survivor of a person who first becomes 
23a sheriff's law enforcement employee under this Article on or 
24after January 1, 2011 shall be increased on the January 1 after 
25attainment of age 60 by the recipient of the survivor's 
26annuity and each January 1 thereafter by 3% or one-half the 
 
 
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1annual unadjusted percentage increase in the consumer price 
2index-u for the 12 months ending with the September preceding 
3each November 1, whichever is less, of the originally granted 
4pension. If the annual unadjusted percentage change in the 
5consumer price index-u for a 12-month period ending in 
6September is zero or, when compared with the preceding period, 
7decreases, then the annuity shall not be increased. 
8 (j) For the purposes of this Section, "consumer price 
9index-u" means the index published by the Bureau of Labor 
10Statistics of the United States Department of Labor that 
11measures the average change in prices of goods and services 
12purchased by all urban consumers, United States city average, 
13all items, 1982-84 = 100. The new amount resulting from each 
14annual adjustment shall be determined by the Public Pension 
15Division of the Department of Insurance and made available to 
16the boards of the pension funds. 
17(Source: P.A. 100-148, eff. 8-18-17.)

18 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
19 Sec. 15-112. Final rate of earnings. "Final rate of 
20earnings":
21 (a) This subsection (a) applies only to a Tier 1 member or 
22a Tier 2 member who receives earnings on or after January 1, 
232025. 
24 For an employee who is paid on an hourly basis or who 
25receives an annual salary in installments during 12 months of 
 
 
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1each academic year, the average annual earnings during the 48 
2consecutive calendar month period ending with the last day of 
3final termination of employment or the 4 consecutive academic 
4years of service in which the employee's earnings were the 
5highest, whichever is greater. For any other employee, the 
6average annual earnings during the 4 consecutive academic 
7years of service in which his or her earnings were the highest. 
8For an employee with less than 48 months or 4 consecutive 
9academic years of service, the average earnings during his or 
10her entire period of service. The earnings of an employee with 
11more than 36 months of service under item (a) of Section 
1215-113.1 prior to the date of becoming a participant are, for 
13such period, considered equal to the average earnings during 
14the last 36 months of such service.
15 (b) This subsection (b) applies to a Tier 2 member who does 
16not receive earnings on or after January 1, 2025.
17 For an employee who is paid on an hourly basis or who 
18receives an annual salary in installments during 12 months of 
19each academic year, the average annual earnings obtained by 
20dividing by 8 the total earnings of the employee during the 96 
21consecutive months in which the total earnings were the 
22highest within the last 120 months prior to termination.
23 For any other employee, the average annual earnings during 
24the 8 consecutive academic years within the 10 years prior to 
25termination in which the employee's earnings were the highest. 
26For an employee with less than 96 consecutive months or 8 
 
 
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1consecutive academic years of service, whichever is necessary, 
2the average earnings during his or her entire period of 
3service. 
4 (c) For an employee on leave of absence with pay, or on 
5leave of absence without pay who makes contributions during 
6such leave, earnings are assumed to be equal to the basic 
7compensation on the date the leave began.
8 (d) For an employee on disability leave, earnings are 
9assumed to be equal to the basic compensation on the date 
10disability occurs or the average earnings during the 24 months 
11immediately preceding the month in which disability occurs, 
12whichever is greater.
13 (e) For a Tier 1 member who retires on or after August 22, 
141997 (the effective date of Public Act 90-511) this amendatory 
15Act of 1997 with at least 20 years of service as a firefighter 
16or police officer under this Article, the final rate of 
17earnings shall be the annual rate of earnings received by the 
18participant on his or her last day as a firefighter or police 
19officer under this Article, if that is greater than the final 
20rate of earnings as calculated under the other provisions of 
21this Section.
22 (f) If a Tier 1 member is an employee for at least 6 months 
23during the academic year in which his or her employment is 
24terminated, the annual final rate of earnings shall be 25% of 
25the sum of (1) the annual basic compensation for that year, and 
26(2) the amount earned during the 36 months immediately 
 
 
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1preceding that year, if this is greater than the final rate of 
2earnings as calculated under the other provisions of this 
3Section.
4 (g) In the determination of the final rate of earnings for 
5an employee, that part of an employee's earnings for any 
6academic year beginning after June 30, 1997, which exceeds the 
7employee's earnings with that employer for the preceding year 
8by more than 20% 20 percent shall be excluded; in the event 
9that an employee has more than one employer this limitation 
10shall be calculated separately for the earnings with each 
11employer. In making such calculation, only the basic 
12compensation of employees shall be considered, without regard 
13to vacation or overtime or to contracts for summer employment. 
14Beginning September 1, 2024, this subsection (g) also applies 
15to an employee who has been employed at 1/2 time or less for 3 
16or more years. 
17 (h) The following are not considered as earnings in 
18determining the final rate of earnings: (1) severance or 
19separation pay, (2) retirement pay, (3) payment for unused 
20sick leave, and (4) payments from an employer for the period 
21used in determining the final rate of earnings for any purpose 
22other than (i) services rendered, (ii) leave of absence or 
23vacation granted during that period, and (iii) vacation of up 
24to 56 work days allowed upon termination of employment; except 
25that, if the benefit has been collectively bargained between 
26the employer and the recognized collective bargaining agent 
 
 
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1pursuant to the Illinois Educational Labor Relations Act, 
2payment received during a period of up to 2 academic years for 
3unused sick leave may be considered as earnings in accordance 
4with the applicable collective bargaining agreement, subject 
5to the 20% increase limitation of this Section. Any unused 
6sick leave considered as earnings under this Section shall not 
7be taken into account in calculating service credit under 
8Section 15-113.4.
9 (i) Intermittent periods of service shall be considered as 
10consecutive in determining the final rate of earnings.
11(Source: P.A. 103-548, eff. 8-11-23; revised 7-18-24.)

12 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
13 Sec. 18-125. Retirement annuity amount. 
14 (a) The annual retirement annuity for a participant who 
15terminated service as a judge prior to July 1, 1971 shall be 
16based on the law in effect at the time of termination of 
17service.
18 (b) Except as provided in subsection (b-5), effective July 
191, 1971, the retirement annuity for any participant in service 
20on or after such date shall be 3 1/2% of final average salary, 
21as defined in this Section, for each of the first 10 years of 
22service, and 5% of such final average salary for each year of 
23service in excess of 10.
24 For purposes of this Section, final average salary for a 
25participant who first serves as a judge before August 10, 2009 
 
 
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1(the effective date of Public Act 96-207) shall be:
2  (1) the average salary for the last 4 years of 
3 credited service as a judge for a participant who 
4 terminates service before July 1, 1975.
5  (2) for a participant who terminates service after 
6 June 30, 1975 and before July 1, 1982, the salary on the 
7 last day of employment as a judge.
8  (3) for any participant who terminates service after 
9 June 30, 1982 and before January 1, 1990, the average 
10 salary for the final year of service as a judge.
11  (4) for a participant who terminates service on or 
12 after January 1, 1990 but before July 14, 1995 (the 
13 effective date of Public Act 89-136), the salary on the 
14 last day of employment as a judge.
15  (5) for a participant who terminates service on or 
16 after July 14, 1995 (the effective date of Public Act 
17 89-136), the salary on the last day of employment as a 
18 judge, or the highest salary received by the participant 
19 for employment as a judge in a position held by the 
20 participant for at least 4 consecutive years, whichever is 
21 greater.
22 However, in the case of a participant who elects to 
23discontinue contributions as provided in subdivision (a)(2) of 
24Section 18-133, the time of such election shall be considered 
25the last day of employment in the determination of final 
26average salary under this subsection.
 
 
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1 For a participant who first serves as a judge on or after 
2August 10, 2009 (the effective date of Public Act 96-207) and 
3before January 1, 2011 (the effective date of Public Act 
496-889), final average salary shall be the average monthly 
5salary obtained by dividing the total salary of the 
6participant during the period of: (1) the 48 consecutive 
7months of service within the last 120 months of service in 
8which the total compensation was the highest, or (2) the total 
9period of service, if less than 48 months, by the number of 
10months of service in that period. 
11 The maximum retirement annuity for any participant shall 
12be 85% of final average salary.
13 (b-5) Notwithstanding any other provision of this Article, 
14for a participant who first serves as a judge on or after 
15January 1, 2011 (the effective date of Public Act 96-889), the 
16annual retirement annuity is 3% of the participant's final 
17average salary for each year of service. The maximum 
18retirement annuity payable shall be 60% of the participant's 
19final average salary. 
20 For a participant who first serves as a judge on or after 
21January 1, 2011 (the effective date of Public Act 96-889) and 
22who does not serve as a judge on or after January 1, 2025, 
23final average salary shall be the average monthly salary 
24obtained by dividing the total salary of the judge during the 
2596 consecutive months of service within the last 120 months of 
26service in which the total salary was the highest by the number 
 
 
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1of months of service in that period; however, beginning 
2January 1, 2011, the annual salary may not exceed $106,800, 
3except that that amount shall annually thereafter be increased 
4by the lesser of (i) 3% of that amount, including all previous 
5adjustments, or (ii) the annual unadjusted percentage increase 
6(but not less than zero) in the consumer price index-u for the 
712 months ending with the September preceding each November 1. 
8"Consumer price index-u" means the index published by the 
9Bureau of Labor Statistics of the United States Department of 
10Labor that measures the average change in prices of goods and 
11services purchased by all urban consumers, United States city 
12average, all items, 1982-84 = 100. The new amount resulting 
13from each annual adjustment shall be determined by the Public 
14Pension Division of the Department of Insurance and made 
15available to the Board by November 1st of each year. 
16 Subject to any applicable limitation on final average 
17salary, for a participant who first serves as a judge on or 
18after January 1, 2011 and serves as a judge on or after January 
191, 2025, final average salary shall be the salary on the last 
20day of employment as a judge or the highest salary received by 
21the participant for employment as a judge in a position held by 
22the participant for at least 4 consecutive years, whichever is 
23greater. 
24 (c) The retirement annuity for a participant who retires 
25prior to age 60 with less than 28 years of service in the 
26System shall be reduced 1/2 of 1% for each month that the 
 
 
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1participant's age is under 60 years at the time the annuity 
2commences. However, for a participant who retires on or after 
3December 10, 1999 (the effective date of Public Act 91-653), 
4the percentage reduction in retirement annuity imposed under 
5this subsection shall be reduced by 5/12 of 1% for every month 
6of service in this System in excess of 20 years, and therefore 
7a participant with at least 26 years of service in this System 
8may retire at age 55 without any reduction in annuity.
9 The reduction in retirement annuity imposed by this 
10subsection shall not apply in the case of retirement on 
11account of disability.
12 (d) Notwithstanding any other provision of this Article, 
13for a participant who first serves as a judge on or after 
14January 1, 2011 (the effective date of Public Act 96-889) and 
15who is retiring after attaining age 62, the retirement annuity 
16shall be reduced by 1/2 of 1% for each month that the 
17participant's age is under age 67 at the time the annuity 
18commences. 
19(Source: P.A. 100-201, eff. 8-18-17.)

20
Article 3.


21 Section 3-5. The Illinois Pension Code is amended by 
22changing Sections 1-160, 2-119.1, 3-111.1, 4-109.1, 5-167.1, 
236-164, 7-142, 7-142.1, 15-136, and 18-125.1 as follows:

 
 
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1 (40 ILCS 5/1-160)
2 (Text of Section from P.A. 102-719)
3 Sec. 1-160. Provisions applicable to new hires. 
4 (a) The provisions of this Section apply to a person who, 
5on or after January 1, 2011, first becomes a member or a 
6participant under any reciprocal retirement system or pension 
7fund established under this Code, other than a retirement 
8system or pension fund established under Article 2, 3, 4, 5, 6, 
97, 15, or 18 of this Code, notwithstanding any other provision 
10of this Code to the contrary, but do not apply to any 
11self-managed plan established under this Code or to any 
12participant of the retirement plan established under Section 
1322-101; except that this Section applies to a person who 
14elected to establish alternative credits by electing in 
15writing after January 1, 2011, but before August 8, 2011, 
16under Section 7-145.1 of this Code. Notwithstanding anything 
17to the contrary in this Section, for purposes of this Section, 
18a person who is a Tier 1 regular employee as defined in Section 
197-109.4 of this Code or who participated in a retirement 
20system under Article 15 prior to January 1, 2011 shall be 
21deemed a person who first became a member or participant prior 
22to January 1, 2011 under any retirement system or pension fund 
23subject to this Section. The changes made to this Section by 
24Public Act 98-596 are a clarification of existing law and are 
25intended to be retroactive to January 1, 2011 (the effective 
26date of Public Act 96-889), notwithstanding the provisions of 
 
 
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1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a 
3noncovered employee under Article 14 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who first becomes a 
10member or participant under Article 16 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who elects under 
17subsection (c-5) of Section 1-161 to receive the benefits 
18under Section 1-161. 
19 This Section does not apply to a person who first becomes a 
20member or participant of an affected pension fund on or after 6 
21months after the resolution or ordinance date, as defined in 
22Section 1-162, unless that person elects under subsection (c) 
23of Section 1-162 to receive the benefits provided under this 
24Section and the applicable provisions of the Article under 
25which he or she is a member or participant. 
26 (b) "Final average salary" means, except as otherwise 
 
 
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1provided in this subsection, the average monthly (or annual) 
2salary obtained by dividing the total salary or earnings 
3calculated under the Article applicable to the member or 
4participant during the 96 consecutive months (or 8 consecutive 
5years) of service within the last 120 months (or 10 years) of 
6service in which the total salary or earnings calculated under 
7the applicable Article was the highest by the number of months 
8(or years) of service in that period. For the purposes of a 
9person who first becomes a member or participant of any 
10retirement system or pension fund to which this Section 
11applies on or after January 1, 2011, in this Code, "final 
12average salary" shall be substituted for the following:
13  (1) (Blank).
14  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
15 annual salary for any 4 consecutive years within the last 
16 10 years of service immediately preceding the date of 
17 withdrawal". 
18  (3) In Article 13, "average final salary". 
19  (4) In Article 14, "final average compensation". 
20  (5) In Article 17, "average salary". 
21  (6) In Section 22-207, "wages or salary received by 
22 him at the date of retirement or discharge". 
23 A member of the Teachers' Retirement System of the State 
24of Illinois who retires on or after June 1, 2021 and for whom 
25the 2020-2021 school year is used in the calculation of the 
26member's final average salary shall use the higher of the 
 
 
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1following for the purpose of determining the member's final 
2average salary:
3  (A) the amount otherwise calculated under the first 
4 paragraph of this subsection; or
5  (B) an amount calculated by the Teachers' Retirement 
6 System of the State of Illinois using the average of the 
7 monthly (or annual) salary obtained by dividing the total 
8 salary or earnings calculated under Article 16 applicable 
9 to the member or participant during the 96 months (or 8 
10 years) of service within the last 120 months (or 10 years) 
11 of service in which the total salary or earnings 
12 calculated under the Article was the highest by the number 
13 of months (or years) of service in that period.
14 (b-5) Beginning on January 1, 2011, for all purposes under 
15this Code (including without limitation the calculation of 
16benefits and employee contributions), the annual earnings, 
17salary, or wages (based on the plan year) of a member or 
18participant to whom this Section applies shall not exceed 
19$106,800; however, that amount shall annually thereafter be 
20increased by the lesser of (i) 3% of that amount, including all 
21previous adjustments, or (ii) one-half the annual unadjusted 
22percentage increase (but not less than zero) in the consumer 
23price index-u for the 12 months ending with the September 
24preceding each November 1, including all previous adjustments.
25 For the purposes of this Section, "consumer price index-u" 
26means the index published by the Bureau of Labor Statistics of 
 
 
HB5909- 157 -LRB103 43117 RPS 76377 b


1the United States Department of Labor that measures the 
2average change in prices of goods and services purchased by 
3all urban consumers, United States city average, all items, 
41982-84 = 100. The new amount resulting from each annual 
5adjustment shall be determined by the Public Pension Division 
6of the Department of Insurance and made available to the 
7boards of the retirement systems and pension funds by November 
81 of each year. 
9 (b-10) Beginning on January 1, 2024, for all purposes 
10under this Code (including, without limitation, the 
11calculation of benefits and employee contributions), the 
12annual earnings, salary, or wages (based on the plan year) of a 
13member or participant under Article 9 to whom this Section 
14applies shall include an annual earnings, salary, or wage cap 
15that tracks the Social Security wage base. Maximum annual 
16earnings, wages, or salary shall be the annual contribution 
17and benefit base established for the applicable year by the 
18Commissioner of the Social Security Administration under the 
19federal Social Security Act. 
20 However, in no event shall the annual earnings, salary, or 
21wages for the purposes of this Article and Article 9 exceed any 
22limitation imposed on annual earnings, salary, or wages under 
23Section 1-117. Under no circumstances shall the maximum amount 
24of annual earnings, salary, or wages be greater than the 
25amount set forth in this subsection (b-10) as a result of 
26reciprocal service or any provisions regarding reciprocal 
 
 
HB5909- 158 -LRB103 43117 RPS 76377 b


1services, nor shall the Fund under Article 9 be required to pay 
2any refund as a result of the application of this maximum 
3annual earnings, salary, and wage cap. 
4 Nothing in this subsection (b-10) shall cause or otherwise 
5result in any retroactive adjustment of any employee 
6contributions. Nothing in this subsection (b-10) shall cause 
7or otherwise result in any retroactive adjustment of 
8disability or other payments made between January 1, 2011 and 
9January 1, 2024. 
10 (c) A member or participant is entitled to a retirement 
11annuity upon written application if he or she has attained age 
1267 (age 65, with respect to service under Article 12 that is 
13subject to this Section, for a member or participant under 
14Article 12 who first becomes a member or participant under 
15Article 12 on or after January 1, 2022 or who makes the 
16election under item (i) of subsection (d-15) of this Section) 
17and has at least 10 years of service credit and is otherwise 
18eligible under the requirements of the applicable Article. 
19 A member or participant who has attained age 62 (age 60, 
20with respect to service under Article 12 that is subject to 
21this Section, for a member or participant under Article 12 who 
22first becomes a member or participant under Article 12 on or 
23after January 1, 2022 or who makes the election under item (i) 
24of subsection (d-15) of this Section) and has at least 10 years 
25of service credit and is otherwise eligible under the 
26requirements of the applicable Article may elect to receive 
 
 
HB5909- 159 -LRB103 43117 RPS 76377 b


1the lower retirement annuity provided in subsection (d) of 
2this Section. 
3 (c-5) A person who first becomes a member or a participant 
4subject to this Section on or after July 6, 2017 (the effective 
5date of Public Act 100-23), notwithstanding any other 
6provision of this Code to the contrary, is entitled to a 
7retirement annuity under Article 8 or Article 11 upon written 
8application if he or she has attained age 65 and has at least 
910 years of service credit and is otherwise eligible under the 
10requirements of Article 8 or Article 11 of this Code, 
11whichever is applicable. 
12 (d) The retirement annuity of a member or participant who 
13is retiring after attaining age 62 (age 60, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section) with at least 10 years of service 
19credit shall be reduced by one-half of 1% for each full month 
20that the member's age is under age 67 (age 65, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section).
26 (d-5) The retirement annuity payable under Article 8 or 
 
 
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1Article 11 to an eligible person subject to subsection (c-5) 
2of this Section who is retiring at age 60 with at least 10 
3years of service credit shall be reduced by one-half of 1% for 
4each full month that the member's age is under age 65. 
5 (d-10) Each person who first became a member or 
6participant under Article 8 or Article 11 of this Code on or 
7after January 1, 2011 and prior to July 6, 2017 (the effective 
8date of Public Act 100-23) shall make an irrevocable election 
9either:
10  (i) to be eligible for the reduced retirement age 
11 provided in subsections (c-5) and (d-5) of this Section, 
12 the eligibility for which is conditioned upon the member 
13 or participant agreeing to the increases in employee 
14 contributions for age and service annuities provided in 
15 subsection (a-5) of Section 8-174 of this Code (for 
16 service under Article 8) or subsection (a-5) of Section 
17 11-170 of this Code (for service under Article 11); or 
18  (ii) to not agree to item (i) of this subsection 
19 (d-10), in which case the member or participant shall 
20 continue to be subject to the retirement age provisions in 
21 subsections (c) and (d) of this Section and the employee 
22 contributions for age and service annuity as provided in 
23 subsection (a) of Section 8-174 of this Code (for service 
24 under Article 8) or subsection (a) of Section 11-170 of 
25 this Code (for service under Article 11). 
26 The election provided for in this subsection shall be made 
 
 
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1between October 1, 2017 and November 15, 2017. A person 
2subject to this subsection who makes the required election 
3shall remain bound by that election. A person subject to this 
4subsection who fails for any reason to make the required 
5election within the time specified in this subsection shall be 
6deemed to have made the election under item (ii). 
7 (d-15) Each person who first becomes a member or 
8participant under Article 12 on or after January 1, 2011 and 
9prior to January 1, 2022 shall make an irrevocable election 
10either: 
11  (i) to be eligible for the reduced retirement age 
12 specified in subsections (c) and (d) of this Section, the 
13 eligibility for which is conditioned upon the member or 
14 participant agreeing to the increase in employee 
15 contributions for service annuities specified in 
16 subsection (b) of Section 12-150; or
17  (ii) to not agree to item (i) of this subsection 
18 (d-15), in which case the member or participant shall not 
19 be eligible for the reduced retirement age specified in 
20 subsections (c) and (d) of this Section and shall not be 
21 subject to the increase in employee contributions for 
22 service annuities specified in subsection (b) of Section 
23 12-150. 
24 The election provided for in this subsection shall be made 
25between January 1, 2022 and April 1, 2022. A person subject to 
26this subsection who makes the required election shall remain 
 
 
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1bound by that election. A person subject to this subsection 
2who fails for any reason to make the required election within 
3the time specified in this subsection shall be deemed to have 
4made the election under item (ii). 
5 (e) Any retirement annuity or supplemental annuity shall 
6be subject to annual increases on the January 1 occurring 
7either on or after the attainment of age 67 (age 65, with 
8respect to service under Article 12 that is subject to this 
9Section, for a member or participant under Article 12 who 
10first becomes a member or participant under Article 12 on or 
11after January 1, 2022 or who makes the election under item (i) 
12of subsection (d-15); and beginning on July 6, 2017 (the 
13effective date of Public Act 100-23), age 65 with respect to 
14service under Article 8 or Article 11 for eligible persons 
15who: (i) are subject to subsection (c-5) of this Section; or 
16(ii) made the election under item (i) of subsection (d-10) of 
17this Section) or the first anniversary of the annuity start 
18date, whichever is later. Each annual increase shall be 
19calculated at 3% or one-half the annual unadjusted percentage 
20increase (but not less than zero) in the consumer price 
21index-u for the 12 months ending with the September preceding 
22each November 1, whichever is less, of the originally granted 
23retirement annuity. If the annual unadjusted percentage change 
24in the consumer price index-u for the 12 months ending with the 
25September preceding each November 1 is zero or there is a 
26decrease, then the annuity shall not be increased. 
 
 
HB5909- 163 -LRB103 43117 RPS 76377 b


1 Beginning January 1, 2025, for persons to whom this 
2Section applies, each annual increase in a retirement annuity 
3or supplemental annuity shall be calculated at 3% of the 
4originally granted retirement annuity. 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this subsection by this amendatory Act of the 
7103rd General Assembly are applicable without regard to 
8whether the employee was in active service on or after the 
9effective date of this amendatory Act of the 103rd General 
10Assembly. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this Section by Public Act 102-263 are 
13applicable without regard to whether the employee was in 
14active service on or after August 6, 2021 (the effective date 
15of Public Act 102-263). 
16 For the purposes of Section 1-103.1 of this Code, the 
17changes made to this Section by Public Act 100-23 are 
18applicable without regard to whether the employee was in 
19active service on or after July 6, 2017 (the effective date of 
20Public Act 100-23). 
21 (f) The initial survivor's or widow's annuity of an 
22otherwise eligible survivor or widow of a retired member or 
23participant who first became a member or participant on or 
24after January 1, 2011 shall be in the amount of 66 2/3% of the 
25retired member's or participant's retirement annuity at the 
26date of death. In the case of the death of a member or 
 
 
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1participant who has not retired and who first became a member 
2or participant on or after January 1, 2011, eligibility for a 
3survivor's or widow's annuity shall be determined by the 
4applicable Article of this Code. The initial benefit shall be 
566 2/3% of the earned annuity without a reduction due to age. A 
6child's annuity of an otherwise eligible child shall be in the 
7amount prescribed under each Article if applicable. Any 
8survivor's or widow's annuity shall be increased (1) on each 
9January 1 occurring on or after the commencement of the 
10annuity if the deceased member died while receiving a 
11retirement annuity or (2) in other cases, on each January 1 
12occurring after the first anniversary of the commencement of 
13the annuity. Each annual increase shall be calculated at 3% or 
14one-half the annual unadjusted percentage increase (but not 
15less than zero) in the consumer price index-u for the 12 months 
16ending with the September preceding each November 1, whichever 
17is less, of the originally granted survivor's annuity. If the 
18annual unadjusted percentage change in the consumer price 
19index-u for the 12 months ending with the September preceding 
20each November 1 is zero or there is a decrease, then the 
21annuity shall not be increased. 
22 (g) The benefits in Section 14-110 apply if the person is a 
23fire fighter in the fire protection service of a department, a 
24security employee of the Department of Corrections or the 
25Department of Juvenile Justice, or a security employee of the 
26Department of Innovation and Technology, as those terms are 
 
 
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1defined in subsection (b) and subsection (c) of Section 
214-110. A person who meets the requirements of this Section is 
3entitled to an annuity calculated under the provisions of 
4Section 14-110, in lieu of the regular or minimum retirement 
5annuity, only if the person has withdrawn from service with 
6not less than 20 years of eligible creditable service and has 
7attained age 60, regardless of whether the attainment of age 
860 occurs while the person is still in service. 
9 (g-5) The benefits in Section 14-110 apply if the person 
10is a State policeman, investigator for the Secretary of State, 
11conservation police officer, investigator for the Department 
12of Revenue or the Illinois Gaming Board, investigator for the 
13Office of the Attorney General, Commerce Commission police 
14officer, or arson investigator, as those terms are defined in 
15subsection (b) and subsection (c) of Section 14-110. A person 
16who meets the requirements of this Section is entitled to an 
17annuity calculated under the provisions of Section 14-110, in 
18lieu of the regular or minimum retirement annuity, only if the 
19person has withdrawn from service with not less than 20 years 
20of eligible creditable service and has attained age 55, 
21regardless of whether the attainment of age 55 occurs while 
22the person is still in service. 
23 (h) If a person who first becomes a member or a participant 
24of a retirement system or pension fund subject to this Section 
25on or after January 1, 2011 is receiving a retirement annuity 
26or retirement pension under that system or fund and becomes a 
 
 
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1member or participant under any other system or fund created 
2by this Code and is employed on a full-time basis, except for 
3those members or participants exempted from the provisions of 
4this Section under subsection (a) of this Section, then the 
5person's retirement annuity or retirement pension under that 
6system or fund shall be suspended during that employment. Upon 
7termination of that employment, the person's retirement 
8annuity or retirement pension payments shall resume and be 
9recalculated if recalculation is provided for under the 
10applicable Article of this Code.
11 If a person who first becomes a member of a retirement 
12system or pension fund subject to this Section on or after 
13January 1, 2012 and is receiving a retirement annuity or 
14retirement pension under that system or fund and accepts on a 
15contractual basis a position to provide services to a 
16governmental entity from which he or she has retired, then 
17that person's annuity or retirement pension earned as an 
18active employee of the employer shall be suspended during that 
19contractual service. A person receiving an annuity or 
20retirement pension under this Code shall notify the pension 
21fund or retirement system from which he or she is receiving an 
22annuity or retirement pension, as well as his or her 
23contractual employer, of his or her retirement status before 
24accepting contractual employment. A person who fails to submit 
25such notification shall be guilty of a Class A misdemeanor and 
26required to pay a fine of $1,000. Upon termination of that 
 
 
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1contractual employment, the person's retirement annuity or 
2retirement pension payments shall resume and, if appropriate, 
3be recalculated under the applicable provisions of this Code. 
4 (i) (Blank). 
5 (j) In the case of a conflict between the provisions of 
6this Section and any other provision of this Code, the 
7provisions of this Section shall control.
8(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
9102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
105-6-22; 103-529, eff. 8-11-23.)

11 (Text of Section from P.A. 102-813)
12 Sec. 1-160. Provisions applicable to new hires. 
13 (a) The provisions of this Section apply to a person who, 
14on or after January 1, 2011, first becomes a member or a 
15participant under any reciprocal retirement system or pension 
16fund established under this Code, other than a retirement 
17system or pension fund established under Article 2, 3, 4, 5, 6, 
187, 15, or 18 of this Code, notwithstanding any other provision 
19of this Code to the contrary, but do not apply to any 
20self-managed plan established under this Code or to any 
21participant of the retirement plan established under Section 
2222-101; except that this Section applies to a person who 
23elected to establish alternative credits by electing in 
24writing after January 1, 2011, but before August 8, 2011, 
25under Section 7-145.1 of this Code. Notwithstanding anything 
 
 
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1to the contrary in this Section, for purposes of this Section, 
2a person who is a Tier 1 regular employee as defined in Section 
37-109.4 of this Code or who participated in a retirement 
4system under Article 15 prior to January 1, 2011 shall be 
5deemed a person who first became a member or participant prior 
6to January 1, 2011 under any retirement system or pension fund 
7subject to this Section. The changes made to this Section by 
8Public Act 98-596 are a clarification of existing law and are 
9intended to be retroactive to January 1, 2011 (the effective 
10date of Public Act 96-889), notwithstanding the provisions of 
11Section 1-103.1 of this Code.
12 This Section does not apply to a person who first becomes a 
13noncovered employee under Article 14 on or after the 
14implementation date of the plan created under Section 1-161 
15for that Article, unless that person elects under subsection 
16(b) of Section 1-161 to instead receive the benefits provided 
17under this Section and the applicable provisions of that 
18Article.
19 This Section does not apply to a person who first becomes a 
20member or participant under Article 16 on or after the 
21implementation date of the plan created under Section 1-161 
22for that Article, unless that person elects under subsection 
23(b) of Section 1-161 to instead receive the benefits provided 
24under this Section and the applicable provisions of that 
25Article.
26 This Section does not apply to a person who elects under 
 
 
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1subsection (c-5) of Section 1-161 to receive the benefits 
2under Section 1-161. 
3 This Section does not apply to a person who first becomes a 
4member or participant of an affected pension fund on or after 6 
5months after the resolution or ordinance date, as defined in 
6Section 1-162, unless that person elects under subsection (c) 
7of Section 1-162 to receive the benefits provided under this 
8Section and the applicable provisions of the Article under 
9which he or she is a member or participant. 
10 (b) "Final average salary" means, except as otherwise 
11provided in this subsection, the average monthly (or annual) 
12salary obtained by dividing the total salary or earnings 
13calculated under the Article applicable to the member or 
14participant during the 96 consecutive months (or 8 consecutive 
15years) of service within the last 120 months (or 10 years) of 
16service in which the total salary or earnings calculated under 
17the applicable Article was the highest by the number of months 
18(or years) of service in that period. For the purposes of a 
19person who first becomes a member or participant of any 
20retirement system or pension fund to which this Section 
21applies on or after January 1, 2011, in this Code, "final 
22average salary" shall be substituted for the following:
23  (1) (Blank).
24  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
25 annual salary for any 4 consecutive years within the last 
26 10 years of service immediately preceding the date of 
 
 
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1 withdrawal". 
2  (3) In Article 13, "average final salary". 
3  (4) In Article 14, "final average compensation". 
4  (5) In Article 17, "average salary". 
5  (6) In Section 22-207, "wages or salary received by 
6 him at the date of retirement or discharge". 
7 A member of the Teachers' Retirement System of the State 
8of Illinois who retires on or after June 1, 2021 and for whom 
9the 2020-2021 school year is used in the calculation of the 
10member's final average salary shall use the higher of the 
11following for the purpose of determining the member's final 
12average salary:
13  (A) the amount otherwise calculated under the first 
14 paragraph of this subsection; or
15  (B) an amount calculated by the Teachers' Retirement 
16 System of the State of Illinois using the average of the 
17 monthly (or annual) salary obtained by dividing the total 
18 salary or earnings calculated under Article 16 applicable 
19 to the member or participant during the 96 months (or 8 
20 years) of service within the last 120 months (or 10 years) 
21 of service in which the total salary or earnings 
22 calculated under the Article was the highest by the number 
23 of months (or years) of service in that period.
24 (b-5) Beginning on January 1, 2011, for all purposes under 
25this Code (including without limitation the calculation of 
26benefits and employee contributions), the annual earnings, 
 
 
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1salary, or wages (based on the plan year) of a member or 
2participant to whom this Section applies shall not exceed 
3$106,800; however, that amount shall annually thereafter be 
4increased by the lesser of (i) 3% of that amount, including all 
5previous adjustments, or (ii) one-half the annual unadjusted 
6percentage increase (but not less than zero) in the consumer 
7price index-u for the 12 months ending with the September 
8preceding each November 1, including all previous adjustments.
9 For the purposes of this Section, "consumer price index-u" 
10means the index published by the Bureau of Labor Statistics of 
11the United States Department of Labor that measures the 
12average change in prices of goods and services purchased by 
13all urban consumers, United States city average, all items, 
141982-84 = 100. The new amount resulting from each annual 
15adjustment shall be determined by the Public Pension Division 
16of the Department of Insurance and made available to the 
17boards of the retirement systems and pension funds by November 
181 of each year. 
19 (b-10) Beginning on January 1, 2024, for all purposes 
20under this Code (including, without limitation, the 
21calculation of benefits and employee contributions), the 
22annual earnings, salary, or wages (based on the plan year) of a 
23member or participant under Article 9 to whom this Section 
24applies shall include an annual earnings, salary, or wage cap 
25that tracks the Social Security wage base. Maximum annual 
26earnings, wages, or salary shall be the annual contribution 
 
 
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1and benefit base established for the applicable year by the 
2Commissioner of the Social Security Administration under the 
3federal Social Security Act. 
4 However, in no event shall the annual earnings, salary, or 
5wages for the purposes of this Article and Article 9 exceed any 
6limitation imposed on annual earnings, salary, or wages under 
7Section 1-117. Under no circumstances shall the maximum amount 
8of annual earnings, salary, or wages be greater than the 
9amount set forth in this subsection (b-10) as a result of 
10reciprocal service or any provisions regarding reciprocal 
11services, nor shall the Fund under Article 9 be required to pay 
12any refund as a result of the application of this maximum 
13annual earnings, salary, and wage cap. 
14 Nothing in this subsection (b-10) shall cause or otherwise 
15result in any retroactive adjustment of any employee 
16contributions. Nothing in this subsection (b-10) shall cause 
17or otherwise result in any retroactive adjustment of 
18disability or other payments made between January 1, 2011 and 
19January 1, 2024. 
20 (c) A member or participant is entitled to a retirement 
21annuity upon written application if he or she has attained age 
2267 (age 65, with respect to service under Article 12 that is 
23subject to this Section, for a member or participant under 
24Article 12 who first becomes a member or participant under 
25Article 12 on or after January 1, 2022 or who makes the 
26election under item (i) of subsection (d-15) of this Section) 
 
 
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1and has at least 10 years of service credit and is otherwise 
2eligible under the requirements of the applicable Article. 
3 A member or participant who has attained age 62 (age 60, 
4with respect to service under Article 12 that is subject to 
5this Section, for a member or participant under Article 12 who 
6first becomes a member or participant under Article 12 on or 
7after January 1, 2022 or who makes the election under item (i) 
8of subsection (d-15) of this Section) and has at least 10 years 
9of service credit and is otherwise eligible under the 
10requirements of the applicable Article may elect to receive 
11the lower retirement annuity provided in subsection (d) of 
12this Section. 
13 (c-5) A person who first becomes a member or a participant 
14subject to this Section on or after July 6, 2017 (the effective 
15date of Public Act 100-23), notwithstanding any other 
16provision of this Code to the contrary, is entitled to a 
17retirement annuity under Article 8 or Article 11 upon written 
18application if he or she has attained age 65 and has at least 
1910 years of service credit and is otherwise eligible under the 
20requirements of Article 8 or Article 11 of this Code, 
21whichever is applicable. 
22 (d) The retirement annuity of a member or participant who 
23is retiring after attaining age 62 (age 60, with respect to 
24service under Article 12 that is subject to this Section, for a 
25member or participant under Article 12 who first becomes a 
26member or participant under Article 12 on or after January 1, 
 
 
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12022 or who makes the election under item (i) of subsection 
2(d-15) of this Section) with at least 10 years of service 
3credit shall be reduced by one-half of 1% for each full month 
4that the member's age is under age 67 (age 65, with respect to 
5service under Article 12 that is subject to this Section, for a 
6member or participant under Article 12 who first becomes a 
7member or participant under Article 12 on or after January 1, 
82022 or who makes the election under item (i) of subsection 
9(d-15) of this Section).
10 (d-5) The retirement annuity payable under Article 8 or 
11Article 11 to an eligible person subject to subsection (c-5) 
12of this Section who is retiring at age 60 with at least 10 
13years of service credit shall be reduced by one-half of 1% for 
14each full month that the member's age is under age 65. 
15 (d-10) Each person who first became a member or 
16participant under Article 8 or Article 11 of this Code on or 
17after January 1, 2011 and prior to July 6, 2017 (the effective 
18date of Public Act 100-23) shall make an irrevocable election 
19either:
20  (i) to be eligible for the reduced retirement age 
21 provided in subsections (c-5) and (d-5) of this Section, 
22 the eligibility for which is conditioned upon the member 
23 or participant agreeing to the increases in employee 
24 contributions for age and service annuities provided in 
25 subsection (a-5) of Section 8-174 of this Code (for 
26 service under Article 8) or subsection (a-5) of Section 
 
 
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1 11-170 of this Code (for service under Article 11); or 
2  (ii) to not agree to item (i) of this subsection 
3 (d-10), in which case the member or participant shall 
4 continue to be subject to the retirement age provisions in 
5 subsections (c) and (d) of this Section and the employee 
6 contributions for age and service annuity as provided in 
7 subsection (a) of Section 8-174 of this Code (for service 
8 under Article 8) or subsection (a) of Section 11-170 of 
9 this Code (for service under Article 11). 
10 The election provided for in this subsection shall be made 
11between October 1, 2017 and November 15, 2017. A person 
12subject to this subsection who makes the required election 
13shall remain bound by that election. A person subject to this 
14subsection who fails for any reason to make the required 
15election within the time specified in this subsection shall be 
16deemed to have made the election under item (ii). 
17 (d-15) Each person who first becomes a member or 
18participant under Article 12 on or after January 1, 2011 and 
19prior to January 1, 2022 shall make an irrevocable election 
20either: 
21  (i) to be eligible for the reduced retirement age 
22 specified in subsections (c) and (d) of this Section, the 
23 eligibility for which is conditioned upon the member or 
24 participant agreeing to the increase in employee 
25 contributions for service annuities specified in 
26 subsection (b) of Section 12-150; or
 
 
HB5909- 176 -LRB103 43117 RPS 76377 b


1  (ii) to not agree to item (i) of this subsection 
2 (d-15), in which case the member or participant shall not 
3 be eligible for the reduced retirement age specified in 
4 subsections (c) and (d) of this Section and shall not be 
5 subject to the increase in employee contributions for 
6 service annuities specified in subsection (b) of Section 
7 12-150. 
8 The election provided for in this subsection shall be made 
9between January 1, 2022 and April 1, 2022. A person subject to 
10this subsection who makes the required election shall remain 
11bound by that election. A person subject to this subsection 
12who fails for any reason to make the required election within 
13the time specified in this subsection shall be deemed to have 
14made the election under item (ii). 
15 (e) Any retirement annuity or supplemental annuity shall 
16be subject to annual increases on the January 1 occurring 
17either on or after the attainment of age 67 (age 65, with 
18respect to service under Article 12 that is subject to this 
19Section, for a member or participant under Article 12 who 
20first becomes a member or participant under Article 12 on or 
21after January 1, 2022 or who makes the election under item (i) 
22of subsection (d-15); and beginning on July 6, 2017 (the 
23effective date of Public Act 100-23), age 65 with respect to 
24service under Article 8 or Article 11 for eligible persons 
25who: (i) are subject to subsection (c-5) of this Section; or 
26(ii) made the election under item (i) of subsection (d-10) of 
 
 
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1this Section) or the first anniversary of the annuity start 
2date, whichever is later. Each annual increase shall be 
3calculated at 3% or one-half the annual unadjusted percentage 
4increase (but not less than zero) in the consumer price 
5index-u for the 12 months ending with the September preceding 
6each November 1, whichever is less, of the originally granted 
7retirement annuity. If the annual unadjusted percentage change 
8in the consumer price index-u for the 12 months ending with the 
9September preceding each November 1 is zero or there is a 
10decrease, then the annuity shall not be increased. 
11 Beginning January 1, 2025, for persons to whom this 
12Section applies, each annual increase in a retirement annuity 
13or supplemental annuity shall be calculated at 3% of the 
14originally granted retirement annuity. 
15 For the purposes of Section 1-103.1 of this Code, the 
16changes made to this subsection by this amendatory Act of the 
17103rd General Assembly are applicable without regard to 
18whether the employee was in active service on or after the 
19effective date of this amendatory Act of the 103rd General 
20Assembly. 
21 For the purposes of Section 1-103.1 of this Code, the 
22changes made to this Section by Public Act 102-263 are 
23applicable without regard to whether the employee was in 
24active service on or after August 6, 2021 (the effective date 
25of Public Act 102-263). 
26 For the purposes of Section 1-103.1 of this Code, the 
 
 
HB5909- 178 -LRB103 43117 RPS 76377 b


1changes made to this Section by Public Act 100-23 are 
2applicable without regard to whether the employee was in 
3active service on or after July 6, 2017 (the effective date of 
4Public Act 100-23). 
5 (f) The initial survivor's or widow's annuity of an 
6otherwise eligible survivor or widow of a retired member or 
7participant who first became a member or participant on or 
8after January 1, 2011 shall be in the amount of 66 2/3% of the 
9retired member's or participant's retirement annuity at the 
10date of death. In the case of the death of a member or 
11participant who has not retired and who first became a member 
12or participant on or after January 1, 2011, eligibility for a 
13survivor's or widow's annuity shall be determined by the 
14applicable Article of this Code. The initial benefit shall be 
1566 2/3% of the earned annuity without a reduction due to age. A 
16child's annuity of an otherwise eligible child shall be in the 
17amount prescribed under each Article if applicable. Any 
18survivor's or widow's annuity shall be increased (1) on each 
19January 1 occurring on or after the commencement of the 
20annuity if the deceased member died while receiving a 
21retirement annuity or (2) in other cases, on each January 1 
22occurring after the first anniversary of the commencement of 
23the annuity. Each annual increase shall be calculated at 3% or 
24one-half the annual unadjusted percentage increase (but not 
25less than zero) in the consumer price index-u for the 12 months 
26ending with the September preceding each November 1, whichever 
 
 
HB5909- 179 -LRB103 43117 RPS 76377 b


1is less, of the originally granted survivor's annuity. If the 
2annual unadjusted percentage change in the consumer price 
3index-u for the 12 months ending with the September preceding 
4each November 1 is zero or there is a decrease, then the 
5annuity shall not be increased. 
6 (g) The benefits in Section 14-110 apply only if the 
7person is a State policeman, a fire fighter in the fire 
8protection service of a department, a conservation police 
9officer, an investigator for the Secretary of State, an arson 
10investigator, a Commerce Commission police officer, 
11investigator for the Department of Revenue or the Illinois 
12Gaming Board, a security employee of the Department of 
13Corrections or the Department of Juvenile Justice, or a 
14security employee of the Department of Innovation and 
15Technology, as those terms are defined in subsection (b) and 
16subsection (c) of Section 14-110. A person who meets the 
17requirements of this Section is entitled to an annuity 
18calculated under the provisions of Section 14-110, in lieu of 
19the regular or minimum retirement annuity, only if the person 
20has withdrawn from service with not less than 20 years of 
21eligible creditable service and has attained age 60, 
22regardless of whether the attainment of age 60 occurs while 
23the person is still in service. 
24 (h) If a person who first becomes a member or a participant 
25of a retirement system or pension fund subject to this Section 
26on or after January 1, 2011 is receiving a retirement annuity 
 
 
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1or retirement pension under that system or fund and becomes a 
2member or participant under any other system or fund created 
3by this Code and is employed on a full-time basis, except for 
4those members or participants exempted from the provisions of 
5this Section under subsection (a) of this Section, then the 
6person's retirement annuity or retirement pension under that 
7system or fund shall be suspended during that employment. Upon 
8termination of that employment, the person's retirement 
9annuity or retirement pension payments shall resume and be 
10recalculated if recalculation is provided for under the 
11applicable Article of this Code.
12 If a person who first becomes a member of a retirement 
13system or pension fund subject to this Section on or after 
14January 1, 2012 and is receiving a retirement annuity or 
15retirement pension under that system or fund and accepts on a 
16contractual basis a position to provide services to a 
17governmental entity from which he or she has retired, then 
18that person's annuity or retirement pension earned as an 
19active employee of the employer shall be suspended during that 
20contractual service. A person receiving an annuity or 
21retirement pension under this Code shall notify the pension 
22fund or retirement system from which he or she is receiving an 
23annuity or retirement pension, as well as his or her 
24contractual employer, of his or her retirement status before 
25accepting contractual employment. A person who fails to submit 
26such notification shall be guilty of a Class A misdemeanor and 
 
 
HB5909- 181 -LRB103 43117 RPS 76377 b


1required to pay a fine of $1,000. Upon termination of that 
2contractual employment, the person's retirement annuity or 
3retirement pension payments shall resume and, if appropriate, 
4be recalculated under the applicable provisions of this Code. 
5 (i) (Blank). 
6 (j) In the case of a conflict between the provisions of 
7this Section and any other provision of this Code, the 
8provisions of this Section shall control.
9(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
10102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
115-13-22; 103-529, eff. 8-11-23.)

12 (Text of Section from P.A. 102-956)
13 Sec. 1-160. Provisions applicable to new hires. 
14 (a) The provisions of this Section apply to a person who, 
15on or after January 1, 2011, first becomes a member or a 
16participant under any reciprocal retirement system or pension 
17fund established under this Code, other than a retirement 
18system or pension fund established under Article 2, 3, 4, 5, 6, 
197, 15, or 18 of this Code, notwithstanding any other provision 
20of this Code to the contrary, but do not apply to any 
21self-managed plan established under this Code or to any 
22participant of the retirement plan established under Section 
2322-101; except that this Section applies to a person who 
24elected to establish alternative credits by electing in 
25writing after January 1, 2011, but before August 8, 2011, 
 
 
HB5909- 182 -LRB103 43117 RPS 76377 b


1under Section 7-145.1 of this Code. Notwithstanding anything 
2to the contrary in this Section, for purposes of this Section, 
3a person who is a Tier 1 regular employee as defined in Section 
47-109.4 of this Code or who participated in a retirement 
5system under Article 15 prior to January 1, 2011 shall be 
6deemed a person who first became a member or participant prior 
7to January 1, 2011 under any retirement system or pension fund 
8subject to this Section. The changes made to this Section by 
9Public Act 98-596 are a clarification of existing law and are 
10intended to be retroactive to January 1, 2011 (the effective 
11date of Public Act 96-889), notwithstanding the provisions of 
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a 
14noncovered employee under Article 14 on or after the 
15implementation date of the plan created under Section 1-161 
16for that Article, unless that person elects under subsection 
17(b) of Section 1-161 to instead receive the benefits provided 
18under this Section and the applicable provisions of that 
19Article.
20 This Section does not apply to a person who first becomes a 
21member or participant under Article 16 on or after the 
22implementation date of the plan created under Section 1-161 
23for that Article, unless that person elects under subsection 
24(b) of Section 1-161 to instead receive the benefits provided 
25under this Section and the applicable provisions of that 
26Article.
 
 
HB5909- 183 -LRB103 43117 RPS 76377 b


1 This Section does not apply to a person who elects under 
2subsection (c-5) of Section 1-161 to receive the benefits 
3under Section 1-161. 
4 This Section does not apply to a person who first becomes a 
5member or participant of an affected pension fund on or after 6 
6months after the resolution or ordinance date, as defined in 
7Section 1-162, unless that person elects under subsection (c) 
8of Section 1-162 to receive the benefits provided under this 
9Section and the applicable provisions of the Article under 
10which he or she is a member or participant. 
11 (b) "Final average salary" means, except as otherwise 
12provided in this subsection, the average monthly (or annual) 
13salary obtained by dividing the total salary or earnings 
14calculated under the Article applicable to the member or 
15participant during the 96 consecutive months (or 8 consecutive 
16years) of service within the last 120 months (or 10 years) of 
17service in which the total salary or earnings calculated under 
18the applicable Article was the highest by the number of months 
19(or years) of service in that period. For the purposes of a 
20person who first becomes a member or participant of any 
21retirement system or pension fund to which this Section 
22applies on or after January 1, 2011, in this Code, "final 
23average salary" shall be substituted for the following:
24  (1) (Blank).
25  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
26 annual salary for any 4 consecutive years within the last 
 
 
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1 10 years of service immediately preceding the date of 
2 withdrawal". 
3  (3) In Article 13, "average final salary". 
4  (4) In Article 14, "final average compensation". 
5  (5) In Article 17, "average salary". 
6  (6) In Section 22-207, "wages or salary received by 
7 him at the date of retirement or discharge". 
8 A member of the Teachers' Retirement System of the State 
9of Illinois who retires on or after June 1, 2021 and for whom 
10the 2020-2021 school year is used in the calculation of the 
11member's final average salary shall use the higher of the 
12following for the purpose of determining the member's final 
13average salary:
14  (A) the amount otherwise calculated under the first 
15 paragraph of this subsection; or
16  (B) an amount calculated by the Teachers' Retirement 
17 System of the State of Illinois using the average of the 
18 monthly (or annual) salary obtained by dividing the total 
19 salary or earnings calculated under Article 16 applicable 
20 to the member or participant during the 96 months (or 8 
21 years) of service within the last 120 months (or 10 years) 
22 of service in which the total salary or earnings 
23 calculated under the Article was the highest by the number 
24 of months (or years) of service in that period.
25 (b-5) Beginning on January 1, 2011, for all purposes under 
26this Code (including without limitation the calculation of 
 
 
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1benefits and employee contributions), the annual earnings, 
2salary, or wages (based on the plan year) of a member or 
3participant to whom this Section applies shall not exceed 
4$106,800; however, that amount shall annually thereafter be 
5increased by the lesser of (i) 3% of that amount, including all 
6previous adjustments, or (ii) one-half the annual unadjusted 
7percentage increase (but not less than zero) in the consumer 
8price index-u for the 12 months ending with the September 
9preceding each November 1, including all previous adjustments.
10 For the purposes of this Section, "consumer price index-u" 
11means the index published by the Bureau of Labor Statistics of 
12the United States Department of Labor that measures the 
13average change in prices of goods and services purchased by 
14all urban consumers, United States city average, all items, 
151982-84 = 100. The new amount resulting from each annual 
16adjustment shall be determined by the Public Pension Division 
17of the Department of Insurance and made available to the 
18boards of the retirement systems and pension funds by November 
191 of each year. 
20 (b-10) Beginning on January 1, 2024, for all purposes 
21under this Code (including, without limitation, the 
22calculation of benefits and employee contributions), the 
23annual earnings, salary, or wages (based on the plan year) of a 
24member or participant under Article 9 to whom this Section 
25applies shall include an annual earnings, salary, or wage cap 
26that tracks the Social Security wage base. Maximum annual 
 
 
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1earnings, wages, or salary shall be the annual contribution 
2and benefit base established for the applicable year by the 
3Commissioner of the Social Security Administration under the 
4federal Social Security Act. 
5 However, in no event shall the annual earnings, salary, or 
6wages for the purposes of this Article and Article 9 exceed any 
7limitation imposed on annual earnings, salary, or wages under 
8Section 1-117. Under no circumstances shall the maximum amount 
9of annual earnings, salary, or wages be greater than the 
10amount set forth in this subsection (b-10) as a result of 
11reciprocal service or any provisions regarding reciprocal 
12services, nor shall the Fund under Article 9 be required to pay 
13any refund as a result of the application of this maximum 
14annual earnings, salary, and wage cap. 
15 Nothing in this subsection (b-10) shall cause or otherwise 
16result in any retroactive adjustment of any employee 
17contributions. Nothing in this subsection (b-10) shall cause 
18or otherwise result in any retroactive adjustment of 
19disability or other payments made between January 1, 2011 and 
20January 1, 2024. 
21 (c) A member or participant is entitled to a retirement 
22annuity upon written application if he or she has attained age 
2367 (age 65, with respect to service under Article 12 that is 
24subject to this Section, for a member or participant under 
25Article 12 who first becomes a member or participant under 
26Article 12 on or after January 1, 2022 or who makes the 
 
 
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1election under item (i) of subsection (d-15) of this Section) 
2and has at least 10 years of service credit and is otherwise 
3eligible under the requirements of the applicable Article. 
4 A member or participant who has attained age 62 (age 60, 
5with respect to service under Article 12 that is subject to 
6this Section, for a member or participant under Article 12 who 
7first becomes a member or participant under Article 12 on or 
8after January 1, 2022 or who makes the election under item (i) 
9of subsection (d-15) of this Section) and has at least 10 years 
10of service credit and is otherwise eligible under the 
11requirements of the applicable Article may elect to receive 
12the lower retirement annuity provided in subsection (d) of 
13this Section. 
14 (c-5) A person who first becomes a member or a participant 
15subject to this Section on or after July 6, 2017 (the effective 
16date of Public Act 100-23), notwithstanding any other 
17provision of this Code to the contrary, is entitled to a 
18retirement annuity under Article 8 or Article 11 upon written 
19application if he or she has attained age 65 and has at least 
2010 years of service credit and is otherwise eligible under the 
21requirements of Article 8 or Article 11 of this Code, 
22whichever is applicable. 
23 (d) The retirement annuity of a member or participant who 
24is retiring after attaining age 62 (age 60, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
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1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section) with at least 10 years of service 
4credit shall be reduced by one-half of 1% for each full month 
5that the member's age is under age 67 (age 65, with respect to 
6service under Article 12 that is subject to this Section, for a 
7member or participant under Article 12 who first becomes a 
8member or participant under Article 12 on or after January 1, 
92022 or who makes the election under item (i) of subsection 
10(d-15) of this Section).
11 (d-5) The retirement annuity payable under Article 8 or 
12Article 11 to an eligible person subject to subsection (c-5) 
13of this Section who is retiring at age 60 with at least 10 
14years of service credit shall be reduced by one-half of 1% for 
15each full month that the member's age is under age 65. 
16 (d-10) Each person who first became a member or 
17participant under Article 8 or Article 11 of this Code on or 
18after January 1, 2011 and prior to July 6, 2017 (the effective 
19date of Public Act 100-23) shall make an irrevocable election 
20either:
21  (i) to be eligible for the reduced retirement age 
22 provided in subsections (c-5) and (d-5) of this Section, 
23 the eligibility for which is conditioned upon the member 
24 or participant agreeing to the increases in employee 
25 contributions for age and service annuities provided in 
26 subsection (a-5) of Section 8-174 of this Code (for 
 
 
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1 service under Article 8) or subsection (a-5) of Section 
2 11-170 of this Code (for service under Article 11); or 
3  (ii) to not agree to item (i) of this subsection 
4 (d-10), in which case the member or participant shall 
5 continue to be subject to the retirement age provisions in 
6 subsections (c) and (d) of this Section and the employee 
7 contributions for age and service annuity as provided in 
8 subsection (a) of Section 8-174 of this Code (for service 
9 under Article 8) or subsection (a) of Section 11-170 of 
10 this Code (for service under Article 11). 
11 The election provided for in this subsection shall be made 
12between October 1, 2017 and November 15, 2017. A person 
13subject to this subsection who makes the required election 
14shall remain bound by that election. A person subject to this 
15subsection who fails for any reason to make the required 
16election within the time specified in this subsection shall be 
17deemed to have made the election under item (ii). 
18 (d-15) Each person who first becomes a member or 
19participant under Article 12 on or after January 1, 2011 and 
20prior to January 1, 2022 shall make an irrevocable election 
21either: 
22  (i) to be eligible for the reduced retirement age 
23 specified in subsections (c) and (d) of this Section, the 
24 eligibility for which is conditioned upon the member or 
25 participant agreeing to the increase in employee 
26 contributions for service annuities specified in 
 
 
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1 subsection (b) of Section 12-150; or
2  (ii) to not agree to item (i) of this subsection 
3 (d-15), in which case the member or participant shall not 
4 be eligible for the reduced retirement age specified in 
5 subsections (c) and (d) of this Section and shall not be 
6 subject to the increase in employee contributions for 
7 service annuities specified in subsection (b) of Section 
8 12-150. 
9 The election provided for in this subsection shall be made 
10between January 1, 2022 and April 1, 2022. A person subject to 
11this subsection who makes the required election shall remain 
12bound by that election. A person subject to this subsection 
13who fails for any reason to make the required election within 
14the time specified in this subsection shall be deemed to have 
15made the election under item (ii). 
16 (e) Any retirement annuity or supplemental annuity shall 
17be subject to annual increases on the January 1 occurring 
18either on or after the attainment of age 67 (age 65, with 
19respect to service under Article 12 that is subject to this 
20Section, for a member or participant under Article 12 who 
21first becomes a member or participant under Article 12 on or 
22after January 1, 2022 or who makes the election under item (i) 
23of subsection (d-15); and beginning on July 6, 2017 (the 
24effective date of Public Act 100-23), age 65 with respect to 
25service under Article 8 or Article 11 for eligible persons 
26who: (i) are subject to subsection (c-5) of this Section; or 
 
 
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1(ii) made the election under item (i) of subsection (d-10) of 
2this Section) or the first anniversary of the annuity start 
3date, whichever is later. Each annual increase shall be 
4calculated at 3% or one-half the annual unadjusted percentage 
5increase (but not less than zero) in the consumer price 
6index-u for the 12 months ending with the September preceding 
7each November 1, whichever is less, of the originally granted 
8retirement annuity. If the annual unadjusted percentage change 
9in the consumer price index-u for the 12 months ending with the 
10September preceding each November 1 is zero or there is a 
11decrease, then the annuity shall not be increased. 
12 Beginning January 1, 2025, for persons to whom this 
13Section applies, each annual increase in a retirement annuity 
14or supplemental annuity shall be calculated at 3% of the 
15originally granted retirement annuity. 
16 For the purposes of Section 1-103.1 of this Code, the 
17changes made to this subsection by this amendatory Act of the 
18103rd General Assembly are applicable without regard to 
19whether the employee was in active service on or after the 
20effective date of this amendatory Act of the 103rd General 
21Assembly. 
22 For the purposes of Section 1-103.1 of this Code, the 
23changes made to this Section by Public Act 102-263 are 
24applicable without regard to whether the employee was in 
25active service on or after August 6, 2021 (the effective date 
26of Public Act 102-263). 
 
 
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1 For the purposes of Section 1-103.1 of this Code, the 
2changes made to this Section by Public Act 100-23 are 
3applicable without regard to whether the employee was in 
4active service on or after July 6, 2017 (the effective date of 
5Public Act 100-23). 
6 (f) The initial survivor's or widow's annuity of an 
7otherwise eligible survivor or widow of a retired member or 
8participant who first became a member or participant on or 
9after January 1, 2011 shall be in the amount of 66 2/3% of the 
10retired member's or participant's retirement annuity at the 
11date of death. In the case of the death of a member or 
12participant who has not retired and who first became a member 
13or participant on or after January 1, 2011, eligibility for a 
14survivor's or widow's annuity shall be determined by the 
15applicable Article of this Code. The initial benefit shall be 
1666 2/3% of the earned annuity without a reduction due to age. A 
17child's annuity of an otherwise eligible child shall be in the 
18amount prescribed under each Article if applicable. Any 
19survivor's or widow's annuity shall be increased (1) on each 
20January 1 occurring on or after the commencement of the 
21annuity if the deceased member died while receiving a 
22retirement annuity or (2) in other cases, on each January 1 
23occurring after the first anniversary of the commencement of 
24the annuity. Each annual increase shall be calculated at 3% or 
25one-half the annual unadjusted percentage increase (but not 
26less than zero) in the consumer price index-u for the 12 months 
 
 
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1ending with the September preceding each November 1, whichever 
2is less, of the originally granted survivor's annuity. If the 
3annual unadjusted percentage change in the consumer price 
4index-u for the 12 months ending with the September preceding 
5each November 1 is zero or there is a decrease, then the 
6annuity shall not be increased. 
7 (g) The benefits in Section 14-110 apply only if the 
8person is a State policeman, a fire fighter in the fire 
9protection service of a department, a conservation police 
10officer, an investigator for the Secretary of State, an 
11investigator for the Office of the Attorney General, an arson 
12investigator, a Commerce Commission police officer, 
13investigator for the Department of Revenue or the Illinois 
14Gaming Board, a security employee of the Department of 
15Corrections or the Department of Juvenile Justice, or a 
16security employee of the Department of Innovation and 
17Technology, as those terms are defined in subsection (b) and 
18subsection (c) of Section 14-110. A person who meets the 
19requirements of this Section is entitled to an annuity 
20calculated under the provisions of Section 14-110, in lieu of 
21the regular or minimum retirement annuity, only if the person 
22has withdrawn from service with not less than 20 years of 
23eligible creditable service and has attained age 60, 
24regardless of whether the attainment of age 60 occurs while 
25the person is still in service. 
26 (h) If a person who first becomes a member or a participant 
 
 
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1of a retirement system or pension fund subject to this Section 
2on or after January 1, 2011 is receiving a retirement annuity 
3or retirement pension under that system or fund and becomes a 
4member or participant under any other system or fund created 
5by this Code and is employed on a full-time basis, except for 
6those members or participants exempted from the provisions of 
7this Section under subsection (a) of this Section, then the 
8person's retirement annuity or retirement pension under that 
9system or fund shall be suspended during that employment. Upon 
10termination of that employment, the person's retirement 
11annuity or retirement pension payments shall resume and be 
12recalculated if recalculation is provided for under the 
13applicable Article of this Code.
14 If a person who first becomes a member of a retirement 
15system or pension fund subject to this Section on or after 
16January 1, 2012 and is receiving a retirement annuity or 
17retirement pension under that system or fund and accepts on a 
18contractual basis a position to provide services to a 
19governmental entity from which he or she has retired, then 
20that person's annuity or retirement pension earned as an 
21active employee of the employer shall be suspended during that 
22contractual service. A person receiving an annuity or 
23retirement pension under this Code shall notify the pension 
24fund or retirement system from which he or she is receiving an 
25annuity or retirement pension, as well as his or her 
26contractual employer, of his or her retirement status before 
 
 
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1accepting contractual employment. A person who fails to submit 
2such notification shall be guilty of a Class A misdemeanor and 
3required to pay a fine of $1,000. Upon termination of that 
4contractual employment, the person's retirement annuity or 
5retirement pension payments shall resume and, if appropriate, 
6be recalculated under the applicable provisions of this Code. 
7 (i) (Blank). 
8 (j) In the case of a conflict between the provisions of 
9this Section and any other provision of this Code, the 
10provisions of this Section shall control.
11(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
12102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
138-11-23.)

14 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
15 (Text of Section WITHOUT the changes made by P.A. 98-599, 
16which has been held unconstitutional)
17 Sec. 2-119.1. Automatic increase in retirement annuity. 
18 (a) A participant who retires after June 30, 1967, and who 
19has not received an initial increase under this Section before 
20the effective date of this amendatory Act of 1991, shall, in 
21January or July next following the first anniversary of 
22retirement, whichever occurs first, and in the same month of 
23each year thereafter, but in no event prior to age 60, have the 
24amount of the originally granted retirement annuity increased 
25as follows: for each year through 1971, 1 1/2%; for each year 
 
 
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1from 1972 through 1979, 2%; and for 1980 and each year 
2thereafter, 3%. Annuitants who have received an initial 
3increase under this subsection prior to the effective date of 
4this amendatory Act of 1991 shall continue to receive their 
5annual increases in the same month as the initial increase.
6 (b) Beginning January 1, 1990, for eligible participants 
7who remain in service after attaining 20 years of creditable 
8service, the 3% increases provided under subsection (a) shall 
9begin to accrue on the January 1 next following the date upon 
10which the participant (1) attains age 55, or (2) attains 20 
11years of creditable service, whichever occurs later, and shall 
12continue to accrue while the participant remains in service; 
13such increases shall become payable on January 1 or July 1, 
14whichever occurs first, next following the first anniversary 
15of retirement. For any person who has service credit in the 
16System for the entire period from January 15, 1969 through 
17December 31, 1992, regardless of the date of termination of 
18service, the reference to age 55 in clause (1) of this 
19subsection (b) shall be deemed to mean age 50.
20 This subsection (b) does not apply to any person who first 
21becomes a member of the System after the effective date of this 
22amendatory Act of the 93rd General Assembly.
23 (b-5) Notwithstanding any other provision of this Article, 
24a participant who first becomes a participant on or after 
25January 1, 2011 (the effective date of Public Act 96-889) 
26shall, in January or July next following the first anniversary 
 
 
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1of retirement, whichever occurs first, and in the same month 
2of each year thereafter, but in no event prior to age 67, have 
3the amount of the retirement annuity then being paid increased 
4by 3% or the annual unadjusted percentage increase in the 
5Consumer Price Index for All Urban Consumers as determined by 
6the Public Pension Division of the Department of Insurance 
7under subsection (a) of Section 2-108.1, whichever is less; 
8except that, beginning January 1, 2025, each annual increase 
9under this subsection shall be calculated at 3% of the amount 
10of the retirement annuity then being paid. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this subsection by this amendatory Act of the 
13103rd General Assembly are applicable without regard to 
14whether the employee was in active service on or after the 
15effective date of this amendatory Act of the 103rd General 
16Assembly. 
17 (c) The foregoing provisions relating to automatic 
18increases are not applicable to a participant who retires 
19before having made contributions (at the rate prescribed in 
20Section 2-126) for automatic increases for less than the 
21equivalent of one full year. However, in order to be eligible 
22for the automatic increases, such a participant may make 
23arrangements to pay to the system the amount required to bring 
24the total contributions for the automatic increase to the 
25equivalent of one year's contributions based upon his or her 
26last salary.
 
 
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1 (d) A participant who terminated service prior to July 1, 
21967, with at least 14 years of service is entitled to an 
3increase in retirement annuity beginning January, 1976, and to 
4additional increases in January of each year thereafter.
5 The initial increase shall be 1 1/2% of the originally 
6granted retirement annuity multiplied by the number of full 
7years that the annuitant was in receipt of such annuity prior 
8to January 1, 1972, plus 2% of the originally granted 
9retirement annuity for each year after that date. The 
10subsequent annual increases shall be at the rate of 2% of the 
11originally granted retirement annuity for each year through 
121979 and at the rate of 3% for 1980 and thereafter.
13 (e) Beginning January 1, 1990, all automatic annual 
14increases payable under this Section shall be calculated as a 
15percentage of the total annuity payable at the time of the 
16increase, including previous increases granted under this 
17Article.
18(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

19 (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
20 Sec. 3-111.1. Increase in pension. 
21 (a) Except as provided in subsection (e), the monthly 
22pension of a police officer who retires after July 1, 1971, and 
23prior to January 1, 1986, shall be increased, upon either the 
24first of the month following the first anniversary of the date 
25of retirement if the officer is 60 years of age or over at 
 
 
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1retirement date, or upon the first day of the month following 
2attainment of age 60 if it occurs after the first anniversary 
3of retirement, by 3% of the originally granted pension and by 
4an additional 3% of the originally granted pension in January 
5of each year thereafter.
6 (b) The monthly pension of a police officer who retired 
7from service with 20 or more years of service, on or before 
8July 1, 1971, shall be increased in January of the year 
9following the year of attaining age 65 or in January of 1972, 
10if then over age 65, by 3% of the originally granted pension 
11for each year the police officer received pension payments. In 
12each January thereafter, he or she shall receive an additional 
13increase of 3% of the original pension.
14 (c) The monthly pension of a police officer who retires on 
15disability or is retired for disability shall be increased in 
16January of the year following the year of attaining age 60, by 
173% of the original grant of pension for each year he or she 
18received pension payments. In each January thereafter, the 
19police officer shall receive an additional increase of 3% of 
20the original pension.
21 (d) The monthly pension of a police officer who retires 
22after January 1, 1986, shall be increased, upon either the 
23first of the month following the first anniversary of the date 
24of retirement if the officer is 55 years of age or over, or 
25upon the first day of the month following attainment of age 55 
26if it occurs after the first anniversary of retirement, by 
 
 
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11/12 of 3% of the originally granted pension for each full 
2month that has elapsed since the pension began, and by an 
3additional 3% of the originally granted pension in January of 
4each year thereafter.
5 The changes made to this subsection (d) by this amendatory 
6Act of the 91st General Assembly apply to all initial 
7increases that become payable under this subsection on or 
8after January 1, 1999. All initial increases that became 
9payable under this subsection on or after January 1, 1999 and 
10before the effective date of this amendatory Act shall be 
11recalculated and the additional amount accruing for that 
12period, if any, shall be payable to the pensioner in a lump 
13sum.
14 (e) Notwithstanding the provisions of subsection (a), upon 
15the first day of the month following (1) the first anniversary 
16of the date of retirement, or (2) the attainment of age 55, or 
17(3) July 1, 1987, whichever occurs latest, the monthly pension 
18of a police officer who retired on or after January 1, 1977 and 
19on or before January 1, 1986, and did not receive an increase 
20under subsection (a) before July 1, 1987, shall be increased 
21by 3% of the originally granted monthly pension for each full 
22year that has elapsed since the pension began, and by an 
23additional 3% of the originally granted pension in each 
24January thereafter. The increases provided under this 
25subsection are in lieu of the increases provided in subsection 
26(a).
 
 
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1 (f) Notwithstanding the other provisions of this Section, 
2beginning with increases granted on or after July 1, 1993, the 
3second and all subsequent automatic annual increases granted 
4under subsection (a), (b), (d), or (e) of this Section shall be 
5calculated as 3% of the amount of pension payable at the time 
6of the increase, including any increases previously granted 
7under this Section, rather than 3% of the originally granted 
8pension amount. Section 1-103.1 does not apply to this 
9subsection (f).
10 (g) Notwithstanding any other provision of this Article, 
11the monthly pension of a person who first becomes a police 
12officer under this Article on or after January 1, 2011 shall be 
13increased on the January 1 occurring either on or after the 
14attainment of age 60 or the first anniversary of the pension 
15start date, whichever is later. Each annual increase shall be 
16calculated at 3% or one-half the annual unadjusted percentage 
17increase (but not less than zero) in the consumer price 
18index-u for the 12 months ending with the September preceding 
19each November 1, whichever is less, of the originally granted 
20pension; except that, beginning January 1, 2025, each annual 
21increase under this subsection shall be calculated at 3% of 
22the amount of the originally granted pension. If the annual 
23unadjusted percentage change in the consumer price index-u for 
24a 12-month period ending in September is zero or, when 
25compared with the preceding period, decreases, then the 
26pension shall not be increased. 
 
 
HB5909- 202 -LRB103 43117 RPS 76377 b


1 For the purposes of this subsection (g), "consumer price 
2index-u" means the index published by the Bureau of Labor 
3Statistics of the United States Department of Labor that 
4measures the average change in prices of goods and services 
5purchased by all urban consumers, United States city average, 
6all items, 1982-84 = 100. The new amount resulting from each 
7annual adjustment shall be determined by the Public Pension 
8Division of the Department of Insurance and made available to 
9the boards of the pension funds. 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this subsection by this amendatory Act of the 
12103rd General Assembly are applicable without regard to 
13whether the employee was in active service on or after the 
14effective date of this amendatory Act of the 103rd General 
15Assembly. 
16(Source: P.A. 96-1495, eff. 1-1-11.)

17 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
18 Sec. 4-109.1. Increase in pension. 
19 (a) Except as provided in subsection (e), the monthly 
20pension of a firefighter who retires after July 1, 1971 and 
21prior to January 1, 1986, shall, upon either the first of the 
22month following the first anniversary of the date of 
23retirement if 60 years of age or over at retirement date, or 
24upon the first day of the month following attainment of age 60 
25if it occurs after the first anniversary of retirement, be 
 
 
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1increased by 2% of the originally granted monthly pension and 
2by an additional 2% in each January thereafter. Effective 
3January 1976, the rate of the annual increase shall be 3% of 
4the originally granted monthly pension. 
5 (b) The monthly pension of a firefighter who retired from 
6service with 20 or more years of service, on or before July 1, 
71971, shall be increased, in January of the year following the 
8year of attaining age 65 or in January 1972, if then over age 
965, by 2% of the originally granted monthly pension, for each 
10year the firefighter received pension payments. In each 
11January thereafter, he or she shall receive an additional 
12increase of 2% of the original monthly pension. Effective 
13January 1976, the rate of the annual increase shall be 3%. 
14 (c) The monthly pension of a firefighter who is receiving 
15a disability pension under this Article shall be increased, in 
16January of the year following the year the firefighter attains 
17age 60, or in January 1974, if then over age 60, by 2% of the 
18originally granted monthly pension for each year he or she 
19received pension payments. In each January thereafter, the 
20firefighter shall receive an additional increase of 2% of the 
21original monthly pension. Effective January 1976, the rate of 
22the annual increase shall be 3%. 
23 (c-1) On January 1, 1998, every child's disability benefit 
24payable on that date under Section 4-110 or 4-110.1 shall be 
25increased by an amount equal to 1/12 of 3% of the amount of the 
26benefit, multiplied by the number of months for which the 
 
 
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1benefit has been payable. On each January 1 thereafter, every 
2child's disability benefit payable under Section 4-110 or 
34-110.1 shall be increased by 3% of the amount of the benefit 
4then being paid, including any previous increases received 
5under this Article. These increases are not subject to any 
6limitation on the maximum benefit amount included in Section 
74-110 or 4-110.1. 
8 (c-2) On July 1, 2004, every pension payable to or on 
9behalf of a minor or disabled surviving child that is payable 
10on that date under Section 4-114 shall be increased by an 
11amount equal to 1/12 of 3% of the amount of the pension, 
12multiplied by the number of months for which the benefit has 
13been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and 
14July 1, 2008, every pension payable to or on behalf of a minor 
15or disabled surviving child that is payable under Section 
164-114 shall be increased by 3% of the amount of the pension 
17then being paid, including any previous increases received 
18under this Article. These increases are not subject to any 
19limitation on the maximum benefit amount included in Section 
204-114. 
21 (d) The monthly pension of a firefighter who retires after 
22January 1, 1986, shall, upon either the first of the month 
23following the first anniversary of the date of retirement if 
2455 years of age or over, or upon the first day of the month 
25following attainment of age 55 if it occurs after the first 
26anniversary of retirement, be increased by 1/12 of 3% of the 
 
 
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1originally granted monthly pension for each full month that 
2has elapsed since the pension began, and by an additional 3% in 
3each January thereafter. 
4 The changes made to this subsection (d) by this amendatory 
5Act of the 91st General Assembly apply to all initial 
6increases that become payable under this subsection on or 
7after January 1, 1999. All initial increases that became 
8payable under this subsection on or after January 1, 1999 and 
9before the effective date of this amendatory Act shall be 
10recalculated and the additional amount accruing for that 
11period, if any, shall be payable to the pensioner in a lump 
12sum. 
13 (e) Notwithstanding the provisions of subsection (a), upon 
14the first day of the month following (1) the first anniversary 
15of the date of retirement, or (2) the attainment of age 55, or 
16(3) July 1, 1987, whichever occurs latest, the monthly pension 
17of a firefighter who retired on or after January 1, 1977 and on 
18or before January 1, 1986 and did not receive an increase under 
19subsection (a) before July 1, 1987, shall be increased by 3% of 
20the originally granted monthly pension for each full year that 
21has elapsed since the pension began, and by an additional 3% in 
22each January thereafter. The increases provided under this 
23subsection are in lieu of the increases provided in subsection 
24(a). 
25 (f) In July 2009, the monthly pension of a firefighter who 
26retired before July 1, 1977 shall be recalculated and 
 
 
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1increased to reflect the amount that the firefighter would 
2have received in July 2009 had the firefighter been receiving 
3a 3% compounded increase for each year he or she received 
4pension payments after January 1, 1986, plus any increases in 
5pension received for each year prior to January 1, 1986. In 
6each January thereafter, he or she shall receive an additional 
7increase of 3% of the amount of the pension then being paid. 
8The changes made to this Section by this amendatory Act of the 
996th General Assembly apply without regard to whether the 
10firefighter was in service on or after its effective date. 
11 (g) Notwithstanding any other provision of this Article, 
12the monthly pension of a person who first becomes a 
13firefighter under this Article on or after January 1, 2011 
14shall be increased on the January 1 occurring either on or 
15after the attainment of age 60 or the first anniversary of the 
16pension start date, whichever is later. Each annual increase 
17shall be calculated at 3% or one-half the annual unadjusted 
18percentage increase (but not less than zero) in the consumer 
19price index-u for the 12 months ending with the September 
20preceding each November 1, whichever is less, of the 
21originally granted pension; except that, beginning January 1, 
222025, each annual increase under this subsection shall be 
23calculated at 3% of the amount of the originally granted 
24pension. If the annual unadjusted percentage change in the 
25consumer price index-u for a 12-month period ending in 
26September is zero or, when compared with the preceding period, 
 
 
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1decreases, then the pension shall not be increased. 
2 For the purposes of this subsection (g), "consumer price 
3index-u" means the index published by the Bureau of Labor 
4Statistics of the United States Department of Labor that 
5measures the average change in prices of goods and services 
6purchased by all urban consumers, United States city average, 
7all items, 1982-84 = 100. The new amount resulting from each 
8annual adjustment shall be determined by the Public Pension 
9Division of the Department of Insurance and made available to 
10the boards of the pension funds. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this subsection by this amendatory Act of the 
13103rd General Assembly are applicable without regard to 
14whether the employee was in active service on or after the 
15effective date of this amendatory Act of the 103rd General 
16Assembly. 
17(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)

18 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
19 Sec. 5-167.1. Automatic increase in annuity; retirement 
20from service after September 1, 1967.
21 (a) A policeman who retires from service after September 
221, 1967 with at least 20 years of service credit shall, upon 
23either the first of the month following the first anniversary 
24of his date of retirement if he is age 55 or over on that 
25anniversary date, or upon the first of the month following his 
 
 
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1attainment of age 55 if it occurs after the first anniversary 
2of his retirement date, have his then fixed and payable 
3monthly annuity increased by 3% and such first fixed annuity 
4as granted at retirement increased by an additional 3% in 
5January of each year thereafter.
6 Any policeman born before January 1, 1945 who qualifies 
7for a minimum annuity and retires after September 1, 1967 but 
8has not received the initial increase under this subsection 
9before January 1, 1996 is entitled to receive the initial 
10increase under this subsection on (1) January 1, 1996, (2) the 
11first anniversary of the date of retirement, or (3) attainment 
12of age 55, whichever occurs last. The changes to this Section 
13made by Public Act 89-12 apply beginning January 1, 1996 and 
14without regard to whether the policeman or annuitant 
15terminated service before the effective date of that Act.
16 Any policeman born before January 1, 1950 who qualifies 
17for a minimum annuity and retires after September 1, 1967 but 
18has not received the initial increase under this subsection 
19before January 1, 2000 is entitled to receive the initial 
20increase under this subsection on (1) January 1, 2000, (2) the 
21first anniversary of the date of retirement, or (3) attainment 
22of age 55, whichever occurs last. The changes to this Section 
23made by this amendatory Act of the 92nd General Assembly apply 
24without regard to whether the policeman or annuitant 
25terminated service before the effective date of this 
26amendatory Act.
 
 
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1 Any policeman born before January 1, 1955 who qualifies 
2for a minimum annuity and retires after September 1, 1967 but 
3has not received the initial increase under this subsection 
4before January 1, 2005 is entitled to receive the initial 
5increase under this subsection on (1) January 1, 2005, (2) the 
6first anniversary of the date of retirement, or (3) attainment 
7of age 55, whichever occurs last. The changes to this Section 
8made by this amendatory Act of the 94th General Assembly apply 
9without regard to whether the policeman or annuitant 
10terminated service before the effective date of this 
11amendatory Act. 
12 Any policeman born before January 1, 1966 who qualifies 
13for a minimum annuity and retires after September 1, 1967 but 
14has not received the initial increase under this subsection 
15before January 1, 2017 is entitled to receive an initial 
16increase under this subsection on (1) January 1, 2017, (2) the 
17first anniversary of the date of retirement, or (3) attainment 
18of age 55, whichever occurs last, in an amount equal to 3% for 
19each complete year following the date of retirement or 
20attainment of age 55, whichever occurs later. The changes to 
21this subsection made by this amendatory Act of the 99th 
22General Assembly apply without regard to whether the policeman 
23or annuitant terminated service before the effective date of 
24this amendatory Act. 
25 Any policeman born on or after January 1, 1966 who 
26qualifies for a minimum annuity and retires after September 1, 
 
 
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11967 but has not received the initial increase under this 
2subsection before January 1, 2023 is entitled to receive the 
3initial increase under this subsection on (1) January 1, 2023, 
4(2) the first anniversary of the date of retirement, or (3) 
5attainment of age 55, whichever occurs last. The changes to 
6this Section made by this amendatory Act of the 103rd General 
7Assembly apply without regard to whether the policeman or 
8annuitant terminated service before the effective date of this 
9amendatory Act of the 103rd General Assembly. 
10 (b) Subsection (a) of this Section is not applicable to an 
11employee receiving a term annuity.
12 (c) To help defray the cost of such increases in annuity, 
13there shall be deducted, beginning September 1, 1967, from 
14each payment of salary to a policeman, 1/2 of 1% of each salary 
15payment concurrently with and in addition to the salary 
16deductions otherwise made for annuity purposes.
17 The city, in addition to the contributions otherwise made 
18by it for annuity purposes under other provisions of this 
19Article, shall make matching contributions concurrently with 
20such salary deductions.
21 Each such 1/2 of 1% deduction from salary and each such 
22contribution by the city of 1/2 of 1% of salary shall be 
23credited to the Automatic Increase Reserve, to be used to 
24defray the cost of the annuity increase provided by this 
25Section. Any balance in such reserve as of the beginning of 
26each calendar year shall be credited with interest at the rate 
 
 
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1of 3% per annum.
2 Such deductions from salary and city contributions shall 
3continue while the policeman is in service.
4 The salary deductions provided in this Section are not 
5subject to refund, except to the policeman himself, in any 
6case in which: (i) the policeman withdraws prior to 
7qualification for minimum annuity or Tier 2 monthly retirement 
8annuity and applies for refund, (ii) the policeman applies for 
9an annuity of a type that is not subject to annual increases 
10under this Section, or (iii) a term annuity becomes payable. 
11In such cases, the total of such salary deductions shall be 
12refunded to the policeman, without interest, and charged to 
13the Automatic Increase Reserve.
14 (d) Notwithstanding any other provision of this Article, 
15the Tier 2 monthly retirement annuity of a person who first 
16becomes a policeman under this Article on or after the 
17effective date of this amendatory Act of the 97th General 
18Assembly shall be increased on the January 1 occurring either 
19on or after (i) the attainment of age 60 or (ii) the first 
20anniversary of the annuity start date, whichever is later. 
21Each annual increase shall be calculated at 3% or one-half the 
22annual unadjusted percentage increase (but not less than zero) 
23in the consumer price index-u for the 12 months ending with the 
24September preceding each November 1, whichever is less, of the 
25originally granted retirement annuity; except that, beginning 
26January 1, 2025, each annual increase under this subsection 
 
 
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1shall be calculated at 3% of the originally granted retirement 
2annuity. If the annual unadjusted percentage change in the 
3consumer price index-u for a 12-month period ending in 
4September is zero or, when compared with the preceding period, 
5decreases, then the annuity shall not be increased. 
6 For the purposes of this subsection (d), "consumer price 
7index-u" means the index published by the Bureau of Labor 
8Statistics of the United States Department of Labor that 
9measures the average change in prices of goods and services 
10purchased by all urban consumers, United States city average, 
11all items, 1982-84 = 100. The new amount resulting from each 
12annual adjustment shall be determined by the Public Pension 
13Division of the Department of Insurance and made available to 
14the boards of the pension funds by November 1 of each year.
15 For the purposes of Section 1-103.1 of this Code, the 
16changes made to this subsection by this amendatory Act of the 
17103rd General Assembly are applicable without regard to 
18whether the employee was in active service on or after the 
19effective date of this amendatory Act of the 103rd General 
20Assembly. 
21(Source: P.A. 103-582, eff. 12-8-23.)

22 (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
23 Sec. 6-164. Automatic annual increase; retirement after 
24September 1, 1959. 
25 (a) A fireman qualifying for a minimum annuity who retires 
 
 
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1from service after September 1, 1959 shall, upon either the 
2first of the month following the first anniversary of his date 
3of retirement if he is age 55 or over on that anniversary date, 
4or upon the first of the month following his attainment of age 
555 if that occurs after the first anniversary of his 
6retirement date, have his then fixed and payable monthly 
7annuity increased by 1 1/2%, and such first fixed annuity as 
8granted at retirement increased by an additional 1 1/2% in 
9January of each year thereafter up to a maximum increase of 
1030%. Beginning July 1, 1982 for firemen born before January 1, 
111930, and beginning January 1, 1990 for firemen born after 
12December 31, 1929 and before January 1, 1940, and beginning 
13January 1, 1996 for firemen born after December 31, 1939 but 
14before January 1, 1945, and beginning January 1, 2004, for 
15firemen born after December 31, 1944 but before January 1, 
161955, and beginning January 1, 2017, for firemen born after 
17December 31, 1954, such increases shall be 3% and such firemen 
18shall not be subject to the 30% maximum increase.
19 Any fireman born before January 1, 1945 who qualifies for 
20a minimum annuity and retires after September 1, 1967 but has 
21not received the initial increase under this subsection before 
22January 1, 1996 is entitled to receive the initial increase 
23under this subsection on (1) January 1, 1996, (2) the first 
24anniversary of the date of retirement, or (3) attainment of 
25age 55, whichever occurs last. The changes to this Section 
26made by this amendatory Act of 1995 apply beginning January 1, 
 
 
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11996 and apply without regard to whether the fireman or 
2annuitant terminated service before the effective date of this 
3amendatory Act of 1995.
4 Any fireman born before January 1, 1955 who qualifies for 
5a minimum annuity and retires after September 1, 1967 but has 
6not received the initial increase under this subsection before 
7January 1, 2004 is entitled to receive the initial increase 
8under this subsection on (1) January 1, 2004, (2) the first 
9anniversary of the date of retirement, or (3) attainment of 
10age 55, whichever occurs last. The changes to this Section 
11made by this amendatory Act of the 93rd General Assembly apply 
12without regard to whether the fireman or annuitant terminated 
13service before the effective date of this amendatory Act.
14 Any fireman born after December 31, 1954 but before 
15January 1, 1966 who qualifies for a minimum annuity and 
16retires after September 1, 1967 is entitled to receive an 
17increase under this subsection on (1) January 1, 2017, (2) the 
18first anniversary of the date of retirement, or (3) attainment 
19of age 55, whichever occurs last, in an amount equal to an 
20increase of 3% of his then fixed and payable monthly annuity 
21upon the first of the month following the first anniversary of 
22his date of retirement if he is age 55 or over on that 
23anniversary date or upon the first of the month following his 
24attainment of age 55 if that date occurs after the first 
25anniversary of his retirement date and such first fixed 
26annuity as granted at retirement shall be increased by an 
 
 
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1additional 3% in January of each year thereafter. In the case 
2of a fireman born after December 31, 1954 but before January 1, 
31966 who received an increase in any year of 1.5%, that fireman 
4shall receive an increase for any such year so that the total 
5increase is equal to 3% for each year the fireman would have 
6been otherwise eligible had the fireman not received any 
7increase. The changes to this subsection made by this 
8amendatory Act of the 99th General Assembly apply without 
9regard to whether the fireman or annuitant terminated service 
10before the effective date of this amendatory Act. The changes 
11to this subsection made by this amendatory Act of the 100th 
12General Assembly are a declaration of existing law and shall 
13not be construed as a new enactment. 
14 Any fireman who qualifies for a minimum annuity and 
15retires after September 1, 1967 is entitled to receive an 
16increase under this subsection on (1) January 1, 2020, (2) the 
17first anniversary of the date of retirement, or (3) attainment 
18of age 55, whichever occurs last, in an amount equal to an 
19increase of 3% of his or her then fixed and payable monthly 
20annuity upon the first of the month following the first 
21anniversary of his or her date of retirement if he or she is 
22age 55 or over on that anniversary date or upon the first of 
23the month following his or her attainment of age 55 if that 
24date occurs after the first anniversary of his or her 
25retirement date and such first fixed annuity as granted at 
26retirement shall be increased by an additional 3% in January 
 
 
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1of each year thereafter. In the case of a fireman who received 
2an increase in any year of 1.5%, that fireman shall receive an 
3increase for any such year so that the total increase is equal 
4to 3% for each year the fireman would have been otherwise 
5eligible had the fireman not received any increase. The 
6changes to this subsection made by this amendatory Act of the 
7101st General Assembly apply without regard to whether the 
8fireman or annuitant terminated service before the effective 
9date of this amendatory Act of the 101st General Assembly. 
10 (b) Subsection (a) of this Section is not applicable to an 
11employee receiving a term annuity.
12 (c) To help defray the cost of such increases in annuity, 
13there shall be deducted, beginning September 1, 1959, from 
14each payment of salary to a fireman, 1/8 of 1% of each such 
15salary payment and an additional 1/8 of 1% beginning on 
16September 1, 1961, and September 1, 1963, respectively, 
17concurrently with and in addition to the salary deductions 
18otherwise made for annuity purposes.
19 Each such additional 1/8 of 1% deduction from salary which 
20shall, on September 1, 1963, result in a total increase of 3/8 
21of 1% of salary, shall be credited to the Automatic Increase 
22Reserve, to be used, together with city contributions as 
23provided in this Article, to defray the cost of the annuity 
24increments specified in this Section. Any balance in such 
25reserve as of the beginning of each calendar year shall be 
26credited with interest at the rate of 3% per annum.
 
 
HB5909- 217 -LRB103 43117 RPS 76377 b


1 The salary deductions provided in this Section are not 
2subject to refund, except to the fireman himself in any case in 
3which: (i) the fireman withdraws prior to qualification for 
4minimum annuity or Tier 2 monthly retirement annuity and 
5applies for refund, (ii) the fireman applies for an annuity of 
6a type that is not subject to annual increases under this 
7Section, or (iii) a term annuity becomes payable. In such 
8cases, the total of such salary deductions shall be refunded 
9to the fireman, without interest, and charged to the 
10aforementioned reserve.
11 (d) Notwithstanding any other provision of this Article, 
12the Tier 2 monthly retirement annuity of a person who first 
13becomes a fireman under this Article on or after January 1, 
142011 shall be increased on the January 1 occurring either on or 
15after (i) the attainment of age 60 or (ii) the first 
16anniversary of the annuity start date, whichever is later. 
17Each annual increase shall be calculated at 3% or one-half the 
18annual unadjusted percentage increase (but not less than zero) 
19in the consumer price index-u for the 12 months ending with the 
20September preceding each November 1, whichever is less, of the 
21originally granted retirement annuity; except that, beginning 
22January 1, 2025, each annual increase under this subsection 
23shall be calculated at 3% of the originally granted retirement 
24annuity. If the annual unadjusted percentage change in the 
25consumer price index-u for a 12-month period ending in 
26September is zero or, when compared with the preceding period, 
 
 
HB5909- 218 -LRB103 43117 RPS 76377 b


1decreases, then the annuity shall not be increased. 
2 For the purposes of this subsection (d), "consumer price 
3index-u" means the index published by the Bureau of Labor 
4Statistics of the United States Department of Labor that 
5measures the average change in prices of goods and services 
6purchased by all urban consumers, United States city average, 
7all items, 1982-84 = 100. The new amount resulting from each 
8annual adjustment shall be determined by the Public Pension 
9Division of the Department of Insurance and made available to 
10the boards of the pension funds by November 1 of each year. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this subsection by this amendatory Act of the 
13103rd General Assembly are applicable without regard to 
14whether the employee was in active service on or after the 
15effective date of this amendatory Act of the 103rd General 
16Assembly. 
17(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17; 
18101-673, eff. 4-5-21.)

19 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
20 Sec. 7-142. Retirement annuities; amount annuities - 
21Amount. 
22 (a) The amount of a retirement annuity shall be the sum of 
23the following, determined in accordance with the actuarial 
24tables in effect at the time of the grant of the annuity:
25  1. For Tier 1 regular employees with 8 or more years of 
 
 
HB5909- 219 -LRB103 43117 RPS 76377 b


1 service or for Tier 2 regular employees, an annuity 
2 computed pursuant to subparagraphs a or b of this 
3 subparagraph 1, whichever is the higher, and for employees 
4 with less than 8 or 10 years of service, respectively, the 
5 annuity computed pursuant to subparagraph a:
6   a. The monthly annuity which can be provided from 
7 the total accumulated normal, municipality and prior 
8 service credits, as of the attained age of the 
9 employee on the date the annuity begins provided that 
10 such annuity shall not exceed 75% of the final rate of 
11 earnings of the employee.
12   b. (i) The monthly annuity amount determined as 
13 follows by multiplying (a) 1 2/3% for annuitants with 
14 not more than 15 years or (b) 1 2/3% for the first 15 
15 years and 2% for each year in excess of 15 years for 
16 annuitants with more than 15 years by the number of 
17 years plus fractional years, prorated on a basis of 
18 months, of creditable service and multiply the product 
19 thereof by the employee's final rate of earnings.
20   (ii) For the sole purpose of computing the formula 
21 (and not for the purposes of the limitations 
22 hereinafter stated) $125 shall be considered the final 
23 rate of earnings in all cases where the final rate of 
24 earnings is less than such amount.
25   (iii) The monthly annuity computed in accordance 
26 with this subparagraph b, shall not exceed an amount 
 
 
HB5909- 220 -LRB103 43117 RPS 76377 b


1 equal to 75% of the final rate of earnings.
2   (iv) For employees who have less than 35 years of 
3 service, the annuity computed in accordance with this 
4 subparagraph b (as reduced by application of 
5 subparagraph (iii) above) shall be reduced by 0.25% 
6 thereof (0.5% if service was terminated before January 
7 1, 1988 or if the employee is a Tier 2 regular 
8 employee) for each month or fraction thereof (1) that 
9 the employee's age is less than 60 years for Tier 1 
10 regular employees, (2) that the employee's age is less 
11 than 67 years for Tier 2 regular employees, or (3) if 
12 the employee has at least 30 years of service credit, 
13 that the employee's service credit is less than 35 
14 years, whichever is less, on the date the annuity 
15 begins.
16  2. The annuity which can be provided from the total 
17 accumulated additional credits as of the attained age of 
18 the employee on the date the annuity begins.
19 (b) If payment of an annuity begins prior to the earliest 
20age at which the employee will become eligible for an old age 
21insurance benefit under the Federal Social Security Act, he 
22may elect that the annuity payments from this fund shall 
23exceed those payable after his attaining such age by an 
24amount, computed as determined by rules of the Board, but not 
25in excess of his estimated Social Security Benefit, determined 
26as of the effective date of the annuity, provided that in no 
 
 
HB5909- 221 -LRB103 43117 RPS 76377 b


1case shall the total annuity payments made by this fund exceed 
2in actuarial value the annuity which would have been payable 
3had no such election been made.
4 (c) Beginning January 1, 1984 and each January 1 
5thereafter, the retirement annuity of a Tier 1 regular 
6employee shall be increased by 3% each year, not compounded. 
7This increase shall be computed from the effective date of the 
8retirement annuity, the first increase being 0.25% of the 
9monthly amount times the number of months from the effective 
10date to January 1. This increase shall not be applicable to 
11annuitants who are not in service on or after September 8, 
121971. 
13 A retirement annuity of a Tier 2 regular employee shall 
14receive annual increases on the January 1 occurring either on 
15or after the attainment of age 67 or the first anniversary of 
16the annuity start date, whichever is later. Each annual 
17increase shall be calculated at the lesser of 3% or one-half 
18the annual unadjusted percentage increase (but not less than 
19zero) in the consumer price index-u for the 12 months ending 
20with the September preceding each November 1 of the originally 
21granted retirement annuity; except that, beginning January 1, 
222025, each annual increase under this subsection shall be 
23calculated at 3% of the amount of the originally granted 
24retirement annuity. If the annual unadjusted percentage change 
25in the consumer price index-u for the 12 months ending with the 
26September preceding each November 1 is zero or there is a 
 
 
HB5909- 222 -LRB103 43117 RPS 76377 b


1decrease, then the annuity shall not be increased. 
2 For the purposes of Section 1-103.1 of this Code, the 
3changes made to this subsection by this amendatory Act of the 
4103rd General Assembly are applicable without regard to 
5whether the employee was in active service on or after the 
6effective date of this amendatory Act of the 103rd General 
7Assembly. 
8 (d) Any elected county officer who was entitled to receive 
9a stipend from the State on or after July 1, 2009 and on or 
10before June 30, 2010 may establish earnings credit for the 
11amount of stipend not received, if the elected county official 
12applies in writing to the fund within 6 months after the 
13effective date of this amendatory Act of the 96th General 
14Assembly and pays to the fund an amount equal to (i) employee 
15contributions on the amount of stipend not received, (ii) 
16employer contributions determined by the Board equal to the 
17employer's normal cost of the benefit on the amount of stipend 
18not received, plus (iii) interest on items (i) and (ii) at the 
19actuarially assumed rate. 
20(Source: P.A. 102-210, eff. 1-1-22.)

21 (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
22 Sec. 7-142.1. Sheriff's law enforcement employees. 
23 (a) In lieu of the retirement annuity provided by 
24subparagraph 1 of paragraph (a) of Section 7-142: 
25 Any sheriff's law enforcement employee who has 20 or more 
 
 
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1years of service in that capacity and who terminates service 
2prior to January 1, 1988 shall be entitled at his option to 
3receive a monthly retirement annuity for his service as a 
4sheriff's law enforcement employee computed by multiplying 2% 
5for each year of such service up to 10 years, 2 1/4% for each 
6year of such service above 10 years and up to 20 years, and 2 
71/2% for each year of such service above 20 years, by his 
8annual final rate of earnings and dividing by 12. 
9 Any sheriff's law enforcement employee who has 20 or more 
10years of service in that capacity and who terminates service 
11on or after January 1, 1988 and before July 1, 2004 shall be 
12entitled at his option to receive a monthly retirement annuity 
13for his service as a sheriff's law enforcement employee 
14computed by multiplying 2.5% for each year of such service up 
15to 20 years, 2% for each year of such service above 20 years 
16and up to 30 years, and 1% for each year of such service above 
1730 years, by his annual final rate of earnings and dividing by 
1812. 
19 Any sheriff's law enforcement employee who has 20 or more 
20years of service in that capacity and who terminates service 
21on or after July 1, 2004 shall be entitled at his or her option 
22to receive a monthly retirement annuity for service as a 
23sheriff's law enforcement employee computed by multiplying 
242.5% for each year of such service by his annual final rate of 
25earnings and dividing by 12. 
26 If a sheriff's law enforcement employee has service in any 
 
 
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1other capacity, his retirement annuity for service as a 
2sheriff's law enforcement employee may be computed under this 
3Section and the retirement annuity for his other service under 
4Section 7-142. 
5 In no case shall the total monthly retirement annuity for 
6persons who retire before July 1, 2004 exceed 75% of the 
7monthly final rate of earnings. In no case shall the total 
8monthly retirement annuity for persons who retire on or after 
9July 1, 2004 exceed 80% of the monthly final rate of earnings. 
10 (b) Whenever continued group insurance coverage is elected 
11in accordance with the provisions of Section 367h of the 
12Illinois Insurance Code, as now or hereafter amended, the 
13total monthly premium for such continued group insurance 
14coverage or such portion thereof as is not paid by the 
15municipality shall, upon request of the person electing such 
16continued group insurance coverage, be deducted from any 
17monthly pension benefit otherwise payable to such person 
18pursuant to this Section, to be remitted by the Fund to the 
19insurance company or other entity providing the group 
20insurance coverage. 
21 (c) A sheriff's law enforcement employee who began service 
22in that capacity prior to the effective date of this 
23amendatory Act of the 97th General Assembly and who has 
24service in any other capacity may convert up to 10 years of 
25that service into service as a sheriff's law enforcement 
26employee by paying to the Fund an amount equal to (1) the 
 
 
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1additional employee contribution required under Section 
27-173.1, plus (2) the additional employer contribution 
3required under Section 7-172, plus (3) interest on items (1) 
4and (2) at the prescribed rate from the date of the service to 
5the date of payment. Application must be received by the Board 
6while the employee is an active participant in the Fund. 
7Payment must be received while the member is an active 
8participant, except that one payment will be permitted after 
9termination of participation. 
10 (d) The changes to subsections (a) and (b) of this Section 
11made by this amendatory Act of the 94th General Assembly apply 
12only to persons in service on or after July 1, 2004. In the 
13case of such a person who begins to receive a retirement 
14annuity before the effective date of this amendatory Act of 
15the 94th General Assembly, the annuity shall be recalculated 
16prospectively to reflect those changes, with the resulting 
17increase beginning to accrue on the first annuity payment date 
18following the effective date of this amendatory Act. 
19 (e) Any elected county officer who was entitled to receive 
20a stipend from the State on or after July 1, 2009 and on or 
21before June 30, 2010 may establish earnings credit for the 
22amount of stipend not received, if the elected county official 
23applies in writing to the fund within 6 months after the 
24effective date of this amendatory Act of the 96th General 
25Assembly and pays to the fund an amount equal to (i) employee 
26contributions on the amount of stipend not received, (ii) 
 
 
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1employer contributions determined by the Board equal to the 
2employer's normal cost of the benefit on the amount of stipend 
3not received, plus (iii) interest on items (i) and (ii) at the 
4actuarially assumed rate. 
5 (f) Notwithstanding any other provision of this Article, 
6the provisions of this subsection (f) apply to a person who 
7first becomes a sheriff's law enforcement employee under this 
8Article on or after January 1, 2011.
9 A sheriff's law enforcement employee age 55 or more who 
10has 10 or more years of service in that capacity shall be 
11entitled at his option to receive a monthly retirement annuity 
12for his or her service as a sheriff's law enforcement employee 
13computed by multiplying 2.5% for each year of such service by 
14his or her final rate of earnings.
15 The retirement annuity of a sheriff's law enforcement 
16employee who is retiring after attaining age 50 with 10 or more 
17years of creditable service shall be reduced by one-half of 1% 
18for each month that the sheriff's law enforcement employee's 
19age is under age 55.
20 The maximum retirement annuity under this subsection (f) 
21shall be 75% of final rate of earnings.
22 For the purposes of this subsection (f), "final rate of 
23earnings" means the average monthly earnings obtained by 
24dividing the total salary of the sheriff's law enforcement 
25employee during the 96 consecutive months of service within 
26the last 120 months of service in which the total earnings was 
 
 
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1the highest by the number of months of service in that period. 
2 Notwithstanding any other provision of this Article, 
3beginning on January 1, 2011, for all purposes under this Code 
4(including without limitation the calculation of benefits and 
5employee contributions), the annual earnings of a sheriff's 
6law enforcement employee to whom this Section applies shall 
7not include overtime and shall not exceed $106,800; however, 
8that amount shall annually thereafter be increased by the 
9lesser of (i) 3% of that amount, including all previous 
10adjustments, or (ii) one-half the annual unadjusted percentage 
11increase (but not less than zero) in the consumer price 
12index-u for the 12 months ending with the September preceding 
13each November 1, including all previous adjustments. 
14 (g) Notwithstanding any other provision of this Article, 
15the monthly annuity of a person who first becomes a sheriff's 
16law enforcement employee under this Article on or after 
17January 1, 2011 shall be increased on the January 1 occurring 
18either on or after the attainment of age 60 or the first 
19anniversary of the annuity start date, whichever is later. 
20Each annual increase shall be calculated at 3% or one-half the 
21annual unadjusted percentage increase (but not less than zero) 
22in the consumer price index-u for the 12 months ending with the 
23September preceding each November 1, whichever is less, of the 
24originally granted retirement annuity; except that, beginning 
25January 1, 2025, each annual increase under this subsection 
26shall be calculated at 3% of the amount of the originally 
 
 
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1granted retirement annuity. If the annual unadjusted 
2percentage change in the consumer price index-u for a 12-month 
3period ending in September is zero or, when compared with the 
4preceding period, decreases, then the annuity shall not be 
5increased. 
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this subsection by this amendatory Act of the 
8103rd General Assembly are applicable without regard to 
9whether the employee was in active service on or after the 
10effective date of this amendatory Act of the 103rd General 
11Assembly. 
12 (h) Notwithstanding any other provision of this Article, 
13for a person who first becomes a sheriff's law enforcement 
14employee under this Article on or after January 1, 2011, the 
15annuity to which the surviving spouse, children, or parents 
16are entitled under this subsection (h) shall be in the amount 
17of 66 2/3% of the sheriff's law enforcement employee's earned 
18annuity at the date of death.
19 (i) Notwithstanding any other provision of this Article, 
20the monthly annuity of a survivor of a person who first becomes 
21a sheriff's law enforcement employee under this Article on or 
22after January 1, 2011 shall be increased on the January 1 after 
23attainment of age 60 by the recipient of the survivor's 
24annuity and each January 1 thereafter by 3% or one-half the 
25annual unadjusted percentage increase in the consumer price 
26index-u for the 12 months ending with the September preceding 
 
 
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1each November 1, whichever is less, of the originally granted 
2pension. If the annual unadjusted percentage change in the 
3consumer price index-u for a 12-month period ending in 
4September is zero or, when compared with the preceding period, 
5decreases, then the annuity shall not be increased. 
6 (j) For the purposes of this Section, "consumer price 
7index-u" means the index published by the Bureau of Labor 
8Statistics of the United States Department of Labor that 
9measures the average change in prices of goods and services 
10purchased by all urban consumers, United States city average, 
11all items, 1982-84 = 100. The new amount resulting from each 
12annual adjustment shall be determined by the Public Pension 
13Division of the Department of Insurance and made available to 
14the boards of the pension funds. 
15(Source: P.A. 100-148, eff. 8-18-17.)

16 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
17 Sec. 15-136. Retirement annuities; amount annuities - 
18Amount. The provisions of this Section 15-136 apply only to 
19those participants who are participating in the traditional 
20benefit package or the portable benefit package and do not 
21apply to participants who are participating in the 
22self-managed plan.
23 (a) The amount of a participant's retirement annuity, 
24expressed in the form of a single-life annuity, shall be 
25determined by whichever of the following rules is applicable 
 
 
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1and provides the largest annuity:
2 Rule 1: The retirement annuity shall be 1.67% of final 
3rate of earnings for each of the first 10 years of service, 
41.90% for each of the next 10 years of service, 2.10% for each 
5year of service in excess of 20 but not exceeding 30, and 2.30% 
6for each year in excess of 30; or for persons who retire on or 
7after January 1, 1998, 2.2% of the final rate of earnings for 
8each year of service.
9 Rule 2: The retirement annuity shall be the sum of the 
10following, determined from amounts credited to the participant 
11in accordance with the actuarial tables and the effective rate 
12of interest in effect at the time the retirement annuity 
13begins: 
14  (i) the normal annuity which can be provided on an 
15 actuarially equivalent basis, by the accumulated normal 
16 contributions as of the date the annuity begins; 
17  (ii) an annuity from employer contributions of an 
18 amount equal to that which can be provided on an 
19 actuarially equivalent basis from the accumulated normal 
20 contributions made by the participant under Section 
21 15-113.6 and Section 15-113.7 plus 1.4 times all other 
22 accumulated normal contributions made by the participant; 
23 and 
24  (iii) the annuity that can be provided on an 
25 actuarially equivalent basis from the entire contribution 
26 made by the participant under Section 15-113.3.
 
 
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1 With respect to a police officer or firefighter who 
2retires on or after August 14, 1998, the accumulated normal 
3contributions taken into account under clauses (i) and (ii) of 
4this Rule 2 shall include the additional normal contributions 
5made by the police officer or firefighter under Section 
615-157(a).
7 The amount of a retirement annuity calculated under this 
8Rule 2 shall be computed solely on the basis of the 
9participant's accumulated normal contributions, as specified 
10in this Rule and defined in Section 15-116. Neither an 
11employee or employer contribution for early retirement under 
12Section 15-136.2 nor any other employer contribution shall be 
13used in the calculation of the amount of a retirement annuity 
14under this Rule 2.
15 This amendatory Act of the 91st General Assembly is a 
16clarification of existing law and applies to every participant 
17and annuitant without regard to whether status as an employee 
18terminates before the effective date of this amendatory Act.
19 This Rule 2 does not apply to a person who first becomes an 
20employee under this Article on or after July 1, 2005. 
21 Rule 3: The retirement annuity of a participant who is 
22employed at least one-half time during the period on which his 
23or her final rate of earnings is based, shall be equal to the 
24participant's years of service not to exceed 30, multiplied by 
25(1) $96 if the participant's final rate of earnings is less 
26than $3,500, (2) $108 if the final rate of earnings is at least 
 
 
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1$3,500 but less than $4,500, (3) $120 if the final rate of 
2earnings is at least $4,500 but less than $5,500, (4) $132 if 
3the final rate of earnings is at least $5,500 but less than 
4$6,500, (5) $144 if the final rate of earnings is at least 
5$6,500 but less than $7,500, (6) $156 if the final rate of 
6earnings is at least $7,500 but less than $8,500, (7) $168 if 
7the final rate of earnings is at least $8,500 but less than 
8$9,500, and (8) $180 if the final rate of earnings is $9,500 or 
9more, except that the annuity for those persons having made an 
10election under Section 15-154(a-1) shall be calculated and 
11payable under the portable retirement benefit program pursuant 
12to the provisions of Section 15-136.4.
13 Rule 4: A participant who is at least age 50 and has 25 or 
14more years of service as a police officer or firefighter, and a 
15participant who is age 55 or over and has at least 20 but less 
16than 25 years of service as a police officer or firefighter, 
17shall be entitled to a retirement annuity of 2 1/4% of the 
18final rate of earnings for each of the first 10 years of 
19service as a police officer or firefighter, 2 1/2% for each of 
20the next 10 years of service as a police officer or 
21firefighter, and 2 3/4% for each year of service as a police 
22officer or firefighter in excess of 20. The retirement annuity 
23for all other service shall be computed under Rule 1. A Tier 2 
24member is eligible for a retirement annuity calculated under 
25Rule 4 only if that Tier 2 member meets the service 
26requirements for that benefit calculation as prescribed under 
 
 
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1this Rule 4 in addition to the applicable age requirement 
2under subsection (a-10) of Section 15-135.
3 For purposes of this Rule 4, a participant's service as a 
4firefighter shall also include the following: 
5  (i) service that is performed while the person is an 
6 employee under subsection (h) of Section 15-107; and 
7  (ii) in the case of an individual who was a 
8 participating employee employed in the fire department of 
9 the University of Illinois's Champaign-Urbana campus 
10 immediately prior to the elimination of that fire 
11 department and who immediately after the elimination of 
12 that fire department transferred to another job with the 
13 University of Illinois, service performed as an employee 
14 of the University of Illinois in a position other than 
15 police officer or firefighter, from the date of that 
16 transfer until the employee's next termination of service 
17 with the University of Illinois.
18 (b) For a Tier 1 member, the retirement annuity provided 
19under Rules 1 and 3 above shall be reduced by 1/2 of 1% for 
20each month the participant is under age 60 at the time of 
21retirement. However, this reduction shall not apply in the 
22following cases: 
23  (1) For a disabled participant whose disability 
24 benefits have been discontinued because he or she has 
25 exhausted eligibility for disability benefits under clause 
26 (6) of Section 15-152; 
 
 
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1  (2) For a participant who has at least the number of 
2 years of service required to retire at any age under 
3 subsection (a) of Section 15-135; or 
4  (3) For that portion of a retirement annuity which has 
5 been provided on account of service of the participant 
6 during periods when he or she performed the duties of a 
7 police officer or firefighter, if these duties were 
8 performed for at least 5 years immediately preceding the 
9 date the retirement annuity is to begin.
10 (b-5) The retirement annuity of a Tier 2 member who is 
11retiring under Rule 1 or 3 after attaining age 62 with at least 
1210 years of service credit shall be reduced by 1/2 of 1% for 
13each full month that the member's age is under age 67. 
14 (c) The maximum retirement annuity provided under Rules 1, 
152, 4, and 5 shall be the lesser of (1) the annual limit of 
16benefits as specified in Section 415 of the Internal Revenue 
17Code of 1986, as such Section may be amended from time to time 
18and as such benefit limits shall be adjusted by the 
19Commissioner of Internal Revenue, and (2) 80% of final rate of 
20earnings.
21 (d) A Tier 1 member whose status as an employee terminates 
22after August 14, 1969 shall receive automatic increases in his 
23or her retirement annuity as follows:
24 Effective January 1 immediately following the date the 
25retirement annuity begins, the annuitant shall receive an 
26increase in his or her monthly retirement annuity of 0.125% of 
 
 
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1the monthly retirement annuity provided under Rule 1, Rule 2, 
2Rule 3, or Rule 4 contained in this Section, multiplied by the 
3number of full months which elapsed from the date the 
4retirement annuity payments began to January 1, 1972, plus 
50.1667% of such annuity, multiplied by the number of full 
6months which elapsed from January 1, 1972, or the date the 
7retirement annuity payments began, whichever is later, to 
8January 1, 1978, plus 0.25% of such annuity multiplied by the 
9number of full months which elapsed from January 1, 1978, or 
10the date the retirement annuity payments began, whichever is 
11later, to the effective date of the increase.
12 The annuitant shall receive an increase in his or her 
13monthly retirement annuity on each January 1 thereafter during 
14the annuitant's life of 3% of the monthly annuity provided 
15under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this 
16Section. The change made under this subsection by P.A. 81-970 
17is effective January 1, 1980 and applies to each annuitant 
18whose status as an employee terminates before or after that 
19date.
20 Beginning January 1, 1990, all automatic annual increases 
21payable under this Section shall be calculated as a percentage 
22of the total annuity payable at the time of the increase, 
23including all increases previously granted under this Article.
24 The change made in this subsection by P.A. 85-1008 is 
25effective January 26, 1988, and is applicable without regard 
26to whether status as an employee terminated before that date.
 
 
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1 (d-5) A retirement annuity of a Tier 2 member shall 
2receive annual increases on the January 1 occurring either on 
3or after the attainment of age 67 or the first anniversary of 
4the annuity start date, whichever is later. Each annual 
5increase shall be calculated at 3% or one half the annual 
6unadjusted percentage increase (but not less than zero) in the 
7consumer price index-u for the 12 months ending with the 
8September preceding each November 1, whichever is less, of the 
9originally granted retirement annuity; except that, beginning 
10January 1, 2025, each annual increase under this subsection 
11shall be calculated at 3% of the amount of the originally 
12granted retirement annuity. If the annual unadjusted 
13percentage change in the consumer price index-u for the 12 
14months ending with the September preceding each November 1 is 
15zero or there is a decrease, then the annuity shall not be 
16increased. 
17 For the purposes of Section 1-103.1 of this Code, the 
18changes made to this subsection by this amendatory Act of the 
19103rd General Assembly are applicable without regard to 
20whether the employee was in active service on or after the 
21effective date of this amendatory Act of the 103rd General 
22Assembly. 
23 (e) If, on January 1, 1987, or the date the retirement 
24annuity payment period begins, whichever is later, the sum of 
25the retirement annuity provided under Rule 1 or Rule 2 of this 
26Section and the automatic annual increases provided under the 
 
 
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1preceding subsection or Section 15-136.1, amounts to less than 
2the retirement annuity which would be provided by Rule 3, the 
3retirement annuity shall be increased as of January 1, 1987, 
4or the date the retirement annuity payment period begins, 
5whichever is later, to the amount which would be provided by 
6Rule 3 of this Section. Such increased amount shall be 
7considered as the retirement annuity in determining benefits 
8provided under other Sections of this Article. This paragraph 
9applies without regard to whether status as an employee 
10terminated before the effective date of this amendatory Act of 
111987, provided that the annuitant was employed at least 
12one-half time during the period on which the final rate of 
13earnings was based.
14 (f) A participant is entitled to such additional annuity 
15as may be provided on an actuarially equivalent basis, by any 
16accumulated additional contributions to his or her credit. 
17However, the additional contributions made by the participant 
18toward the automatic increases in annuity provided under this 
19Section shall not be taken into account in determining the 
20amount of such additional annuity.
21 (g) If, (1) by law, a function of a governmental unit, as 
22defined by Section 20-107 of this Code, is transferred in 
23whole or in part to an employer, and (2) a participant 
24transfers employment from such governmental unit to such 
25employer within 6 months after the transfer of the function, 
26and (3) the sum of (A) the annuity payable to the participant 
 
 
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1under Rule 1, 2, or 3 of this Section (B) all proportional 
2annuities payable to the participant by all other retirement 
3systems covered by Article 20, and (C) the initial primary 
4insurance amount to which the participant is entitled under 
5the Social Security Act, is less than the retirement annuity 
6which would have been payable if all of the participant's 
7pension credits validated under Section 20-109 had been 
8validated under this system, a supplemental annuity equal to 
9the difference in such amounts shall be payable to the 
10participant.
11 (h) On January 1, 1981, an annuitant who was receiving a 
12retirement annuity on or before January 1, 1971 shall have his 
13or her retirement annuity then being paid increased $1 per 
14month for each year of creditable service. On January 1, 1982, 
15an annuitant whose retirement annuity began on or before 
16January 1, 1977, shall have his or her retirement annuity then 
17being paid increased $1 per month for each year of creditable 
18service.
19 (i) On January 1, 1987, any annuitant whose retirement 
20annuity began on or before January 1, 1977, shall have the 
21monthly retirement annuity increased by an amount equal to 8¢ 
22per year of creditable service times the number of years that 
23have elapsed since the annuity began.
24 (j) The changes made to this Section by this amendatory 
25Act of the 101st General Assembly apply retroactively to 
26January 1, 2011.
 
 
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1(Source: P.A. 101-610, eff. 1-1-20.)

2 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
3 Sec. 18-125.1. Automatic increase in retirement annuity. A 
4participant who retires from service after June 30, 1969, 
5shall, in January of the year next following the year in which 
6the first anniversary of retirement occurs, and in January of 
7each year thereafter, have the amount of his or her originally 
8granted retirement annuity increased as follows: for each year 
9up to and including 1971, 1 1/2%; for each year from 1972 
10through 1979 inclusive, 2%; and for 1980 and each year 
11thereafter, 3%.
12 Notwithstanding any other provision of this Article, a 
13retirement annuity for a participant who first serves as a 
14judge on or after January 1, 2011 (the effective date of Public 
15Act 96-889) shall be increased in January of the year next 
16following the year in which the first anniversary of 
17retirement occurs, but in no event prior to age 67, and in 
18January of each year thereafter, by an amount equal to 3% or 
19the annual percentage increase in the consumer price index-u 
20as determined by the Public Pension Division of the Department 
21of Insurance under subsection (b-5) of Section 18-125, 
22whichever is less, of the retirement annuity then being paid; 
23except that, beginning January 1, 2025, each annual increase 
24under this subsection shall be calculated at 3% of the amount 
25of the retirement annuity then being paid. 
 
 
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1 For the purposes of Section 1-103.1 of this Code, the 
2changes made to this Section by this amendatory Act of the 
3103rd General Assembly are applicable without regard to 
4whether the employee was in active service on or after the 
5effective date of this amendatory Act of the 103rd General 
6Assembly. 
7 This Section is not applicable to a participant who 
8retires before he or she has made contributions at the rate 
9prescribed in Section 18-133 for automatic increases for not 
10less than the equivalent of one full year, unless such a 
11participant arranges to pay the system the amount required to 
12bring the total contributions for the automatic increase to 
13the equivalent of one year's contribution based upon his or 
14her last year's salary.
15 This Section is applicable to all participants in service 
16after June 30, 1969 unless a participant has elected, prior to 
17September 1, 1969, in a written direction filed with the board 
18not to be subject to the provisions of this Section. Any 
19participant in service on or after July 1, 1992 shall have the 
20option of electing prior to April 1, 1993, in a written 
21direction filed with the board, to be covered by the 
22provisions of the 1969 amendatory Act. Such participant shall 
23be required to make the aforesaid additional contributions 
24with compound interest at 4% per annum.
25 Any participant who has become eligible to receive the 
26maximum rate of annuity and who resumes service as a judge 
 
 
HB5909- 241 -LRB103 43117 RPS 76377 b


1after receiving a retirement annuity under this Article shall 
2have the amount of his or her retirement annuity increased by 
33% of the originally granted annuity amount for each year of 
4such resumed service, beginning in January of the year next 
5following the date of such resumed service, upon subsequent 
6termination of such resumed service.
7 Beginning January 1, 1990, all automatic annual increases 
8payable under this Section shall be calculated as a percentage 
9of the total annuity payable at the time of the increase, 
10including previous increases granted under this Article.
11(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

12
Article 3A. 


13 Section 3A-5. The Illinois Pension Code is amended by 
14changing Sections 1-160, 2-119, 2-119.01, 2-119.1, 3-111, 
153-111.1, 4-109, 4-109.1, 5-167.1, 5-238, 6-164, 6-229, 7-142, 
167-142.1, 14-110, 15-135, 15-136, 18-124, and 18-125.1 as 
17follows:

18 (40 ILCS 5/1-160)
19 (Text of Section from P.A. 102-719)
20 Sec. 1-160. Provisions applicable to new hires. 
21 (a) The provisions of this Section apply to a person who, 
22on or after January 1, 2011, first becomes a member or a 
23participant under any reciprocal retirement system or pension 
 
 
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1fund established under this Code, other than a retirement 
2system or pension fund established under Article 2, 3, 4, 5, 6, 
37, 15, or 18 of this Code, notwithstanding any other provision 
4of this Code to the contrary, but do not apply to any 
5self-managed plan established under this Code or to any 
6participant of the retirement plan established under Section 
722-101; except that this Section applies to a person who 
8elected to establish alternative credits by electing in 
9writing after January 1, 2011, but before August 8, 2011, 
10under Section 7-145.1 of this Code. Notwithstanding anything 
11to the contrary in this Section, for purposes of this Section, 
12a person who is a Tier 1 regular employee as defined in Section 
137-109.4 of this Code or who participated in a retirement 
14system under Article 15 prior to January 1, 2011 shall be 
15deemed a person who first became a member or participant prior 
16to January 1, 2011 under any retirement system or pension fund 
17subject to this Section. The changes made to this Section by 
18Public Act 98-596 are a clarification of existing law and are 
19intended to be retroactive to January 1, 2011 (the effective 
20date of Public Act 96-889), notwithstanding the provisions of 
21Section 1-103.1 of this Code.
22 This Section does not apply to a person who first becomes a 
23noncovered employee under Article 14 on or after the 
24implementation date of the plan created under Section 1-161 
25for that Article, unless that person elects under subsection 
26(b) of Section 1-161 to instead receive the benefits provided 
 
 
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1under this Section and the applicable provisions of that 
2Article.
3 This Section does not apply to a person who first becomes a 
4member or participant under Article 16 on or after the 
5implementation date of the plan created under Section 1-161 
6for that Article, unless that person elects under subsection 
7(b) of Section 1-161 to instead receive the benefits provided 
8under this Section and the applicable provisions of that 
9Article.
10 This Section does not apply to a person who elects under 
11subsection (c-5) of Section 1-161 to receive the benefits 
12under Section 1-161. 
13 This Section does not apply to a person who first becomes a 
14member or participant of an affected pension fund on or after 6 
15months after the resolution or ordinance date, as defined in 
16Section 1-162, unless that person elects under subsection (c) 
17of Section 1-162 to receive the benefits provided under this 
18Section and the applicable provisions of the Article under 
19which he or she is a member or participant. 
20 (a-5) In this Section, "affected member or participant" 
21means a member or participant to whom this Section applies and 
22who is an active member or participant on or after January 1, 
232025; except that "affected member or participant" does not 
24include a member or participant under Article 22. 
25 (b) "Final average salary" means, except as otherwise 
26provided in this subsection, the average monthly (or annual) 
 
 
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1salary obtained by dividing the total salary or earnings 
2calculated under the Article applicable to the member or 
3participant during the 96 consecutive months (or 8 consecutive 
4years) of service within the last 120 months (or 10 years) of 
5service in which the total salary or earnings calculated under 
6the applicable Article was the highest by the number of months 
7(or years) of service in that period. For the purposes of a 
8person who first becomes a member or participant of any 
9retirement system or pension fund to which this Section 
10applies on or after January 1, 2011, in this Code, "final 
11average salary" shall be substituted for the following:
12  (1) (Blank).
13  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
14 annual salary for any 4 consecutive years within the last 
15 10 years of service immediately preceding the date of 
16 withdrawal". 
17  (3) In Article 13, "average final salary". 
18  (4) In Article 14, "final average compensation". 
19  (5) In Article 17, "average salary". 
20  (6) In Section 22-207, "wages or salary received by 
21 him at the date of retirement or discharge". 
22 A member of the Teachers' Retirement System of the State 
23of Illinois who retires on or after June 1, 2021 and for whom 
24the 2020-2021 school year is used in the calculation of the 
25member's final average salary shall use the higher of the 
26following for the purpose of determining the member's final 
 
 
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1average salary:
2  (A) the amount otherwise calculated under the first 
3 paragraph of this subsection; or
4  (B) an amount calculated by the Teachers' Retirement 
5 System of the State of Illinois using the average of the 
6 monthly (or annual) salary obtained by dividing the total 
7 salary or earnings calculated under Article 16 applicable 
8 to the member or participant during the 96 months (or 8 
9 years) of service within the last 120 months (or 10 years) 
10 of service in which the total salary or earnings 
11 calculated under the Article was the highest by the number 
12 of months (or years) of service in that period.
13 (b-5) Beginning on January 1, 2011, for all purposes under 
14this Code (including without limitation the calculation of 
15benefits and employee contributions), the annual earnings, 
16salary, or wages (based on the plan year) of a member or 
17participant to whom this Section applies shall not exceed 
18$106,800; however, that amount shall annually thereafter be 
19increased by the lesser of (i) 3% of that amount, including all 
20previous adjustments, or (ii) one-half the annual unadjusted 
21percentage increase (but not less than zero) in the consumer 
22price index-u for the 12 months ending with the September 
23preceding each November 1, including all previous adjustments.
24 For the purposes of this Section, "consumer price index-u" 
25means the index published by the Bureau of Labor Statistics of 
26the United States Department of Labor that measures the 
 
 
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1average change in prices of goods and services purchased by 
2all urban consumers, United States city average, all items, 
31982-84 = 100. The new amount resulting from each annual 
4adjustment shall be determined by the Public Pension Division 
5of the Department of Insurance and made available to the 
6boards of the retirement systems and pension funds by November 
71 of each year. 
8 (b-10) Beginning on January 1, 2024, for all purposes 
9under this Code (including, without limitation, the 
10calculation of benefits and employee contributions), the 
11annual earnings, salary, or wages (based on the plan year) of a 
12member or participant under Article 9 to whom this Section 
13applies shall include an annual earnings, salary, or wage cap 
14that tracks the Social Security wage base. Maximum annual 
15earnings, wages, or salary shall be the annual contribution 
16and benefit base established for the applicable year by the 
17Commissioner of the Social Security Administration under the 
18federal Social Security Act. 
19 However, in no event shall the annual earnings, salary, or 
20wages for the purposes of this Article and Article 9 exceed any 
21limitation imposed on annual earnings, salary, or wages under 
22Section 1-117. Under no circumstances shall the maximum amount 
23of annual earnings, salary, or wages be greater than the 
24amount set forth in this subsection (b-10) as a result of 
25reciprocal service or any provisions regarding reciprocal 
26services, nor shall the Fund under Article 9 be required to pay 
 
 
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1any refund as a result of the application of this maximum 
2annual earnings, salary, and wage cap. 
3 Nothing in this subsection (b-10) shall cause or otherwise 
4result in any retroactive adjustment of any employee 
5contributions. Nothing in this subsection (b-10) shall cause 
6or otherwise result in any retroactive adjustment of 
7disability or other payments made between January 1, 2011 and 
8January 1, 2024. 
9 (c) For a member or participant who is not an affected 
10member or participant, a A member or participant is entitled 
11to a retirement annuity upon written application if he or she 
12has attained age 67 (age 65, with respect to service under 
13Article 12 that is subject to this Section, for a member or 
14participant under Article 12 who first becomes a member or 
15participant under Article 12 on or after January 1, 2022 or who 
16makes the election under item (i) of subsection (d-15) of this 
17Section) and has at least 10 years of service credit and is 
18otherwise eligible under the requirements of the applicable 
19Article. 
20 For an affected member or participant, the age and service 
21eligibility requirements for a retirement annuity are the age 
22and service eligibility requirements applicable to a member or 
23participant who first became a member or participant under the 
24applicable Article on December 31, 2010. 
25 A member or participant who has attained age 62 (age 60, 
26with respect to service under Article 12 that is subject to 
 
 
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1this Section, for a member or participant under Article 12 who 
2first becomes a member or participant under Article 12 on or 
3after January 1, 2022 or who makes the election under item (i) 
4of subsection (d-15) of this Section) and has at least 10 years 
5of service credit and is otherwise eligible under the 
6requirements of the applicable Article may elect to receive 
7the lower retirement annuity provided in subsection (d) of 
8this Section. This paragraph does not apply to an affected 
9member or participant. 
10 (c-5) A person who first becomes a member or a participant 
11subject to this Section on or after July 6, 2017 (the effective 
12date of Public Act 100-23), notwithstanding any other 
13provision of this Code to the contrary, is entitled to a 
14retirement annuity under Article 8 or Article 11 upon written 
15application if he or she has attained age 65 and has at least 
1610 years of service credit and is otherwise eligible under the 
17requirements of Article 8 or Article 11 of this Code, 
18whichever is applicable. 
19 This subsection does not apply to an affected member or 
20participant. 
21 (d) The retirement annuity of a member or participant who 
22is retiring after attaining age 62 (age 60, with respect to 
23service under Article 12 that is subject to this Section, for a 
24member or participant under Article 12 who first becomes a 
25member or participant under Article 12 on or after January 1, 
262022 or who makes the election under item (i) of subsection 
 
 
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1(d-15) of this Section) with at least 10 years of service 
2credit shall be reduced by one-half of 1% for each full month 
3that the member's age is under age 67 (age 65, with respect to 
4service under Article 12 that is subject to this Section, for a 
5member or participant under Article 12 who first becomes a 
6member or participant under Article 12 on or after January 1, 
72022 or who makes the election under item (i) of subsection 
8(d-15) of this Section).
9 This subsection does not apply to an affected member or 
10participant. 
11 (d-5) The retirement annuity payable under Article 8 or 
12Article 11 to an eligible person subject to subsection (c-5) 
13of this Section who is retiring at age 60 with at least 10 
14years of service credit shall be reduced by one-half of 1% for 
15each full month that the member's age is under age 65. 
16 This subsection does not apply to an affected member or 
17participant. 
18 (d-10) Each person who first became a member or 
19participant under Article 8 or Article 11 of this Code on or 
20after January 1, 2011 and prior to July 6, 2017 (the effective 
21date of Public Act 100-23) shall make an irrevocable election 
22either:
23  (i) to be eligible for the reduced retirement age 
24 provided in subsections (c-5) and (d-5) of this Section, 
25 the eligibility for which is conditioned upon the member 
26 or participant agreeing to the increases in employee 
 
 
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1 contributions for age and service annuities provided in 
2 subsection (a-5) of Section 8-174 of this Code (for 
3 service under Article 8) or subsection (a-5) of Section 
4 11-170 of this Code (for service under Article 11); or 
5  (ii) to not agree to item (i) of this subsection 
6 (d-10), in which case the member or participant shall 
7 continue to be subject to the retirement age provisions in 
8 subsections (c) and (d) of this Section and the employee 
9 contributions for age and service annuity as provided in 
10 subsection (a) of Section 8-174 of this Code (for service 
11 under Article 8) or subsection (a) of Section 11-170 of 
12 this Code (for service under Article 11). 
13 The election provided for in this subsection shall be made 
14between October 1, 2017 and November 15, 2017. A person 
15subject to this subsection who makes the required election 
16shall remain bound by that election. A person subject to this 
17subsection who fails for any reason to make the required 
18election within the time specified in this subsection shall be 
19deemed to have made the election under item (ii). 
20 This subsection does not apply to an affected member or 
21participant. 
22 (d-15) Each person who first becomes a member or 
23participant under Article 12 on or after January 1, 2011 and 
24prior to January 1, 2022 shall make an irrevocable election 
25either: 
26  (i) to be eligible for the reduced retirement age 
 
 
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1 specified in subsections (c) and (d) of this Section, the 
2 eligibility for which is conditioned upon the member or 
3 participant agreeing to the increase in employee 
4 contributions for service annuities specified in 
5 subsection (b) of Section 12-150; or
6  (ii) to not agree to item (i) of this subsection 
7 (d-15), in which case the member or participant shall not 
8 be eligible for the reduced retirement age specified in 
9 subsections (c) and (d) of this Section and shall not be 
10 subject to the increase in employee contributions for 
11 service annuities specified in subsection (b) of Section 
12 12-150. 
13 The election provided for in this subsection shall be made 
14between January 1, 2022 and April 1, 2022. A person subject to 
15this subsection who makes the required election shall remain 
16bound by that election. A person subject to this subsection 
17who fails for any reason to make the required election within 
18the time specified in this subsection shall be deemed to have 
19made the election under item (ii). 
20 This subsection does not apply to an affected member or 
21participant. 
22 (e) For a member or participant who is not an affected 
23member or participant, any Any retirement annuity or 
24supplemental annuity shall be subject to annual increases on 
25the January 1 occurring either on or after the attainment of 
26age 67 (age 65, with respect to service under Article 12 that 
 
 
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1is subject to this Section, for a member or participant under 
2Article 12 who first becomes a member or participant under 
3Article 12 on or after January 1, 2022 or who makes the 
4election under item (i) of subsection (d-15); and beginning on 
5July 6, 2017 (the effective date of Public Act 100-23), age 65 
6with respect to service under Article 8 or Article 11 for 
7eligible persons who: (i) are subject to subsection (c-5) of 
8this Section; or (ii) made the election under item (i) of 
9subsection (d-10) of this Section) or the first anniversary of 
10the annuity start date, whichever is later. Each annual 
11increase shall be calculated at 3% or one-half the annual 
12unadjusted percentage increase (but not less than zero) in the 
13consumer price index-u for the 12 months ending with the 
14September preceding each November 1, whichever is less, of the 
15originally granted retirement annuity. If the annual 
16unadjusted percentage change in the consumer price index-u for 
17the 12 months ending with the September preceding each 
18November 1 is zero or there is a decrease, then the annuity 
19shall not be increased. 
20 For an affected member or participant, any retirement 
21annuity or supplemental annuity shall be subject to annual 
22increases on the January 1 occurring either on or after the 
23attainment of the retirement age under the Article applicable 
24to that member or participant or the first anniversary of the 
25annuity start date, whichever is later. 
26 For the purposes of Section 1-103.1 of this Code, the 
 
 
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1changes made to this Section by Public Act 102-263 are 
2applicable without regard to whether the employee was in 
3active service on or after August 6, 2021 (the effective date 
4of Public Act 102-263). 
5 For the purposes of Section 1-103.1 of this Code, the 
6changes made to this Section by Public Act 100-23 are 
7applicable without regard to whether the employee was in 
8active service on or after July 6, 2017 (the effective date of 
9Public Act 100-23). 
10 (f) The initial survivor's or widow's annuity of an 
11otherwise eligible survivor or widow of a retired member or 
12participant who first became a member or participant on or 
13after January 1, 2011 shall be in the amount of 66 2/3% of the 
14retired member's or participant's retirement annuity at the 
15date of death. In the case of the death of a member or 
16participant who has not retired and who first became a member 
17or participant on or after January 1, 2011, eligibility for a 
18survivor's or widow's annuity shall be determined by the 
19applicable Article of this Code. The initial benefit shall be 
2066 2/3% of the earned annuity without a reduction due to age. A 
21child's annuity of an otherwise eligible child shall be in the 
22amount prescribed under each Article if applicable. Any 
23survivor's or widow's annuity shall be increased (1) on each 
24January 1 occurring on or after the commencement of the 
25annuity if the deceased member died while receiving a 
26retirement annuity or (2) in other cases, on each January 1 
 
 
HB5909- 254 -LRB103 43117 RPS 76377 b


1occurring after the first anniversary of the commencement of 
2the annuity. Each annual increase shall be calculated at 3% or 
3one-half the annual unadjusted percentage increase (but not 
4less than zero) in the consumer price index-u for the 12 months 
5ending with the September preceding each November 1, whichever 
6is less, of the originally granted survivor's annuity. If the 
7annual unadjusted percentage change in the consumer price 
8index-u for the 12 months ending with the September preceding 
9each November 1 is zero or there is a decrease, then the 
10annuity shall not be increased. 
11 (g) The benefits in Section 14-110 apply if the person is a 
12fire fighter in the fire protection service of a department, a 
13security employee of the Department of Corrections or the 
14Department of Juvenile Justice, a security employee of the 
15Department of Innovation and Technology, a security employee 
16of the Department of Human Services, an investigator for the 
17Department of the Lottery, a State policeman, an investigator 
18for the Secretary of State, a conservation police officer, an 
19investigator for the Department of Revenue or the Illinois 
20Gaming Board, an investigator for the Office of the Attorney 
21General, a Commerce Commission police officer, an arson 
22investigator, or a State highway maintenance worker a fire 
23fighter in the fire protection service of a department, a 
24security employee of the Department of Corrections or the 
25Department of Juvenile Justice, or a security employee of the 
26Department of Innovation and Technology, as those terms are 
 
 
HB5909- 255 -LRB103 43117 RPS 76377 b


1defined in subsection (b) and subsection (c) of Section 
214-110. A person who meets the requirements of this Section is 
3entitled to an annuity calculated under the provisions of 
4Section 14-110, in lieu of the regular or minimum retirement 
5annuity, only if (i) the person has withdrawn from service 
6with not less than 25 20 years of eligible creditable service 
7and has attained age 50 60, regardless of whether the 
8attainment of age 50 60 occurs while the person is still in 
9service, or (ii) the person has withdrawn from service with 
10not less than 20 years of eligible creditable service and has 
11attained age 55, regardless of whether the attainment of age 
1255 occurs while the person is still in service. 
13 (g-5) (Blank). The benefits in Section 14-110 apply if the 
14person is a State policeman, investigator for the Secretary of 
15State, conservation police officer, investigator for the 
16Department of Revenue or the Illinois Gaming Board, 
17investigator for the Office of the Attorney General, Commerce 
18Commission police officer, or arson investigator, as those 
19terms are defined in subsection (b) and subsection (c) of 
20Section 14-110. A person who meets the requirements of this 
21Section is entitled to an annuity calculated under the 
22provisions of Section 14-110, in lieu of the regular or 
23minimum retirement annuity, only if the person has withdrawn 
24from service with not less than 20 years of eligible 
25creditable service and has attained age 55, regardless of 
26whether the attainment of age 55 occurs while the person is 
 
 
HB5909- 256 -LRB103 43117 RPS 76377 b


1still in service. 
2 (h) If a person who first becomes a member or a participant 
3of a retirement system or pension fund subject to this Section 
4on or after January 1, 2011 is receiving a retirement annuity 
5or retirement pension under that system or fund and becomes a 
6member or participant under any other system or fund created 
7by this Code and is employed on a full-time basis, except for 
8those members or participants exempted from the provisions of 
9this Section under subsection (a) of this Section, then the 
10person's retirement annuity or retirement pension under that 
11system or fund shall be suspended during that employment. Upon 
12termination of that employment, the person's retirement 
13annuity or retirement pension payments shall resume and be 
14recalculated if recalculation is provided for under the 
15applicable Article of this Code.
16 If a person who first becomes a member of a retirement 
17system or pension fund subject to this Section on or after 
18January 1, 2012 and is receiving a retirement annuity or 
19retirement pension under that system or fund and accepts on a 
20contractual basis a position to provide services to a 
21governmental entity from which he or she has retired, then 
22that person's annuity or retirement pension earned as an 
23active employee of the employer shall be suspended during that 
24contractual service. A person receiving an annuity or 
25retirement pension under this Code shall notify the pension 
26fund or retirement system from which he or she is receiving an 
 
 
HB5909- 257 -LRB103 43117 RPS 76377 b


1annuity or retirement pension, as well as his or her 
2contractual employer, of his or her retirement status before 
3accepting contractual employment. A person who fails to submit 
4such notification shall be guilty of a Class A misdemeanor and 
5required to pay a fine of $1,000. Upon termination of that 
6contractual employment, the person's retirement annuity or 
7retirement pension payments shall resume and, if appropriate, 
8be recalculated under the applicable provisions of this Code. 
9 (i) (Blank). 
10 (j) In the case of a conflict between the provisions of 
11this Section and any other provision of this Code, the 
12provisions of this Section shall control.
13(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
14102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
155-6-22; 103-529, eff. 8-11-23.)

16 (Text of Section from P.A. 102-813)
17 Sec. 1-160. Provisions applicable to new hires. 
18 (a) The provisions of this Section apply to a person who, 
19on or after January 1, 2011, first becomes a member or a 
20participant under any reciprocal retirement system or pension 
21fund established under this Code, other than a retirement 
22system or pension fund established under Article 2, 3, 4, 5, 6, 
237, 15, or 18 of this Code, notwithstanding any other provision 
24of this Code to the contrary, but do not apply to any 
25self-managed plan established under this Code or to any 
 
 
HB5909- 258 -LRB103 43117 RPS 76377 b


1participant of the retirement plan established under Section 
222-101; except that this Section applies to a person who 
3elected to establish alternative credits by electing in 
4writing after January 1, 2011, but before August 8, 2011, 
5under Section 7-145.1 of this Code. Notwithstanding anything 
6to the contrary in this Section, for purposes of this Section, 
7a person who is a Tier 1 regular employee as defined in Section 
87-109.4 of this Code or who participated in a retirement 
9system under Article 15 prior to January 1, 2011 shall be 
10deemed a person who first became a member or participant prior 
11to January 1, 2011 under any retirement system or pension fund 
12subject to this Section. The changes made to this Section by 
13Public Act 98-596 are a clarification of existing law and are 
14intended to be retroactive to January 1, 2011 (the effective 
15date of Public Act 96-889), notwithstanding the provisions of 
16Section 1-103.1 of this Code.
17 This Section does not apply to a person who first becomes a 
18noncovered employee under Article 14 on or after the 
19implementation date of the plan created under Section 1-161 
20for that Article, unless that person elects under subsection 
21(b) of Section 1-161 to instead receive the benefits provided 
22under this Section and the applicable provisions of that 
23Article.
24 This Section does not apply to a person who first becomes a 
25member or participant under Article 16 on or after the 
26implementation date of the plan created under Section 1-161 
 
 
HB5909- 259 -LRB103 43117 RPS 76377 b


1for that Article, unless that person elects under subsection 
2(b) of Section 1-161 to instead receive the benefits provided 
3under this Section and the applicable provisions of that 
4Article.
5 This Section does not apply to a person who elects under 
6subsection (c-5) of Section 1-161 to receive the benefits 
7under Section 1-161. 
8 This Section does not apply to a person who first becomes a 
9member or participant of an affected pension fund on or after 6 
10months after the resolution or ordinance date, as defined in 
11Section 1-162, unless that person elects under subsection (c) 
12of Section 1-162 to receive the benefits provided under this 
13Section and the applicable provisions of the Article under 
14which he or she is a member or participant. 
15 (a-5) In this Section, "affected member or participant" 
16means a member or participant to whom this Section applies and 
17who is an active member or participant on or after January 1, 
182025; except that "affected member or participant" does not 
19include a member or participant under Article 22. 
20 (b) "Final average salary" means, except as otherwise 
21provided in this subsection, the average monthly (or annual) 
22salary obtained by dividing the total salary or earnings 
23calculated under the Article applicable to the member or 
24participant during the 96 consecutive months (or 8 consecutive 
25years) of service within the last 120 months (or 10 years) of 
26service in which the total salary or earnings calculated under 
 
 
HB5909- 260 -LRB103 43117 RPS 76377 b


1the applicable Article was the highest by the number of months 
2(or years) of service in that period. For the purposes of a 
3person who first becomes a member or participant of any 
4retirement system or pension fund to which this Section 
5applies on or after January 1, 2011, in this Code, "final 
6average salary" shall be substituted for the following:
7  (1) (Blank).
8  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
9 annual salary for any 4 consecutive years within the last 
10 10 years of service immediately preceding the date of 
11 withdrawal". 
12  (3) In Article 13, "average final salary". 
13  (4) In Article 14, "final average compensation". 
14  (5) In Article 17, "average salary". 
15  (6) In Section 22-207, "wages or salary received by 
16 him at the date of retirement or discharge". 
17 A member of the Teachers' Retirement System of the State 
18of Illinois who retires on or after June 1, 2021 and for whom 
19the 2020-2021 school year is used in the calculation of the 
20member's final average salary shall use the higher of the 
21following for the purpose of determining the member's final 
22average salary:
23  (A) the amount otherwise calculated under the first 
24 paragraph of this subsection; or
25  (B) an amount calculated by the Teachers' Retirement 
26 System of the State of Illinois using the average of the 
 
 
HB5909- 261 -LRB103 43117 RPS 76377 b


1 monthly (or annual) salary obtained by dividing the total 
2 salary or earnings calculated under Article 16 applicable 
3 to the member or participant during the 96 months (or 8 
4 years) of service within the last 120 months (or 10 years) 
5 of service in which the total salary or earnings 
6 calculated under the Article was the highest by the number 
7 of months (or years) of service in that period.
8 (b-5) Beginning on January 1, 2011, for all purposes under 
9this Code (including without limitation the calculation of 
10benefits and employee contributions), the annual earnings, 
11salary, or wages (based on the plan year) of a member or 
12participant to whom this Section applies shall not exceed 
13$106,800; however, that amount shall annually thereafter be 
14increased by the lesser of (i) 3% of that amount, including all 
15previous adjustments, or (ii) one-half the annual unadjusted 
16percentage increase (but not less than zero) in the consumer 
17price index-u for the 12 months ending with the September 
18preceding each November 1, including all previous adjustments.
19 For the purposes of this Section, "consumer price index-u" 
20means the index published by the Bureau of Labor Statistics of 
21the United States Department of Labor that measures the 
22average change in prices of goods and services purchased by 
23all urban consumers, United States city average, all items, 
241982-84 = 100. The new amount resulting from each annual 
25adjustment shall be determined by the Public Pension Division 
26of the Department of Insurance and made available to the 
 
 
HB5909- 262 -LRB103 43117 RPS 76377 b


1boards of the retirement systems and pension funds by November 
21 of each year. 
3 (b-10) Beginning on January 1, 2024, for all purposes 
4under this Code (including, without limitation, the 
5calculation of benefits and employee contributions), the 
6annual earnings, salary, or wages (based on the plan year) of a 
7member or participant under Article 9 to whom this Section 
8applies shall include an annual earnings, salary, or wage cap 
9that tracks the Social Security wage base. Maximum annual 
10earnings, wages, or salary shall be the annual contribution 
11and benefit base established for the applicable year by the 
12Commissioner of the Social Security Administration under the 
13federal Social Security Act. 
14 However, in no event shall the annual earnings, salary, or 
15wages for the purposes of this Article and Article 9 exceed any 
16limitation imposed on annual earnings, salary, or wages under 
17Section 1-117. Under no circumstances shall the maximum amount 
18of annual earnings, salary, or wages be greater than the 
19amount set forth in this subsection (b-10) as a result of 
20reciprocal service or any provisions regarding reciprocal 
21services, nor shall the Fund under Article 9 be required to pay 
22any refund as a result of the application of this maximum 
23annual earnings, salary, and wage cap. 
24 Nothing in this subsection (b-10) shall cause or otherwise 
25result in any retroactive adjustment of any employee 
26contributions. Nothing in this subsection (b-10) shall cause 
 
 
HB5909- 263 -LRB103 43117 RPS 76377 b


1or otherwise result in any retroactive adjustment of 
2disability or other payments made between January 1, 2011 and 
3January 1, 2024. 
4 (c) For a member or participant who is not an affected 
5member or participant, a A member or participant is entitled 
6to a retirement annuity upon written application if he or she 
7has attained age 67 (age 65, with respect to service under 
8Article 12 that is subject to this Section, for a member or 
9participant under Article 12 who first becomes a member or 
10participant under Article 12 on or after January 1, 2022 or who 
11makes the election under item (i) of subsection (d-15) of this 
12Section) and has at least 10 years of service credit and is 
13otherwise eligible under the requirements of the applicable 
14Article. 
15 For an affected member or participant, the age and service 
16eligibility requirements for a retirement annuity are the age 
17and service eligibility requirements applicable to a member or 
18participant who first became a member or participant under the 
19applicable Article on December 31, 2010. 
20 A member or participant who has attained age 62 (age 60, 
21with respect to service under Article 12 that is subject to 
22this Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15) of this Section) and has at least 10 years 
26of service credit and is otherwise eligible under the 
 
 
HB5909- 264 -LRB103 43117 RPS 76377 b


1requirements of the applicable Article may elect to receive 
2the lower retirement annuity provided in subsection (d) of 
3this Section. This paragraph does not apply to an affected 
4member or participant. 
5 (c-5) A person who first becomes a member or a participant 
6subject to this Section on or after July 6, 2017 (the effective 
7date of Public Act 100-23), notwithstanding any other 
8provision of this Code to the contrary, is entitled to a 
9retirement annuity under Article 8 or Article 11 upon written 
10application if he or she has attained age 65 and has at least 
1110 years of service credit and is otherwise eligible under the 
12requirements of Article 8 or Article 11 of this Code, 
13whichever is applicable. 
14 This subsection does not apply to an affected member or 
15participant. 
16 (d) The retirement annuity of a member or participant who 
17is retiring after attaining age 62 (age 60, with respect to 
18service under Article 12 that is subject to this Section, for a 
19member or participant under Article 12 who first becomes a 
20member or participant under Article 12 on or after January 1, 
212022 or who makes the election under item (i) of subsection 
22(d-15) of this Section) with at least 10 years of service 
23credit shall be reduced by one-half of 1% for each full month 
24that the member's age is under age 67 (age 65, with respect to 
25service under Article 12 that is subject to this Section, for a 
26member or participant under Article 12 who first becomes a 
 
 
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1member or participant under Article 12 on or after January 1, 
22022 or who makes the election under item (i) of subsection 
3(d-15) of this Section).
4 This subsection does not apply to an affected member or 
5participant. 
6 (d-5) The retirement annuity payable under Article 8 or 
7Article 11 to an eligible person subject to subsection (c-5) 
8of this Section who is retiring at age 60 with at least 10 
9years of service credit shall be reduced by one-half of 1% for 
10each full month that the member's age is under age 65. 
11 This subsection does not apply to an affected member or 
12participant. 
13 (d-10) Each person who first became a member or 
14participant under Article 8 or Article 11 of this Code on or 
15after January 1, 2011 and prior to July 6, 2017 (the effective 
16date of Public Act 100-23) shall make an irrevocable election 
17either:
18  (i) to be eligible for the reduced retirement age 
19 provided in subsections (c-5) and (d-5) of this Section, 
20 the eligibility for which is conditioned upon the member 
21 or participant agreeing to the increases in employee 
22 contributions for age and service annuities provided in 
23 subsection (a-5) of Section 8-174 of this Code (for 
24 service under Article 8) or subsection (a-5) of Section 
25 11-170 of this Code (for service under Article 11); or 
26  (ii) to not agree to item (i) of this subsection 
 
 
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1 (d-10), in which case the member or participant shall 
2 continue to be subject to the retirement age provisions in 
3 subsections (c) and (d) of this Section and the employee 
4 contributions for age and service annuity as provided in 
5 subsection (a) of Section 8-174 of this Code (for service 
6 under Article 8) or subsection (a) of Section 11-170 of 
7 this Code (for service under Article 11). 
8 The election provided for in this subsection shall be made 
9between October 1, 2017 and November 15, 2017. A person 
10subject to this subsection who makes the required election 
11shall remain bound by that election. A person subject to this 
12subsection who fails for any reason to make the required 
13election within the time specified in this subsection shall be 
14deemed to have made the election under item (ii). 
15 This subsection does not apply to an affected member or 
16participant. 
17 (d-15) Each person who first becomes a member or 
18participant under Article 12 on or after January 1, 2011 and 
19prior to January 1, 2022 shall make an irrevocable election 
20either: 
21  (i) to be eligible for the reduced retirement age 
22 specified in subsections (c) and (d) of this Section, the 
23 eligibility for which is conditioned upon the member or 
24 participant agreeing to the increase in employee 
25 contributions for service annuities specified in 
26 subsection (b) of Section 12-150; or
 
 
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1  (ii) to not agree to item (i) of this subsection 
2 (d-15), in which case the member or participant shall not 
3 be eligible for the reduced retirement age specified in 
4 subsections (c) and (d) of this Section and shall not be 
5 subject to the increase in employee contributions for 
6 service annuities specified in subsection (b) of Section 
7 12-150. 
8 The election provided for in this subsection shall be made 
9between January 1, 2022 and April 1, 2022. A person subject to 
10this subsection who makes the required election shall remain 
11bound by that election. A person subject to this subsection 
12who fails for any reason to make the required election within 
13the time specified in this subsection shall be deemed to have 
14made the election under item (ii). 
15 This subsection does not apply to an affected member or 
16participant. 
17 (e) For a member or participant who is not an affected 
18member or participant, any Any retirement annuity or 
19supplemental annuity shall be subject to annual increases on 
20the January 1 occurring either on or after the attainment of 
21age 67 (age 65, with respect to service under Article 12 that 
22is subject to this Section, for a member or participant under 
23Article 12 who first becomes a member or participant under 
24Article 12 on or after January 1, 2022 or who makes the 
25election under item (i) of subsection (d-15); and beginning on 
26July 6, 2017 (the effective date of Public Act 100-23), age 65 
 
 
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1with respect to service under Article 8 or Article 11 for 
2eligible persons who: (i) are subject to subsection (c-5) of 
3this Section; or (ii) made the election under item (i) of 
4subsection (d-10) of this Section) or the first anniversary of 
5the annuity start date, whichever is later. Each annual 
6increase shall be calculated at 3% or one-half the annual 
7unadjusted percentage increase (but not less than zero) in the 
8consumer price index-u for the 12 months ending with the 
9September preceding each November 1, whichever is less, of the 
10originally granted retirement annuity. If the annual 
11unadjusted percentage change in the consumer price index-u for 
12the 12 months ending with the September preceding each 
13November 1 is zero or there is a decrease, then the annuity 
14shall not be increased. 
15 For an affected member or participant, any retirement 
16annuity or supplemental annuity shall be subject to annual 
17increases on the January 1 occurring either on or after the 
18attainment of the retirement age under the Article applicable 
19to that member or participant or the first anniversary of the 
20annuity start date, whichever is later.
21 For the purposes of Section 1-103.1 of this Code, the 
22changes made to this Section by Public Act 102-263 are 
23applicable without regard to whether the employee was in 
24active service on or after August 6, 2021 (the effective date 
25of Public Act 102-263). 
26 For the purposes of Section 1-103.1 of this Code, the 
 
 
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1changes made to this Section by Public Act 100-23 are 
2applicable without regard to whether the employee was in 
3active service on or after July 6, 2017 (the effective date of 
4Public Act 100-23). 
5 (f) The initial survivor's or widow's annuity of an 
6otherwise eligible survivor or widow of a retired member or 
7participant who first became a member or participant on or 
8after January 1, 2011 shall be in the amount of 66 2/3% of the 
9retired member's or participant's retirement annuity at the 
10date of death. In the case of the death of a member or 
11participant who has not retired and who first became a member 
12or participant on or after January 1, 2011, eligibility for a 
13survivor's or widow's annuity shall be determined by the 
14applicable Article of this Code. The initial benefit shall be 
1566 2/3% of the earned annuity without a reduction due to age. A 
16child's annuity of an otherwise eligible child shall be in the 
17amount prescribed under each Article if applicable. Any 
18survivor's or widow's annuity shall be increased (1) on each 
19January 1 occurring on or after the commencement of the 
20annuity if the deceased member died while receiving a 
21retirement annuity or (2) in other cases, on each January 1 
22occurring after the first anniversary of the commencement of 
23the annuity. Each annual increase shall be calculated at 3% or 
24one-half the annual unadjusted percentage increase (but not 
25less than zero) in the consumer price index-u for the 12 months 
26ending with the September preceding each November 1, whichever 
 
 
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1is less, of the originally granted survivor's annuity. If the 
2annual unadjusted percentage change in the consumer price 
3index-u for the 12 months ending with the September preceding 
4each November 1 is zero or there is a decrease, then the 
5annuity shall not be increased. 
6 (g) The benefits in Section 14-110 apply only if the 
7person is a fire fighter in the fire protection service of a 
8department, a security employee of the Department of 
9Corrections or the Department of Juvenile Justice, a security 
10employee of the Department of Innovation and Technology, a 
11security employee of the Department of Human Services, an 
12investigator for the Department of the Lottery, a State 
13policeman, an investigator for the Secretary of State, a 
14conservation police officer, an investigator for the 
15Department of Revenue or the Illinois Gaming Board, an 
16investigator for the Office of the Attorney General, a 
17Commerce Commission police officer, an arson investigator, or 
18a State highway maintenance worker a State policeman, a fire 
19fighter in the fire protection service of a department, a 
20conservation police officer, an investigator for the Secretary 
21of State, an arson investigator, a Commerce Commission police 
22officer, investigator for the Department of Revenue or the 
23Illinois Gaming Board, a security employee of the Department 
24of Corrections or the Department of Juvenile Justice, or a 
25security employee of the Department of Innovation and 
26Technology, as those terms are defined in subsection (b) and 
 
 
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1subsection (c) of Section 14-110. A person who meets the 
2requirements of this Section is entitled to an annuity 
3calculated under the provisions of Section 14-110, in lieu of 
4the regular or minimum retirement annuity, only if (i) the 
5person has withdrawn from service with not less than 25 20 
6years of eligible creditable service and has attained age 50 
760, regardless of whether the attainment of age 50 60 occurs 
8while the person is still in service, or (ii) the person has 
9withdrawn from service with not less than 20 years of eligible 
10creditable service and has attained age 55, regardless of 
11whether the attainment of age 55 occurs while the person is 
12still in service. 
13 (h) If a person who first becomes a member or a participant 
14of a retirement system or pension fund subject to this Section 
15on or after January 1, 2011 is receiving a retirement annuity 
16or retirement pension under that system or fund and becomes a 
17member or participant under any other system or fund created 
18by this Code and is employed on a full-time basis, except for 
19those members or participants exempted from the provisions of 
20this Section under subsection (a) of this Section, then the 
21person's retirement annuity or retirement pension under that 
22system or fund shall be suspended during that employment. Upon 
23termination of that employment, the person's retirement 
24annuity or retirement pension payments shall resume and be 
25recalculated if recalculation is provided for under the 
26applicable Article of this Code.
 
 
HB5909- 272 -LRB103 43117 RPS 76377 b


1 If a person who first becomes a member of a retirement 
2system or pension fund subject to this Section on or after 
3January 1, 2012 and is receiving a retirement annuity or 
4retirement pension under that system or fund and accepts on a 
5contractual basis a position to provide services to a 
6governmental entity from which he or she has retired, then 
7that person's annuity or retirement pension earned as an 
8active employee of the employer shall be suspended during that 
9contractual service. A person receiving an annuity or 
10retirement pension under this Code shall notify the pension 
11fund or retirement system from which he or she is receiving an 
12annuity or retirement pension, as well as his or her 
13contractual employer, of his or her retirement status before 
14accepting contractual employment. A person who fails to submit 
15such notification shall be guilty of a Class A misdemeanor and 
16required to pay a fine of $1,000. Upon termination of that 
17contractual employment, the person's retirement annuity or 
18retirement pension payments shall resume and, if appropriate, 
19be recalculated under the applicable provisions of this Code. 
20 (i) (Blank). 
21 (j) In the case of a conflict between the provisions of 
22this Section and any other provision of this Code, the 
23provisions of this Section shall control.
24(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
25102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
265-13-22; 103-529, eff. 8-11-23.)

 
 
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1 (Text of Section from P.A. 102-956)
2 Sec. 1-160. Provisions applicable to new hires. 
3 (a) The provisions of this Section apply to a person who, 
4on or after January 1, 2011, first becomes a member or a 
5participant under any reciprocal retirement system or pension 
6fund established under this Code, other than a retirement 
7system or pension fund established under Article 2, 3, 4, 5, 6, 
87, 15, or 18 of this Code, notwithstanding any other provision 
9of this Code to the contrary, but do not apply to any 
10self-managed plan established under this Code or to any 
11participant of the retirement plan established under Section 
1222-101; except that this Section applies to a person who 
13elected to establish alternative credits by electing in 
14writing after January 1, 2011, but before August 8, 2011, 
15under Section 7-145.1 of this Code. Notwithstanding anything 
16to the contrary in this Section, for purposes of this Section, 
17a person who is a Tier 1 regular employee as defined in Section 
187-109.4 of this Code or who participated in a retirement 
19system under Article 15 prior to January 1, 2011 shall be 
20deemed a person who first became a member or participant prior 
21to January 1, 2011 under any retirement system or pension fund 
22subject to this Section. The changes made to this Section by 
23Public Act 98-596 are a clarification of existing law and are 
24intended to be retroactive to January 1, 2011 (the effective 
25date of Public Act 96-889), notwithstanding the provisions of 
 
 
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1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a 
3noncovered employee under Article 14 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who first becomes a 
10member or participant under Article 16 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who elects under 
17subsection (c-5) of Section 1-161 to receive the benefits 
18under Section 1-161. 
19 This Section does not apply to a person who first becomes a 
20member or participant of an affected pension fund on or after 6 
21months after the resolution or ordinance date, as defined in 
22Section 1-162, unless that person elects under subsection (c) 
23of Section 1-162 to receive the benefits provided under this 
24Section and the applicable provisions of the Article under 
25which he or she is a member or participant. 
26 (a-5) In this Section, "affected member or participant" 
 
 
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1means a member or participant to whom this Section applies and 
2who is an active member or participant on or after January 1, 
32025; except that "affected member or participant" does not 
4include a member or participant under Article 22. 
5 (b) "Final average salary" means, except as otherwise 
6provided in this subsection, the average monthly (or annual) 
7salary obtained by dividing the total salary or earnings 
8calculated under the Article applicable to the member or 
9participant during the 96 consecutive months (or 8 consecutive 
10years) of service within the last 120 months (or 10 years) of 
11service in which the total salary or earnings calculated under 
12the applicable Article was the highest by the number of months 
13(or years) of service in that period. For the purposes of a 
14person who first becomes a member or participant of any 
15retirement system or pension fund to which this Section 
16applies on or after January 1, 2011, in this Code, "final 
17average salary" shall be substituted for the following:
18  (1) (Blank).
19  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
20 annual salary for any 4 consecutive years within the last 
21 10 years of service immediately preceding the date of 
22 withdrawal". 
23  (3) In Article 13, "average final salary". 
24  (4) In Article 14, "final average compensation". 
25  (5) In Article 17, "average salary". 
26  (6) In Section 22-207, "wages or salary received by 
 
 
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1 him at the date of retirement or discharge". 
2 A member of the Teachers' Retirement System of the State 
3of Illinois who retires on or after June 1, 2021 and for whom 
4the 2020-2021 school year is used in the calculation of the 
5member's final average salary shall use the higher of the 
6following for the purpose of determining the member's final 
7average salary:
8  (A) the amount otherwise calculated under the first 
9 paragraph of this subsection; or
10  (B) an amount calculated by the Teachers' Retirement 
11 System of the State of Illinois using the average of the 
12 monthly (or annual) salary obtained by dividing the total 
13 salary or earnings calculated under Article 16 applicable 
14 to the member or participant during the 96 months (or 8 
15 years) of service within the last 120 months (or 10 years) 
16 of service in which the total salary or earnings 
17 calculated under the Article was the highest by the number 
18 of months (or years) of service in that period.
19 (b-5) Beginning on January 1, 2011, for all purposes under 
20this Code (including without limitation the calculation of 
21benefits and employee contributions), the annual earnings, 
22salary, or wages (based on the plan year) of a member or 
23participant to whom this Section applies shall not exceed 
24$106,800; however, that amount shall annually thereafter be 
25increased by the lesser of (i) 3% of that amount, including all 
26previous adjustments, or (ii) one-half the annual unadjusted 
 
 
HB5909- 277 -LRB103 43117 RPS 76377 b


1percentage increase (but not less than zero) in the consumer 
2price index-u for the 12 months ending with the September 
3preceding each November 1, including all previous adjustments.
4 For the purposes of this Section, "consumer price index-u" 
5means the index published by the Bureau of Labor Statistics of 
6the United States Department of Labor that measures the 
7average change in prices of goods and services purchased by 
8all urban consumers, United States city average, all items, 
91982-84 = 100. The new amount resulting from each annual 
10adjustment shall be determined by the Public Pension Division 
11of the Department of Insurance and made available to the 
12boards of the retirement systems and pension funds by November 
131 of each year. 
14 (b-10) Beginning on January 1, 2024, for all purposes 
15under this Code (including, without limitation, the 
16calculation of benefits and employee contributions), the 
17annual earnings, salary, or wages (based on the plan year) of a 
18member or participant under Article 9 to whom this Section 
19applies shall include an annual earnings, salary, or wage cap 
20that tracks the Social Security wage base. Maximum annual 
21earnings, wages, or salary shall be the annual contribution 
22and benefit base established for the applicable year by the 
23Commissioner of the Social Security Administration under the 
24federal Social Security Act. 
25 However, in no event shall the annual earnings, salary, or 
26wages for the purposes of this Article and Article 9 exceed any 
 
 
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1limitation imposed on annual earnings, salary, or wages under 
2Section 1-117. Under no circumstances shall the maximum amount 
3of annual earnings, salary, or wages be greater than the 
4amount set forth in this subsection (b-10) as a result of 
5reciprocal service or any provisions regarding reciprocal 
6services, nor shall the Fund under Article 9 be required to pay 
7any refund as a result of the application of this maximum 
8annual earnings, salary, and wage cap. 
9 Nothing in this subsection (b-10) shall cause or otherwise 
10result in any retroactive adjustment of any employee 
11contributions. Nothing in this subsection (b-10) shall cause 
12or otherwise result in any retroactive adjustment of 
13disability or other payments made between January 1, 2011 and 
14January 1, 2024. 
15 (c) For a member or participant who is not an affected 
16member or participant, a A member or participant is entitled 
17to a retirement annuity upon written application if he or she 
18has attained age 67 (age 65, with respect to service under 
19Article 12 that is subject to this Section, for a member or 
20participant under Article 12 who first becomes a member or 
21participant under Article 12 on or after January 1, 2022 or who 
22makes the election under item (i) of subsection (d-15) of this 
23Section) and has at least 10 years of service credit and is 
24otherwise eligible under the requirements of the applicable 
25Article. 
26 For an affected member or participant, the age and service 
 
 
HB5909- 279 -LRB103 43117 RPS 76377 b


1eligibility requirements for a retirement annuity are the age 
2and service eligibility requirements applicable to a member or 
3participant who first became a member or participant under the 
4applicable Article on December 31, 2010. 
5 A member or participant who has attained age 62 (age 60, 
6with respect to service under Article 12 that is subject to 
7this Section, for a member or participant under Article 12 who 
8first becomes a member or participant under Article 12 on or 
9after January 1, 2022 or who makes the election under item (i) 
10of subsection (d-15) of this Section) and has at least 10 years 
11of service credit and is otherwise eligible under the 
12requirements of the applicable Article may elect to receive 
13the lower retirement annuity provided in subsection (d) of 
14this Section. 
15 This subsection does not apply to an affected member or 
16participant. 
17 (c-5) A person who first becomes a member or a participant 
18subject to this Section on or after July 6, 2017 (the effective 
19date of Public Act 100-23), notwithstanding any other 
20provision of this Code to the contrary, is entitled to a 
21retirement annuity under Article 8 or Article 11 upon written 
22application if he or she has attained age 65 and has at least 
2310 years of service credit and is otherwise eligible under the 
24requirements of Article 8 or Article 11 of this Code, 
25whichever is applicable. 
26 This subsection does not apply to an affected member or 
 
 
HB5909- 280 -LRB103 43117 RPS 76377 b


1participant. 
2 (d) The retirement annuity of a member or participant who 
3is retiring after attaining age 62 (age 60, with respect to 
4service under Article 12 that is subject to this Section, for a 
5member or participant under Article 12 who first becomes a 
6member or participant under Article 12 on or after January 1, 
72022 or who makes the election under item (i) of subsection 
8(d-15) of this Section) with at least 10 years of service 
9credit shall be reduced by one-half of 1% for each full month 
10that the member's age is under age 67 (age 65, with respect to 
11service under Article 12 that is subject to this Section, for a 
12member or participant under Article 12 who first becomes a 
13member or participant under Article 12 on or after January 1, 
142022 or who makes the election under item (i) of subsection 
15(d-15) of this Section). This paragraph does not apply to an 
16affected member or participant. 
17 (d-5) The retirement annuity payable under Article 8 or 
18Article 11 to an eligible person subject to subsection (c-5) 
19of this Section who is retiring at age 60 with at least 10 
20years of service credit shall be reduced by one-half of 1% for 
21each full month that the member's age is under age 65. 
22 This subsection does not apply to an affected member or 
23participant. 
24 (d-10) Each person who first became a member or 
25participant under Article 8 or Article 11 of this Code on or 
26after January 1, 2011 and prior to July 6, 2017 (the effective 
 
 
HB5909- 281 -LRB103 43117 RPS 76377 b


1date of Public Act 100-23) shall make an irrevocable election 
2either:
3  (i) to be eligible for the reduced retirement age 
4 provided in subsections (c-5) and (d-5) of this Section, 
5 the eligibility for which is conditioned upon the member 
6 or participant agreeing to the increases in employee 
7 contributions for age and service annuities provided in 
8 subsection (a-5) of Section 8-174 of this Code (for 
9 service under Article 8) or subsection (a-5) of Section 
10 11-170 of this Code (for service under Article 11); or 
11  (ii) to not agree to item (i) of this subsection 
12 (d-10), in which case the member or participant shall 
13 continue to be subject to the retirement age provisions in 
14 subsections (c) and (d) of this Section and the employee 
15 contributions for age and service annuity as provided in 
16 subsection (a) of Section 8-174 of this Code (for service 
17 under Article 8) or subsection (a) of Section 11-170 of 
18 this Code (for service under Article 11). 
19 The election provided for in this subsection shall be made 
20between October 1, 2017 and November 15, 2017. A person 
21subject to this subsection who makes the required election 
22shall remain bound by that election. A person subject to this 
23subsection who fails for any reason to make the required 
24election within the time specified in this subsection shall be 
25deemed to have made the election under item (ii). 
26 This subsection does not apply to an affected member or 
 
 
HB5909- 282 -LRB103 43117 RPS 76377 b


1participant. 
2 (d-15) Each person who first becomes a member or 
3participant under Article 12 on or after January 1, 2011 and 
4prior to January 1, 2022 shall make an irrevocable election 
5either: 
6  (i) to be eligible for the reduced retirement age 
7 specified in subsections (c) and (d) of this Section, the 
8 eligibility for which is conditioned upon the member or 
9 participant agreeing to the increase in employee 
10 contributions for service annuities specified in 
11 subsection (b) of Section 12-150; or
12  (ii) to not agree to item (i) of this subsection 
13 (d-15), in which case the member or participant shall not 
14 be eligible for the reduced retirement age specified in 
15 subsections (c) and (d) of this Section and shall not be 
16 subject to the increase in employee contributions for 
17 service annuities specified in subsection (b) of Section 
18 12-150. 
19 The election provided for in this subsection shall be made 
20between January 1, 2022 and April 1, 2022. A person subject to 
21this subsection who makes the required election shall remain 
22bound by that election. A person subject to this subsection 
23who fails for any reason to make the required election within 
24the time specified in this subsection shall be deemed to have 
25made the election under item (ii). 
26 This subsection does not apply to an affected member or 
 
 
HB5909- 283 -LRB103 43117 RPS 76377 b


1participant. 
2 (e) For a member or participant who is not an affected 
3member or participant, any Any retirement annuity or 
4supplemental annuity shall be subject to annual increases on 
5the January 1 occurring either on or after the attainment of 
6age 67 (age 65, with respect to service under Article 12 that 
7is subject to this Section, for a member or participant under 
8Article 12 who first becomes a member or participant under 
9Article 12 on or after January 1, 2022 or who makes the 
10election under item (i) of subsection (d-15); and beginning on 
11July 6, 2017 (the effective date of Public Act 100-23), age 65 
12with respect to service under Article 8 or Article 11 for 
13eligible persons who: (i) are subject to subsection (c-5) of 
14this Section; or (ii) made the election under item (i) of 
15subsection (d-10) of this Section) or the first anniversary of 
16the annuity start date, whichever is later. Each annual 
17increase shall be calculated at 3% or one-half the annual 
18unadjusted percentage increase (but not less than zero) in the 
19consumer price index-u for the 12 months ending with the 
20September preceding each November 1, whichever is less, of the 
21originally granted retirement annuity. If the annual 
22unadjusted percentage change in the consumer price index-u for 
23the 12 months ending with the September preceding each 
24November 1 is zero or there is a decrease, then the annuity 
25shall not be increased. 
26 For an affected member or participant, any retirement 
 
 
HB5909- 284 -LRB103 43117 RPS 76377 b


1annuity or supplemental annuity shall be subject to annual 
2increases on the January 1 occurring either on or after the 
3attainment of the retirement age under the Article applicable 
4to that member or participant or the first anniversary of the 
5annuity start date, whichever is later.
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this Section by Public Act 102-263 are 
8applicable without regard to whether the employee was in 
9active service on or after August 6, 2021 (the effective date 
10of Public Act 102-263). 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this Section by Public Act 100-23 are 
13applicable without regard to whether the employee was in 
14active service on or after July 6, 2017 (the effective date of 
15Public Act 100-23). 
16 (f) The initial survivor's or widow's annuity of an 
17otherwise eligible survivor or widow of a retired member or 
18participant who first became a member or participant on or 
19after January 1, 2011 shall be in the amount of 66 2/3% of the 
20retired member's or participant's retirement annuity at the 
21date of death. In the case of the death of a member or 
22participant who has not retired and who first became a member 
23or participant on or after January 1, 2011, eligibility for a 
24survivor's or widow's annuity shall be determined by the 
25applicable Article of this Code. The initial benefit shall be 
2666 2/3% of the earned annuity without a reduction due to age. A 
 
 
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1child's annuity of an otherwise eligible child shall be in the 
2amount prescribed under each Article if applicable. Any 
3survivor's or widow's annuity shall be increased (1) on each 
4January 1 occurring on or after the commencement of the 
5annuity if the deceased member died while receiving a 
6retirement annuity or (2) in other cases, on each January 1 
7occurring after the first anniversary of the commencement of 
8the annuity. Each annual increase shall be calculated at 3% or 
9one-half the annual unadjusted percentage increase (but not 
10less than zero) in the consumer price index-u for the 12 months 
11ending with the September preceding each November 1, whichever 
12is less, of the originally granted survivor's annuity. If the 
13annual unadjusted percentage change in the consumer price 
14index-u for the 12 months ending with the September preceding 
15each November 1 is zero or there is a decrease, then the 
16annuity shall not be increased. 
17 (g) The benefits in Section 14-110 apply only if the 
18person is a fire fighter in the fire protection service of a 
19department, a security employee of the Department of 
20Corrections or the Department of Juvenile Justice, a security 
21employee of the Department of Innovation and Technology, a 
22security employee of the Department of Human Services, an 
23investigator for the Department of the Lottery, a State 
24policeman, an investigator for the Secretary of State, a 
25conservation police officer, an investigator for the 
26Department of Revenue or the Illinois Gaming Board, an 
 
 
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1investigator for the Office of the Attorney General, a 
2Commerce Commission police officer, an arson investigator, or 
3a State highway maintenance worker a State policeman, a fire 
4fighter in the fire protection service of a department, a 
5conservation police officer, an investigator for the Secretary 
6of State, an investigator for the Office of the Attorney 
7General, an arson investigator, a Commerce Commission police 
8officer, investigator for the Department of Revenue or the 
9Illinois Gaming Board, a security employee of the Department 
10of Corrections or the Department of Juvenile Justice, or a 
11security employee of the Department of Innovation and 
12Technology, as those terms are defined in subsection (b) and 
13subsection (c) of Section 14-110. A person who meets the 
14requirements of this Section is entitled to an annuity 
15calculated under the provisions of Section 14-110, in lieu of 
16the regular or minimum retirement annuity, only if (i) the 
17person has withdrawn from service with not less than 25 20 
18years of eligible creditable service and has attained age 50 
1960, regardless of whether the attainment of age 50 60 occurs 
20while the person is still in service, or (ii) the person has 
21withdrawn from service with not less than 20 years of eligible 
22creditable service and has attained age 55, regardless of 
23whether the attainment of age 55 occurs while the person is 
24still in service. 
25 (h) If a person who first becomes a member or a participant 
26of a retirement system or pension fund subject to this Section 
 
 
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1on or after January 1, 2011 is receiving a retirement annuity 
2or retirement pension under that system or fund and becomes a 
3member or participant under any other system or fund created 
4by this Code and is employed on a full-time basis, except for 
5those members or participants exempted from the provisions of 
6this Section under subsection (a) of this Section, then the 
7person's retirement annuity or retirement pension under that 
8system or fund shall be suspended during that employment. Upon 
9termination of that employment, the person's retirement 
10annuity or retirement pension payments shall resume and be 
11recalculated if recalculation is provided for under the 
12applicable Article of this Code.
13 If a person who first becomes a member of a retirement 
14system or pension fund subject to this Section on or after 
15January 1, 2012 and is receiving a retirement annuity or 
16retirement pension under that system or fund and accepts on a 
17contractual basis a position to provide services to a 
18governmental entity from which he or she has retired, then 
19that person's annuity or retirement pension earned as an 
20active employee of the employer shall be suspended during that 
21contractual service. A person receiving an annuity or 
22retirement pension under this Code shall notify the pension 
23fund or retirement system from which he or she is receiving an 
24annuity or retirement pension, as well as his or her 
25contractual employer, of his or her retirement status before 
26accepting contractual employment. A person who fails to submit 
 
 
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1such notification shall be guilty of a Class A misdemeanor and 
2required to pay a fine of $1,000. Upon termination of that 
3contractual employment, the person's retirement annuity or 
4retirement pension payments shall resume and, if appropriate, 
5be recalculated under the applicable provisions of this Code. 
6 (i) (Blank). 
7 (j) In the case of a conflict between the provisions of 
8this Section and any other provision of this Code, the 
9provisions of this Section shall control.
10(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
11102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
128-11-23.)

13 (40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
14 (Text of Section WITHOUT the changes made by P.A. 98-599, 
15which has been held unconstitutional)
16 Sec. 2-119. Retirement annuity - conditions for 
17eligibility. 
18 (a) A participant whose service as a member is terminated, 
19regardless of age or cause, is entitled to a retirement 
20annuity beginning on the date specified by the participant in 
21a written application subject to the following conditions:
22  1. The date the annuity begins does not precede the 
23 date of final termination of service, or is not more than 
24 30 days before the receipt of the application by the board 
25 in the case of annuities based on disability or one year 
 
 
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1 before the receipt of the application in the case of 
2 annuities based on attained age;
3  2. The participant meets one of the following 
4 eligibility requirements:
5  For a participant who first becomes a participant of 
6 this System before January 1, 2011 (the effective date of 
7 Public Act 96-889) or a participant who first became a 
8 participant of this System on or after January 1, 2011 and 
9 was in service on or after January 1, 2025: 
10   (A) He or she has attained age 55 and has at least 
11 8 years of service credit;
12   (B) He or she has attained age 62 and terminated 
13 service after July 1, 1971 with at least 4 years of 
14 service credit; or
15   (C) He or she has completed 8 years of service and 
16 has become permanently disabled and as a consequence, 
17 is unable to perform the duties of his or her office.
18  For a participant who first becomes a participant of 
19 this System on or after January 1, 2011 (the effective 
20 date of Public Act 96-889) and who is not in service on or 
21 after January 1, 2025, he or she has attained age 67 and 
22 has at least 8 years of service credit. 
23 (a-5) A participant who first becomes a participant of 
24this System on or after January 1, 2011 (the effective date of 
25Public Act 96-889) who is not in service on or after January 1, 
262025, has attained age 62, and has at least 8 years of service 
 
 
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1credit may elect to receive the lower retirement annuity 
2provided in paragraph (d) (c) of Section 2-119.01 of this 
3Code. 
4 (b) A participant shall be considered permanently disabled 
5only if: (1) disability occurs while in service and is of such 
6a nature as to prevent him or her from reasonably performing 
7the duties of his or her office at the time; and (2) the board 
8has received a written certificate by at least 2 licensed 
9physicians appointed by the board stating that the member is 
10disabled and that the disability is likely to be permanent.
11(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

12 (40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
13 Sec. 2-119.01. Retirement annuities; amount annuities - 
14Amount. 
15 (a) For a participant in service after June 30, 1977 who 
16has not made contributions to this System after January 1, 
171982, the annual retirement annuity is 3% for each of the first 
188 years of service, plus 4% for each of the next 4 years of 
19service, plus 5% for each year of service in excess of 12 
20years, based on the participant's highest salary for annuity 
21purposes. The maximum retirement annuity payable shall be 80% 
22of the participant's highest salary for annuity purposes.
23 (b) For a participant in service after June 30, 1977 who 
24has made contributions to this System on or after January 1, 
251982, the annual retirement annuity is 3% for each of the first 
 
 
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14 years of service, plus 3 1/2% for each of the next 2 years of 
2service, plus 4% for each of the next 2 years of service, plus 
34 1/2% for each of the next 4 years of service, plus 5% for 
4each year of service in excess of 12 years, of the 
5participant's highest salary for annuity purposes. The maximum 
6retirement annuity payable shall be 85% of the participant's 
7highest salary for annuity purposes.
8 (c) Notwithstanding any other provision of this Article, 
9for a participant who first becomes a participant on or after 
10January 1, 2011 (the effective date of Public Act 96-889), the 
11annual retirement annuity is 3% of the participant's highest 
12salary for annuity purposes for each year of service. The 
13maximum retirement annuity payable shall be 60% of the 
14participant's highest salary for annuity purposes. 
15 (d) Notwithstanding any other provision of this Article, 
16for a participant who first becomes a participant on or after 
17January 1, 2011 (the effective date of Public Act 96-889) and 
18who is retiring after attaining age 62 with at least 8 years of 
19service credit, the retirement annuity shall be reduced by 
20one-half of 1% for each month that the member's age is under 
21age 67. This subsection does not apply to a participant who is 
22in service on or after January 1, 2025. 
23(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

24 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
25 (Text of Section WITHOUT the changes made by P.A. 98-599, 
 
 
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1which has been held unconstitutional)
2 Sec. 2-119.1. Automatic increase in retirement annuity. 
3 (a) A participant who retires after June 30, 1967, and who 
4has not received an initial increase under this Section before 
5the effective date of this amendatory Act of 1991, shall, in 
6January or July next following the first anniversary of 
7retirement, whichever occurs first, and in the same month of 
8each year thereafter, but in no event prior to age 60, have the 
9amount of the originally granted retirement annuity increased 
10as follows: for each year through 1971, 1 1/2%; for each year 
11from 1972 through 1979, 2%; and for 1980 and each year 
12thereafter, 3%. Annuitants who have received an initial 
13increase under this subsection prior to the effective date of 
14this amendatory Act of 1991 shall continue to receive their 
15annual increases in the same month as the initial increase.
16 (b) Beginning January 1, 1990, for eligible participants 
17who remain in service after attaining 20 years of creditable 
18service, the 3% increases provided under subsection (a) shall 
19begin to accrue on the January 1 next following the date upon 
20which the participant (1) attains age 55, or (2) attains 20 
21years of creditable service, whichever occurs later, and shall 
22continue to accrue while the participant remains in service; 
23such increases shall become payable on January 1 or July 1, 
24whichever occurs first, next following the first anniversary 
25of retirement. For any person who has service credit in the 
26System for the entire period from January 15, 1969 through 
 
 
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1December 31, 1992, regardless of the date of termination of 
2service, the reference to age 55 in clause (1) of this 
3subsection (b) shall be deemed to mean age 50.
4 This subsection (b) does not apply to any person who first 
5becomes a member of the System after the effective date of this 
6amendatory Act of the 93rd General Assembly.
7 (b-5) Notwithstanding any other provision of this Article, 
8a participant who first becomes a participant on or after 
9January 1, 2011 (the effective date of Public Act 96-889) 
10shall, in January or July next following the first anniversary 
11of retirement, whichever occurs first, and in the same month 
12of each year thereafter, but in no event prior to age 67 (age 
1362 if the participant was in service on or after January 1, 
142025 and has at least 4 years of service credit or age 55 if 
15the participant was in service on or after January 1, 2025 and 
16has at least 8 years of service credit), have the amount of the 
17retirement annuity then being paid increased by 3% or the 
18annual unadjusted percentage increase in the Consumer Price 
19Index for All Urban Consumers as determined by the Public 
20Pension Division of the Department of Insurance under 
21subsection (a) of Section 2-108.1, whichever is less. 
22 (c) The foregoing provisions relating to automatic 
23increases are not applicable to a participant who retires 
24before having made contributions (at the rate prescribed in 
25Section 2-126) for automatic increases for less than the 
26equivalent of one full year. However, in order to be eligible 
 
 
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1for the automatic increases, such a participant may make 
2arrangements to pay to the system the amount required to bring 
3the total contributions for the automatic increase to the 
4equivalent of one year's contributions based upon his or her 
5last salary.
6 (d) A participant who terminated service prior to July 1, 
71967, with at least 14 years of service is entitled to an 
8increase in retirement annuity beginning January, 1976, and to 
9additional increases in January of each year thereafter.
10 The initial increase shall be 1 1/2% of the originally 
11granted retirement annuity multiplied by the number of full 
12years that the annuitant was in receipt of such annuity prior 
13to January 1, 1972, plus 2% of the originally granted 
14retirement annuity for each year after that date. The 
15subsequent annual increases shall be at the rate of 2% of the 
16originally granted retirement annuity for each year through 
171979 and at the rate of 3% for 1980 and thereafter.
18 (e) Beginning January 1, 1990, all automatic annual 
19increases payable under this Section shall be calculated as a 
20percentage of the total annuity payable at the time of the 
21increase, including previous increases granted under this 
22Article.
23(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

24 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
25 Sec. 3-111. Pension. 
 
 
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1 (a) A police officer age 50 or more with 20 or more years 
2of creditable service, who is not a participant in the 
3self-managed plan under Section 3-109.3 and who is no longer 
4in service as a police officer, shall receive a pension of 1/2 
5of the salary attached to the rank held by the officer on the 
6police force for one year immediately prior to retirement or, 
7beginning July 1, 1987 for persons terminating service on or 
8after that date, the salary attached to the rank held on the 
9last day of service or for one year prior to the last day, 
10whichever is greater. The pension shall be increased by 2.5% 
11of such salary for each additional year of service over 20 
12years of service through 30 years of service, to a maximum of 
1375% of such salary.
14 The changes made to this subsection (a) by this amendatory 
15Act of the 91st General Assembly apply to all pensions that 
16become payable under this subsection on or after January 1, 
171999. All pensions payable under this subsection that began on 
18or after January 1, 1999 and before the effective date of this 
19amendatory Act shall be recalculated, and the amount of the 
20increase accruing for that period shall be payable to the 
21pensioner in a lump sum.
22 (a-5) No pension in effect on or granted after June 30, 
231973 shall be less than $200 per month. Beginning July 1, 1987, 
24the minimum retirement pension for a police officer having at 
25least 20 years of creditable service shall be $400 per month, 
26without regard to whether or not retirement occurred prior to 
 
 
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1that date. If the minimum pension established in Section 
23-113.1 is greater than the minimum provided in this 
3subsection, the Section 3-113.1 minimum controls.
4 (b) A police officer mandatorily retired from service due 
5to age by operation of law, having at least 8 but less than 20 
6years of creditable service, shall receive a pension equal to 
72 1/2% of the salary attached to the rank he or she held on the 
8police force for one year immediately prior to retirement or, 
9beginning July 1, 1987 for persons terminating service on or 
10after that date, the salary attached to the rank held on the 
11last day of service or for one year prior to the last day, 
12whichever is greater, for each year of creditable service.
13 A police officer who retires or is separated from service 
14having at least 8 years but less than 20 years of creditable 
15service, who is not mandatorily retired due to age by 
16operation of law, and who does not apply for a refund of 
17contributions at his or her last separation from police 
18service, shall receive a pension upon attaining age 60 equal 
19to 2.5% of the salary attached to the rank held by the police 
20officer on the police force for one year immediately prior to 
21retirement or, beginning July 1, 1987 for persons terminating 
22service on or after that date, the salary attached to the rank 
23held on the last day of service or for one year prior to the 
24last day, whichever is greater, for each year of creditable 
25service.
26 (c) A police officer no longer in service who has at least 
 
 
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1one but less than 8 years of creditable service in a police 
2pension fund but meets the requirements of this subsection (c) 
3shall be eligible to receive a pension from that fund equal to 
42.5% of the salary attached to the rank held on the last day of 
5service under that fund or for one year prior to that last day, 
6whichever is greater, for each year of creditable service in 
7that fund. The pension shall begin no earlier than upon 
8attainment of age 60 (or upon mandatory retirement from the 
9fund by operation of law due to age, if that occurs before age 
1060) and in no event before the effective date of this 
11amendatory Act of 1997. 
12 In order to be eligible for a pension under this 
13subsection (c), the police officer must have at least 8 years 
14of creditable service in a second police pension fund under 
15this Article and be receiving a pension under subsection (a) 
16or (b) of this Section from that second fund. The police 
17officer need not be in service on or after the effective date 
18of this amendatory Act of 1997.
19 (d) Notwithstanding any other provision of this Article, 
20the provisions of this subsection (d) apply to a person who is 
21not a participant in the self-managed plan under Section 
223-109.3 and who first becomes a police officer under this 
23Article on or after January 1, 2011.
24 A police officer age 55 or more who has 10 or more years of 
25service in that capacity shall be entitled at his option to 
26receive a monthly pension for his service as a police officer 
 
 
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1computed by multiplying 2.5% for each year of such service by 
2his or her final average salary; except that, for a police 
3officer who is in service on or after January 1, 2025, the age 
4and service eligibility requirements for a monthly pension for 
5service as a police officer are the age and service 
6eligibility requirements applicable to a police officer who 
7first became a police officer on December 31, 2010. 
8 The pension of a police officer who is retiring after 
9attaining age 50 with 10 or more years of creditable service 
10shall be reduced by one-half of 1% for each month that the 
11police officer's age is under age 55. This paragraph does not 
12apply to a police officer who is in service on or after January 
131, 2025. 
14 The maximum pension under this subsection (d) shall be 75% 
15of final average salary.
16 For the purposes of this subsection (d), "final average 
17salary" means the greater of: (i) the average monthly salary 
18obtained by dividing the total salary of the police officer 
19during the 48 consecutive months of service within the last 60 
20months of service in which the total salary was the highest by 
21the number of months of service in that period; or (ii) the 
22average monthly salary obtained by dividing the total salary 
23of the police officer during the 96 consecutive months of 
24service within the last 120 months of service in which the 
25total salary was the highest by the number of months of service 
26in that period. 
 
 
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1 Beginning on January 1, 2011, for all purposes under this 
2Code (including without limitation the calculation of benefits 
3and employee contributions), the annual salary based on the 
4plan year of a member or participant to whom this Section 
5applies shall not exceed $106,800; however, that amount shall 
6annually thereafter be increased by the lesser of (i) 3% of 
7that amount, including all previous adjustments, or (ii) the 
8annual unadjusted percentage increase (but not less than zero) 
9in the consumer price index-u for the 12 months ending with the 
10September preceding each November 1, including all previous 
11adjustments. 
12 Nothing in this amendatory Act of the 101st General 
13Assembly shall cause or otherwise result in any retroactive 
14adjustment of any employee contributions. 
15(Source: P.A. 101-610, eff. 1-1-20.)

16 (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
17 Sec. 3-111.1. Increase in pension. 
18 (a) Except as provided in subsection (e), the monthly 
19pension of a police officer who retires after July 1, 1971, and 
20prior to January 1, 1986, shall be increased, upon either the 
21first of the month following the first anniversary of the date 
22of retirement if the officer is 60 years of age or over at 
23retirement date, or upon the first day of the month following 
24attainment of age 60 if it occurs after the first anniversary 
25of retirement, by 3% of the originally granted pension and by 
 
 
HB5909- 300 -LRB103 43117 RPS 76377 b


1an additional 3% of the originally granted pension in January 
2of each year thereafter.
3 (b) The monthly pension of a police officer who retired 
4from service with 20 or more years of service, on or before 
5July 1, 1971, shall be increased in January of the year 
6following the year of attaining age 65 or in January of 1972, 
7if then over age 65, by 3% of the originally granted pension 
8for each year the police officer received pension payments. In 
9each January thereafter, he or she shall receive an additional 
10increase of 3% of the original pension.
11 (c) The monthly pension of a police officer who retires on 
12disability or is retired for disability shall be increased in 
13January of the year following the year of attaining age 60, by 
143% of the original grant of pension for each year he or she 
15received pension payments. In each January thereafter, the 
16police officer shall receive an additional increase of 3% of 
17the original pension.
18 (d) The monthly pension of a police officer who retires 
19after January 1, 1986, shall be increased, upon either the 
20first of the month following the first anniversary of the date 
21of retirement if the officer is 55 years of age or over, or 
22upon the first day of the month following attainment of age 55 
23if it occurs after the first anniversary of retirement, by 
241/12 of 3% of the originally granted pension for each full 
25month that has elapsed since the pension began, and by an 
26additional 3% of the originally granted pension in January of 
 
 
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1each year thereafter.
2 The changes made to this subsection (d) by this amendatory 
3Act of the 91st General Assembly apply to all initial 
4increases that become payable under this subsection on or 
5after January 1, 1999. All initial increases that became 
6payable under this subsection on or after January 1, 1999 and 
7before the effective date of this amendatory Act shall be 
8recalculated and the additional amount accruing for that 
9period, if any, shall be payable to the pensioner in a lump 
10sum.
11 (e) Notwithstanding the provisions of subsection (a), upon 
12the first day of the month following (1) the first anniversary 
13of the date of retirement, or (2) the attainment of age 55, or 
14(3) July 1, 1987, whichever occurs latest, the monthly pension 
15of a police officer who retired on or after January 1, 1977 and 
16on or before January 1, 1986, and did not receive an increase 
17under subsection (a) before July 1, 1987, shall be increased 
18by 3% of the originally granted monthly pension for each full 
19year that has elapsed since the pension began, and by an 
20additional 3% of the originally granted pension in each 
21January thereafter. The increases provided under this 
22subsection are in lieu of the increases provided in subsection 
23(a).
24 (f) Notwithstanding the other provisions of this Section, 
25beginning with increases granted on or after July 1, 1993, the 
26second and all subsequent automatic annual increases granted 
 
 
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1under subsection (a), (b), (d), or (e) of this Section shall be 
2calculated as 3% of the amount of pension payable at the time 
3of the increase, including any increases previously granted 
4under this Section, rather than 3% of the originally granted 
5pension amount. Section 1-103.1 does not apply to this 
6subsection (f).
7 (g) Notwithstanding any other provision of this Article, 
8the monthly pension of a person who first becomes a police 
9officer under this Article on or after January 1, 2011 shall be 
10increased on the January 1 occurring either on or after the 
11attainment of the retirement age applicable to that police 
12officer under this Article age 60 or the first anniversary of 
13the pension start date, whichever is later. Each annual 
14increase shall be calculated at 3% or one-half the annual 
15unadjusted percentage increase (but not less than zero) in the 
16consumer price index-u for the 12 months ending with the 
17September preceding each November 1, whichever is less, of the 
18originally granted pension. If the annual unadjusted 
19percentage change in the consumer price index-u for a 12-month 
20period ending in September is zero or, when compared with the 
21preceding period, decreases, then the pension shall not be 
22increased. 
23 For the purposes of this subsection (g), "consumer price 
24index-u" means the index published by the Bureau of Labor 
25Statistics of the United States Department of Labor that 
26measures the average change in prices of goods and services 
 
 
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1purchased by all urban consumers, United States city average, 
2all items, 1982-84 = 100. The new amount resulting from each 
3annual adjustment shall be determined by the Public Pension 
4Division of the Department of Insurance and made available to 
5the boards of the pension funds. 
6(Source: P.A. 96-1495, eff. 1-1-11.)

7 (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
8 Sec. 4-109. Pension. 
9 (a) A firefighter age 50 or more with 20 or more years of 
10creditable service, who is no longer in service as a 
11firefighter, shall receive a monthly pension of 1/2 the 
12monthly salary attached to the rank held by him or her in the 
13fire service at the date of retirement.
14 The monthly pension shall be increased by 1/12 of 2.5% of 
15such monthly salary for each additional month over 20 years of 
16service through 30 years of service, to a maximum of 75% of 
17such monthly salary.
18 The changes made to this subsection (a) by this amendatory 
19Act of the 91st General Assembly apply to all pensions that 
20become payable under this subsection on or after January 1, 
211999. All pensions payable under this subsection that began on 
22or after January 1, 1999 and before the effective date of this 
23amendatory Act shall be recalculated, and the amount of the 
24increase accruing for that period shall be payable to the 
25pensioner in a lump sum.
 
 
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1 (b) A firefighter who retires or is separated from service 
2having at least 10 but less than 20 years of creditable 
3service, who is not entitled to receive a disability pension, 
4and who did not apply for a refund of contributions at his or 
5her last separation from service shall receive a monthly 
6pension upon attainment of age 60 based on the monthly salary 
7attached to his or her rank in the fire service on the date of 
8retirement or separation from service according to the 
9following schedule:
10 For 10 years of service, 15% of salary;

11 For 11 years of service, 17.6% of salary;

12 For 12 years of service, 20.4% of salary;

13 For 13 years of service, 23.4% of salary;

14 For 14 years of service, 26.6% of salary;

15 For 15 years of service, 30% of salary;

16 For 16 years of service, 33.6% of salary;

17 For 17 years of service, 37.4% of salary;

18 For 18 years of service, 41.4% of salary;

19 For 19 years of service, 45.6% of salary.
20 (c) Notwithstanding any other provision of this Article, 
21the provisions of this subsection (c) apply to a person who 
22first becomes a firefighter under this Article on or after 
23January 1, 2011.
24 A firefighter age 55 or more who has 10 or more years of 
25service in that capacity shall be entitled at his option to 
26receive a monthly pension for his service as a firefighter 
 
 
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1computed by multiplying 2.5% for each year of such service by 
2his or her final average salary; except that, for a 
3firefighter who is in service on or after January 1, 2025, the 
4age and service eligibility requirements for a monthly pension 
5for service as a firefighter are the age and service 
6eligibility requirements applicable to a firefighter who first 
7became a firefighter on December 31, 2010.
8 The pension of a firefighter who is retiring after 
9attaining age 50 with 10 or more years of creditable service 
10shall be reduced by one-half of 1% for each month that the 
11firefighter's age is under age 55. This paragraph does not 
12apply to a firefighter who is in service on or after January 1, 
132025. 
14 The maximum pension under this subsection (c) shall be 75% 
15of final average salary.
16 For the purposes of this subsection (c), "final average 
17salary" means the greater of: (i) the average monthly salary 
18obtained by dividing the total salary of the firefighter 
19during the 48 consecutive months of service within the last 60 
20months of service in which the total salary was the highest by 
21the number of months of service in that period; or (ii) the 
22average monthly salary obtained by dividing the total salary 
23of the firefighter during the 96 consecutive months of service 
24within the last 120 months of service in which the total salary 
25was the highest by the number of months of service in that 
26period. 
 
 
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1 Beginning on January 1, 2011, for all purposes under this 
2Code (including without limitation the calculation of benefits 
3and employee contributions), the annual salary based on the 
4plan year of a member or participant to whom this Section 
5applies shall not exceed $106,800; however, that amount shall 
6annually thereafter be increased by the lesser of (i) 3% of 
7that amount, including all previous adjustments, or (ii) the 
8annual unadjusted percentage increase (but not less than zero) 
9in the consumer price index-u for the 12 months ending with the 
10September preceding each November 1, including all previous 
11adjustments. 
12 Nothing in this amendatory Act of the 101st General 
13Assembly shall cause or otherwise result in any retroactive 
14adjustment of any employee contributions. 
15(Source: P.A. 101-610, eff. 1-1-20.)

16 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
17 Sec. 4-109.1. Increase in pension. 
18 (a) Except as provided in subsection (e), the monthly 
19pension of a firefighter who retires after July 1, 1971 and 
20prior to January 1, 1986, shall, upon either the first of the 
21month following the first anniversary of the date of 
22retirement if 60 years of age or over at retirement date, or 
23upon the first day of the month following attainment of age 60 
24if it occurs after the first anniversary of retirement, be 
25increased by 2% of the originally granted monthly pension and 
 
 
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1by an additional 2% in each January thereafter. Effective 
2January 1976, the rate of the annual increase shall be 3% of 
3the originally granted monthly pension. 
4 (b) The monthly pension of a firefighter who retired from 
5service with 20 or more years of service, on or before July 1, 
61971, shall be increased, in January of the year following the 
7year of attaining age 65 or in January 1972, if then over age 
865, by 2% of the originally granted monthly pension, for each 
9year the firefighter received pension payments. In each 
10January thereafter, he or she shall receive an additional 
11increase of 2% of the original monthly pension. Effective 
12January 1976, the rate of the annual increase shall be 3%. 
13 (c) The monthly pension of a firefighter who is receiving 
14a disability pension under this Article shall be increased, in 
15January of the year following the year the firefighter attains 
16age 60, or in January 1974, if then over age 60, by 2% of the 
17originally granted monthly pension for each year he or she 
18received pension payments. In each January thereafter, the 
19firefighter shall receive an additional increase of 2% of the 
20original monthly pension. Effective January 1976, the rate of 
21the annual increase shall be 3%. 
22 (c-1) On January 1, 1998, every child's disability benefit 
23payable on that date under Section 4-110 or 4-110.1 shall be 
24increased by an amount equal to 1/12 of 3% of the amount of the 
25benefit, multiplied by the number of months for which the 
26benefit has been payable. On each January 1 thereafter, every 
 
 
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1child's disability benefit payable under Section 4-110 or 
24-110.1 shall be increased by 3% of the amount of the benefit 
3then being paid, including any previous increases received 
4under this Article. These increases are not subject to any 
5limitation on the maximum benefit amount included in Section 
64-110 or 4-110.1. 
7 (c-2) On July 1, 2004, every pension payable to or on 
8behalf of a minor or disabled surviving child that is payable 
9on that date under Section 4-114 shall be increased by an 
10amount equal to 1/12 of 3% of the amount of the pension, 
11multiplied by the number of months for which the benefit has 
12been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and 
13July 1, 2008, every pension payable to or on behalf of a minor 
14or disabled surviving child that is payable under Section 
154-114 shall be increased by 3% of the amount of the pension 
16then being paid, including any previous increases received 
17under this Article. These increases are not subject to any 
18limitation on the maximum benefit amount included in Section 
194-114. 
20 (d) The monthly pension of a firefighter who retires after 
21January 1, 1986, shall, upon either the first of the month 
22following the first anniversary of the date of retirement if 
2355 years of age or over, or upon the first day of the month 
24following attainment of age 55 if it occurs after the first 
25anniversary of retirement, be increased by 1/12 of 3% of the 
26originally granted monthly pension for each full month that 
 
 
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1has elapsed since the pension began, and by an additional 3% in 
2each January thereafter. 
3 The changes made to this subsection (d) by this amendatory 
4Act of the 91st General Assembly apply to all initial 
5increases that become payable under this subsection on or 
6after January 1, 1999. All initial increases that became 
7payable under this subsection on or after January 1, 1999 and 
8before the effective date of this amendatory Act shall be 
9recalculated and the additional amount accruing for that 
10period, if any, shall be payable to the pensioner in a lump 
11sum. 
12 (e) Notwithstanding the provisions of subsection (a), upon 
13the first day of the month following (1) the first anniversary 
14of the date of retirement, or (2) the attainment of age 55, or 
15(3) July 1, 1987, whichever occurs latest, the monthly pension 
16of a firefighter who retired on or after January 1, 1977 and on 
17or before January 1, 1986 and did not receive an increase under 
18subsection (a) before July 1, 1987, shall be increased by 3% of 
19the originally granted monthly pension for each full year that 
20has elapsed since the pension began, and by an additional 3% in 
21each January thereafter. The increases provided under this 
22subsection are in lieu of the increases provided in subsection 
23(a). 
24 (f) In July 2009, the monthly pension of a firefighter who 
25retired before July 1, 1977 shall be recalculated and 
26increased to reflect the amount that the firefighter would 
 
 
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1have received in July 2009 had the firefighter been receiving 
2a 3% compounded increase for each year he or she received 
3pension payments after January 1, 1986, plus any increases in 
4pension received for each year prior to January 1, 1986. In 
5each January thereafter, he or she shall receive an additional 
6increase of 3% of the amount of the pension then being paid. 
7The changes made to this Section by this amendatory Act of the 
896th General Assembly apply without regard to whether the 
9firefighter was in service on or after its effective date. 
10 (g) Notwithstanding any other provision of this Article, 
11the monthly pension of a person who first becomes a 
12firefighter under this Article on or after January 1, 2011 
13shall be increased on the January 1 occurring either on or 
14after the attainment of the retirement age applicable to that 
15firefighter under this Article age 60 or the first anniversary 
16of the pension start date, whichever is later. Each annual 
17increase shall be calculated at 3% or one-half the annual 
18unadjusted percentage increase (but not less than zero) in the 
19consumer price index-u for the 12 months ending with the 
20September preceding each November 1, whichever is less, of the 
21originally granted pension. If the annual unadjusted 
22percentage change in the consumer price index-u for a 12-month 
23period ending in September is zero or, when compared with the 
24preceding period, decreases, then the pension shall not be 
25increased. 
26 For the purposes of this subsection (g), "consumer price 
 
 
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1index-u" means the index published by the Bureau of Labor 
2Statistics of the United States Department of Labor that 
3measures the average change in prices of goods and services 
4purchased by all urban consumers, United States city average, 
5all items, 1982-84 = 100. The new amount resulting from each 
6annual adjustment shall be determined by the Public Pension 
7Division of the Department of Insurance and made available to 
8the boards of the pension funds. 
9(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)

10 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
11 Sec. 5-167.1. Automatic increase in annuity; retirement 
12from service after September 1, 1967.
13 (a) A policeman who retires from service after September 
141, 1967 with at least 20 years of service credit shall, upon 
15either the first of the month following the first anniversary 
16of his date of retirement if he is age 55 or over on that 
17anniversary date, or upon the first of the month following his 
18attainment of age 55 if it occurs after the first anniversary 
19of his retirement date, have his then fixed and payable 
20monthly annuity increased by 3% and such first fixed annuity 
21as granted at retirement increased by an additional 3% in 
22January of each year thereafter.
23 Any policeman born before January 1, 1945 who qualifies 
24for a minimum annuity and retires after September 1, 1967 but 
25has not received the initial increase under this subsection 
 
 
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1before January 1, 1996 is entitled to receive the initial 
2increase under this subsection on (1) January 1, 1996, (2) the 
3first anniversary of the date of retirement, or (3) attainment 
4of age 55, whichever occurs last. The changes to this Section 
5made by Public Act 89-12 apply beginning January 1, 1996 and 
6without regard to whether the policeman or annuitant 
7terminated service before the effective date of that Act.
8 Any policeman born before January 1, 1950 who qualifies 
9for a minimum annuity and retires after September 1, 1967 but 
10has not received the initial increase under this subsection 
11before January 1, 2000 is entitled to receive the initial 
12increase under this subsection on (1) January 1, 2000, (2) the 
13first anniversary of the date of retirement, or (3) attainment 
14of age 55, whichever occurs last. The changes to this Section 
15made by this amendatory Act of the 92nd General Assembly apply 
16without regard to whether the policeman or annuitant 
17terminated service before the effective date of this 
18amendatory Act.
19 Any policeman born before January 1, 1955 who qualifies 
20for a minimum annuity and retires after September 1, 1967 but 
21has not received the initial increase under this subsection 
22before January 1, 2005 is entitled to receive the initial 
23increase under this subsection on (1) January 1, 2005, (2) the 
24first anniversary of the date of retirement, or (3) attainment 
25of age 55, whichever occurs last. The changes to this Section 
26made by this amendatory Act of the 94th General Assembly apply 
 
 
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1without regard to whether the policeman or annuitant 
2terminated service before the effective date of this 
3amendatory Act. 
4 Any policeman born before January 1, 1966 who qualifies 
5for a minimum annuity and retires after September 1, 1967 but 
6has not received the initial increase under this subsection 
7before January 1, 2017 is entitled to receive an initial 
8increase under this subsection on (1) January 1, 2017, (2) the 
9first anniversary of the date of retirement, or (3) attainment 
10of age 55, whichever occurs last, in an amount equal to 3% for 
11each complete year following the date of retirement or 
12attainment of age 55, whichever occurs later. The changes to 
13this subsection made by this amendatory Act of the 99th 
14General Assembly apply without regard to whether the policeman 
15or annuitant terminated service before the effective date of 
16this amendatory Act. 
17 Any policeman born on or after January 1, 1966 who 
18qualifies for a minimum annuity and retires after September 1, 
191967 but has not received the initial increase under this 
20subsection before January 1, 2023 is entitled to receive the 
21initial increase under this subsection on (1) January 1, 2023, 
22(2) the first anniversary of the date of retirement, or (3) 
23attainment of age 55, whichever occurs last. The changes to 
24this Section made by this amendatory Act of the 103rd General 
25Assembly apply without regard to whether the policeman or 
26annuitant terminated service before the effective date of this 
 
 
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1amendatory Act of the 103rd General Assembly. 
2 (b) Subsection (a) of this Section is not applicable to an 
3employee receiving a term annuity.
4 (c) To help defray the cost of such increases in annuity, 
5there shall be deducted, beginning September 1, 1967, from 
6each payment of salary to a policeman, 1/2 of 1% of each salary 
7payment concurrently with and in addition to the salary 
8deductions otherwise made for annuity purposes.
9 The city, in addition to the contributions otherwise made 
10by it for annuity purposes under other provisions of this 
11Article, shall make matching contributions concurrently with 
12such salary deductions.
13 Each such 1/2 of 1% deduction from salary and each such 
14contribution by the city of 1/2 of 1% of salary shall be 
15credited to the Automatic Increase Reserve, to be used to 
16defray the cost of the annuity increase provided by this 
17Section. Any balance in such reserve as of the beginning of 
18each calendar year shall be credited with interest at the rate 
19of 3% per annum.
20 Such deductions from salary and city contributions shall 
21continue while the policeman is in service.
22 The salary deductions provided in this Section are not 
23subject to refund, except to the policeman himself, in any 
24case in which: (i) the policeman withdraws prior to 
25qualification for minimum annuity or Tier 2 monthly retirement 
26annuity and applies for refund, (ii) the policeman applies for 
 
 
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1an annuity of a type that is not subject to annual increases 
2under this Section, or (iii) a term annuity becomes payable. 
3In such cases, the total of such salary deductions shall be 
4refunded to the policeman, without interest, and charged to 
5the Automatic Increase Reserve.
6 (d) Notwithstanding any other provision of this Article, 
7the Tier 2 monthly retirement annuity of a person who first 
8becomes a policeman under this Article on or after the 
9effective date of this amendatory Act of the 97th General 
10Assembly shall be increased on the January 1 occurring either 
11on or after (i) the attainment of the retirement age 
12applicable to that policeman under this Article age 60 or (ii) 
13the first anniversary of the annuity start date, whichever is 
14later. Each annual increase shall be calculated at 3% or 
15one-half the annual unadjusted percentage increase (but not 
16less than zero) in the consumer price index-u for the 12 months 
17ending with the September preceding each November 1, whichever 
18is less, of the originally granted retirement annuity. If the 
19annual unadjusted percentage change in the consumer price 
20index-u for a 12-month period ending in September is zero or, 
21when compared with the preceding period, decreases, then the 
22annuity shall not be increased. 
23 For the purposes of this subsection (d), "consumer price 
24index-u" means the index published by the Bureau of Labor 
25Statistics of the United States Department of Labor that 
26measures the average change in prices of goods and services 
 
 
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1purchased by all urban consumers, United States city average, 
2all items, 1982-84 = 100. The new amount resulting from each 
3annual adjustment shall be determined by the Public Pension 
4Division of the Department of Insurance and made available to 
5the boards of the pension funds by November 1 of each year.
6(Source: P.A. 103-582, eff. 12-8-23.)

7 (40 ILCS 5/5-238)
8 Sec. 5-238. Provisions applicable to new hires; Tier 2. 
9 (a) Notwithstanding any other provision of this Article, 
10the provisions of this Section apply to a person who first 
11becomes a policeman under this Article on or after January 1, 
122011, and to certain qualified survivors of such a policeman. 
13Such persons, and the benefits and restrictions that apply 
14specifically to them under this Article, may be referred to as 
15"Tier 2".
16 (b) A policeman who has withdrawn from service, has 
17attained age 50 or more, and has 10 or more years of service in 
18that capacity shall be entitled, upon proper application being 
19received by the Fund, to receive a Tier 2 monthly retirement 
20annuity for his service as a police officer; except that, for a 
21policeman who is in service on or after January 1, 2025, the 
22age and service eligibility requirements for a Tier 2 monthly 
23retirement annuity for service as a police officer are the age 
24and service eligibility requirements applicable to a policeman 
25who first became a policeman on December 31, 2010. The Tier 2 
 
 
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1monthly retirement annuity shall be computed by multiplying 
22.5% for each year of such service by his or her final average 
3salary, subject to an annuity reduction factor of one-half of 
41% for each month that the police officer's age at retirement 
5is under age 55. The annuity reduction factor does not apply to 
6a policeman who is in service on or after January 1, 2025. The 
7Tier 2 monthly retirement annuity is in lieu of any age and 
8service annuity or other form of retirement annuity under this 
9Article. 
10 The maximum retirement annuity under this subsection (b) 
11shall be 75% of final average salary.
12 For the purposes of this subsection (b), "final average 
13salary" means the average monthly salary obtained by dividing 
14the total salary of the policeman during the 96 consecutive 
15months of service within the last 120 months of service in 
16which the total salary was the highest by the number of months 
17of service in that period. 
18 Beginning on January 1, 2011, for all purposes under this 
19Code (including without limitation the calculation of benefits 
20and employee contributions), the annual salary based on the 
21plan year of a member or participant to whom this Section 
22applies shall not exceed $106,800; however, that amount shall 
23annually thereafter be increased by the lesser of (i) 3% of 
24that amount, including all previous adjustments, or (ii) 
25one-half the annual unadjusted percentage increase (but not 
26less than zero) in the consumer price index-u for the 12 months 
 
 
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1ending with the September preceding each November 1, including 
2all previous adjustments. 
3 (c) Notwithstanding any other provision of this Article, 
4for a person who first becomes a policeman under this Article 
5on or after January 1, 2011, eligibility for and the amount of 
6the annuity to which the qualified surviving spouse, children, 
7and parents are entitled under this subsection (c) shall be 
8determined as follows:
9  (1) The surviving spouse of a deceased policeman to 
10 whom this Section applies shall be deemed qualified to 
11 receive a Tier 2 surviving spouse's annuity under this 
12 paragraph (1) if: (i) the deceased policeman meets the 
13 requirements specified under subdivision (A), (B), (C), or 
14 (D) of this paragraph (1); and (ii) the surviving spouse 
15 would not otherwise be excluded from receiving a widow's 
16 annuity under the eligibility requirements for a widow's 
17 annuity set forth in Section 5-146. The Tier 2 surviving 
18 spouse's annuity is in lieu of the widow's annuity 
19 determined under any other Section of this Article and is 
20 subject to the requirements of Section 5-147.1.
21  As used in this subsection (c), "earned annuity" means 
22 a Tier 2 monthly retirement annuity determined under 
23 subsection (b) of this Section, including any increases 
24 the policeman had received pursuant to Section 5-167.1. 
25   (A) If the deceased policeman was receiving an 
26 earned annuity at the date of his or her death, the 
 
 
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1 Tier 2 surviving spouse's annuity under this paragraph 
2 (1) shall be in the amount of 66 2/3% of the 
3 policeman's earned annuity at the date of death.
4   (B) If the deceased policeman was not receiving an 
5 earned annuity but had at least 10 years of service at 
6 the time of death, the Tier 2 surviving spouse's 
7 annuity under this paragraph (1) shall be the greater 
8 of: (i) 30% of the annual maximum salary attached to 
9 the classified civil service position of a first class 
10 patrolman at the time of his death; or (ii) 66 2/3% of 
11 the Tier 2 monthly retirement annuity that the 
12 deceased policeman would have been eligible to receive 
13 under subsection (b) of this Section, based upon the 
14 actual service accrued through the day before the 
15 policeman's death, but determined as though the 
16 policeman was at least age 55 on the day before his or 
17 her death and retired on that day.
18   (C) If the deceased policeman was an active 
19 policeman with at least 1 1/2 but less than 10 years of 
20 service at the time of death, the Tier 2 surviving 
21 spouse's annuity under this paragraph (1) shall be in 
22 the amount of 30% of the annual maximum salary 
23 attached to the classified civil service position of a 
24 first class patrolman at the time of his death.
25   (D) If the performance of an act or acts of duty 
26 results directly in the death of a policeman subject 
 
 
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1 to this Section, or prevents him from subsequently 
2 resuming active service in the police department, and 
3 if the policeman's Tier 2 surviving spouse would 
4 otherwise meet the eligibility requirements for a 
5 compensation annuity or supplemental annuity granted 
6 under Section 5-144, then in addition to the Tier 2 
7 surviving spouse's annuity provided under subdivision 
8 (A), (B), or (C) of this paragraph (1), whichever 
9 applies, the Tier 2 surviving spouse shall be 
10 qualified to receive compensation annuity or 
11 supplemental annuity, as would be provided under 
12 Section 5-144, in order to bring the total benefit up 
13 to the applicable 75% salary limitation provided in 
14 that Section, but subject to the Tier 2 salary cap 
15 provided under subsection (b) of this Section; except 
16 that no such annuity shall be paid to the surviving 
17 spouse of a policeman who dies while in receipt of 
18 disability benefits when the policeman's death was 
19 caused by an intervening illness or injury unrelated 
20 to the illness or injury that had prevented him from 
21 subsequently resuming active service in the police 
22 department. 
23   (E) Notwithstanding any other provision of this 
24 Article, the monthly Tier 2 surviving spouse's annuity 
25 under subdivision (A) or (B) of this paragraph (1) 
26 shall be increased on the January 1 next occurring 
 
 
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1 after (i) attainment of age 60 by the recipient of the 
2 Tier 2 surviving spouse's annuity or (ii) the first 
3 anniversary of the Tier 2 surviving spouse's annuity 
4 start date, whichever is later, and on each January 1 
5 thereafter, by 3% or one-half the annual unadjusted 
6 percentage increase (but not less than zero) in the 
7 consumer price index-u for the 12 months ending with 
8 the September preceding each November 1, whichever is 
9 less, of the originally granted Tier 2 surviving 
10 spouse's annuity. If the unadjusted percentage change 
11 in the consumer price index-u for a 12-month period 
12 ending in September is zero or, when compared with the 
13 preceding period, decreases, then the annuity shall 
14 not be increased.
15   For the purposes of this Section, "consumer price 
16 index-u" means the index published by the Bureau of 
17 Labor Statistics of the United States Department of 
18 Labor that measures the average change in prices of 
19 goods and services purchased by all urban consumers, 
20 United States city average, all items, 1982-84 = 100. 
21 The new amount resulting from each annual adjustment 
22 shall be determined by the Public Pension Division of 
23 the Department of Insurance and made available to the 
24 boards of the pension funds.
25   (F) Notwithstanding the other provisions of this 
26 paragraph (1), for a qualified surviving spouse who is 
 
 
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1 entitled to a Tier 2 surviving spouse's annuity under 
2 subdivision (A), (B), (C), or (D) of this paragraph 
3 (1), that Tier 2 surviving spouse's annuity shall not 
4 be less than the amount of the minimum widow's annuity 
5 established from time to time under Section 5-167.4.
6  (2) Surviving children of a deceased policeman subject 
7 to this Section who would otherwise meet the eligibility 
8 requirements for a child's annuity set forth in Sections 
9 5-151 and 5-152 shall be deemed qualified to receive a 
10 Tier 2 child's annuity under this subsection (c), which 
11 shall be in lieu of, but in the same amount and paid in the 
12 same manner as, the child's annuity provided under those 
13 Sections; except that any salary used for computing a Tier 
14 2 child's annuity shall be subject to the Tier 2 salary cap 
15 provided under subsection (b) of this Section. For 
16 purposes of determining any pro rata reduction in child's 
17 annuities under this subsection (c), references in Section 
18 5-152 to the combined annuities of the family shall be 
19 deemed to refer to the combined Tier 2 surviving spouse's 
20 annuity, if any, and the Tier 2 child's annuities payable 
21 under this subsection (c).
22  (3) Surviving parents of a deceased policeman subject 
23 to this Section who would otherwise meet the eligibility 
24 requirements for a parent's annuity set forth in Section 
25 5-152 shall be deemed qualified to receive a Tier 2 
26 parent's annuity under this subsection (c), which shall be 
 
 
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1 in lieu of, but in the same amount and paid in the same 
2 manner as, the parent's annuity provided under Section 
3 5-152.1; except that any salary used for computing a Tier 
4 2 parent's annuity shall be subject to the Tier 2 salary 
5 cap provided under subsection (b) of this Section. For the 
6 purposes of this Section, a reference to "annuity" in 
7 Section 5-152.1 includes: (i) in the context of a widow, a 
8 Tier 2 surviving spouse's annuity and (ii) in the context 
9 of a child, a Tier 2 child's annuity.
10 (d) The General Assembly finds and declares that the 
11provisions of this Section, as enacted by Public Act 96-1495, 
12require clarification relating to necessary eligibility 
13standards and the manner of determining and paying the 
14intended Tier 2 benefits and contributions in order to enable 
15the Fund to unambiguously implement and administer benefits 
16for Tier 2 members. The changes to this Section and the 
17conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1 
18(except for the changes to subsection (a) of that Section), 
195-169, and 5-170 made by this amendatory Act of the 99th 
20General Assembly are enacted to clarify the provisions of this 
21Section as enacted by Public Act 96-1495, and are hereby 
22declared to represent and be consistent with the original and 
23continuing intent of this Section and Public Act 96-1495.
24 (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1 
25(except for the changes to subsection (a) of that Section), 
265-169, and 5-170 made by this amendatory Act of the 99th 
 
 
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1General Assembly are intended to be retroactive to January 1, 
22011 (the effective date of Public Act 96-1495) and, for the 
3purposes of Section 1-103.1 of this Code, they apply without 
4regard to whether the relevant policeman was in service on or 
5after the effective date of this amendatory Act of the 99th 
6General Assembly. 
7(Source: P.A. 99-905, eff. 11-29-16.)

8 (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
9 Sec. 6-164. Automatic annual increase; retirement after 
10September 1, 1959. 
11 (a) A fireman qualifying for a minimum annuity who retires 
12from service after September 1, 1959 shall, upon either the 
13first of the month following the first anniversary of his date 
14of retirement if he is age 55 or over on that anniversary date, 
15or upon the first of the month following his attainment of age 
1655 if that occurs after the first anniversary of his 
17retirement date, have his then fixed and payable monthly 
18annuity increased by 1 1/2%, and such first fixed annuity as 
19granted at retirement increased by an additional 1 1/2% in 
20January of each year thereafter up to a maximum increase of 
2130%. Beginning July 1, 1982 for firemen born before January 1, 
221930, and beginning January 1, 1990 for firemen born after 
23December 31, 1929 and before January 1, 1940, and beginning 
24January 1, 1996 for firemen born after December 31, 1939 but 
25before January 1, 1945, and beginning January 1, 2004, for 
 
 
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1firemen born after December 31, 1944 but before January 1, 
21955, and beginning January 1, 2017, for firemen born after 
3December 31, 1954, such increases shall be 3% and such firemen 
4shall not be subject to the 30% maximum increase.
5 Any fireman born before January 1, 1945 who qualifies for 
6a minimum annuity and retires after September 1, 1967 but has 
7not received the initial increase under this subsection before 
8January 1, 1996 is entitled to receive the initial increase 
9under this subsection on (1) January 1, 1996, (2) the first 
10anniversary of the date of retirement, or (3) attainment of 
11age 55, whichever occurs last. The changes to this Section 
12made by this amendatory Act of 1995 apply beginning January 1, 
131996 and apply without regard to whether the fireman or 
14annuitant terminated service before the effective date of this 
15amendatory Act of 1995.
16 Any fireman born before January 1, 1955 who qualifies for 
17a minimum annuity and retires after September 1, 1967 but has 
18not received the initial increase under this subsection before 
19January 1, 2004 is entitled to receive the initial increase 
20under this subsection on (1) January 1, 2004, (2) the first 
21anniversary of the date of retirement, or (3) attainment of 
22age 55, whichever occurs last. The changes to this Section 
23made by this amendatory Act of the 93rd General Assembly apply 
24without regard to whether the fireman or annuitant terminated 
25service before the effective date of this amendatory Act.
26 Any fireman born after December 31, 1954 but before 
 
 
HB5909- 326 -LRB103 43117 RPS 76377 b


1January 1, 1966 who qualifies for a minimum annuity and 
2retires after September 1, 1967 is entitled to receive an 
3increase under this subsection on (1) January 1, 2017, (2) the 
4first anniversary of the date of retirement, or (3) attainment 
5of age 55, whichever occurs last, in an amount equal to an 
6increase of 3% of his then fixed and payable monthly annuity 
7upon the first of the month following the first anniversary of 
8his date of retirement if he is age 55 or over on that 
9anniversary date or upon the first of the month following his 
10attainment of age 55 if that date occurs after the first 
11anniversary of his retirement date and such first fixed 
12annuity as granted at retirement shall be increased by an 
13additional 3% in January of each year thereafter. In the case 
14of a fireman born after December 31, 1954 but before January 1, 
151966 who received an increase in any year of 1.5%, that fireman 
16shall receive an increase for any such year so that the total 
17increase is equal to 3% for each year the fireman would have 
18been otherwise eligible had the fireman not received any 
19increase. The changes to this subsection made by this 
20amendatory Act of the 99th General Assembly apply without 
21regard to whether the fireman or annuitant terminated service 
22before the effective date of this amendatory Act. The changes 
23to this subsection made by this amendatory Act of the 100th 
24General Assembly are a declaration of existing law and shall 
25not be construed as a new enactment. 
26 Any fireman who qualifies for a minimum annuity and 
 
 
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1retires after September 1, 1967 is entitled to receive an 
2increase under this subsection on (1) January 1, 2020, (2) the 
3first anniversary of the date of retirement, or (3) attainment 
4of age 55, whichever occurs last, in an amount equal to an 
5increase of 3% of his or her then fixed and payable monthly 
6annuity upon the first of the month following the first 
7anniversary of his or her date of retirement if he or she is 
8age 55 or over on that anniversary date or upon the first of 
9the month following his or her attainment of age 55 if that 
10date occurs after the first anniversary of his or her 
11retirement date and such first fixed annuity as granted at 
12retirement shall be increased by an additional 3% in January 
13of each year thereafter. In the case of a fireman who received 
14an increase in any year of 1.5%, that fireman shall receive an 
15increase for any such year so that the total increase is equal 
16to 3% for each year the fireman would have been otherwise 
17eligible had the fireman not received any increase. The 
18changes to this subsection made by this amendatory Act of the 
19101st General Assembly apply without regard to whether the 
20fireman or annuitant terminated service before the effective 
21date of this amendatory Act of the 101st General Assembly. 
22 (b) Subsection (a) of this Section is not applicable to an 
23employee receiving a term annuity.
24 (c) To help defray the cost of such increases in annuity, 
25there shall be deducted, beginning September 1, 1959, from 
26each payment of salary to a fireman, 1/8 of 1% of each such 
 
 
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1salary payment and an additional 1/8 of 1% beginning on 
2September 1, 1961, and September 1, 1963, respectively, 
3concurrently with and in addition to the salary deductions 
4otherwise made for annuity purposes.
5 Each such additional 1/8 of 1% deduction from salary which 
6shall, on September 1, 1963, result in a total increase of 3/8 
7of 1% of salary, shall be credited to the Automatic Increase 
8Reserve, to be used, together with city contributions as 
9provided in this Article, to defray the cost of the annuity 
10increments specified in this Section. Any balance in such 
11reserve as of the beginning of each calendar year shall be 
12credited with interest at the rate of 3% per annum.
13 The salary deductions provided in this Section are not 
14subject to refund, except to the fireman himself in any case in 
15which: (i) the fireman withdraws prior to qualification for 
16minimum annuity or Tier 2 monthly retirement annuity and 
17applies for refund, (ii) the fireman applies for an annuity of 
18a type that is not subject to annual increases under this 
19Section, or (iii) a term annuity becomes payable. In such 
20cases, the total of such salary deductions shall be refunded 
21to the fireman, without interest, and charged to the 
22aforementioned reserve.
23 (d) Notwithstanding any other provision of this Article, 
24the Tier 2 monthly retirement annuity of a person who first 
25becomes a fireman under this Article on or after January 1, 
262011 shall be increased on the January 1 occurring either on or 
 
 
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1after (i) the attainment of the retirement age applicable to 
2that fireman under this Article age 60 or (ii) the first 
3anniversary of the annuity start date, whichever is later. 
4Each annual increase shall be calculated at 3% or one-half the 
5annual unadjusted percentage increase (but not less than zero) 
6in the consumer price index-u for the 12 months ending with the 
7September preceding each November 1, whichever is less, of the 
8originally granted retirement annuity. If the annual 
9unadjusted percentage change in the consumer price index-u for 
10a 12-month period ending in September is zero or, when 
11compared with the preceding period, decreases, then the 
12annuity shall not be increased. 
13 For the purposes of this subsection (d), "consumer price 
14index-u" means the index published by the Bureau of Labor 
15Statistics of the United States Department of Labor that 
16measures the average change in prices of goods and services 
17purchased by all urban consumers, United States city average, 
18all items, 1982-84 = 100. The new amount resulting from each 
19annual adjustment shall be determined by the Public Pension 
20Division of the Department of Insurance and made available to 
21the boards of the pension funds by November 1 of each year. 
22(Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17; 
23101-673, eff. 4-5-21.)

24 (40 ILCS 5/6-229)
25 Sec. 6-229. Provisions applicable to new hires; Tier 2.
 
 
HB5909- 330 -LRB103 43117 RPS 76377 b


1 (a) Notwithstanding any other provision of this Article, 
2the provisions of this Section apply to a person who first 
3becomes a fireman under this Article on or after January 1, 
42011, and to certain qualified survivors of such a fireman. 
5Such persons, and the benefits and restrictions that apply 
6specifically to them under this Article, may be referred to as 
7"Tier 2".
8 (b) A fireman who has withdrawn from service, has attained 
9age 50 or more, and has 10 or more years of service in that 
10capacity shall be entitled, upon proper application being 
11received by the Fund, to receive a Tier 2 monthly retirement 
12annuity for his service as a fireman; except that, for a 
13fireman who is in service on or after January 1, 2025, the age 
14and service eligibility requirements for a Tier 2 monthly 
15retirement annuity for service as a fireman are the age and 
16service eligibility requirements applicable to a fireman who 
17first became a fireman on December 31, 2010. The Tier 2 monthly 
18retirement annuity shall be computed by multiplying 2.5% for 
19each year of such service by his or her final average salary, 
20subject to an annuity reduction factor of one-half of 1% for 
21each month that the fireman's age at retirement is under age 
2255. The annuity reduction factor does not apply to a policeman 
23who is in service on or after January 1, 2025. The Tier 2 
24monthly retirement annuity is in lieu of any age and service 
25annuity or other form of retirement annuity under this 
26Article.
 
 
HB5909- 331 -LRB103 43117 RPS 76377 b


1 The maximum retirement annuity under this subsection (b) 
2shall be 75% of final average salary.
3 For the purposes of this subsection (b), "final average 
4salary" means the greater of (1) the average monthly salary 
5obtained by dividing the total salary of the fireman during 
6the 96 consecutive months of service within the last 120 
7months of service in which the total salary was the highest by 
8the number of months of service in that period or (2) the 
9average monthly salary obtained by dividing the total salary 
10of the fireman during the 48 consecutive months of service 
11within the last 60 months of service in which the total salary 
12was the highest by the number of months of service in that 
13period.
14 Beginning on January 1, 2011, for all purposes under this 
15Code (including without limitation the calculation of benefits 
16and employee contributions), the annual salary based on the 
17plan year of a member or participant to whom this Section 
18applies shall not exceed $106,800; however, that amount shall 
19annually thereafter be increased by the lesser of (i) 3% of 
20that amount, including all previous adjustments, or (ii) 
21one-half the annual unadjusted percentage increase (but not 
22less than zero) in the consumer price index-u for the 12 months 
23ending with the September preceding each November 1, including 
24all previous adjustments.
25 (b-5) For the purposes of this Section, "consumer price 
26index-u" means the index published by the Bureau of Labor 
 
 
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1Statistics of the United States Department of Labor that 
2measures the average change in prices of goods and services 
3purchased by all urban consumers, United States city average, 
4all items, 1982-84 = 100. The new amount resulting from each 
5annual adjustment shall be determined by the Public Pension 
6Division of the Department of Insurance and made available to 
7the boards of the retirement systems and pension funds by 
8November 1 of each year. 
9 (c) Notwithstanding any other provision of this Article, 
10for a person who first becomes a fireman under this Article on 
11or after January 1, 2011, eligibility for and the amount of the 
12annuity to which the qualified surviving spouse, children, and 
13parents of the fireman are entitled under this subsection (c) 
14shall be determined as follows:
15  (1) The surviving spouse of a deceased fireman to whom 
16 this Section applies shall be deemed qualified to receive 
17 a Tier 2 surviving spouse's annuity under this paragraph 
18 (1) if: (i) the deceased fireman meets the requirements 
19 specified under subdivision (A), (B), (C), or (D) of this 
20 paragraph (1); and (ii) the surviving spouse would not 
21 otherwise be excluded from receiving a widow's annuity 
22 under the eligibility requirements for a widow's annuity 
23 set forth in Section 6-142. The Tier 2 surviving spouse's 
24 annuity is in lieu of the widow's annuity determined under 
25 any other Section of this Article and is subject to the 
26 requirements of Section 6-143.2.
 
 
HB5909- 333 -LRB103 43117 RPS 76377 b


1  As used in this subsection (c), "earned pension" means 
2 a Tier 2 monthly retirement annuity determined under 
3 subsection (b) of this Section, including any increases 
4 the fireman had received pursuant to Section 6-164. 
5   (A) If the deceased fireman was receiving an 
6 earned pension at the date of his or her death, the 
7 Tier 2 surviving spouse's annuity under this paragraph 
8 (1) shall be in the amount of 66 2/3% of the fireman's 
9 earned pension at the date of death.
10   (B) If the deceased fireman was not receiving an 
11 earned pension but had at least 10 years of service at 
12 the time of death, the Tier 2 surviving spouse's 
13 annuity under this paragraph (1) shall be the greater 
14 of: (i) 30% of the salary attached to the rank of first 
15 class firefighter in the classified career service at 
16 the time of the fireman's death; or (ii) 66 2/3% of the 
17 Tier 2 monthly retirement annuity that the deceased 
18 fireman would have been eligible to receive under 
19 subsection (b) of this Section, based upon the actual 
20 service accrued through the day before the fireman's 
21 death, but determined as though the fireman was at 
22 least age 55 on the day before his or her death and 
23 retired on that day.
24   (C) If the deceased fireman was an active fireman 
25 with at least 1 1/2 but less than 10 years of service 
26 at the time of death, the Tier 2 surviving spouse's 
 
 
HB5909- 334 -LRB103 43117 RPS 76377 b


1 annuity under this paragraph (1) shall be in the 
2 amount of 30% of the salary attached to the rank of 
3 first class firefighter in the classified career 
4 service at the time of the fireman's death.
5   (D) Notwithstanding subdivisions (A), (B), and (C) 
6 of this paragraph (1), if the performance of an act or 
7 acts of duty results directly in the death of a fireman 
8 subject to this Section, or prevents him from 
9 subsequently resuming active service in the fire 
10 department, then a surviving spouse who would 
11 otherwise meet the eligibility requirements for a 
12 death in the line of duty widow's annuity granted 
13 under Section 6-140 shall be deemed to be qualified 
14 for a Tier 2 surviving spouse's annuity under this 
15 subdivision (D); except that no such annuity shall be 
16 paid to the surviving spouse of a fireman who dies 
17 while in receipt of disability benefits when the 
18 fireman's death was caused by an intervening illness 
19 or injury unrelated to the illness or injury that had 
20 prevented him from subsequently resuming active 
21 service in the fire department. The Tier 2 surviving 
22 spouse's annuity calculated under this subdivision (D) 
23 shall be in lieu of, but in the same amount and paid in 
24 the same manner as, the widow's annuity provided under 
25 Section 6-140; except that the salary used for 
26 computing a Tier 2 surviving spouse's annuity under 
 
 
HB5909- 335 -LRB103 43117 RPS 76377 b


1 this subdivision (D) shall be subject to the Tier 2 
2 salary cap provided under subsection (b) of this 
3 Section.
4   (E) Notwithstanding any other provision of this 
5 Article, the monthly Tier 2 surviving spouse's annuity 
6 under subdivision (A) or (B) of this paragraph (1) 
7 shall be increased on the January 1 next occurring 
8 after (i) attainment of age 60 by the recipient of the 
9 Tier 2 surviving spouse's annuity or (ii) the first 
10 anniversary of the Tier 2 surviving spouse's annuity 
11 start date, whichever is later, and on each January 1 
12 thereafter, by 3% or one-half the annual unadjusted 
13 percentage increase in the consumer price index-u for 
14 the 12 months ending with September preceding each 
15 November 1, whichever is less, of the originally 
16 granted Tier 2 surviving spouse's annuity. If the 
17 annual unadjusted percentage change in the consumer 
18 price index-u for a 12-month period ending in 
19 September is zero or, when compared with the preceding 
20 period, decreases, then the annuity shall not be 
21 increased.
22   (F) Notwithstanding the other provisions of this 
23 paragraph (1), for a qualified surviving spouse who is 
24 entitled to a Tier 2 surviving spouse's annuity under 
25 subdivision (A), (B), (C), or (D) of this paragraph 
26 (1), that Tier 2 surviving spouse's annuity shall not 
 
 
HB5909- 336 -LRB103 43117 RPS 76377 b


1 be less than the amount of the minimum widow's annuity 
2 established from time to time under Section 6-128.4.
3  (2) Surviving children of a deceased fireman subject 
4 to this Section who would otherwise meet the eligibility 
5 requirements for a child's annuity set forth in Sections 
6 6-147 and 6-148 shall be deemed qualified to receive a 
7 Tier 2 child's annuity under this subsection (c), which 
8 shall be in lieu of, but in the same amount and paid in the 
9 same manner as, the child's annuity provided under those 
10 Sections; except that any salary used for computing a Tier 
11 2 child's annuity shall be subject to the Tier 2 salary cap 
12 provided under subsection (b) of this Section. For 
13 purposes of determining any pro rata reduction in child's 
14 annuities under this subsection (c), references in Section 
15 6-148 to the combined annuities of the family shall be 
16 deemed to refer to the combined Tier 2 surviving spouse's 
17 annuity, if any, and the Tier 2 child's annuities payable 
18 under this subsection (c).
19  (3) Surviving parents of a deceased fireman subject to 
20 this Section who would otherwise meet the eligibility 
21 requirements for a parent's annuity set forth in Section 
22 6-149 shall be deemed qualified to receive a Tier 2 
23 parent's annuity under this subsection (c), which shall be 
24 in lieu of, but in the same amount and paid in the same 
25 manner as, the parent's annuity provided under Section 
26 6-149; except that any salary used for computing a Tier 2 
 
 
HB5909- 337 -LRB103 43117 RPS 76377 b


1 parent's annuity shall be subject to the Tier 2 salary cap 
2 provided under subsection (b) of this Section. For the 
3 purposes of this Section, a reference to "annuity" in 
4 Section 6-149 includes: (i) in the context of a widow, a 
5 Tier 2 surviving spouse's annuity and (ii) in the context 
6 of a child, a Tier 2 child's annuity.
7 (d) The General Assembly finds and declares that the 
8provisions of this Section, as enacted by Public Act 96-1495, 
9require clarification relating to necessary eligibility 
10standards and the manner of determining and paying the 
11intended Tier 2 benefits and contributions in order to enable 
12the Fund to unambiguously implement and administer benefits 
13for Tier 2 members. The changes to this Section and the 
14conforming changes to Sections 6-150, 6-158, 6-164 (except for 
15the changes to subsection (a) of that Section), 6-166, and 
166-167 made by this amendatory Act of the 99th General Assembly 
17are enacted to clarify the provisions of this Section as 
18enacted by Public Act 96-1495, and are hereby declared to 
19represent and be consistent with the original and continuing 
20intent of this Section and Public Act 96-1495.
21 (e) The changes to Sections 6-150, 6-158, 6-164 (except 
22for the changes to subsection (a) of that Section), 6-166, and 
236-167 made by this amendatory Act of the 99th General Assembly 
24are intended to be retroactive to January 1, 2011 (the 
25effective date of Public Act 96-1495) and, for the purposes of 
26Section 1-103.1 of this Code, they apply without regard to 
 
 
HB5909- 338 -LRB103 43117 RPS 76377 b


1whether the relevant fireman was in service on or after the 
2effective date of this amendatory Act of the 99th General 
3Assembly. 
4(Source: P.A. 103-579, eff. 12-8-23.)

5 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
6 Sec. 7-142. Retirement annuities; amount annuities - 
7Amount. 
8 (a) The amount of a retirement annuity shall be the sum of 
9the following, determined in accordance with the actuarial 
10tables in effect at the time of the grant of the annuity:
11  1. For Tier 1 regular employees with 8 or more years of 
12 service or for Tier 2 regular employees, an annuity 
13 computed pursuant to subparagraphs a or b of this 
14 subparagraph 1, whichever is the higher, and for employees 
15 with less than 8 or 10 years of service, respectively, the 
16 annuity computed pursuant to subparagraph a:
17   a. The monthly annuity which can be provided from 
18 the total accumulated normal, municipality and prior 
19 service credits, as of the attained age of the 
20 employee on the date the annuity begins provided that 
21 such annuity shall not exceed 75% of the final rate of 
22 earnings of the employee.
23   b. (i) The monthly annuity amount determined as 
24 follows by multiplying (a) 1 2/3% for annuitants with 
25 not more than 15 years or (b) 1 2/3% for the first 15 
 
 
HB5909- 339 -LRB103 43117 RPS 76377 b


1 years and 2% for each year in excess of 15 years for 
2 annuitants with more than 15 years by the number of 
3 years plus fractional years, prorated on a basis of 
4 months, of creditable service and multiply the product 
5 thereof by the employee's final rate of earnings.
6   (ii) For the sole purpose of computing the formula 
7 (and not for the purposes of the limitations 
8 hereinafter stated) $125 shall be considered the final 
9 rate of earnings in all cases where the final rate of 
10 earnings is less than such amount.
11   (iii) The monthly annuity computed in accordance 
12 with this subparagraph b, shall not exceed an amount 
13 equal to 75% of the final rate of earnings.
14   (iv) For employees who have less than 35 years of 
15 service, the annuity computed in accordance with this 
16 subparagraph b (as reduced by application of 
17 subparagraph (iii) above) shall be reduced by 0.25% 
18 thereof (0.5% if service was terminated before January 
19 1, 1988 or if the employee is a Tier 2 regular 
20 employee) for each month or fraction thereof (1) that 
21 the employee's age is less than 60 years for Tier 1 
22 regular employees, (2) that the employee's age is less 
23 than 67 years for Tier 2 regular employees, or (3) if 
24 the employee has at least 30 years of service credit, 
25 that the employee's service credit is less than 35 
26 years, whichever is less, on the date the annuity 
 
 
HB5909- 340 -LRB103 43117 RPS 76377 b


1 begins.
2  2. The annuity which can be provided from the total 
3 accumulated additional credits as of the attained age of 
4 the employee on the date the annuity begins.
5 (b) If payment of an annuity begins prior to the earliest 
6age at which the employee will become eligible for an old age 
7insurance benefit under the Federal Social Security Act, he 
8may elect that the annuity payments from this fund shall 
9exceed those payable after his attaining such age by an 
10amount, computed as determined by rules of the Board, but not 
11in excess of his estimated Social Security Benefit, determined 
12as of the effective date of the annuity, provided that in no 
13case shall the total annuity payments made by this fund exceed 
14in actuarial value the annuity which would have been payable 
15had no such election been made.
16 (c) Beginning January 1, 1984 and each January 1 
17thereafter, the retirement annuity of a Tier 1 regular 
18employee shall be increased by 3% each year, not compounded. 
19This increase shall be computed from the effective date of the 
20retirement annuity, the first increase being 0.25% of the 
21monthly amount times the number of months from the effective 
22date to January 1. This increase shall not be applicable to 
23annuitants who are not in service on or after September 8, 
241971. 
25 A retirement annuity of a Tier 2 regular employee shall 
26receive annual increases on the January 1 occurring either on 
 
 
HB5909- 341 -LRB103 43117 RPS 76377 b


1or after the attainment of the retirement age applicable to 
2that Tier 2 regular employee under this Article age 67 or the 
3first anniversary of the annuity start date, whichever is 
4later. Each annual increase shall be calculated at the lesser 
5of 3% or one-half the annual unadjusted percentage increase 
6(but not less than zero) in the consumer price index-u for the 
712 months ending with the September preceding each November 1 
8of the originally granted retirement annuity. If the annual 
9unadjusted percentage change in the consumer price index-u for 
10the 12 months ending with the September preceding each 
11November 1 is zero or there is a decrease, then the annuity 
12shall not be increased. 
13 (d) Any elected county officer who was entitled to receive 
14a stipend from the State on or after July 1, 2009 and on or 
15before June 30, 2010 may establish earnings credit for the 
16amount of stipend not received, if the elected county official 
17applies in writing to the fund within 6 months after the 
18effective date of this amendatory Act of the 96th General 
19Assembly and pays to the fund an amount equal to (i) employee 
20contributions on the amount of stipend not received, (ii) 
21employer contributions determined by the Board equal to the 
22employer's normal cost of the benefit on the amount of stipend 
23not received, plus (iii) interest on items (i) and (ii) at the 
24actuarially assumed rate. 
25(Source: P.A. 102-210, eff. 1-1-22.)

 
 
HB5909- 342 -LRB103 43117 RPS 76377 b


1 (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
2 Sec. 7-142.1. Sheriff's law enforcement employees. 
3 (a) In lieu of the retirement annuity provided by 
4subparagraph 1 of paragraph (a) of Section 7-142: 
5 Any sheriff's law enforcement employee who has 20 or more 
6years of service in that capacity and who terminates service 
7prior to January 1, 1988 shall be entitled at his option to 
8receive a monthly retirement annuity for his service as a 
9sheriff's law enforcement employee computed by multiplying 2% 
10for each year of such service up to 10 years, 2 1/4% for each 
11year of such service above 10 years and up to 20 years, and 2 
121/2% for each year of such service above 20 years, by his 
13annual final rate of earnings and dividing by 12. 
14 Any sheriff's law enforcement employee who has 20 or more 
15years of service in that capacity and who terminates service 
16on or after January 1, 1988 and before July 1, 2004 shall be 
17entitled at his option to receive a monthly retirement annuity 
18for his service as a sheriff's law enforcement employee 
19computed by multiplying 2.5% for each year of such service up 
20to 20 years, 2% for each year of such service above 20 years 
21and up to 30 years, and 1% for each year of such service above 
2230 years, by his annual final rate of earnings and dividing by 
2312. 
24 Any sheriff's law enforcement employee who has 20 or more 
25years of service in that capacity and who terminates service 
26on or after July 1, 2004 shall be entitled at his or her option 
 
 
HB5909- 343 -LRB103 43117 RPS 76377 b


1to receive a monthly retirement annuity for service as a 
2sheriff's law enforcement employee computed by multiplying 
32.5% for each year of such service by his annual final rate of 
4earnings and dividing by 12. 
5 If a sheriff's law enforcement employee has service in any 
6other capacity, his retirement annuity for service as a 
7sheriff's law enforcement employee may be computed under this 
8Section and the retirement annuity for his other service under 
9Section 7-142. 
10 In no case shall the total monthly retirement annuity for 
11persons who retire before July 1, 2004 exceed 75% of the 
12monthly final rate of earnings. In no case shall the total 
13monthly retirement annuity for persons who retire on or after 
14July 1, 2004 exceed 80% of the monthly final rate of earnings. 
15 (b) Whenever continued group insurance coverage is elected 
16in accordance with the provisions of Section 367h of the 
17Illinois Insurance Code, as now or hereafter amended, the 
18total monthly premium for such continued group insurance 
19coverage or such portion thereof as is not paid by the 
20municipality shall, upon request of the person electing such 
21continued group insurance coverage, be deducted from any 
22monthly pension benefit otherwise payable to such person 
23pursuant to this Section, to be remitted by the Fund to the 
24insurance company or other entity providing the group 
25insurance coverage. 
26 (c) A sheriff's law enforcement employee who began service 
 
 
HB5909- 344 -LRB103 43117 RPS 76377 b


1in that capacity prior to the effective date of this 
2amendatory Act of the 97th General Assembly and who has 
3service in any other capacity may convert up to 10 years of 
4that service into service as a sheriff's law enforcement 
5employee by paying to the Fund an amount equal to (1) the 
6additional employee contribution required under Section 
77-173.1, plus (2) the additional employer contribution 
8required under Section 7-172, plus (3) interest on items (1) 
9and (2) at the prescribed rate from the date of the service to 
10the date of payment. Application must be received by the Board 
11while the employee is an active participant in the Fund. 
12Payment must be received while the member is an active 
13participant, except that one payment will be permitted after 
14termination of participation. 
15 (d) The changes to subsections (a) and (b) of this Section 
16made by this amendatory Act of the 94th General Assembly apply 
17only to persons in service on or after July 1, 2004. In the 
18case of such a person who begins to receive a retirement 
19annuity before the effective date of this amendatory Act of 
20the 94th General Assembly, the annuity shall be recalculated 
21prospectively to reflect those changes, with the resulting 
22increase beginning to accrue on the first annuity payment date 
23following the effective date of this amendatory Act. 
24 (e) Any elected county officer who was entitled to receive 
25a stipend from the State on or after July 1, 2009 and on or 
26before June 30, 2010 may establish earnings credit for the 
 
 
HB5909- 345 -LRB103 43117 RPS 76377 b


1amount of stipend not received, if the elected county official 
2applies in writing to the fund within 6 months after the 
3effective date of this amendatory Act of the 96th General 
4Assembly and pays to the fund an amount equal to (i) employee 
5contributions on the amount of stipend not received, (ii) 
6employer contributions determined by the Board equal to the 
7employer's normal cost of the benefit on the amount of stipend 
8not received, plus (iii) interest on items (i) and (ii) at the 
9actuarially assumed rate. 
10 (f) Notwithstanding any other provision of this Article, 
11the provisions of this subsection (f) apply to a person who 
12first becomes a sheriff's law enforcement employee under this 
13Article on or after January 1, 2011.
14 A sheriff's law enforcement employee age 55 or more who 
15has 10 or more years of service in that capacity shall be 
16entitled at his option to receive a monthly retirement annuity 
17for his or her service as a sheriff's law enforcement employee 
18computed by multiplying 2.5% for each year of such service by 
19his or her final rate of earnings.
20 The retirement annuity of a sheriff's law enforcement 
21employee who is retiring after attaining age 50 with 10 or more 
22years of creditable service shall be reduced by one-half of 1% 
23for each month that the sheriff's law enforcement employee's 
24age is under age 55. This paragraph does not apply to a 
25sheriff's law enforcement employee who is an active sheriff's 
26law enforcement employee on or after January 1, 2025. 
 
 
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1 The maximum retirement annuity under this subsection (f) 
2shall be 75% of final rate of earnings.
3 For the purposes of this subsection (f), "final rate of 
4earnings" means the average monthly earnings obtained by 
5dividing the total salary of the sheriff's law enforcement 
6employee during the 96 consecutive months of service within 
7the last 120 months of service in which the total earnings was 
8the highest by the number of months of service in that period. 
9 Notwithstanding any other provision of this Article, 
10beginning on January 1, 2011, for all purposes under this Code 
11(including without limitation the calculation of benefits and 
12employee contributions), the annual earnings of a sheriff's 
13law enforcement employee to whom this Section applies shall 
14not include overtime and shall not exceed $106,800; however, 
15that amount shall annually thereafter be increased by the 
16lesser of (i) 3% of that amount, including all previous 
17adjustments, or (ii) one-half the annual unadjusted percentage 
18increase (but not less than zero) in the consumer price 
19index-u for the 12 months ending with the September preceding 
20each November 1, including all previous adjustments. 
21 (g) Notwithstanding any other provision of this Article, 
22the monthly annuity of a person who first becomes a sheriff's 
23law enforcement employee under this Article on or after 
24January 1, 2011 shall be increased on the January 1 occurring 
25either on or after the attainment of the retirement age 
26applicable to that sheriff's law enforcement employee under 
 
 
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1this Article age 60 or the first anniversary of the annuity 
2start date, whichever is later. Each annual increase shall be 
3calculated at 3% or one-half the annual unadjusted percentage 
4increase (but not less than zero) in the consumer price 
5index-u for the 12 months ending with the September preceding 
6each November 1, whichever is less, of the originally granted 
7retirement annuity. If the annual unadjusted percentage change 
8in the consumer price index-u for a 12-month period ending in 
9September is zero or, when compared with the preceding period, 
10decreases, then the annuity shall not be increased. 
11 (h) Notwithstanding any other provision of this Article, 
12for a person who first becomes a sheriff's law enforcement 
13employee under this Article on or after January 1, 2011, the 
14annuity to which the surviving spouse, children, or parents 
15are entitled under this subsection (h) shall be in the amount 
16of 66 2/3% of the sheriff's law enforcement employee's earned 
17annuity at the date of death.
18 (i) Notwithstanding any other provision of this Article, 
19the monthly annuity of a survivor of a person who first becomes 
20a sheriff's law enforcement employee under this Article on or 
21after January 1, 2011 shall be increased on the January 1 after 
22attainment of age 60 by the recipient of the survivor's 
23annuity and each January 1 thereafter by 3% or one-half the 
24annual unadjusted percentage increase in the consumer price 
25index-u for the 12 months ending with the September preceding 
26each November 1, whichever is less, of the originally granted 
 
 
HB5909- 348 -LRB103 43117 RPS 76377 b


1pension. If the annual unadjusted percentage change in the 
2consumer price index-u for a 12-month period ending in 
3September is zero or, when compared with the preceding period, 
4decreases, then the annuity shall not be increased. 
5 (j) For the purposes of this Section, "consumer price 
6index-u" means the index published by the Bureau of Labor 
7Statistics of the United States Department of Labor that 
8measures the average change in prices of goods and services 
9purchased by all urban consumers, United States city average, 
10all items, 1982-84 = 100. The new amount resulting from each 
11annual adjustment shall be determined by the Public Pension 
12Division of the Department of Insurance and made available to 
13the boards of the pension funds. 
14(Source: P.A. 100-148, eff. 8-18-17.)

15 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
16 (Text of Section from P.A. 102-813 and 103-34)
17 Sec. 14-110. Alternative retirement annuity. 
18 (a) Any member who has withdrawn from service with not 
19less than 20 years of eligible creditable service and has 
20attained age 55, and any member who has withdrawn from service 
21with not less than 25 years of eligible creditable service and 
22has attained age 50, regardless of whether the attainment of 
23either of the specified ages occurs while the member is still 
24in service, shall be entitled to receive at the option of the 
25member, in lieu of the regular or minimum retirement annuity, 
 
 
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1a retirement annuity computed as follows:
2  (i) for periods of service as a noncovered employee: 
3 if retirement occurs on or after January 1, 2001, 3% of 
4 final average compensation for each year of creditable 
5 service; if retirement occurs before January 1, 2001, 2 
6 1/4% of final average compensation for each of the first 
7 10 years of creditable service, 2 1/2% for each year above 
8 10 years to and including 20 years of creditable service, 
9 and 2 3/4% for each year of creditable service above 20 
10 years; and
11  (ii) for periods of eligible creditable service as a 
12 covered employee: if retirement occurs on or after January 
13 1, 2001, 2.5% of final average compensation for each year 
14 of creditable service; if retirement occurs before January 
15 1, 2001, 1.67% of final average compensation for each of 
16 the first 10 years of such service, 1.90% for each of the 
17 next 10 years of such service, 2.10% for each year of such 
18 service in excess of 20 but not exceeding 30, and 2.30% for 
19 each year in excess of 30.
20 Such annuity shall be subject to a maximum of 75% of final 
21average compensation if retirement occurs before January 1, 
222001 or to a maximum of 80% of final average compensation if 
23retirement occurs on or after January 1, 2001.
24 These rates shall not be applicable to any service 
25performed by a member as a covered employee which is not 
26eligible creditable service. Service as a covered employee 
 
 
HB5909- 350 -LRB103 43117 RPS 76377 b


1which is not eligible creditable service shall be subject to 
2the rates and provisions of Section 14-108.
3 (b) For the purpose of this Section, "eligible creditable 
4service" means creditable service resulting from service in 
5one or more of the following positions:
6  (1) State policeman;
7  (2) fire fighter in the fire protection service of a 
8 department;
9  (3) air pilot;
10  (4) special agent;
11  (5) investigator for the Secretary of State;
12  (6) conservation police officer;
13  (7) investigator for the Department of Revenue or the 
14 Illinois Gaming Board;
15  (8) security employee of the Department of Human 
16 Services;
17  (9) Central Management Services security police 
18 officer;
19  (10) security employee of the Department of 
20 Corrections or the Department of Juvenile Justice;
21  (11) dangerous drugs investigator;
22  (12) investigator for the Illinois State Police;
23  (13) investigator for the Office of the Attorney 
24 General;
25  (14) controlled substance inspector;
26  (15) investigator for the Office of the State's 
 
 
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1 Attorneys Appellate Prosecutor;
2  (16) Commerce Commission police officer;
3  (17) arson investigator;
4  (18) State highway maintenance worker;
5  (19) security employee of the Department of Innovation 
6 and Technology; or 
7  (20) transferred employee; or . 
8  (21) investigator for the Department of the Lottery.
9 A person employed in one of the positions specified in 
10this subsection is entitled to eligible creditable service for 
11service credit earned under this Article while undergoing the 
12basic police training course approved by the Illinois Law 
13Enforcement Training Standards Board, if completion of that 
14training is required of persons serving in that position. For 
15the purposes of this Code, service during the required basic 
16police training course shall be deemed performance of the 
17duties of the specified position, even though the person is 
18not a sworn peace officer at the time of the training.
19 A person under paragraph (20) is entitled to eligible 
20creditable service for service credit earned under this 
21Article on and after his or her transfer by Executive Order No. 
222003-10, Executive Order No. 2004-2, or Executive Order No. 
232016-1. 
24 (c) For the purposes of this Section:
25  (1) The term "State policeman" includes any title or 
26 position in the Illinois State Police that is held by an 
 
 
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1 individual employed under the Illinois State Police Act.
2  (2) The term "fire fighter in the fire protection 
3 service of a department" includes all officers in such 
4 fire protection service including fire chiefs and 
5 assistant fire chiefs.
6  (3) The term "air pilot" includes any employee whose 
7 official job description on file in the Department of 
8 Central Management Services, or in the department by which 
9 he is employed if that department is not covered by the 
10 Personnel Code, states that his principal duty is the 
11 operation of aircraft, and who possesses a pilot's 
12 license; however, the change in this definition made by 
13 Public Act 83-842 shall not operate to exclude any 
14 noncovered employee who was an "air pilot" for the 
15 purposes of this Section on January 1, 1984.
16  (4) The term "special agent" means any person who by 
17 reason of employment by the Division of Narcotic Control, 
18 the Bureau of Investigation or, after July 1, 1977, the 
19 Division of Criminal Investigation, the Division of 
20 Internal Investigation, the Division of Operations, the 
21 Division of Patrol, or any other Division or 
22 organizational entity in the Illinois State Police is 
23 vested by law with duties to maintain public order, 
24 investigate violations of the criminal law of this State, 
25 enforce the laws of this State, make arrests and recover 
26 property. The term "special agent" includes any title or 
 
 
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1 position in the Illinois State Police that is held by an 
2 individual employed under the Illinois State Police Act.
3  (5) The term "investigator for the Secretary of State" 
4 means any person employed by the Office of the Secretary 
5 of State and vested with such investigative duties as 
6 render him ineligible for coverage under the Social 
7 Security Act by reason of Sections 218(d)(5)(A), 
8 218(d)(8)(D) and 218(l)(1) of that Act.
9  A person who became employed as an investigator for 
10 the Secretary of State between January 1, 1967 and 
11 December 31, 1975, and who has served as such until 
12 attainment of age 60, either continuously or with a single 
13 break in service of not more than 3 years duration, which 
14 break terminated before January 1, 1976, shall be entitled 
15 to have his retirement annuity calculated in accordance 
16 with subsection (a), notwithstanding that he has less than 
17 20 years of credit for such service.
18  (6) The term "Conservation Police Officer" means any 
19 person employed by the Division of Law Enforcement of the 
20 Department of Natural Resources and vested with such law 
21 enforcement duties as render him ineligible for coverage 
22 under the Social Security Act by reason of Sections 
23 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
24 term "Conservation Police Officer" includes the positions 
25 of Chief Conservation Police Administrator and Assistant 
26 Conservation Police Administrator.
 
 
HB5909- 354 -LRB103 43117 RPS 76377 b


1  (7) The term "investigator for the Department of 
2 Revenue" means any person employed by the Department of 
3 Revenue and vested with such investigative duties as 
4 render him ineligible for coverage under the Social 
5 Security Act by reason of Sections 218(d)(5)(A), 
6 218(d)(8)(D) and 218(l)(1) of that Act.
7  The term "investigator for the Illinois Gaming Board" 
8 means any person employed as such by the Illinois Gaming 
9 Board and vested with such peace officer duties as render 
10 the person ineligible for coverage under the Social 
11 Security Act by reason of Sections 218(d)(5)(A), 
12 218(d)(8)(D), and 218(l)(1) of that Act. 
13  (8) The term "security employee of the Department of 
14 Human Services" means any person employed by the 
15 Department of Human Services who (i) is employed at the 
16 Chester Mental Health Center and has daily contact with 
17 the residents thereof, (ii) is employed within a security 
18 unit at a facility operated by the Department and has 
19 daily contact with the residents of the security unit, 
20 (iii) is employed at a facility operated by the Department 
21 that includes a security unit and is regularly scheduled 
22 to work at least 50% of his or her working hours within 
23 that security unit, or (iv) is a mental health police 
24 officer. "Mental health police officer" means any person 
25 employed by the Department of Human Services in a position 
26 pertaining to the Department's mental health and 
 
 
HB5909- 355 -LRB103 43117 RPS 76377 b


1 developmental disabilities functions who is vested with 
2 such law enforcement duties as render the person 
3 ineligible for coverage under the Social Security Act by 
4 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
5 218(l)(1) of that Act. "Security unit" means that portion 
6 of a facility that is devoted to the care, containment, 
7 and treatment of persons committed to the Department of 
8 Human Services as sexually violent persons, persons unfit 
9 to stand trial, or persons not guilty by reason of 
10 insanity. With respect to past employment, references to 
11 the Department of Human Services include its predecessor, 
12 the Department of Mental Health and Developmental 
13 Disabilities.
14  The changes made to this subdivision (c)(8) by Public 
15 Act 92-14 apply to persons who retire on or after January 
16 1, 2001, notwithstanding Section 1-103.1.
17  (9) "Central Management Services security police 
18 officer" means any person employed by the Department of 
19 Central Management Services who is vested with such law 
20 enforcement duties as render him ineligible for coverage 
21 under the Social Security Act by reason of Sections 
22 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
23  (10) For a member who first became an employee under 
24 this Article before July 1, 2005, the term "security 
25 employee of the Department of Corrections or the 
26 Department of Juvenile Justice" means any employee of the 
 
 
HB5909- 356 -LRB103 43117 RPS 76377 b


1 Department of Corrections or the Department of Juvenile 
2 Justice or the former Department of Personnel, and any 
3 member or employee of the Prisoner Review Board, who has 
4 daily contact with inmates or youth by working within a 
5 correctional facility or Juvenile facility operated by the 
6 Department of Juvenile Justice or who is a parole officer 
7 or an employee who has direct contact with committed 
8 persons in the performance of his or her job duties. For a 
9 member who first becomes an employee under this Article on 
10 or after July 1, 2005, the term means an employee of the 
11 Department of Corrections or the Department of Juvenile 
12 Justice who is any of the following: (i) officially 
13 headquartered at a correctional facility or Juvenile 
14 facility operated by the Department of Juvenile Justice, 
15 (ii) a parole officer, (iii) a member of the apprehension 
16 unit, (iv) a member of the intelligence unit, (v) a member 
17 of the sort team, or (vi) an investigator.
18  (11) The term "dangerous drugs investigator" means any 
19 person who is employed as such by the Department of Human 
20 Services.
21  (12) The term "investigator for the Illinois State 
22 Police" means a person employed by the Illinois State 
23 Police who is vested under Section 4 of the Narcotic 
24 Control Division Abolition Act with such law enforcement 
25 powers as render him ineligible for coverage under the 
26 Social Security Act by reason of Sections 218(d)(5)(A), 
 
 
HB5909- 357 -LRB103 43117 RPS 76377 b


1 218(d)(8)(D) and 218(l)(1) of that Act.
2  (13) "Investigator for the Office of the Attorney 
3 General" means any person who is employed as such by the 
4 Office of the Attorney General and is vested with such 
5 investigative duties as render him ineligible for coverage 
6 under the Social Security Act by reason of Sections 
7 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
8 the period before January 1, 1989, the term includes all 
9 persons who were employed as investigators by the Office 
10 of the Attorney General, without regard to social security 
11 status.
12  (14) "Controlled substance inspector" means any person 
13 who is employed as such by the Department of Professional 
14 Regulation and is vested with such law enforcement duties 
15 as render him ineligible for coverage under the Social 
16 Security Act by reason of Sections 218(d)(5)(A), 
17 218(d)(8)(D) and 218(l)(1) of that Act. The term 
18 "controlled substance inspector" includes the Program 
19 Executive of Enforcement and the Assistant Program 
20 Executive of Enforcement.
21  (15) The term "investigator for the Office of the 
22 State's Attorneys Appellate Prosecutor" means a person 
23 employed in that capacity on a full-time basis under the 
24 authority of Section 7.06 of the State's Attorneys 
25 Appellate Prosecutor's Act.
26  (16) "Commerce Commission police officer" means any 
 
 
HB5909- 358 -LRB103 43117 RPS 76377 b


1 person employed by the Illinois Commerce Commission who is 
2 vested with such law enforcement duties as render him 
3 ineligible for coverage under the Social Security Act by 
4 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
5 218(l)(1) of that Act.
6  (17) "Arson investigator" means any person who is 
7 employed as such by the Office of the State Fire Marshal 
8 and is vested with such law enforcement duties as render 
9 the person ineligible for coverage under the Social 
10 Security Act by reason of Sections 218(d)(5)(A), 
11 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
12 employed as an arson investigator on January 1, 1995 and 
13 is no longer in service but not yet receiving a retirement 
14 annuity may convert his or her creditable service for 
15 employment as an arson investigator into eligible 
16 creditable service by paying to the System the difference 
17 between the employee contributions actually paid for that 
18 service and the amounts that would have been contributed 
19 if the applicant were contributing at the rate applicable 
20 to persons with the same social security status earning 
21 eligible creditable service on the date of application.
22  (18) The term "State highway maintenance worker" means 
23 a person who is either of the following:
24   (i) A person employed on a full-time basis by the 
25 Illinois Department of Transportation in the position 
26 of highway maintainer, highway maintenance lead 
 
 
HB5909- 359 -LRB103 43117 RPS 76377 b


1 worker, highway maintenance lead/lead worker, heavy 
2 construction equipment operator, power shovel 
3 operator, or bridge mechanic; and whose principal 
4 responsibility is to perform, on the roadway, the 
5 actual maintenance necessary to keep the highways that 
6 form a part of the State highway system in serviceable 
7 condition for vehicular traffic.
8   (ii) A person employed on a full-time basis by the 
9 Illinois State Toll Highway Authority in the position 
10 of equipment operator/laborer H-4, equipment 
11 operator/laborer H-6, welder H-4, welder H-6, 
12 mechanical/electrical H-4, mechanical/electrical H-6, 
13 water/sewer H-4, water/sewer H-6, sign maker/hanger 
14 H-4, sign maker/hanger H-6, roadway lighting H-4, 
15 roadway lighting H-6, structural H-4, structural H-6, 
16 painter H-4, or painter H-6; and whose principal 
17 responsibility is to perform, on the roadway, the 
18 actual maintenance necessary to keep the Authority's 
19 tollways in serviceable condition for vehicular 
20 traffic.
21  (19) The term "security employee of the Department of 
22 Innovation and Technology" means a person who was a 
23 security employee of the Department of Corrections or the 
24 Department of Juvenile Justice, was transferred to the 
25 Department of Innovation and Technology pursuant to 
26 Executive Order 2016-01, and continues to perform similar 
 
 
HB5909- 360 -LRB103 43117 RPS 76377 b


1 job functions under that Department. 
2  (20) "Transferred employee" means an employee who was 
3 transferred to the Department of Central Management 
4 Services by Executive Order No. 2003-10 or Executive Order 
5 No. 2004-2 or transferred to the Department of Innovation 
6 and Technology by Executive Order No. 2016-1, or both, and 
7 was entitled to eligible creditable service for services 
8 immediately preceding the transfer. 
9  (21) "Investigator for the Department of the Lottery" 
10 means any person who is employed by the Department of the 
11 Lottery and is vested with such investigative duties which 
12 render him or her ineligible for coverage under the Social 
13 Security Act by reason of Sections 218(d)(5)(A), 
14 218(d)(8)(D), and 218(l)(1) of that Act. An investigator 
15 for the Department of the Lottery who qualifies under this 
16 Section shall earn eligible creditable service and be 
17 required to make contributions at the rate specified in 
18 paragraph (3) of subsection (a) of Section 14-133 for all 
19 periods of service as an investigator for the Department 
20 of the Lottery. 
21 (d) A security employee of the Department of Corrections 
22or the Department of Juvenile Justice, a security employee of 
23the Department of Human Services who is not a mental health 
24police officer, and a security employee of the Department of 
25Innovation and Technology shall not be eligible for the 
26alternative retirement annuity provided by this Section unless 
 
 
HB5909- 361 -LRB103 43117 RPS 76377 b


1he or she meets the following minimum age and service 
2requirements at the time of retirement:
3  (i) 25 years of eligible creditable service and age 
4 55; or
5  (ii) beginning January 1, 1987, 25 years of eligible 
6 creditable service and age 54, or 24 years of eligible 
7 creditable service and age 55; or
8  (iii) beginning January 1, 1988, 25 years of eligible 
9 creditable service and age 53, or 23 years of eligible 
10 creditable service and age 55; or
11  (iv) beginning January 1, 1989, 25 years of eligible 
12 creditable service and age 52, or 22 years of eligible 
13 creditable service and age 55; or
14  (v) beginning January 1, 1990, 25 years of eligible 
15 creditable service and age 51, or 21 years of eligible 
16 creditable service and age 55; or
17  (vi) beginning January 1, 1991, 25 years of eligible 
18 creditable service and age 50, or 20 years of eligible 
19 creditable service and age 55.
20 Persons who have service credit under Article 16 of this 
21Code for service as a security employee of the Department of 
22Corrections or the Department of Juvenile Justice, or the 
23Department of Human Services in a position requiring 
24certification as a teacher may count such service toward 
25establishing their eligibility under the service requirements 
26of this Section; but such service may be used only for 
 
 
HB5909- 362 -LRB103 43117 RPS 76377 b


1establishing such eligibility, and not for the purpose of 
2increasing or calculating any benefit.
3 (e) If a member enters military service while working in a 
4position in which eligible creditable service may be earned, 
5and returns to State service in the same or another such 
6position, and fulfills in all other respects the conditions 
7prescribed in this Article for credit for military service, 
8such military service shall be credited as eligible creditable 
9service for the purposes of the retirement annuity prescribed 
10in this Section.
11 (f) For purposes of calculating retirement annuities under 
12this Section, periods of service rendered after December 31, 
131968 and before October 1, 1975 as a covered employee in the 
14position of special agent, conservation police officer, mental 
15health police officer, or investigator for the Secretary of 
16State, shall be deemed to have been service as a noncovered 
17employee, provided that the employee pays to the System prior 
18to retirement an amount equal to (1) the difference between 
19the employee contributions that would have been required for 
20such service as a noncovered employee, and the amount of 
21employee contributions actually paid, plus (2) if payment is 
22made after July 31, 1987, regular interest on the amount 
23specified in item (1) from the date of service to the date of 
24payment.
25 For purposes of calculating retirement annuities under 
26this Section, periods of service rendered after December 31, 
 
 
HB5909- 363 -LRB103 43117 RPS 76377 b


11968 and before January 1, 1982 as a covered employee in the 
2position of investigator for the Department of Revenue shall 
3be deemed to have been service as a noncovered employee, 
4provided that the employee pays to the System prior to 
5retirement an amount equal to (1) the difference between the 
6employee contributions that would have been required for such 
7service as a noncovered employee, and the amount of employee 
8contributions actually paid, plus (2) if payment is made after 
9January 1, 1990, regular interest on the amount specified in 
10item (1) from the date of service to the date of payment.
11 (g) A State policeman may elect, not later than January 1, 
121990, to establish eligible creditable service for up to 10 
13years of his service as a policeman under Article 3, by filing 
14a written election with the Board, accompanied by payment of 
15an amount to be determined by the Board, equal to (i) the 
16difference between the amount of employee and employer 
17contributions transferred to the System under Section 3-110.5, 
18and the amounts that would have been contributed had such 
19contributions been made at the rates applicable to State 
20policemen, plus (ii) interest thereon at the effective rate 
21for each year, compounded annually, from the date of service 
22to the date of payment.
23 Subject to the limitation in subsection (i), a State 
24policeman may elect, not later than July 1, 1993, to establish 
25eligible creditable service for up to 10 years of his service 
26as a member of the County Police Department under Article 9, by 
 
 
HB5909- 364 -LRB103 43117 RPS 76377 b


1filing a written election with the Board, accompanied by 
2payment of an amount to be determined by the Board, equal to 
3(i) the difference between the amount of employee and employer 
4contributions transferred to the System under Section 9-121.10 
5and the amounts that would have been contributed had those 
6contributions been made at the rates applicable to State 
7policemen, plus (ii) interest thereon at the effective rate 
8for each year, compounded annually, from the date of service 
9to the date of payment.
10 (h) Subject to the limitation in subsection (i), a State 
11policeman or investigator for the Secretary of State may elect 
12to establish eligible creditable service for up to 12 years of 
13his service as a policeman under Article 5, by filing a written 
14election with the Board on or before January 31, 1992, and 
15paying to the System by January 31, 1994 an amount to be 
16determined by the Board, equal to (i) the difference between 
17the amount of employee and employer contributions transferred 
18to the System under Section 5-236, and the amounts that would 
19have been contributed had such contributions been made at the 
20rates applicable to State policemen, plus (ii) interest 
21thereon at the effective rate for each year, compounded 
22annually, from the date of service to the date of payment.
23 Subject to the limitation in subsection (i), a State 
24policeman, conservation police officer, or investigator for 
25the Secretary of State may elect to establish eligible 
26creditable service for up to 10 years of service as a sheriff's 
 
 
HB5909- 365 -LRB103 43117 RPS 76377 b


1law enforcement employee under Article 7, by filing a written 
2election with the Board on or before January 31, 1993, and 
3paying to the System by January 31, 1994 an amount to be 
4determined by the Board, equal to (i) the difference between 
5the amount of employee and employer contributions transferred 
6to the System under Section 7-139.7, and the amounts that 
7would have been contributed had such contributions been made 
8at the rates applicable to State policemen, plus (ii) interest 
9thereon at the effective rate for each year, compounded 
10annually, from the date of service to the date of payment.
11 Subject to the limitation in subsection (i), a State 
12policeman, conservation police officer, or investigator for 
13the Secretary of State may elect to establish eligible 
14creditable service for up to 5 years of service as a police 
15officer under Article 3, a policeman under Article 5, a 
16sheriff's law enforcement employee under Article 7, a member 
17of the county police department under Article 9, or a police 
18officer under Article 15 by filing a written election with the 
19Board and paying to the System an amount to be determined by 
20the Board, equal to (i) the difference between the amount of 
21employee and employer contributions transferred to the System 
22under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
23and the amounts that would have been contributed had such 
24contributions been made at the rates applicable to State 
25policemen, plus (ii) interest thereon at the effective rate 
26for each year, compounded annually, from the date of service 
 
 
HB5909- 366 -LRB103 43117 RPS 76377 b


1to the date of payment.
2 Subject to the limitation in subsection (i), an 
3investigator for the Office of the Attorney General, or an 
4investigator for the Department of Revenue, may elect to 
5establish eligible creditable service for up to 5 years of 
6service as a police officer under Article 3, a policeman under 
7Article 5, a sheriff's law enforcement employee under Article 
87, or a member of the county police department under Article 9 
9by filing a written election with the Board within 6 months 
10after August 25, 2009 (the effective date of Public Act 
1196-745) and paying to the System an amount to be determined by 
12the Board, equal to (i) the difference between the amount of 
13employee and employer contributions transferred to the System 
14under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
15amounts that would have been contributed had such 
16contributions been made at the rates applicable to State 
17policemen, plus (ii) interest thereon at the actuarially 
18assumed rate for each year, compounded annually, from the date 
19of service to the date of payment.
20 Subject to the limitation in subsection (i), a State 
21policeman, conservation police officer, investigator for the 
22Office of the Attorney General, an investigator for the 
23Department of Revenue, or investigator for the Secretary of 
24State may elect to establish eligible creditable service for 
25up to 5 years of service as a person employed by a 
26participating municipality to perform police duties, or law 
 
 
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1enforcement officer employed on a full-time basis by a forest 
2preserve district under Article 7, a county corrections 
3officer, or a court services officer under Article 9, by 
4filing a written election with the Board within 6 months after 
5August 25, 2009 (the effective date of Public Act 96-745) and 
6paying to the System an amount to be determined by the Board, 
7equal to (i) the difference between the amount of employee and 
8employer contributions transferred to the System under 
9Sections 7-139.8 and 9-121.10 and the amounts that would have 
10been contributed had such contributions been made at the rates 
11applicable to State policemen, plus (ii) interest thereon at 
12the actuarially assumed rate for each year, compounded 
13annually, from the date of service to the date of payment.
14 Subject to the limitation in subsection (i), a State 
15policeman, arson investigator, or Commerce Commission police 
16officer may elect to establish eligible creditable service for 
17up to 5 years of service as a person employed by a 
18participating municipality to perform police duties under 
19Article 7, a county corrections officer, a court services 
20officer under Article 9, or a firefighter under Article 4 by 
21filing a written election with the Board within 6 months after 
22July 30, 2021 (the effective date of Public Act 102-210) and 
23paying to the System an amount to be determined by the Board 
24equal to (i) the difference between the amount of employee and 
25employer contributions transferred to the System under 
26Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
 
 
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1would have been contributed had such contributions been made 
2at the rates applicable to State policemen, plus (ii) interest 
3thereon at the actuarially assumed rate for each year, 
4compounded annually, from the date of service to the date of 
5payment. 
6 Subject to the limitation in subsection (i), a 
7conservation police officer may elect to establish eligible 
8creditable service for up to 5 years of service as a person 
9employed by a participating municipality to perform police 
10duties under Article 7, a county corrections officer, or a 
11court services officer under Article 9 by filing a written 
12election with the Board within 6 months after July 30, 2021 
13(the effective date of Public Act 102-210) and paying to the 
14System an amount to be determined by the Board equal to (i) the 
15difference between the amount of employee and employer 
16contributions transferred to the System under Sections 7-139.8 
17and 9-121.10 and the amounts that would have been contributed 
18had such contributions been made at the rates applicable to 
19State policemen, plus (ii) interest thereon at the actuarially 
20assumed rate for each year, compounded annually, from the date 
21of service to the date of payment. 
22 Notwithstanding the limitation in subsection (i), a State 
23policeman or conservation police officer may elect to convert 
24service credit earned under this Article to eligible 
25creditable service, as defined by this Section, by filing a 
26written election with the board within 6 months after July 30, 
 
 
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12021 (the effective date of Public Act 102-210) and paying to 
2the System an amount to be determined by the Board equal to (i) 
3the difference between the amount of employee contributions 
4originally paid for that service and the amounts that would 
5have been contributed had such contributions been made at the 
6rates applicable to State policemen, plus (ii) the difference 
7between the employer's normal cost of the credit prior to the 
8conversion authorized by Public Act 102-210 and the employer's 
9normal cost of the credit converted in accordance with Public 
10Act 102-210, plus (iii) interest thereon at the actuarially 
11assumed rate for each year, compounded annually, from the date 
12of service to the date of payment. 
13 (i) The total amount of eligible creditable service 
14established by any person under subsections (g), (h), (j), 
15(k), (l), (l-5), and (o), and (r) of this Section shall not 
16exceed 12 years.
17 (j) Subject to the limitation in subsection (i), an 
18investigator for the Office of the State's Attorneys Appellate 
19Prosecutor or a controlled substance inspector may elect to 
20establish eligible creditable service for up to 10 years of 
21his service as a policeman under Article 3 or a sheriff's law 
22enforcement employee under Article 7, by filing a written 
23election with the Board, accompanied by payment of an amount 
24to be determined by the Board, equal to (1) the difference 
25between the amount of employee and employer contributions 
26transferred to the System under Section 3-110.6 or 7-139.8, 
 
 
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1and the amounts that would have been contributed had such 
2contributions been made at the rates applicable to State 
3policemen, plus (2) interest thereon at the effective rate for 
4each year, compounded annually, from the date of service to 
5the date of payment.
6 (k) Subject to the limitation in subsection (i) of this 
7Section, an alternative formula employee may elect to 
8establish eligible creditable service for periods spent as a 
9full-time law enforcement officer or full-time corrections 
10officer employed by the federal government or by a state or 
11local government located outside of Illinois, for which credit 
12is not held in any other public employee pension fund or 
13retirement system. To obtain this credit, the applicant must 
14file a written application with the Board by March 31, 1998, 
15accompanied by evidence of eligibility acceptable to the Board 
16and payment of an amount to be determined by the Board, equal 
17to (1) employee contributions for the credit being 
18established, based upon the applicant's salary on the first 
19day as an alternative formula employee after the employment 
20for which credit is being established and the rates then 
21applicable to alternative formula employees, plus (2) an 
22amount determined by the Board to be the employer's normal 
23cost of the benefits accrued for the credit being established, 
24plus (3) regular interest on the amounts in items (1) and (2) 
25from the first day as an alternative formula employee after 
26the employment for which credit is being established to the 
 
 
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1date of payment.
2 (l) Subject to the limitation in subsection (i), a 
3security employee of the Department of Corrections may elect, 
4not later than July 1, 1998, to establish eligible creditable 
5service for up to 10 years of his or her service as a policeman 
6under Article 3, by filing a written election with the Board, 
7accompanied by payment of an amount to be determined by the 
8Board, equal to (i) the difference between the amount of 
9employee and employer contributions transferred to the System 
10under Section 3-110.5, and the amounts that would have been 
11contributed had such contributions been made at the rates 
12applicable to security employees of the Department of 
13Corrections, plus (ii) interest thereon at the effective rate 
14for each year, compounded annually, from the date of service 
15to the date of payment.
16 (l-5) Subject to the limitation in subsection (i) of this 
17Section, a State policeman may elect to establish eligible 
18creditable service for up to 5 years of service as a full-time 
19law enforcement officer employed by the federal government or 
20by a state or local government located outside of Illinois for 
21which credit is not held in any other public employee pension 
22fund or retirement system. To obtain this credit, the 
23applicant must file a written application with the Board no 
24later than 3 years after January 1, 2020 (the effective date of 
25Public Act 101-610), accompanied by evidence of eligibility 
26acceptable to the Board and payment of an amount to be 
 
 
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1determined by the Board, equal to (1) employee contributions 
2for the credit being established, based upon the applicant's 
3salary on the first day as an alternative formula employee 
4after the employment for which credit is being established and 
5the rates then applicable to alternative formula employees, 
6plus (2) an amount determined by the Board to be the employer's 
7normal cost of the benefits accrued for the credit being 
8established, plus (3) regular interest on the amounts in items 
9(1) and (2) from the first day as an alternative formula 
10employee after the employment for which credit is being 
11established to the date of payment. 
12 (m) The amendatory changes to this Section made by Public 
13Act 94-696 apply only to: (1) security employees of the 
14Department of Juvenile Justice employed by the Department of 
15Corrections before June 1, 2006 (the effective date of Public 
16Act 94-696) and transferred to the Department of Juvenile 
17Justice by Public Act 94-696; and (2) persons employed by the 
18Department of Juvenile Justice on or after June 1, 2006 (the 
19effective date of Public Act 94-696) who are required by 
20subsection (b) of Section 3-2.5-15 of the Unified Code of 
21Corrections to have any bachelor's or advanced degree from an 
22accredited college or university or, in the case of persons 
23who provide vocational training, who are required to have 
24adequate knowledge in the skill for which they are providing 
25the vocational training. 
26 Beginning with the pay period that immediately follows the 
 
 
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1effective date of this amendatory Act of the 103rd General 
2Assembly, the bachelor's or advanced degree requirement of 
3subsection (b) of Section 3-2.5-15 of the Unified Code of 
4Corrections shall no longer determine the eligibility to earn 
5eligible creditable service for a person employed by the 
6Department of Juvenile Justice. 
7 An employee may elect to convert into eligible creditable 
8service his or her creditable service earned with the 
9Department of Juvenile Justice while employed in a position 
10that required the employee to do any one or more of the 
11following: (1) participate or assist in the rehabilitative and 
12vocational training of delinquent youths; (2) supervise the 
13daily activities and assume direct and continuing 
14responsibility for the youth's security, welfare, and 
15development; or (3) participate in the personal rehabilitation 
16of delinquent youth by training, supervising, and assisting 
17lower-level personnel. To convert that creditable service to 
18eligible creditable service, the employee must pay to the 
19System the difference between the employee contributions 
20actually paid for that service and the amounts that would have 
21been contributed if the applicant were contributing at the 
22rate applicable to persons with the same Social Security 
23status earning eligible creditable service on the date of 
24application. 
25 (n) A person employed in a position under subsection (b) 
26of this Section who has purchased service credit under 
 
 
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1subsection (j) of Section 14-104 or subsection (b) of Section 
214-105 in any other capacity under this Article may convert up 
3to 5 years of that service credit into service credit covered 
4under this Section by paying to the Fund an amount equal to (1) 
5the additional employee contribution required under Section 
614-133, plus (2) the additional employer contribution required 
7under Section 14-131, plus (3) interest on items (1) and (2) at 
8the actuarially assumed rate from the date of the service to 
9the date of payment. 
10 (o) Subject to the limitation in subsection (i), a 
11conservation police officer, investigator for the Secretary of 
12State, Commerce Commission police officer, investigator for 
13the Department of Revenue or the Illinois Gaming Board, or 
14arson investigator subject to subsection (g) of Section 1-160 
15may elect to convert up to 8 years of service credit 
16established before January 1, 2020 (the effective date of 
17Public Act 101-610) as a conservation police officer, 
18investigator for the Secretary of State, Commerce Commission 
19police officer, investigator for the Department of Revenue or 
20the Illinois Gaming Board, or arson investigator under this 
21Article into eligible creditable service by filing a written 
22election with the Board no later than one year after January 1, 
232020 (the effective date of Public Act 101-610), accompanied 
24by payment of an amount to be determined by the Board equal to 
25(i) the difference between the amount of the employee 
26contributions actually paid for that service and the amount of 
 
 
HB5909- 375 -LRB103 43117 RPS 76377 b


1the employee contributions that would have been paid had the 
2employee contributions been made as a noncovered employee 
3serving in a position in which eligible creditable service, as 
4defined in this Section, may be earned, plus (ii) interest 
5thereon at the effective rate for each year, compounded 
6annually, from the date of service to the date of payment.
7 (q) A security employee of the Department of Human 
8Services who is subject to subsection (g) of Section 1-160 may 
9elect to convert up to 13 years of service credit established 
10before the effective date of this amendatory Act of the 103rd 
11General Assembly as a security employee of the Department of 
12Human Services to eligible creditable service by filing a 
13written election with the Board no later than one year after 
14the effective date of this amendatory Act of the 103rd General 
15Assembly, accompanied by payment of an amount, to be 
16determined by the Board, equal to (i) the difference between 
17the amount of the employee contributions actually paid for 
18that service and the amount of the employee contributions that 
19would have been paid had the employee contributions been made 
20as a covered employee serving in a position in which eligible 
21creditable service, as defined in this Section, may be earned, 
22plus (ii) interest thereon at the effective rate for each 
23year, compounded annually, from the date of service to the 
24date of payment. 
25 (r) Subject to the limitation in subsection (i), a State 
26highway maintenance worker subject to subsection (g) of 
 
 
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1Section 1-160 may elect to convert up to 8 years of service 
2credit established before the effective date of this 
3amendatory Act of the 103rd General Assembly as a State 
4highway maintenance work under this Article into eligible 
5creditable service by filing a written election with the Board 
6no later than one year after the effective date of this 
7amendatory Act of the 103rd General Assembly, accompanied by 
8payment of an amount to be determined by the Board equal to (i) 
9the difference between the amount of the employee 
10contributions actually paid for that service and the amount of 
11the employee contributions that would have been paid had the 
12employee contributions been made as a noncovered employee 
13serving in a position in which eligible creditable service, as 
14defined in this Section, may be earned, plus (ii) interest 
15thereon at the effective rate for each year, compounded 
16annually, from the date of service to the date of payment. 
17(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
18102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)

19 (Text of Section from P.A. 102-856 and 103-34)
20 Sec. 14-110. Alternative retirement annuity. 
21 (a) Any member who has withdrawn from service with not 
22less than 20 years of eligible creditable service and has 
23attained age 55, and any member who has withdrawn from service 
24with not less than 25 years of eligible creditable service and 
25has attained age 50, regardless of whether the attainment of 
 
 
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1either of the specified ages occurs while the member is still 
2in service, shall be entitled to receive at the option of the 
3member, in lieu of the regular or minimum retirement annuity, 
4a retirement annuity computed as follows:
5  (i) for periods of service as a noncovered employee: 
6 if retirement occurs on or after January 1, 2001, 3% of 
7 final average compensation for each year of creditable 
8 service; if retirement occurs before January 1, 2001, 2 
9 1/4% of final average compensation for each of the first 
10 10 years of creditable service, 2 1/2% for each year above 
11 10 years to and including 20 years of creditable service, 
12 and 2 3/4% for each year of creditable service above 20 
13 years; and
14  (ii) for periods of eligible creditable service as a 
15 covered employee: if retirement occurs on or after January 
16 1, 2001, 2.5% of final average compensation for each year 
17 of creditable service; if retirement occurs before January 
18 1, 2001, 1.67% of final average compensation for each of 
19 the first 10 years of such service, 1.90% for each of the 
20 next 10 years of such service, 2.10% for each year of such 
21 service in excess of 20 but not exceeding 30, and 2.30% for 
22 each year in excess of 30.
23 Such annuity shall be subject to a maximum of 75% of final 
24average compensation if retirement occurs before January 1, 
252001 or to a maximum of 80% of final average compensation if 
26retirement occurs on or after January 1, 2001.
 
 
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1 These rates shall not be applicable to any service 
2performed by a member as a covered employee which is not 
3eligible creditable service. Service as a covered employee 
4which is not eligible creditable service shall be subject to 
5the rates and provisions of Section 14-108.
6 (b) For the purpose of this Section, "eligible creditable 
7service" means creditable service resulting from service in 
8one or more of the following positions:
9  (1) State policeman;
10  (2) fire fighter in the fire protection service of a 
11 department;
12  (3) air pilot;
13  (4) special agent;
14  (5) investigator for the Secretary of State;
15  (6) conservation police officer;
16  (7) investigator for the Department of Revenue or the 
17 Illinois Gaming Board;
18  (8) security employee of the Department of Human 
19 Services;
20  (9) Central Management Services security police 
21 officer;
22  (10) security employee of the Department of 
23 Corrections or the Department of Juvenile Justice;
24  (11) dangerous drugs investigator;
25  (12) investigator for the Illinois State Police;
26  (13) investigator for the Office of the Attorney 
 
 
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1 General;
2  (14) controlled substance inspector;
3  (15) investigator for the Office of the State's 
4 Attorneys Appellate Prosecutor;
5  (16) Commerce Commission police officer;
6  (17) arson investigator;
7  (18) State highway maintenance worker;
8  (19) security employee of the Department of Innovation 
9 and Technology; or 
10  (20) transferred employee; or . 
11  (21) investigator for the Department of the Lottery.
12 A person employed in one of the positions specified in 
13this subsection is entitled to eligible creditable service for 
14service credit earned under this Article while undergoing the 
15basic police training course approved by the Illinois Law 
16Enforcement Training Standards Board, if completion of that 
17training is required of persons serving in that position. For 
18the purposes of this Code, service during the required basic 
19police training course shall be deemed performance of the 
20duties of the specified position, even though the person is 
21not a sworn peace officer at the time of the training.
22 A person under paragraph (20) is entitled to eligible 
23creditable service for service credit earned under this 
24Article on and after his or her transfer by Executive Order No. 
252003-10, Executive Order No. 2004-2, or Executive Order No. 
262016-1. 
 
 
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1 (c) For the purposes of this Section:
2  (1) The term "State policeman" includes any title or 
3 position in the Illinois State Police that is held by an 
4 individual employed under the Illinois State Police Act.
5  (2) The term "fire fighter in the fire protection 
6 service of a department" includes all officers in such 
7 fire protection service including fire chiefs and 
8 assistant fire chiefs.
9  (3) The term "air pilot" includes any employee whose 
10 official job description on file in the Department of 
11 Central Management Services, or in the department by which 
12 he is employed if that department is not covered by the 
13 Personnel Code, states that his principal duty is the 
14 operation of aircraft, and who possesses a pilot's 
15 license; however, the change in this definition made by 
16 Public Act 83-842 shall not operate to exclude any 
17 noncovered employee who was an "air pilot" for the 
18 purposes of this Section on January 1, 1984.
19  (4) The term "special agent" means any person who by 
20 reason of employment by the Division of Narcotic Control, 
21 the Bureau of Investigation or, after July 1, 1977, the 
22 Division of Criminal Investigation, the Division of 
23 Internal Investigation, the Division of Operations, the 
24 Division of Patrol, or any other Division or 
25 organizational entity in the Illinois State Police is 
26 vested by law with duties to maintain public order, 
 
 
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1 investigate violations of the criminal law of this State, 
2 enforce the laws of this State, make arrests and recover 
3 property. The term "special agent" includes any title or 
4 position in the Illinois State Police that is held by an 
5 individual employed under the Illinois State Police Act.
6  (5) The term "investigator for the Secretary of State" 
7 means any person employed by the Office of the Secretary 
8 of State and vested with such investigative duties as 
9 render him ineligible for coverage under the Social 
10 Security Act by reason of Sections 218(d)(5)(A), 
11 218(d)(8)(D) and 218(l)(1) of that Act.
12  A person who became employed as an investigator for 
13 the Secretary of State between January 1, 1967 and 
14 December 31, 1975, and who has served as such until 
15 attainment of age 60, either continuously or with a single 
16 break in service of not more than 3 years duration, which 
17 break terminated before January 1, 1976, shall be entitled 
18 to have his retirement annuity calculated in accordance 
19 with subsection (a), notwithstanding that he has less than 
20 20 years of credit for such service.
21  (6) The term "Conservation Police Officer" means any 
22 person employed by the Division of Law Enforcement of the 
23 Department of Natural Resources and vested with such law 
24 enforcement duties as render him ineligible for coverage 
25 under the Social Security Act by reason of Sections 
26 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
 
 
HB5909- 382 -LRB103 43117 RPS 76377 b


1 term "Conservation Police Officer" includes the positions 
2 of Chief Conservation Police Administrator and Assistant 
3 Conservation Police Administrator.
4  (7) The term "investigator for the Department of 
5 Revenue" means any person employed by the Department of 
6 Revenue and vested with such investigative duties as 
7 render him ineligible for coverage under the Social 
8 Security Act by reason of Sections 218(d)(5)(A), 
9 218(d)(8)(D) and 218(l)(1) of that Act.
10  The term "investigator for the Illinois Gaming Board" 
11 means any person employed as such by the Illinois Gaming 
12 Board and vested with such peace officer duties as render 
13 the person ineligible for coverage under the Social 
14 Security Act by reason of Sections 218(d)(5)(A), 
15 218(d)(8)(D), and 218(l)(1) of that Act. 
16  (8) The term "security employee of the Department of 
17 Human Services" means any person employed by the 
18 Department of Human Services who (i) is employed at the 
19 Chester Mental Health Center and has daily contact with 
20 the residents thereof, (ii) is employed within a security 
21 unit at a facility operated by the Department and has 
22 daily contact with the residents of the security unit, 
23 (iii) is employed at a facility operated by the Department 
24 that includes a security unit and is regularly scheduled 
25 to work at least 50% of his or her working hours within 
26 that security unit, or (iv) is a mental health police 
 
 
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1 officer. "Mental health police officer" means any person 
2 employed by the Department of Human Services in a position 
3 pertaining to the Department's mental health and 
4 developmental disabilities functions who is vested with 
5 such law enforcement duties as render the person 
6 ineligible for coverage under the Social Security Act by 
7 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
8 218(l)(1) of that Act. "Security unit" means that portion 
9 of a facility that is devoted to the care, containment, 
10 and treatment of persons committed to the Department of 
11 Human Services as sexually violent persons, persons unfit 
12 to stand trial, or persons not guilty by reason of 
13 insanity. With respect to past employment, references to 
14 the Department of Human Services include its predecessor, 
15 the Department of Mental Health and Developmental 
16 Disabilities.
17  The changes made to this subdivision (c)(8) by Public 
18 Act 92-14 apply to persons who retire on or after January 
19 1, 2001, notwithstanding Section 1-103.1.
20  (9) "Central Management Services security police 
21 officer" means any person employed by the Department of 
22 Central Management Services who is vested with such law 
23 enforcement duties as render him ineligible for coverage 
24 under the Social Security Act by reason of Sections 
25 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
26  (10) For a member who first became an employee under 
 
 
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1 this Article before July 1, 2005, the term "security 
2 employee of the Department of Corrections or the 
3 Department of Juvenile Justice" means any employee of the 
4 Department of Corrections or the Department of Juvenile 
5 Justice or the former Department of Personnel, and any 
6 member or employee of the Prisoner Review Board, who has 
7 daily contact with inmates or youth by working within a 
8 correctional facility or Juvenile facility operated by the 
9 Department of Juvenile Justice or who is a parole officer 
10 or an employee who has direct contact with committed 
11 persons in the performance of his or her job duties. For a 
12 member who first becomes an employee under this Article on 
13 or after July 1, 2005, the term means an employee of the 
14 Department of Corrections or the Department of Juvenile 
15 Justice who is any of the following: (i) officially 
16 headquartered at a correctional facility or Juvenile 
17 facility operated by the Department of Juvenile Justice, 
18 (ii) a parole officer, (iii) a member of the apprehension 
19 unit, (iv) a member of the intelligence unit, (v) a member 
20 of the sort team, or (vi) an investigator.
21  (11) The term "dangerous drugs investigator" means any 
22 person who is employed as such by the Department of Human 
23 Services.
24  (12) The term "investigator for the Illinois State 
25 Police" means a person employed by the Illinois State 
26 Police who is vested under Section 4 of the Narcotic 
 
 
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1 Control Division Abolition Act with such law enforcement 
2 powers as render him ineligible for coverage under the 
3 Social Security Act by reason of Sections 218(d)(5)(A), 
4 218(d)(8)(D) and 218(l)(1) of that Act.
5  (13) "Investigator for the Office of the Attorney 
6 General" means any person who is employed as such by the 
7 Office of the Attorney General and is vested with such 
8 investigative duties as render him ineligible for coverage 
9 under the Social Security Act by reason of Sections 
10 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
11 the period before January 1, 1989, the term includes all 
12 persons who were employed as investigators by the Office 
13 of the Attorney General, without regard to social security 
14 status.
15  (14) "Controlled substance inspector" means any person 
16 who is employed as such by the Department of Professional 
17 Regulation and is vested with such law enforcement duties 
18 as render him ineligible for coverage under the Social 
19 Security Act by reason of Sections 218(d)(5)(A), 
20 218(d)(8)(D) and 218(l)(1) of that Act. The term 
21 "controlled substance inspector" includes the Program 
22 Executive of Enforcement and the Assistant Program 
23 Executive of Enforcement.
24  (15) The term "investigator for the Office of the 
25 State's Attorneys Appellate Prosecutor" means a person 
26 employed in that capacity on a full-time basis under the 
 
 
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1 authority of Section 7.06 of the State's Attorneys 
2 Appellate Prosecutor's Act.
3  (16) "Commerce Commission police officer" means any 
4 person employed by the Illinois Commerce Commission who is 
5 vested with such law enforcement duties as render him 
6 ineligible for coverage under the Social Security Act by 
7 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
8 218(l)(1) of that Act.
9  (17) "Arson investigator" means any person who is 
10 employed as such by the Office of the State Fire Marshal 
11 and is vested with such law enforcement duties as render 
12 the person ineligible for coverage under the Social 
13 Security Act by reason of Sections 218(d)(5)(A), 
14 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
15 employed as an arson investigator on January 1, 1995 and 
16 is no longer in service but not yet receiving a retirement 
17 annuity may convert his or her creditable service for 
18 employment as an arson investigator into eligible 
19 creditable service by paying to the System the difference 
20 between the employee contributions actually paid for that 
21 service and the amounts that would have been contributed 
22 if the applicant were contributing at the rate applicable 
23 to persons with the same social security status earning 
24 eligible creditable service on the date of application.
25  (18) The term "State highway maintenance worker" means 
26 a person who is either of the following:
 
 
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1   (i) A person employed on a full-time basis by the 
2 Illinois Department of Transportation in the position 
3 of highway maintainer, highway maintenance lead 
4 worker, highway maintenance lead/lead worker, heavy 
5 construction equipment operator, power shovel 
6 operator, or bridge mechanic; and whose principal 
7 responsibility is to perform, on the roadway, the 
8 actual maintenance necessary to keep the highways that 
9 form a part of the State highway system in serviceable 
10 condition for vehicular traffic.
11   (ii) A person employed on a full-time basis by the 
12 Illinois State Toll Highway Authority in the position 
13 of equipment operator/laborer H-4, equipment 
14 operator/laborer H-6, welder H-4, welder H-6, 
15 mechanical/electrical H-4, mechanical/electrical H-6, 
16 water/sewer H-4, water/sewer H-6, sign maker/hanger 
17 H-4, sign maker/hanger H-6, roadway lighting H-4, 
18 roadway lighting H-6, structural H-4, structural H-6, 
19 painter H-4, or painter H-6; and whose principal 
20 responsibility is to perform, on the roadway, the 
21 actual maintenance necessary to keep the Authority's 
22 tollways in serviceable condition for vehicular 
23 traffic.
24  (19) The term "security employee of the Department of 
25 Innovation and Technology" means a person who was a 
26 security employee of the Department of Corrections or the 
 
 
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1 Department of Juvenile Justice, was transferred to the 
2 Department of Innovation and Technology pursuant to 
3 Executive Order 2016-01, and continues to perform similar 
4 job functions under that Department. 
5  (20) "Transferred employee" means an employee who was 
6 transferred to the Department of Central Management 
7 Services by Executive Order No. 2003-10 or Executive Order 
8 No. 2004-2 or transferred to the Department of Innovation 
9 and Technology by Executive Order No. 2016-1, or both, and 
10 was entitled to eligible creditable service for services 
11 immediately preceding the transfer. 
12  (21) "Investigator for the Department of the Lottery" 
13 means any person who is employed by the Department of the 
14 Lottery and is vested with such investigative duties which 
15 render him or her ineligible for coverage under the Social 
16 Security Act by reason of Sections 218(d)(5)(A), 
17 218(d)(8)(D), and 218(l)(1) of that Act. An investigator 
18 for the Department of the Lottery who qualifies under this 
19 Section shall earn eligible creditable service and be 
20 required to make contributions at the rate specified in 
21 paragraph (3) of subsection (a) of Section 14-133 for all 
22 periods of service as an investigator for the Department 
23 of the Lottery. 
24 (d) A security employee of the Department of Corrections 
25or the Department of Juvenile Justice, a security employee of 
26the Department of Human Services who is not a mental health 
 
 
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1police officer, and a security employee of the Department of 
2Innovation and Technology shall not be eligible for the 
3alternative retirement annuity provided by this Section unless 
4he or she meets the following minimum age and service 
5requirements at the time of retirement:
6  (i) 25 years of eligible creditable service and age 
7 55; or
8  (ii) beginning January 1, 1987, 25 years of eligible 
9 creditable service and age 54, or 24 years of eligible 
10 creditable service and age 55; or
11  (iii) beginning January 1, 1988, 25 years of eligible 
12 creditable service and age 53, or 23 years of eligible 
13 creditable service and age 55; or
14  (iv) beginning January 1, 1989, 25 years of eligible 
15 creditable service and age 52, or 22 years of eligible 
16 creditable service and age 55; or
17  (v) beginning January 1, 1990, 25 years of eligible 
18 creditable service and age 51, or 21 years of eligible 
19 creditable service and age 55; or
20  (vi) beginning January 1, 1991, 25 years of eligible 
21 creditable service and age 50, or 20 years of eligible 
22 creditable service and age 55.
23 Persons who have service credit under Article 16 of this 
24Code for service as a security employee of the Department of 
25Corrections or the Department of Juvenile Justice, or the 
26Department of Human Services in a position requiring 
 
 
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1certification as a teacher may count such service toward 
2establishing their eligibility under the service requirements 
3of this Section; but such service may be used only for 
4establishing such eligibility, and not for the purpose of 
5increasing or calculating any benefit.
6 (e) If a member enters military service while working in a 
7position in which eligible creditable service may be earned, 
8and returns to State service in the same or another such 
9position, and fulfills in all other respects the conditions 
10prescribed in this Article for credit for military service, 
11such military service shall be credited as eligible creditable 
12service for the purposes of the retirement annuity prescribed 
13in this Section.
14 (f) For purposes of calculating retirement annuities under 
15this Section, periods of service rendered after December 31, 
161968 and before October 1, 1975 as a covered employee in the 
17position of special agent, conservation police officer, mental 
18health police officer, or investigator for the Secretary of 
19State, shall be deemed to have been service as a noncovered 
20employee, provided that the employee pays to the System prior 
21to retirement an amount equal to (1) the difference between 
22the employee contributions that would have been required for 
23such service as a noncovered employee, and the amount of 
24employee contributions actually paid, plus (2) if payment is 
25made after July 31, 1987, regular interest on the amount 
26specified in item (1) from the date of service to the date of 
 
 
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1payment.
2 For purposes of calculating retirement annuities under 
3this Section, periods of service rendered after December 31, 
41968 and before January 1, 1982 as a covered employee in the 
5position of investigator for the Department of Revenue shall 
6be deemed to have been service as a noncovered employee, 
7provided that the employee pays to the System prior to 
8retirement an amount equal to (1) the difference between the 
9employee contributions that would have been required for such 
10service as a noncovered employee, and the amount of employee 
11contributions actually paid, plus (2) if payment is made after 
12January 1, 1990, regular interest on the amount specified in 
13item (1) from the date of service to the date of payment.
14 (g) A State policeman may elect, not later than January 1, 
151990, to establish eligible creditable service for up to 10 
16years of his service as a policeman under Article 3, by filing 
17a written election with the Board, accompanied by payment of 
18an amount to be determined by the Board, equal to (i) the 
19difference between the amount of employee and employer 
20contributions transferred to the System under Section 3-110.5, 
21and the amounts that would have been contributed had such 
22contributions been made at the rates applicable to State 
23policemen, plus (ii) interest thereon at the effective rate 
24for each year, compounded annually, from the date of service 
25to the date of payment.
26 Subject to the limitation in subsection (i), a State 
 
 
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1policeman may elect, not later than July 1, 1993, to establish 
2eligible creditable service for up to 10 years of his service 
3as a member of the County Police Department under Article 9, by 
4filing a written election with the Board, accompanied by 
5payment of an amount to be determined by the Board, equal to 
6(i) the difference between the amount of employee and employer 
7contributions transferred to the System under Section 9-121.10 
8and the amounts that would have been contributed had those 
9contributions been made at the rates applicable to State 
10policemen, plus (ii) interest thereon at the effective rate 
11for each year, compounded annually, from the date of service 
12to the date of payment.
13 (h) Subject to the limitation in subsection (i), a State 
14policeman or investigator for the Secretary of State may elect 
15to establish eligible creditable service for up to 12 years of 
16his service as a policeman under Article 5, by filing a written 
17election with the Board on or before January 31, 1992, and 
18paying to the System by January 31, 1994 an amount to be 
19determined by the Board, equal to (i) the difference between 
20the amount of employee and employer contributions transferred 
21to the System under Section 5-236, and the amounts that would 
22have been contributed had such contributions been made at the 
23rates applicable to State policemen, plus (ii) interest 
24thereon at the effective rate for each year, compounded 
25annually, from the date of service to the date of payment.
26 Subject to the limitation in subsection (i), a State 
 
 
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1policeman, conservation police officer, or investigator for 
2the Secretary of State may elect to establish eligible 
3creditable service for up to 10 years of service as a sheriff's 
4law enforcement employee under Article 7, by filing a written 
5election with the Board on or before January 31, 1993, and 
6paying to the System by January 31, 1994 an amount to be 
7determined by the Board, equal to (i) the difference between 
8the amount of employee and employer contributions transferred 
9to the System under Section 7-139.7, and the amounts that 
10would have been contributed had such contributions been made 
11at the rates applicable to State policemen, plus (ii) interest 
12thereon at the effective rate for each year, compounded 
13annually, from the date of service to the date of payment.
14 Subject to the limitation in subsection (i), a State 
15policeman, conservation police officer, or investigator for 
16the Secretary of State may elect to establish eligible 
17creditable service for up to 5 years of service as a police 
18officer under Article 3, a policeman under Article 5, a 
19sheriff's law enforcement employee under Article 7, a member 
20of the county police department under Article 9, or a police 
21officer under Article 15 by filing a written election with the 
22Board and paying to the System an amount to be determined by 
23the Board, equal to (i) the difference between the amount of 
24employee and employer contributions transferred to the System 
25under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
26and the amounts that would have been contributed had such 
 
 
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1contributions been made at the rates applicable to State 
2policemen, plus (ii) interest thereon at the effective rate 
3for each year, compounded annually, from the date of service 
4to the date of payment.
5 Subject to the limitation in subsection (i), an 
6investigator for the Office of the Attorney General, or an 
7investigator for the Department of Revenue, may elect to 
8establish eligible creditable service for up to 5 years of 
9service as a police officer under Article 3, a policeman under 
10Article 5, a sheriff's law enforcement employee under Article 
117, or a member of the county police department under Article 9 
12by filing a written election with the Board within 6 months 
13after August 25, 2009 (the effective date of Public Act 
1496-745) and paying to the System an amount to be determined by 
15the Board, equal to (i) the difference between the amount of 
16employee and employer contributions transferred to the System 
17under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
18amounts that would have been contributed had such 
19contributions been made at the rates applicable to State 
20policemen, plus (ii) interest thereon at the actuarially 
21assumed rate for each year, compounded annually, from the date 
22of service to the date of payment.
23 Subject to the limitation in subsection (i), a State 
24policeman, conservation police officer, investigator for the 
25Office of the Attorney General, an investigator for the 
26Department of Revenue, or investigator for the Secretary of 
 
 
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1State may elect to establish eligible creditable service for 
2up to 5 years of service as a person employed by a 
3participating municipality to perform police duties, or law 
4enforcement officer employed on a full-time basis by a forest 
5preserve district under Article 7, a county corrections 
6officer, or a court services officer under Article 9, by 
7filing a written election with the Board within 6 months after 
8August 25, 2009 (the effective date of Public Act 96-745) and 
9paying to the System an amount to be determined by the Board, 
10equal to (i) the difference between the amount of employee and 
11employer contributions transferred to the System under 
12Sections 7-139.8 and 9-121.10 and the amounts that would have 
13been contributed had such contributions been made at the rates 
14applicable to State policemen, plus (ii) interest thereon at 
15the actuarially assumed rate for each year, compounded 
16annually, from the date of service to the date of payment.
17 Subject to the limitation in subsection (i), a State 
18policeman, arson investigator, or Commerce Commission police 
19officer may elect to establish eligible creditable service for 
20up to 5 years of service as a person employed by a 
21participating municipality to perform police duties under 
22Article 7, a county corrections officer, a court services 
23officer under Article 9, or a firefighter under Article 4 by 
24filing a written election with the Board within 6 months after 
25July 30, 2021 (the effective date of Public Act 102-210) and 
26paying to the System an amount to be determined by the Board 
 
 
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1equal to (i) the difference between the amount of employee and 
2employer contributions transferred to the System under 
3Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
4would have been contributed had such contributions been made 
5at the rates applicable to State policemen, plus (ii) interest 
6thereon at the actuarially assumed rate for each year, 
7compounded annually, from the date of service to the date of 
8payment. 
9 Subject to the limitation in subsection (i), a 
10conservation police officer may elect to establish eligible 
11creditable service for up to 5 years of service as a person 
12employed by a participating municipality to perform police 
13duties under Article 7, a county corrections officer, or a 
14court services officer under Article 9 by filing a written 
15election with the Board within 6 months after July 30, 2021 
16(the effective date of Public Act 102-210) and paying to the 
17System an amount to be determined by the Board equal to (i) the 
18difference between the amount of employee and employer 
19contributions transferred to the System under Sections 7-139.8 
20and 9-121.10 and the amounts that would have been contributed 
21had such contributions been made at the rates applicable to 
22State policemen, plus (ii) interest thereon at the actuarially 
23assumed rate for each year, compounded annually, from the date 
24of service to the date of payment. 
25 Subject to the limitation in subsection (i), an 
26investigator for the Department of Revenue, investigator for 
 
 
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1the Illinois Gaming Board, investigator for the Secretary of 
2State, or arson investigator may elect to establish eligible 
3creditable service for up to 5 years of service as a person 
4employed by a participating municipality to perform police 
5duties under Article 7, a county corrections officer, a court 
6services officer under Article 9, or a firefighter under 
7Article 4 by filing a written election with the Board within 6 
8months after the effective date of this amendatory Act of the 
9102nd General Assembly and paying to the System an amount to be 
10determined by the Board equal to (i) the difference between 
11the amount of employee and employer contributions transferred 
12to the System under Sections 4-108.8, 7-139.8, and 9-121.10 
13and the amounts that would have been contributed had such 
14contributions been made at the rates applicable to State 
15policemen, plus (ii) interest thereon at the actuarially 
16assumed rate for each year, compounded annually, from the date 
17of service to the date of payment. 
18 Notwithstanding the limitation in subsection (i), a State 
19policeman or conservation police officer may elect to convert 
20service credit earned under this Article to eligible 
21creditable service, as defined by this Section, by filing a 
22written election with the board within 6 months after July 30, 
232021 (the effective date of Public Act 102-210) and paying to 
24the System an amount to be determined by the Board equal to (i) 
25the difference between the amount of employee contributions 
26originally paid for that service and the amounts that would 
 
 
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1have been contributed had such contributions been made at the 
2rates applicable to State policemen, plus (ii) the difference 
3between the employer's normal cost of the credit prior to the 
4conversion authorized by Public Act 102-210 and the employer's 
5normal cost of the credit converted in accordance with Public 
6Act 102-210, plus (iii) interest thereon at the actuarially 
7assumed rate for each year, compounded annually, from the date 
8of service to the date of payment. 
9 Notwithstanding the limitation in subsection (i), an 
10investigator for the Department of Revenue, investigator for 
11the Illinois Gaming Board, investigator for the Secretary of 
12State, or arson investigator may elect to convert service 
13credit earned under this Article to eligible creditable 
14service, as defined by this Section, by filing a written 
15election with the Board within 6 months after the effective 
16date of this amendatory Act of the 102nd General Assembly and 
17paying to the System an amount to be determined by the Board 
18equal to (i) the difference between the amount of employee 
19contributions originally paid for that service and the amounts 
20that would have been contributed had such contributions been 
21made at the rates applicable to investigators for the 
22Department of Revenue, investigators for the Illinois Gaming 
23Board, investigators for the Secretary of State, or arson 
24investigators, plus (ii) the difference between the employer's 
25normal cost of the credit prior to the conversion authorized 
26by this amendatory Act of the 102nd General Assembly and the 
 
 
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1employer's normal cost of the credit converted in accordance 
2with this amendatory Act of the 102nd General Assembly, plus 
3(iii) interest thereon at the actuarially assumed rate for 
4each year, compounded annually, from the date of service to 
5the date of payment. 
6 (i) The total amount of eligible creditable service 
7established by any person under subsections (g), (h), (j), 
8(k), (l), (l-5), and (o), and (r) of this Section shall not 
9exceed 12 years.
10 (j) Subject to the limitation in subsection (i), an 
11investigator for the Office of the State's Attorneys Appellate 
12Prosecutor or a controlled substance inspector may elect to 
13establish eligible creditable service for up to 10 years of 
14his service as a policeman under Article 3 or a sheriff's law 
15enforcement employee under Article 7, by filing a written 
16election with the Board, accompanied by payment of an amount 
17to be determined by the Board, equal to (1) the difference 
18between the amount of employee and employer contributions 
19transferred to the System under Section 3-110.6 or 7-139.8, 
20and the amounts that would have been contributed had such 
21contributions been made at the rates applicable to State 
22policemen, plus (2) interest thereon at the effective rate for 
23each year, compounded annually, from the date of service to 
24the date of payment.
25 (k) Subject to the limitation in subsection (i) of this 
26Section, an alternative formula employee may elect to 
 
 
HB5909- 400 -LRB103 43117 RPS 76377 b


1establish eligible creditable service for periods spent as a 
2full-time law enforcement officer or full-time corrections 
3officer employed by the federal government or by a state or 
4local government located outside of Illinois, for which credit 
5is not held in any other public employee pension fund or 
6retirement system. To obtain this credit, the applicant must 
7file a written application with the Board by March 31, 1998, 
8accompanied by evidence of eligibility acceptable to the Board 
9and payment of an amount to be determined by the Board, equal 
10to (1) employee contributions for the credit being 
11established, based upon the applicant's salary on the first 
12day as an alternative formula employee after the employment 
13for which credit is being established and the rates then 
14applicable to alternative formula employees, plus (2) an 
15amount determined by the Board to be the employer's normal 
16cost of the benefits accrued for the credit being established, 
17plus (3) regular interest on the amounts in items (1) and (2) 
18from the first day as an alternative formula employee after 
19the employment for which credit is being established to the 
20date of payment.
21 (l) Subject to the limitation in subsection (i), a 
22security employee of the Department of Corrections may elect, 
23not later than July 1, 1998, to establish eligible creditable 
24service for up to 10 years of his or her service as a policeman 
25under Article 3, by filing a written election with the Board, 
26accompanied by payment of an amount to be determined by the 
 
 
HB5909- 401 -LRB103 43117 RPS 76377 b


1Board, equal to (i) the difference between the amount of 
2employee and employer contributions transferred to the System 
3under Section 3-110.5, and the amounts that would have been 
4contributed had such contributions been made at the rates 
5applicable to security employees of the Department of 
6Corrections, plus (ii) interest thereon at the effective rate 
7for each year, compounded annually, from the date of service 
8to the date of payment.
9 (l-5) Subject to the limitation in subsection (i) of this 
10Section, a State policeman may elect to establish eligible 
11creditable service for up to 5 years of service as a full-time 
12law enforcement officer employed by the federal government or 
13by a state or local government located outside of Illinois for 
14which credit is not held in any other public employee pension 
15fund or retirement system. To obtain this credit, the 
16applicant must file a written application with the Board no 
17later than 3 years after January 1, 2020 (the effective date of 
18Public Act 101-610), accompanied by evidence of eligibility 
19acceptable to the Board and payment of an amount to be 
20determined by the Board, equal to (1) employee contributions 
21for the credit being established, based upon the applicant's 
22salary on the first day as an alternative formula employee 
23after the employment for which credit is being established and 
24the rates then applicable to alternative formula employees, 
25plus (2) an amount determined by the Board to be the employer's 
26normal cost of the benefits accrued for the credit being 
 
 
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1established, plus (3) regular interest on the amounts in items 
2(1) and (2) from the first day as an alternative formula 
3employee after the employment for which credit is being 
4established to the date of payment. 
5 (m) The amendatory changes to this Section made by Public 
6Act 94-696 apply only to: (1) security employees of the 
7Department of Juvenile Justice employed by the Department of 
8Corrections before June 1, 2006 (the effective date of Public 
9Act 94-696) and transferred to the Department of Juvenile 
10Justice by Public Act 94-696; and (2) persons employed by the 
11Department of Juvenile Justice on or after June 1, 2006 (the 
12effective date of Public Act 94-696) who are required by 
13subsection (b) of Section 3-2.5-15 of the Unified Code of 
14Corrections to have any bachelor's or advanced degree from an 
15accredited college or university or, in the case of persons 
16who provide vocational training, who are required to have 
17adequate knowledge in the skill for which they are providing 
18the vocational training. 
19 Beginning with the pay period that immediately follows the 
20effective date of this amendatory Act of the 103rd General 
21Assembly, the bachelor's or advanced degree requirement of 
22subsection (b) of Section 3-2.5-15 of the Unified Code of 
23Corrections shall no longer determine the eligibility to earn 
24eligible creditable service for a person employed by the 
25Department of Juvenile Justice. 
26 An employee may elect to convert into eligible creditable 
 
 
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1service his or her creditable service earned with the 
2Department of Juvenile Justice while employed in a position 
3that required the employee to do any one or more of the 
4following: (1) participate or assist in the rehabilitative and 
5vocational training of delinquent youths; (2) supervise the 
6daily activities and assume direct and continuing 
7responsibility for the youth's security, welfare, and 
8development; or (3) participate in the personal rehabilitation 
9of delinquent youth by training, supervising, and assisting 
10lower-level personnel. To convert that creditable service to 
11eligible creditable service, the employee must pay to the 
12System the difference between the employee contributions 
13actually paid for that service and the amounts that would have 
14been contributed if the applicant were contributing at the 
15rate applicable to persons with the same Social Security 
16status earning eligible creditable service on the date of 
17application. 
18 (n) A person employed in a position under subsection (b) 
19of this Section who has purchased service credit under 
20subsection (j) of Section 14-104 or subsection (b) of Section 
2114-105 in any other capacity under this Article may convert up 
22to 5 years of that service credit into service credit covered 
23under this Section by paying to the Fund an amount equal to (1) 
24the additional employee contribution required under Section 
2514-133, plus (2) the additional employer contribution required 
26under Section 14-131, plus (3) interest on items (1) and (2) at 
 
 
HB5909- 404 -LRB103 43117 RPS 76377 b


1the actuarially assumed rate from the date of the service to 
2the date of payment. 
3 (o) Subject to the limitation in subsection (i), a 
4conservation police officer, investigator for the Secretary of 
5State, Commerce Commission police officer, investigator for 
6the Department of Revenue or the Illinois Gaming Board, or 
7arson investigator subject to subsection (g) of Section 1-160 
8may elect to convert up to 8 years of service credit 
9established before January 1, 2020 (the effective date of 
10Public Act 101-610) as a conservation police officer, 
11investigator for the Secretary of State, Commerce Commission 
12police officer, investigator for the Department of Revenue or 
13the Illinois Gaming Board, or arson investigator under this 
14Article into eligible creditable service by filing a written 
15election with the Board no later than one year after January 1, 
162020 (the effective date of Public Act 101-610), accompanied 
17by payment of an amount to be determined by the Board equal to 
18(i) the difference between the amount of the employee 
19contributions actually paid for that service and the amount of 
20the employee contributions that would have been paid had the 
21employee contributions been made as a noncovered employee 
22serving in a position in which eligible creditable service, as 
23defined in this Section, may be earned, plus (ii) interest 
24thereon at the effective rate for each year, compounded 
25annually, from the date of service to the date of payment.
26 (q) A security employee of the Department of Human 
 
 
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1Services who is subject to subsection (g) of Section 1-160 may 
2elect to convert up to 13 years of service credit established 
3before the effective date of this amendatory Act of the 103rd 
4General Assembly as a security employee of the Department of 
5Human Services to eligible creditable service by filing a 
6written election with the Board no later than one year after 
7the effective date of this amendatory Act of the 103rd General 
8Assembly, accompanied by payment of an amount, to be 
9determined by the Board, equal to (i) the difference between 
10the amount of the employee contributions actually paid for 
11that service and the amount of the employee contributions that 
12would have been paid had the employee contributions been made 
13as a covered employee serving in a position in which eligible 
14creditable service, as defined in this Section, may be earned, 
15plus (ii) interest thereon at the effective rate for each 
16year, compounded annually, from the date of service to the 
17date of payment. 
18 (r) Subject to the limitation in subsection (i), a State 
19highway maintenance worker subject to subsection (g) of 
20Section 1-160 may elect to convert up to 8 years of service 
21credit established before the effective date of this 
22amendatory Act of the 103rd General Assembly as a State 
23highway maintenance work under this Article into eligible 
24creditable service by filing a written election with the Board 
25no later than one year after the effective date of this 
26amendatory Act of the 103rd General Assembly, accompanied by 
 
 
HB5909- 406 -LRB103 43117 RPS 76377 b


1payment of an amount to be determined by the Board equal to (i) 
2the difference between the amount of the employee 
3contributions actually paid for that service and the amount of 
4the employee contributions that would have been paid had the 
5employee contributions been made as a noncovered employee 
6serving in a position in which eligible creditable service, as 
7defined in this Section, may be earned, plus (ii) interest 
8thereon at the effective rate for each year, compounded 
9annually, from the date of service to the date of payment. 
10(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
11102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)

12 (Text of Section from P.A. 102-956 and 103-34)
13 Sec. 14-110. Alternative retirement annuity. 
14 (a) Any member who has withdrawn from service with not 
15less than 20 years of eligible creditable service and has 
16attained age 55, and any member who has withdrawn from service 
17with not less than 25 years of eligible creditable service and 
18has attained age 50, regardless of whether the attainment of 
19either of the specified ages occurs while the member is still 
20in service, shall be entitled to receive at the option of the 
21member, in lieu of the regular or minimum retirement annuity, 
22a retirement annuity computed as follows:
23  (i) for periods of service as a noncovered employee: 
24 if retirement occurs on or after January 1, 2001, 3% of 
25 final average compensation for each year of creditable 
 
 
HB5909- 407 -LRB103 43117 RPS 76377 b


1 service; if retirement occurs before January 1, 2001, 2 
2 1/4% of final average compensation for each of the first 
3 10 years of creditable service, 2 1/2% for each year above 
4 10 years to and including 20 years of creditable service, 
5 and 2 3/4% for each year of creditable service above 20 
6 years; and
7  (ii) for periods of eligible creditable service as a 
8 covered employee: if retirement occurs on or after January 
9 1, 2001, 2.5% of final average compensation for each year 
10 of creditable service; if retirement occurs before January 
11 1, 2001, 1.67% of final average compensation for each of 
12 the first 10 years of such service, 1.90% for each of the 
13 next 10 years of such service, 2.10% for each year of such 
14 service in excess of 20 but not exceeding 30, and 2.30% for 
15 each year in excess of 30.
16 Such annuity shall be subject to a maximum of 75% of final 
17average compensation if retirement occurs before January 1, 
182001 or to a maximum of 80% of final average compensation if 
19retirement occurs on or after January 1, 2001.
20 These rates shall not be applicable to any service 
21performed by a member as a covered employee which is not 
22eligible creditable service. Service as a covered employee 
23which is not eligible creditable service shall be subject to 
24the rates and provisions of Section 14-108.
25 (b) For the purpose of this Section, "eligible creditable 
26service" means creditable service resulting from service in 
 
 
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1one or more of the following positions:
2  (1) State policeman;
3  (2) fire fighter in the fire protection service of a 
4 department;
5  (3) air pilot;
6  (4) special agent;
7  (5) investigator for the Secretary of State;
8  (6) conservation police officer;
9  (7) investigator for the Department of Revenue or the 
10 Illinois Gaming Board;
11  (8) security employee of the Department of Human 
12 Services;
13  (9) Central Management Services security police 
14 officer;
15  (10) security employee of the Department of 
16 Corrections or the Department of Juvenile Justice;
17  (11) dangerous drugs investigator;
18  (12) investigator for the Illinois State Police;
19  (13) investigator for the Office of the Attorney 
20 General;
21  (14) controlled substance inspector;
22  (15) investigator for the Office of the State's 
23 Attorneys Appellate Prosecutor;
24  (16) Commerce Commission police officer;
25  (17) arson investigator;
26  (18) State highway maintenance worker;
 
 
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1  (19) security employee of the Department of Innovation 
2 and Technology; or 
3  (20) transferred employee; or . 
4  (21) investigator for the Department of the Lottery.
5 A person employed in one of the positions specified in 
6this subsection is entitled to eligible creditable service for 
7service credit earned under this Article while undergoing the 
8basic police training course approved by the Illinois Law 
9Enforcement Training Standards Board, if completion of that 
10training is required of persons serving in that position. For 
11the purposes of this Code, service during the required basic 
12police training course shall be deemed performance of the 
13duties of the specified position, even though the person is 
14not a sworn peace officer at the time of the training.
15 A person under paragraph (20) is entitled to eligible 
16creditable service for service credit earned under this 
17Article on and after his or her transfer by Executive Order No. 
182003-10, Executive Order No. 2004-2, or Executive Order No. 
192016-1. 
20 (c) For the purposes of this Section:
21  (1) The term "State policeman" includes any title or 
22 position in the Illinois State Police that is held by an 
23 individual employed under the Illinois State Police Act.
24  (2) The term "fire fighter in the fire protection 
25 service of a department" includes all officers in such 
26 fire protection service including fire chiefs and 
 
 
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1 assistant fire chiefs.
2  (3) The term "air pilot" includes any employee whose 
3 official job description on file in the Department of 
4 Central Management Services, or in the department by which 
5 he is employed if that department is not covered by the 
6 Personnel Code, states that his principal duty is the 
7 operation of aircraft, and who possesses a pilot's 
8 license; however, the change in this definition made by 
9 Public Act 83-842 shall not operate to exclude any 
10 noncovered employee who was an "air pilot" for the 
11 purposes of this Section on January 1, 1984.
12  (4) The term "special agent" means any person who by 
13 reason of employment by the Division of Narcotic Control, 
14 the Bureau of Investigation or, after July 1, 1977, the 
15 Division of Criminal Investigation, the Division of 
16 Internal Investigation, the Division of Operations, the 
17 Division of Patrol, or any other Division or 
18 organizational entity in the Illinois State Police is 
19 vested by law with duties to maintain public order, 
20 investigate violations of the criminal law of this State, 
21 enforce the laws of this State, make arrests and recover 
22 property. The term "special agent" includes any title or 
23 position in the Illinois State Police that is held by an 
24 individual employed under the Illinois State Police Act.
25  (5) The term "investigator for the Secretary of State" 
26 means any person employed by the Office of the Secretary 
 
 
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1 of State and vested with such investigative duties as 
2 render him ineligible for coverage under the Social 
3 Security Act by reason of Sections 218(d)(5)(A), 
4 218(d)(8)(D) and 218(l)(1) of that Act.
5  A person who became employed as an investigator for 
6 the Secretary of State between January 1, 1967 and 
7 December 31, 1975, and who has served as such until 
8 attainment of age 60, either continuously or with a single 
9 break in service of not more than 3 years duration, which 
10 break terminated before January 1, 1976, shall be entitled 
11 to have his retirement annuity calculated in accordance 
12 with subsection (a), notwithstanding that he has less than 
13 20 years of credit for such service.
14  (6) The term "Conservation Police Officer" means any 
15 person employed by the Division of Law Enforcement of the 
16 Department of Natural Resources and vested with such law 
17 enforcement duties as render him ineligible for coverage 
18 under the Social Security Act by reason of Sections 
19 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The 
20 term "Conservation Police Officer" includes the positions 
21 of Chief Conservation Police Administrator and Assistant 
22 Conservation Police Administrator.
23  (7) The term "investigator for the Department of 
24 Revenue" means any person employed by the Department of 
25 Revenue and vested with such investigative duties as 
26 render him ineligible for coverage under the Social 
 
 
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1 Security Act by reason of Sections 218(d)(5)(A), 
2 218(d)(8)(D) and 218(l)(1) of that Act.
3  The term "investigator for the Illinois Gaming Board" 
4 means any person employed as such by the Illinois Gaming 
5 Board and vested with such peace officer duties as render 
6 the person ineligible for coverage under the Social 
7 Security Act by reason of Sections 218(d)(5)(A), 
8 218(d)(8)(D), and 218(l)(1) of that Act. 
9  (8) The term "security employee of the Department of 
10 Human Services" means any person employed by the 
11 Department of Human Services who (i) is employed at the 
12 Chester Mental Health Center and has daily contact with 
13 the residents thereof, (ii) is employed within a security 
14 unit at a facility operated by the Department and has 
15 daily contact with the residents of the security unit, 
16 (iii) is employed at a facility operated by the Department 
17 that includes a security unit and is regularly scheduled 
18 to work at least 50% of his or her working hours within 
19 that security unit, or (iv) is a mental health police 
20 officer. "Mental health police officer" means any person 
21 employed by the Department of Human Services in a position 
22 pertaining to the Department's mental health and 
23 developmental disabilities functions who is vested with 
24 such law enforcement duties as render the person 
25 ineligible for coverage under the Social Security Act by 
26 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 
 
 
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1 218(l)(1) of that Act. "Security unit" means that portion 
2 of a facility that is devoted to the care, containment, 
3 and treatment of persons committed to the Department of 
4 Human Services as sexually violent persons, persons unfit 
5 to stand trial, or persons not guilty by reason of 
6 insanity. With respect to past employment, references to 
7 the Department of Human Services include its predecessor, 
8 the Department of Mental Health and Developmental 
9 Disabilities.
10  The changes made to this subdivision (c)(8) by Public 
11 Act 92-14 apply to persons who retire on or after January 
12 1, 2001, notwithstanding Section 1-103.1.
13  (9) "Central Management Services security police 
14 officer" means any person employed by the Department of 
15 Central Management Services who is vested with such law 
16 enforcement duties as render him ineligible for coverage 
17 under the Social Security Act by reason of Sections 
18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
19  (10) For a member who first became an employee under 
20 this Article before July 1, 2005, the term "security 
21 employee of the Department of Corrections or the 
22 Department of Juvenile Justice" means any employee of the 
23 Department of Corrections or the Department of Juvenile 
24 Justice or the former Department of Personnel, and any 
25 member or employee of the Prisoner Review Board, who has 
26 daily contact with inmates or youth by working within a 
 
 
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1 correctional facility or Juvenile facility operated by the 
2 Department of Juvenile Justice or who is a parole officer 
3 or an employee who has direct contact with committed 
4 persons in the performance of his or her job duties. For a 
5 member who first becomes an employee under this Article on 
6 or after July 1, 2005, the term means an employee of the 
7 Department of Corrections or the Department of Juvenile 
8 Justice who is any of the following: (i) officially 
9 headquartered at a correctional facility or Juvenile 
10 facility operated by the Department of Juvenile Justice, 
11 (ii) a parole officer, (iii) a member of the apprehension 
12 unit, (iv) a member of the intelligence unit, (v) a member 
13 of the sort team, or (vi) an investigator.
14  (11) The term "dangerous drugs investigator" means any 
15 person who is employed as such by the Department of Human 
16 Services.
17  (12) The term "investigator for the Illinois State 
18 Police" means a person employed by the Illinois State 
19 Police who is vested under Section 4 of the Narcotic 
20 Control Division Abolition Act with such law enforcement 
21 powers as render him ineligible for coverage under the 
22 Social Security Act by reason of Sections 218(d)(5)(A), 
23 218(d)(8)(D) and 218(l)(1) of that Act.
24  (13) "Investigator for the Office of the Attorney 
25 General" means any person who is employed as such by the 
26 Office of the Attorney General and is vested with such 
 
 
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1 investigative duties as render him ineligible for coverage 
2 under the Social Security Act by reason of Sections 
3 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For 
4 the period before January 1, 1989, the term includes all 
5 persons who were employed as investigators by the Office 
6 of the Attorney General, without regard to social security 
7 status.
8  (14) "Controlled substance inspector" means any person 
9 who is employed as such by the Department of Professional 
10 Regulation and is vested with such law enforcement duties 
11 as render him ineligible for coverage under the Social 
12 Security Act by reason of Sections 218(d)(5)(A), 
13 218(d)(8)(D) and 218(l)(1) of that Act. The term 
14 "controlled substance inspector" includes the Program 
15 Executive of Enforcement and the Assistant Program 
16 Executive of Enforcement.
17  (15) The term "investigator for the Office of the 
18 State's Attorneys Appellate Prosecutor" means a person 
19 employed in that capacity on a full-time basis under the 
20 authority of Section 7.06 of the State's Attorneys 
21 Appellate Prosecutor's Act.
22  (16) "Commerce Commission police officer" means any 
23 person employed by the Illinois Commerce Commission who is 
24 vested with such law enforcement duties as render him 
25 ineligible for coverage under the Social Security Act by 
26 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 
 
 
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1 218(l)(1) of that Act.
2  (17) "Arson investigator" means any person who is 
3 employed as such by the Office of the State Fire Marshal 
4 and is vested with such law enforcement duties as render 
5 the person ineligible for coverage under the Social 
6 Security Act by reason of Sections 218(d)(5)(A), 
7 218(d)(8)(D), and 218(l)(1) of that Act. A person who was 
8 employed as an arson investigator on January 1, 1995 and 
9 is no longer in service but not yet receiving a retirement 
10 annuity may convert his or her creditable service for 
11 employment as an arson investigator into eligible 
12 creditable service by paying to the System the difference 
13 between the employee contributions actually paid for that 
14 service and the amounts that would have been contributed 
15 if the applicant were contributing at the rate applicable 
16 to persons with the same social security status earning 
17 eligible creditable service on the date of application.
18  (18) The term "State highway maintenance worker" means 
19 a person who is either of the following:
20   (i) A person employed on a full-time basis by the 
21 Illinois Department of Transportation in the position 
22 of highway maintainer, highway maintenance lead 
23 worker, highway maintenance lead/lead worker, heavy 
24 construction equipment operator, power shovel 
25 operator, or bridge mechanic; and whose principal 
26 responsibility is to perform, on the roadway, the 
 
 
HB5909- 417 -LRB103 43117 RPS 76377 b


1 actual maintenance necessary to keep the highways that 
2 form a part of the State highway system in serviceable 
3 condition for vehicular traffic.
4   (ii) A person employed on a full-time basis by the 
5 Illinois State Toll Highway Authority in the position 
6 of equipment operator/laborer H-4, equipment 
7 operator/laborer H-6, welder H-4, welder H-6, 
8 mechanical/electrical H-4, mechanical/electrical H-6, 
9 water/sewer H-4, water/sewer H-6, sign maker/hanger 
10 H-4, sign maker/hanger H-6, roadway lighting H-4, 
11 roadway lighting H-6, structural H-4, structural H-6, 
12 painter H-4, or painter H-6; and whose principal 
13 responsibility is to perform, on the roadway, the 
14 actual maintenance necessary to keep the Authority's 
15 tollways in serviceable condition for vehicular 
16 traffic.
17  (19) The term "security employee of the Department of 
18 Innovation and Technology" means a person who was a 
19 security employee of the Department of Corrections or the 
20 Department of Juvenile Justice, was transferred to the 
21 Department of Innovation and Technology pursuant to 
22 Executive Order 2016-01, and continues to perform similar 
23 job functions under that Department. 
24  (20) "Transferred employee" means an employee who was 
25 transferred to the Department of Central Management 
26 Services by Executive Order No. 2003-10 or Executive Order 
 
 
HB5909- 418 -LRB103 43117 RPS 76377 b


1 No. 2004-2 or transferred to the Department of Innovation 
2 and Technology by Executive Order No. 2016-1, or both, and 
3 was entitled to eligible creditable service for services 
4 immediately preceding the transfer. 
5  (21) "Investigator for the Department of the Lottery" 
6 means any person who is employed by the Department of the 
7 Lottery and is vested with such investigative duties which 
8 render him or her ineligible for coverage under the Social 
9 Security Act by reason of Sections 218(d)(5)(A), 
10 218(d)(8)(D), and 218(l)(1) of that Act. An investigator 
11 for the Department of the Lottery who qualifies under this 
12 Section shall earn eligible creditable service and be 
13 required to make contributions at the rate specified in 
14 paragraph (3) of subsection (a) of Section 14-133 for all 
15 periods of service as an investigator for the Department 
16 of the Lottery. 
17 (d) A security employee of the Department of Corrections 
18or the Department of Juvenile Justice, a security employee of 
19the Department of Human Services who is not a mental health 
20police officer, and a security employee of the Department of 
21Innovation and Technology shall not be eligible for the 
22alternative retirement annuity provided by this Section unless 
23he or she meets the following minimum age and service 
24requirements at the time of retirement:
25  (i) 25 years of eligible creditable service and age 
26 55; or
 
 
HB5909- 419 -LRB103 43117 RPS 76377 b


1  (ii) beginning January 1, 1987, 25 years of eligible 
2 creditable service and age 54, or 24 years of eligible 
3 creditable service and age 55; or
4  (iii) beginning January 1, 1988, 25 years of eligible 
5 creditable service and age 53, or 23 years of eligible 
6 creditable service and age 55; or
7  (iv) beginning January 1, 1989, 25 years of eligible 
8 creditable service and age 52, or 22 years of eligible 
9 creditable service and age 55; or
10  (v) beginning January 1, 1990, 25 years of eligible 
11 creditable service and age 51, or 21 years of eligible 
12 creditable service and age 55; or
13  (vi) beginning January 1, 1991, 25 years of eligible 
14 creditable service and age 50, or 20 years of eligible 
15 creditable service and age 55.
16 Persons who have service credit under Article 16 of this 
17Code for service as a security employee of the Department of 
18Corrections or the Department of Juvenile Justice, or the 
19Department of Human Services in a position requiring 
20certification as a teacher may count such service toward 
21establishing their eligibility under the service requirements 
22of this Section; but such service may be used only for 
23establishing such eligibility, and not for the purpose of 
24increasing or calculating any benefit.
25 (e) If a member enters military service while working in a 
26position in which eligible creditable service may be earned, 
 
 
HB5909- 420 -LRB103 43117 RPS 76377 b


1and returns to State service in the same or another such 
2position, and fulfills in all other respects the conditions 
3prescribed in this Article for credit for military service, 
4such military service shall be credited as eligible creditable 
5service for the purposes of the retirement annuity prescribed 
6in this Section.
7 (f) For purposes of calculating retirement annuities under 
8this Section, periods of service rendered after December 31, 
91968 and before October 1, 1975 as a covered employee in the 
10position of special agent, conservation police officer, mental 
11health police officer, or investigator for the Secretary of 
12State, shall be deemed to have been service as a noncovered 
13employee, provided that the employee pays to the System prior 
14to retirement an amount equal to (1) the difference between 
15the employee contributions that would have been required for 
16such service as a noncovered employee, and the amount of 
17employee contributions actually paid, plus (2) if payment is 
18made after July 31, 1987, regular interest on the amount 
19specified in item (1) from the date of service to the date of 
20payment.
21 For purposes of calculating retirement annuities under 
22this Section, periods of service rendered after December 31, 
231968 and before January 1, 1982 as a covered employee in the 
24position of investigator for the Department of Revenue shall 
25be deemed to have been service as a noncovered employee, 
26provided that the employee pays to the System prior to 
 
 
HB5909- 421 -LRB103 43117 RPS 76377 b


1retirement an amount equal to (1) the difference between the 
2employee contributions that would have been required for such 
3service as a noncovered employee, and the amount of employee 
4contributions actually paid, plus (2) if payment is made after 
5January 1, 1990, regular interest on the amount specified in 
6item (1) from the date of service to the date of payment.
7 (g) A State policeman may elect, not later than January 1, 
81990, to establish eligible creditable service for up to 10 
9years of his service as a policeman under Article 3, by filing 
10a written election with the Board, accompanied by payment of 
11an amount to be determined by the Board, equal to (i) the 
12difference between the amount of employee and employer 
13contributions transferred to the System under Section 3-110.5, 
14and the amounts that would have been contributed had such 
15contributions been made at the rates applicable to State 
16policemen, plus (ii) interest thereon at the effective rate 
17for each year, compounded annually, from the date of service 
18to the date of payment.
19 Subject to the limitation in subsection (i), a State 
20policeman may elect, not later than July 1, 1993, to establish 
21eligible creditable service for up to 10 years of his service 
22as a member of the County Police Department under Article 9, by 
23filing a written election with the Board, accompanied by 
24payment of an amount to be determined by the Board, equal to 
25(i) the difference between the amount of employee and employer 
26contributions transferred to the System under Section 9-121.10 
 
 
HB5909- 422 -LRB103 43117 RPS 76377 b


1and the amounts that would have been contributed had those 
2contributions been made at the rates applicable to State 
3policemen, plus (ii) interest thereon at the effective rate 
4for each year, compounded annually, from the date of service 
5to the date of payment.
6 (h) Subject to the limitation in subsection (i), a State 
7policeman or investigator for the Secretary of State may elect 
8to establish eligible creditable service for up to 12 years of 
9his service as a policeman under Article 5, by filing a written 
10election with the Board on or before January 31, 1992, and 
11paying to the System by January 31, 1994 an amount to be 
12determined by the Board, equal to (i) the difference between 
13the amount of employee and employer contributions transferred 
14to the System under Section 5-236, and the amounts that would 
15have been contributed had such contributions been made at the 
16rates applicable to State policemen, plus (ii) interest 
17thereon at the effective rate for each year, compounded 
18annually, from the date of service to the date of payment.
19 Subject to the limitation in subsection (i), a State 
20policeman, conservation police officer, or investigator for 
21the Secretary of State may elect to establish eligible 
22creditable service for up to 10 years of service as a sheriff's 
23law enforcement employee under Article 7, by filing a written 
24election with the Board on or before January 31, 1993, and 
25paying to the System by January 31, 1994 an amount to be 
26determined by the Board, equal to (i) the difference between 
 
 
HB5909- 423 -LRB103 43117 RPS 76377 b


1the amount of employee and employer contributions transferred 
2to the System under Section 7-139.7, and the amounts that 
3would have been contributed had such contributions been made 
4at the rates applicable to State policemen, plus (ii) interest 
5thereon at the effective rate for each year, compounded 
6annually, from the date of service to the date of payment.
7 Subject to the limitation in subsection (i), a State 
8policeman, conservation police officer, or investigator for 
9the Secretary of State may elect to establish eligible 
10creditable service for up to 5 years of service as a police 
11officer under Article 3, a policeman under Article 5, a 
12sheriff's law enforcement employee under Article 7, a member 
13of the county police department under Article 9, or a police 
14officer under Article 15 by filing a written election with the 
15Board and paying to the System an amount to be determined by 
16the Board, equal to (i) the difference between the amount of 
17employee and employer contributions transferred to the System 
18under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 
19and the amounts that would have been contributed had such 
20contributions been made at the rates applicable to State 
21policemen, plus (ii) interest thereon at the effective rate 
22for each year, compounded annually, from the date of service 
23to the date of payment.
24 Subject to the limitation in subsection (i), an 
25investigator for the Office of the Attorney General, or an 
26investigator for the Department of Revenue, may elect to 
 
 
HB5909- 424 -LRB103 43117 RPS 76377 b


1establish eligible creditable service for up to 5 years of 
2service as a police officer under Article 3, a policeman under 
3Article 5, a sheriff's law enforcement employee under Article 
47, or a member of the county police department under Article 9 
5by filing a written election with the Board within 6 months 
6after August 25, 2009 (the effective date of Public Act 
796-745) and paying to the System an amount to be determined by 
8the Board, equal to (i) the difference between the amount of 
9employee and employer contributions transferred to the System 
10under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the 
11amounts that would have been contributed had such 
12contributions been made at the rates applicable to State 
13policemen, plus (ii) interest thereon at the actuarially 
14assumed rate for each year, compounded annually, from the date 
15of service to the date of payment.
16 Subject to the limitation in subsection (i), a State 
17policeman, conservation police officer, investigator for the 
18Office of the Attorney General, an investigator for the 
19Department of Revenue, or investigator for the Secretary of 
20State may elect to establish eligible creditable service for 
21up to 5 years of service as a person employed by a 
22participating municipality to perform police duties, or law 
23enforcement officer employed on a full-time basis by a forest 
24preserve district under Article 7, a county corrections 
25officer, or a court services officer under Article 9, by 
26filing a written election with the Board within 6 months after 
 
 
HB5909- 425 -LRB103 43117 RPS 76377 b


1August 25, 2009 (the effective date of Public Act 96-745) and 
2paying to the System an amount to be determined by the Board, 
3equal to (i) the difference between the amount of employee and 
4employer contributions transferred to the System under 
5Sections 7-139.8 and 9-121.10 and the amounts that would have 
6been contributed had such contributions been made at the rates 
7applicable to State policemen, plus (ii) interest thereon at 
8the actuarially assumed rate for each year, compounded 
9annually, from the date of service to the date of payment.
10 Subject to the limitation in subsection (i), a State 
11policeman, arson investigator, or Commerce Commission police 
12officer may elect to establish eligible creditable service for 
13up to 5 years of service as a person employed by a 
14participating municipality to perform police duties under 
15Article 7, a county corrections officer, a court services 
16officer under Article 9, or a firefighter under Article 4 by 
17filing a written election with the Board within 6 months after 
18July 30, 2021 (the effective date of Public Act 102-210) and 
19paying to the System an amount to be determined by the Board 
20equal to (i) the difference between the amount of employee and 
21employer contributions transferred to the System under 
22Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that 
23would have been contributed had such contributions been made 
24at the rates applicable to State policemen, plus (ii) interest 
25thereon at the actuarially assumed rate for each year, 
26compounded annually, from the date of service to the date of 
 
 
HB5909- 426 -LRB103 43117 RPS 76377 b


1payment. 
2 Subject to the limitation in subsection (i), a 
3conservation police officer may elect to establish eligible 
4creditable service for up to 5 years of service as a person 
5employed by a participating municipality to perform police 
6duties under Article 7, a county corrections officer, or a 
7court services officer under Article 9 by filing a written 
8election with the Board within 6 months after July 30, 2021 
9(the effective date of Public Act 102-210) and paying to the 
10System an amount to be determined by the Board equal to (i) the 
11difference between the amount of employee and employer 
12contributions transferred to the System under Sections 7-139.8 
13and 9-121.10 and the amounts that would have been contributed 
14had such contributions been made at the rates applicable to 
15State policemen, plus (ii) interest thereon at the actuarially 
16assumed rate for each year, compounded annually, from the date 
17of service to the date of payment. 
18 Notwithstanding the limitation in subsection (i), a State 
19policeman or conservation police officer may elect to convert 
20service credit earned under this Article to eligible 
21creditable service, as defined by this Section, by filing a 
22written election with the board within 6 months after July 30, 
232021 (the effective date of Public Act 102-210) and paying to 
24the System an amount to be determined by the Board equal to (i) 
25the difference between the amount of employee contributions 
26originally paid for that service and the amounts that would 
 
 
HB5909- 427 -LRB103 43117 RPS 76377 b


1have been contributed had such contributions been made at the 
2rates applicable to State policemen, plus (ii) the difference 
3between the employer's normal cost of the credit prior to the 
4conversion authorized by Public Act 102-210 and the employer's 
5normal cost of the credit converted in accordance with Public 
6Act 102-210, plus (iii) interest thereon at the actuarially 
7assumed rate for each year, compounded annually, from the date 
8of service to the date of payment. 
9 (i) The total amount of eligible creditable service 
10established by any person under subsections (g), (h), (j), 
11(k), (l), (l-5), (o), and (p), and (r) of this Section shall 
12not exceed 12 years.
13 (j) Subject to the limitation in subsection (i), an 
14investigator for the Office of the State's Attorneys Appellate 
15Prosecutor or a controlled substance inspector may elect to 
16establish eligible creditable service for up to 10 years of 
17his service as a policeman under Article 3 or a sheriff's law 
18enforcement employee under Article 7, by filing a written 
19election with the Board, accompanied by payment of an amount 
20to be determined by the Board, equal to (1) the difference 
21between the amount of employee and employer contributions 
22transferred to the System under Section 3-110.6 or 7-139.8, 
23and the amounts that would have been contributed had such 
24contributions been made at the rates applicable to State 
25policemen, plus (2) interest thereon at the effective rate for 
26each year, compounded annually, from the date of service to 
 
 
HB5909- 428 -LRB103 43117 RPS 76377 b


1the date of payment.
2 (k) Subject to the limitation in subsection (i) of this 
3Section, an alternative formula employee may elect to 
4establish eligible creditable service for periods spent as a 
5full-time law enforcement officer or full-time corrections 
6officer employed by the federal government or by a state or 
7local government located outside of Illinois, for which credit 
8is not held in any other public employee pension fund or 
9retirement system. To obtain this credit, the applicant must 
10file a written application with the Board by March 31, 1998, 
11accompanied by evidence of eligibility acceptable to the Board 
12and payment of an amount to be determined by the Board, equal 
13to (1) employee contributions for the credit being 
14established, based upon the applicant's salary on the first 
15day as an alternative formula employee after the employment 
16for which credit is being established and the rates then 
17applicable to alternative formula employees, plus (2) an 
18amount determined by the Board to be the employer's normal 
19cost of the benefits accrued for the credit being established, 
20plus (3) regular interest on the amounts in items (1) and (2) 
21from the first day as an alternative formula employee after 
22the employment for which credit is being established to the 
23date of payment.
24 (l) Subject to the limitation in subsection (i), a 
25security employee of the Department of Corrections may elect, 
26not later than July 1, 1998, to establish eligible creditable 
 
 
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1service for up to 10 years of his or her service as a policeman 
2under Article 3, by filing a written election with the Board, 
3accompanied by payment of an amount to be determined by the 
4Board, equal to (i) the difference between the amount of 
5employee and employer contributions transferred to the System 
6under Section 3-110.5, and the amounts that would have been 
7contributed had such contributions been made at the rates 
8applicable to security employees of the Department of 
9Corrections, plus (ii) interest thereon at the effective rate 
10for each year, compounded annually, from the date of service 
11to the date of payment.
12 (l-5) Subject to the limitation in subsection (i) of this 
13Section, a State policeman may elect to establish eligible 
14creditable service for up to 5 years of service as a full-time 
15law enforcement officer employed by the federal government or 
16by a state or local government located outside of Illinois for 
17which credit is not held in any other public employee pension 
18fund or retirement system. To obtain this credit, the 
19applicant must file a written application with the Board no 
20later than 3 years after January 1, 2020 (the effective date of 
21Public Act 101-610), accompanied by evidence of eligibility 
22acceptable to the Board and payment of an amount to be 
23determined by the Board, equal to (1) employee contributions 
24for the credit being established, based upon the applicant's 
25salary on the first day as an alternative formula employee 
26after the employment for which credit is being established and 
 
 
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1the rates then applicable to alternative formula employees, 
2plus (2) an amount determined by the Board to be the employer's 
3normal cost of the benefits accrued for the credit being 
4established, plus (3) regular interest on the amounts in items 
5(1) and (2) from the first day as an alternative formula 
6employee after the employment for which credit is being 
7established to the date of payment. 
8 (m) The amendatory changes to this Section made by Public 
9Act 94-696 apply only to: (1) security employees of the 
10Department of Juvenile Justice employed by the Department of 
11Corrections before June 1, 2006 (the effective date of Public 
12Act 94-696) and transferred to the Department of Juvenile 
13Justice by Public Act 94-696; and (2) persons employed by the 
14Department of Juvenile Justice on or after June 1, 2006 (the 
15effective date of Public Act 94-696) who are required by 
16subsection (b) of Section 3-2.5-15 of the Unified Code of 
17Corrections to have any bachelor's or advanced degree from an 
18accredited college or university or, in the case of persons 
19who provide vocational training, who are required to have 
20adequate knowledge in the skill for which they are providing 
21the vocational training. 
22 Beginning with the pay period that immediately follows the 
23effective date of this amendatory Act of the 103rd General 
24Assembly, the bachelor's or advanced degree requirement of 
25subsection (b) of Section 3-2.5-15 of the Unified Code of 
26Corrections shall no longer determine the eligibility to earn 
 
 
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1eligible creditable service for a person employed by the 
2Department of Juvenile Justice. 
3 An employee may elect to convert into eligible creditable 
4service his or her creditable service earned with the 
5Department of Juvenile Justice while employed in a position 
6that required the employee to do any one or more of the 
7following: (1) participate or assist in the rehabilitative and 
8vocational training of delinquent youths; (2) supervise the 
9daily activities and assume direct and continuing 
10responsibility for the youth's security, welfare, and 
11development; or (3) participate in the personal rehabilitation 
12of delinquent youth by training, supervising, and assisting 
13lower-level personnel. To convert that creditable service to 
14eligible creditable service, the employee must pay to the 
15System the difference between the employee contributions 
16actually paid for that service and the amounts that would have 
17been contributed if the applicant were contributing at the 
18rate applicable to persons with the same Social Security 
19status earning eligible creditable service on the date of 
20application. 
21 (n) A person employed in a position under subsection (b) 
22of this Section who has purchased service credit under 
23subsection (j) of Section 14-104 or subsection (b) of Section 
2414-105 in any other capacity under this Article may convert up 
25to 5 years of that service credit into service credit covered 
26under this Section by paying to the Fund an amount equal to (1) 
 
 
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1the additional employee contribution required under Section 
214-133, plus (2) the additional employer contribution required 
3under Section 14-131, plus (3) interest on items (1) and (2) at 
4the actuarially assumed rate from the date of the service to 
5the date of payment. 
6 (o) Subject to the limitation in subsection (i), a 
7conservation police officer, investigator for the Secretary of 
8State, Commerce Commission police officer, investigator for 
9the Department of Revenue or the Illinois Gaming Board, or 
10arson investigator subject to subsection (g) of Section 1-160 
11may elect to convert up to 8 years of service credit 
12established before January 1, 2020 (the effective date of 
13Public Act 101-610) as a conservation police officer, 
14investigator for the Secretary of State, Commerce Commission 
15police officer, investigator for the Department of Revenue or 
16the Illinois Gaming Board, or arson investigator under this 
17Article into eligible creditable service by filing a written 
18election with the Board no later than one year after January 1, 
192020 (the effective date of Public Act 101-610), accompanied 
20by payment of an amount to be determined by the Board equal to 
21(i) the difference between the amount of the employee 
22contributions actually paid for that service and the amount of 
23the employee contributions that would have been paid had the 
24employee contributions been made as a noncovered employee 
25serving in a position in which eligible creditable service, as 
26defined in this Section, may be earned, plus (ii) interest 
 
 
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1thereon at the effective rate for each year, compounded 
2annually, from the date of service to the date of payment.
3 (p) Subject to the limitation in subsection (i), an 
4investigator for the Office of the Attorney General subject to 
5subsection (g) of Section 1-160 may elect to convert up to 8 
6years of service credit established before the effective date 
7of this amendatory Act of the 102nd General Assembly as an 
8investigator for the Office of the Attorney General under this 
9Article into eligible creditable service by filing a written 
10election with the Board no later than one year after the 
11effective date of this amendatory Act of the 102nd General 
12Assembly, accompanied by payment of an amount to be determined 
13by the Board equal to (i) the difference between the amount of 
14the employee contributions actually paid for that service and 
15the amount of the employee contributions that would have been 
16paid had the employee contributions been made as a noncovered 
17employee serving in a position in which eligible creditable 
18service, as defined in this Section, may be earned, plus (ii) 
19interest thereon at the effective rate for each year, 
20compounded annually, from the date of service to the date of 
21payment. 
22 (q) A security employee of the Department of Human 
23Services who is subject to subsection (g) of Section 1-160 may 
24elect to convert up to 13 years of service credit established 
25before the effective date of this amendatory Act of the 103rd 
26General Assembly as a security employee of the Department of 
 
 
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1Human Services to eligible creditable service by filing a 
2written election with the Board no later than one year after 
3the effective date of this amendatory Act of the 103rd General 
4Assembly, accompanied by payment of an amount, to be 
5determined by the Board, equal to (i) the difference between 
6the amount of the employee contributions actually paid for 
7that service and the amount of the employee contributions that 
8would have been paid had the employee contributions been made 
9as a covered employee serving in a position in which eligible 
10creditable service, as defined in this Section, may be earned, 
11plus (ii) interest thereon at the effective rate for each 
12year, compounded annually, from the date of service to the 
13date of payment. 
14 (r) Subject to the limitation in subsection (i), a State 
15highway maintenance worker subject to subsection (g) of 
16Section 1-160 may elect to convert up to 8 years of service 
17credit established before the effective date of this 
18amendatory Act of the 103rd General Assembly as a State 
19highway maintenance work under this Article into eligible 
20creditable service by filing a written election with the Board 
21no later than one year after the effective date of this 
22amendatory Act of the 103rd General Assembly, accompanied by 
23payment of an amount to be determined by the Board equal to (i) 
24the difference between the amount of the employee 
25contributions actually paid for that service and the amount of 
26the employee contributions that would have been paid had the 
 
 
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1employee contributions been made as a noncovered employee 
2serving in a position in which eligible creditable service, as 
3defined in this Section, may be earned, plus (ii) interest 
4thereon at the effective rate for each year, compounded 
5annually, from the date of service to the date of payment. 
6(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 
7102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)

8 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
9 Sec. 15-135. Retirement annuities; conditions. 
10 (a) This subsection (a) applies only to a Tier 1 member. A 
11participant who retires in one of the following specified 
12years with the specified amount of service is entitled to a 
13retirement annuity at any age under the retirement program 
14applicable to the participant:
15  35 years if retirement is in 1997 or before;
16  34 years if retirement is in 1998;
17  33 years if retirement is in 1999;
18  32 years if retirement is in 2000;
19  31 years if retirement is in 2001;
20  30 years if retirement is in 2002 or later.
21 A participant with 8 or more years of service after 
22September 1, 1941, is entitled to a retirement annuity on or 
23after attainment of age 55.
24 A participant with at least 5 but less than 8 years of 
25service after September 1, 1941, is entitled to a retirement 
 
 
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1annuity on or after attainment of age 62.
2 A participant who has at least 25 years of service in this 
3system as a police officer or firefighter is entitled to a 
4retirement annuity on or after the attainment of age 50, if 
5Rule 4 of Section 15-136 is applicable to the participant.
6 (a-5) A Tier 2 member is entitled to a retirement annuity 
7upon written application if he or she has attained age 67 and 
8has at least 10 years of service credit and is otherwise 
9eligible under the requirements of this Article; except that, 
10for a Tier 2 member who is in service on or after January 1, 
112025, the age and service eligibility requirements for a 
12retirement annuity are the age and service eligibility 
13requirements applicable to a Tier 1 member who first became a 
14participant on December 31, 2010. A Tier 2 member who has 
15attained age 62 and has at least 10 years of service credit and 
16is otherwise eligible under the requirements of this Article 
17may elect to receive the lower retirement annuity provided in 
18subsection (b-5) of Section 15-136 of this Article; except 
19that, a Tier 2 member who is in service on or after January 1, 
202025 may not elect to receive the lower retirement annuity 
21provided in subsection (b-5) of Section 15-136. 
22 (a-10) A Tier 2 member who was not in service on or after 
23January 1, 2025 and has at least 20 years of service in this 
24system as a police officer or firefighter is entitled to a 
25retirement annuity upon written application on or after the 
26attainment of age 60 if Rule 4 of Section 15-136 is applicable 
 
 
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1to the participant. The changes made to this subsection by 
2this amendatory Act of the 101st General Assembly apply 
3retroactively to January 1, 2011. 
4 (b) The annuity payment period shall begin on the date 
5specified by the participant or the recipient of a disability 
6retirement annuity submitting a written application. For a 
7participant, the date on which the annuity payment period 
8begins shall not be prior to termination of employment or more 
9than one year before the application is received by the board; 
10however, if the participant is not an employee of an employer 
11participating in this System or in a participating system as 
12defined in Article 20 of this Code on April 1 of the calendar 
13year next following the calendar year in which the participant 
14attains the age specified under Section 401(a)(9) of the 
15Internal Revenue Code of 1986, as amended, the annuity payment 
16period shall begin on that date regardless of whether an 
17application has been filed. For a recipient of a disability 
18retirement annuity, the date on which the annuity payment 
19period begins shall not be prior to the discontinuation of the 
20disability retirement annuity under Section 15-153.2. 
21 (c) An annuity is not payable if the amount provided under 
22Section 15-136 is less than $10 per month.
23(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)

24 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
25 Sec. 15-136. Retirement annuities; amount annuities - 
 
 
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1Amount. The provisions of this Section 15-136 apply only to 
2those participants who are participating in the traditional 
3benefit package or the portable benefit package and do not 
4apply to participants who are participating in the 
5self-managed plan.
6 (a) The amount of a participant's retirement annuity, 
7expressed in the form of a single-life annuity, shall be 
8determined by whichever of the following rules is applicable 
9and provides the largest annuity:
10 Rule 1: The retirement annuity shall be 1.67% of final 
11rate of earnings for each of the first 10 years of service, 
121.90% for each of the next 10 years of service, 2.10% for each 
13year of service in excess of 20 but not exceeding 30, and 2.30% 
14for each year in excess of 30; or for persons who retire on or 
15after January 1, 1998, 2.2% of the final rate of earnings for 
16each year of service.
17 Rule 2: The retirement annuity shall be the sum of the 
18following, determined from amounts credited to the participant 
19in accordance with the actuarial tables and the effective rate 
20of interest in effect at the time the retirement annuity 
21begins: 
22  (i) the normal annuity which can be provided on an 
23 actuarially equivalent basis, by the accumulated normal 
24 contributions as of the date the annuity begins; 
25  (ii) an annuity from employer contributions of an 
26 amount equal to that which can be provided on an 
 
 
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1 actuarially equivalent basis from the accumulated normal 
2 contributions made by the participant under Section 
3 15-113.6 and Section 15-113.7 plus 1.4 times all other 
4 accumulated normal contributions made by the participant; 
5 and 
6  (iii) the annuity that can be provided on an 
7 actuarially equivalent basis from the entire contribution 
8 made by the participant under Section 15-113.3.
9 With respect to a police officer or firefighter who 
10retires on or after August 14, 1998, the accumulated normal 
11contributions taken into account under clauses (i) and (ii) of 
12this Rule 2 shall include the additional normal contributions 
13made by the police officer or firefighter under Section 
1415-157(a).
15 The amount of a retirement annuity calculated under this 
16Rule 2 shall be computed solely on the basis of the 
17participant's accumulated normal contributions, as specified 
18in this Rule and defined in Section 15-116. Neither an 
19employee or employer contribution for early retirement under 
20Section 15-136.2 nor any other employer contribution shall be 
21used in the calculation of the amount of a retirement annuity 
22under this Rule 2.
23 This amendatory Act of the 91st General Assembly is a 
24clarification of existing law and applies to every participant 
25and annuitant without regard to whether status as an employee 
26terminates before the effective date of this amendatory Act.
 
 
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1 This Rule 2 does not apply to a person who first becomes an 
2employee under this Article on or after July 1, 2005. 
3 Rule 3: The retirement annuity of a participant who is 
4employed at least one-half time during the period on which his 
5or her final rate of earnings is based, shall be equal to the 
6participant's years of service not to exceed 30, multiplied by 
7(1) $96 if the participant's final rate of earnings is less 
8than $3,500, (2) $108 if the final rate of earnings is at least 
9$3,500 but less than $4,500, (3) $120 if the final rate of 
10earnings is at least $4,500 but less than $5,500, (4) $132 if 
11the final rate of earnings is at least $5,500 but less than 
12$6,500, (5) $144 if the final rate of earnings is at least 
13$6,500 but less than $7,500, (6) $156 if the final rate of 
14earnings is at least $7,500 but less than $8,500, (7) $168 if 
15the final rate of earnings is at least $8,500 but less than 
16$9,500, and (8) $180 if the final rate of earnings is $9,500 or 
17more, except that the annuity for those persons having made an 
18election under Section 15-154(a-1) shall be calculated and 
19payable under the portable retirement benefit program pursuant 
20to the provisions of Section 15-136.4.
21 Rule 4: A participant who is at least age 50 and has 25 or 
22more years of service as a police officer or firefighter, and a 
23participant who is age 55 or over and has at least 20 but less 
24than 25 years of service as a police officer or firefighter, 
25shall be entitled to a retirement annuity of 2 1/4% of the 
26final rate of earnings for each of the first 10 years of 
 
 
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1service as a police officer or firefighter, 2 1/2% for each of 
2the next 10 years of service as a police officer or 
3firefighter, and 2 3/4% for each year of service as a police 
4officer or firefighter in excess of 20. The retirement annuity 
5for all other service shall be computed under Rule 1. A Tier 2 
6member who was not in service on or after January 1, 2025 is 
7eligible for a retirement annuity calculated under Rule 4 only 
8if that Tier 2 member meets the service requirements for that 
9benefit calculation as prescribed under this Rule 4 in 
10addition to the applicable age requirement under subsection 
11(a-10) of Section 15-135. A Tier 2 member who was in service on 
12or after January 1, 2025 is not subject to subsection (a-10) of 
13Section 15-135. 
14 For purposes of this Rule 4, a participant's service as a 
15firefighter shall also include the following: 
16  (i) service that is performed while the person is an 
17 employee under subsection (h) of Section 15-107; and 
18  (ii) in the case of an individual who was a 
19 participating employee employed in the fire department of 
20 the University of Illinois's Champaign-Urbana campus 
21 immediately prior to the elimination of that fire 
22 department and who immediately after the elimination of 
23 that fire department transferred to another job with the 
24 University of Illinois, service performed as an employee 
25 of the University of Illinois in a position other than 
26 police officer or firefighter, from the date of that 
 
 
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1 transfer until the employee's next termination of service 
2 with the University of Illinois.
3 (b) For a Tier 1 member or a Tier 2 member who was in 
4service on or after January 1, 2025, the retirement annuity 
5provided under Rules 1 and 3 above shall be reduced by 1/2 of 
61% for each month the participant is under age 60 at the time 
7of retirement. However, this reduction shall not apply in the 
8following cases: 
9  (1) For a disabled participant whose disability 
10 benefits have been discontinued because he or she has 
11 exhausted eligibility for disability benefits under clause 
12 (6) of Section 15-152; 
13  (2) For a participant who has at least the number of 
14 years of service required to retire at any age under 
15 subsection (a) of Section 15-135; or 
16  (3) For that portion of a retirement annuity which has 
17 been provided on account of service of the participant 
18 during periods when he or she performed the duties of a 
19 police officer or firefighter, if these duties were 
20 performed for at least 5 years immediately preceding the 
21 date the retirement annuity is to begin.
22 (b-5) The retirement annuity of a Tier 2 member who was not 
23in service on or after January 1, 2025 and who is retiring 
24under Rule 1 or 3 after attaining age 62 with at least 10 years 
25of service credit shall be reduced by 1/2 of 1% for each full 
26month that the member's age is under age 67. 
 
 
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1 (c) The maximum retirement annuity provided under Rules 1, 
22, 4, and 5 shall be the lesser of (1) the annual limit of 
3benefits as specified in Section 415 of the Internal Revenue 
4Code of 1986, as such Section may be amended from time to time 
5and as such benefit limits shall be adjusted by the 
6Commissioner of Internal Revenue, and (2) 80% of final rate of 
7earnings.
8 (d) A Tier 1 member whose status as an employee terminates 
9after August 14, 1969 shall receive automatic increases in his 
10or her retirement annuity as follows:
11 Effective January 1 immediately following the date the 
12retirement annuity begins, the annuitant shall receive an 
13increase in his or her monthly retirement annuity of 0.125% of 
14the monthly retirement annuity provided under Rule 1, Rule 2, 
15Rule 3, or Rule 4 contained in this Section, multiplied by the 
16number of full months which elapsed from the date the 
17retirement annuity payments began to January 1, 1972, plus 
180.1667% of such annuity, multiplied by the number of full 
19months which elapsed from January 1, 1972, or the date the 
20retirement annuity payments began, whichever is later, to 
21January 1, 1978, plus 0.25% of such annuity multiplied by the 
22number of full months which elapsed from January 1, 1978, or 
23the date the retirement annuity payments began, whichever is 
24later, to the effective date of the increase.
25 The annuitant shall receive an increase in his or her 
26monthly retirement annuity on each January 1 thereafter during 
 
 
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1the annuitant's life of 3% of the monthly annuity provided 
2under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this 
3Section. The change made under this subsection by P.A. 81-970 
4is effective January 1, 1980 and applies to each annuitant 
5whose status as an employee terminates before or after that 
6date.
7 Beginning January 1, 1990, all automatic annual increases 
8payable under this Section shall be calculated as a percentage 
9of the total annuity payable at the time of the increase, 
10including all increases previously granted under this Article.
11 The change made in this subsection by P.A. 85-1008 is 
12effective January 26, 1988, and is applicable without regard 
13to whether status as an employee terminated before that date.
14 (d-5) A retirement annuity of a Tier 2 member shall 
15receive annual increases on the January 1 occurring either on 
16or after the attainment of the retirement age applicable to 
17that Tier 2 member under this Article age 67 or the first 
18anniversary of the annuity start date, whichever is later. 
19Each annual increase shall be calculated at 3% or one half the 
20annual unadjusted percentage increase (but not less than zero) 
21in the consumer price index-u for the 12 months ending with the 
22September preceding each November 1, whichever is less, of the 
23originally granted retirement annuity. If the annual 
24unadjusted percentage change in the consumer price index-u for 
25the 12 months ending with the September preceding each 
26November 1 is zero or there is a decrease, then the annuity 
 
 
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1shall not be increased. 
2 (e) If, on January 1, 1987, or the date the retirement 
3annuity payment period begins, whichever is later, the sum of 
4the retirement annuity provided under Rule 1 or Rule 2 of this 
5Section and the automatic annual increases provided under the 
6preceding subsection or Section 15-136.1, amounts to less than 
7the retirement annuity which would be provided by Rule 3, the 
8retirement annuity shall be increased as of January 1, 1987, 
9or the date the retirement annuity payment period begins, 
10whichever is later, to the amount which would be provided by 
11Rule 3 of this Section. Such increased amount shall be 
12considered as the retirement annuity in determining benefits 
13provided under other Sections of this Article. This paragraph 
14applies without regard to whether status as an employee 
15terminated before the effective date of this amendatory Act of 
161987, provided that the annuitant was employed at least 
17one-half time during the period on which the final rate of 
18earnings was based.
19 (f) A participant is entitled to such additional annuity 
20as may be provided on an actuarially equivalent basis, by any 
21accumulated additional contributions to his or her credit. 
22However, the additional contributions made by the participant 
23toward the automatic increases in annuity provided under this 
24Section shall not be taken into account in determining the 
25amount of such additional annuity.
26 (g) If, (1) by law, a function of a governmental unit, as 
 
 
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1defined by Section 20-107 of this Code, is transferred in 
2whole or in part to an employer, and (2) a participant 
3transfers employment from such governmental unit to such 
4employer within 6 months after the transfer of the function, 
5and (3) the sum of (A) the annuity payable to the participant 
6under Rule 1, 2, or 3 of this Section (B) all proportional 
7annuities payable to the participant by all other retirement 
8systems covered by Article 20, and (C) the initial primary 
9insurance amount to which the participant is entitled under 
10the Social Security Act, is less than the retirement annuity 
11which would have been payable if all of the participant's 
12pension credits validated under Section 20-109 had been 
13validated under this system, a supplemental annuity equal to 
14the difference in such amounts shall be payable to the 
15participant.
16 (h) On January 1, 1981, an annuitant who was receiving a 
17retirement annuity on or before January 1, 1971 shall have his 
18or her retirement annuity then being paid increased $1 per 
19month for each year of creditable service. On January 1, 1982, 
20an annuitant whose retirement annuity began on or before 
21January 1, 1977, shall have his or her retirement annuity then 
22being paid increased $1 per month for each year of creditable 
23service.
24 (i) On January 1, 1987, any annuitant whose retirement 
25annuity began on or before January 1, 1977, shall have the 
26monthly retirement annuity increased by an amount equal to 8¢ 
 
 
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1per year of creditable service times the number of years that 
2have elapsed since the annuity began.
3 (j) The changes made to this Section by this amendatory 
4Act of the 101st General Assembly apply retroactively to 
5January 1, 2011.
6(Source: P.A. 101-610, eff. 1-1-20.)

7 (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
8 Sec. 18-124. Retirement annuities; conditions annuities - 
9conditions for eligibility. 
10 (a) This subsection (a) applies to a participant who first 
11serves as a judge before January 1, 2011 (the effective date of 
12Public Act 96-889) or a judge who serves as a judge on or after 
13January 1, 2025 this amendatory Act of the 96th General 
14Assembly. 
15 A participant whose employment as a judge is terminated, 
16regardless of age or cause is entitled to a retirement annuity 
17beginning on the date specified in a written application 
18subject to the following:
19  (1) the date the annuity begins is subsequent to the 
20 date of final termination of employment, or the date 30 
21 days prior to the receipt of the application by the board 
22 for annuities based on disability, or one year before the 
23 receipt of the application by the board for annuities 
24 based on attained age;
25  (2) the participant is at least age 55, or has become 
 
 
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1 permanently disabled and as a consequence is unable to 
2 perform the duties of his or her office;
3  (3) the participant has at least 10 years of service 
4 credit except that a participant terminating service after 
5 June 30 1975, with at least 6 years of service credit, 
6 shall be entitled to a retirement annuity at age 62 or 
7 over;
8  (4) the participant is not receiving or entitled to 
9 receive, at the date of retirement, any salary from an 
10 employer for service currently performed.
11 (b) This subsection (b) applies to a participant who first 
12serves as a judge on or after January 1, 2011 (the effective 
13date of Public Act 96-889) and who does not serve as a judge on 
14or after January 1, 2025 this amendatory Act of the 96th 
15General Assembly. 
16 A participant who has at least 8 years of creditable 
17service is entitled to a retirement annuity when he or she has 
18attained age 67. 
19 A member who has attained age 62 and has at least 8 years 
20of service credit may elect to receive the lower retirement 
21annuity provided in subsection (d) of Section 18-125 of this 
22Code. 
23(Source: P.A. 96-889, eff. 1-1-11.)

24 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
25 Sec. 18-125.1. Automatic increase in retirement annuity. A 
 
 
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1participant who retires from service after June 30, 1969, 
2shall, in January of the year next following the year in which 
3the first anniversary of retirement occurs, and in January of 
4each year thereafter, have the amount of his or her originally 
5granted retirement annuity increased as follows: for each year 
6up to and including 1971, 1 1/2%; for each year from 1972 
7through 1979 inclusive, 2%; and for 1980 and each year 
8thereafter, 3%.
9 Notwithstanding any other provision of this Article, a 
10retirement annuity for a participant who first serves as a 
11judge on or after January 1, 2011 (the effective date of Public 
12Act 96-889) shall be increased in January of the year next 
13following the year in which the first anniversary of 
14retirement occurs, but in no event prior to the retirement age 
15applicable to that judge under this Article age 67, and in 
16January of each year thereafter, by an amount equal to 3% or 
17the annual percentage increase in the consumer price index-u 
18as determined by the Public Pension Division of the Department 
19of Insurance under subsection (b-5) of Section 18-125, 
20whichever is less, of the retirement annuity then being paid. 
21 This Section is not applicable to a participant who 
22retires before he or she has made contributions at the rate 
23prescribed in Section 18-133 for automatic increases for not 
24less than the equivalent of one full year, unless such a 
25participant arranges to pay the system the amount required to 
26bring the total contributions for the automatic increase to 
 
 
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1the equivalent of one year's contribution based upon his or 
2her last year's salary.
3 This Section is applicable to all participants in service 
4after June 30, 1969 unless a participant has elected, prior to 
5September 1, 1969, in a written direction filed with the board 
6not to be subject to the provisions of this Section. Any 
7participant in service on or after July 1, 1992 shall have the 
8option of electing prior to April 1, 1993, in a written 
9direction filed with the board, to be covered by the 
10provisions of the 1969 amendatory Act. Such participant shall 
11be required to make the aforesaid additional contributions 
12with compound interest at 4% per annum.
13 Any participant who has become eligible to receive the 
14maximum rate of annuity and who resumes service as a judge 
15after receiving a retirement annuity under this Article shall 
16have the amount of his or her retirement annuity increased by 
173% of the originally granted annuity amount for each year of 
18such resumed service, beginning in January of the year next 
19following the date of such resumed service, upon subsequent 
20termination of such resumed service.
21 Beginning January 1, 1990, all automatic annual increases 
22payable under this Section shall be calculated as a percentage 
23of the total annuity payable at the time of the increase, 
24including previous increases granted under this Article.
25(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)

 
 
HB5909- 451 -LRB103 43117 RPS 76377 b


1
Article 3B.


2 Section 3B-5. The Illinois Pension Code is amended by 
3changing Section 1-160 as follows:

4 (40 ILCS 5/1-160)
5 (Text of Section from P.A. 102-719)
6 Sec. 1-160. Provisions applicable to new hires. 
7 (a) The provisions of this Section apply to a person who, 
8on or after January 1, 2011, first becomes a member or a 
9participant under any reciprocal retirement system, regardless 
10of when that reciprocal retirement system became a reciprocal 
11retirement system, or pension fund established under this 
12Code, other than a retirement system or pension fund 
13established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this 
14Code, notwithstanding any other provision of this Code to the 
15contrary, but do not apply to any self-managed plan 
16established under this Code or to any participant of the 
17retirement plan established under Section 22-101; except that 
18this Section applies to a person who elected to establish 
19alternative credits by electing in writing after January 1, 
202011, but before August 8, 2011, under Section 7-145.1 of this 
21Code. Notwithstanding anything to the contrary in this 
22Section, for purposes of this Section, a person who is a Tier 1 
23regular employee as defined in Section 7-109.4 of this Code or 
24who participated in a retirement system under Article 15 prior 
 
 
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1to January 1, 2011 shall be deemed a person who first became a 
2member or participant prior to January 1, 2011 under any 
3retirement system or pension fund subject to this Section. The 
4changes made to this Section by Public Act 98-596 are a 
5clarification of existing law and are intended to be 
6retroactive to January 1, 2011 (the effective date of Public 
7Act 96-889), notwithstanding the provisions of Section 1-103.1 
8of this Code.
9 This Section does not apply to a person who first becomes a 
10noncovered employee under Article 14 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who first becomes a 
17member or participant under Article 16 on or after the 
18implementation date of the plan created under Section 1-161 
19for that Article, unless that person elects under subsection 
20(b) of Section 1-161 to instead receive the benefits provided 
21under this Section and the applicable provisions of that 
22Article.
23 This Section does not apply to a person who elects under 
24subsection (c-5) of Section 1-161 to receive the benefits 
25under Section 1-161. 
26 This Section does not apply to a person who first becomes a 
 
 
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1member or participant of an affected pension fund on or after 6 
2months after the resolution or ordinance date, as defined in 
3Section 1-162, unless that person elects under subsection (c) 
4of Section 1-162 to receive the benefits provided under this 
5Section and the applicable provisions of the Article under 
6which he or she is a member or participant. 
7 (b) "Final average salary" means, except as otherwise 
8provided in this subsection, the average monthly (or annual) 
9salary obtained by dividing the total salary or earnings 
10calculated under the Article applicable to the member or 
11participant during the 96 consecutive months (or 8 consecutive 
12years) of service within the last 120 months (or 10 years) of 
13service in which the total salary or earnings calculated under 
14the applicable Article was the highest by the number of months 
15(or years) of service in that period. For the purposes of a 
16person who first becomes a member or participant of any 
17retirement system or pension fund to which this Section 
18applies on or after January 1, 2011, in this Code, "final 
19average salary" shall be substituted for the following:
20  (1) (Blank).
21  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
22 annual salary for any 4 consecutive years within the last 
23 10 years of service immediately preceding the date of 
24 withdrawal". 
25  (3) In Article 13, "average final salary". 
26  (4) In Article 14, "final average compensation". 
 
 
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1  (5) In Article 17, "average salary". 
2  (6) In Section 22-207, "wages or salary received by 
3 him at the date of retirement or discharge". 
4 A member of the Teachers' Retirement System of the State 
5of Illinois who retires on or after June 1, 2021 and for whom 
6the 2020-2021 school year is used in the calculation of the 
7member's final average salary shall use the higher of the 
8following for the purpose of determining the member's final 
9average salary:
10  (A) the amount otherwise calculated under the first 
11 paragraph of this subsection; or
12  (B) an amount calculated by the Teachers' Retirement 
13 System of the State of Illinois using the average of the 
14 monthly (or annual) salary obtained by dividing the total 
15 salary or earnings calculated under Article 16 applicable 
16 to the member or participant during the 96 months (or 8 
17 years) of service within the last 120 months (or 10 years) 
18 of service in which the total salary or earnings 
19 calculated under the Article was the highest by the number 
20 of months (or years) of service in that period.
21 (b-5) Beginning on January 1, 2011, for all purposes under 
22this Code (including without limitation the calculation of 
23benefits and employee contributions), the annual earnings, 
24salary, or wages (based on the plan year) of a member or 
25participant to whom this Section applies shall not exceed 
26$106,800; however, that amount shall annually thereafter be 
 
 
HB5909- 455 -LRB103 43117 RPS 76377 b


1increased by the lesser of (i) 3% of that amount, including all 
2previous adjustments, or (ii) one-half the annual unadjusted 
3percentage increase (but not less than zero) in the consumer 
4price index-u for the 12 months ending with the September 
5preceding each November 1, including all previous adjustments.
6 For the purposes of this Section, "consumer price index-u" 
7means the index published by the Bureau of Labor Statistics of 
8the United States Department of Labor that measures the 
9average change in prices of goods and services purchased by 
10all urban consumers, United States city average, all items, 
111982-84 = 100. The new amount resulting from each annual 
12adjustment shall be determined by the Public Pension Division 
13of the Department of Insurance and made available to the 
14boards of the retirement systems and pension funds by November 
151 of each year. 
16 (b-10) Beginning on January 1, 2024, for all purposes 
17under this Code (including, without limitation, the 
18calculation of benefits and employee contributions), the 
19annual earnings, salary, or wages (based on the plan year) of a 
20member or participant under Article 9 to whom this Section 
21applies shall include an annual earnings, salary, or wage cap 
22that tracks the Social Security wage base. Maximum annual 
23earnings, wages, or salary shall be the annual contribution 
24and benefit base established for the applicable year by the 
25Commissioner of the Social Security Administration under the 
26federal Social Security Act. 
 
 
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1 However, in no event shall the annual earnings, salary, or 
2wages for the purposes of this Article and Article 9 exceed any 
3limitation imposed on annual earnings, salary, or wages under 
4Section 1-117. Under no circumstances shall the maximum amount 
5of annual earnings, salary, or wages be greater than the 
6amount set forth in this subsection (b-10) as a result of 
7reciprocal service or any provisions regarding reciprocal 
8services, nor shall the Fund under Article 9 be required to pay 
9any refund as a result of the application of this maximum 
10annual earnings, salary, and wage cap. 
11 Nothing in this subsection (b-10) shall cause or otherwise 
12result in any retroactive adjustment of any employee 
13contributions. Nothing in this subsection (b-10) shall cause 
14or otherwise result in any retroactive adjustment of 
15disability or other payments made between January 1, 2011 and 
16January 1, 2024. 
17 (c) A member or participant is entitled to a retirement 
18annuity upon written application if he or she has attained age 
1967 (age 65, with respect to service under Article 12 that is 
20subject to this Section, for a member or participant under 
21Article 12 who first becomes a member or participant under 
22Article 12 on or after January 1, 2022 or who makes the 
23election under item (i) of subsection (d-15) of this Section) 
24and has at least 10 years of service credit and is otherwise 
25eligible under the requirements of the applicable Article. 
26 A member or participant who has attained age 62 (age 60, 
 
 
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1with respect to service under Article 12 that is subject to 
2this Section, for a member or participant under Article 12 who 
3first becomes a member or participant under Article 12 on or 
4after January 1, 2022 or who makes the election under item (i) 
5of subsection (d-15) of this Section) and has at least 10 years 
6of service credit and is otherwise eligible under the 
7requirements of the applicable Article may elect to receive 
8the lower retirement annuity provided in subsection (d) of 
9this Section. 
10 (c-5) A person who first becomes a member or a participant 
11subject to this Section on or after July 6, 2017 (the effective 
12date of Public Act 100-23), notwithstanding any other 
13provision of this Code to the contrary, is entitled to a 
14retirement annuity under Article 8 or Article 11 upon written 
15application if he or she has attained age 65 and has at least 
1610 years of service credit and is otherwise eligible under the 
17requirements of Article 8 or Article 11 of this Code, 
18whichever is applicable. 
19 (d) The retirement annuity of a member or participant who 
20is retiring after attaining age 62 (age 60, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section) with at least 10 years of service 
26credit shall be reduced by one-half of 1% for each full month 
 
 
HB5909- 458 -LRB103 43117 RPS 76377 b


1that the member's age is under age 67 (age 65, with respect to 
2service under Article 12 that is subject to this Section, for a 
3member or participant under Article 12 who first becomes a 
4member or participant under Article 12 on or after January 1, 
52022 or who makes the election under item (i) of subsection 
6(d-15) of this Section).
7 (d-5) The retirement annuity payable under Article 8 or 
8Article 11 to an eligible person subject to subsection (c-5) 
9of this Section who is retiring at age 60 with at least 10 
10years of service credit shall be reduced by one-half of 1% for 
11each full month that the member's age is under age 65. 
12 (d-10) Each person who first became a member or 
13participant under Article 8 or Article 11 of this Code on or 
14after January 1, 2011 and prior to July 6, 2017 (the effective 
15date of Public Act 100-23) shall make an irrevocable election 
16either:
17  (i) to be eligible for the reduced retirement age 
18 provided in subsections (c-5) and (d-5) of this Section, 
19 the eligibility for which is conditioned upon the member 
20 or participant agreeing to the increases in employee 
21 contributions for age and service annuities provided in 
22 subsection (a-5) of Section 8-174 of this Code (for 
23 service under Article 8) or subsection (a-5) of Section 
24 11-170 of this Code (for service under Article 11); or 
25  (ii) to not agree to item (i) of this subsection 
26 (d-10), in which case the member or participant shall 
 
 
HB5909- 459 -LRB103 43117 RPS 76377 b


1 continue to be subject to the retirement age provisions in 
2 subsections (c) and (d) of this Section and the employee 
3 contributions for age and service annuity as provided in 
4 subsection (a) of Section 8-174 of this Code (for service 
5 under Article 8) or subsection (a) of Section 11-170 of 
6 this Code (for service under Article 11). 
7 The election provided for in this subsection shall be made 
8between October 1, 2017 and November 15, 2017. A person 
9subject to this subsection who makes the required election 
10shall remain bound by that election. A person subject to this 
11subsection who fails for any reason to make the required 
12election within the time specified in this subsection shall be 
13deemed to have made the election under item (ii). 
14 (d-15) Each person who first becomes a member or 
15participant under Article 12 on or after January 1, 2011 and 
16prior to January 1, 2022 shall make an irrevocable election 
17either: 
18  (i) to be eligible for the reduced retirement age 
19 specified in subsections (c) and (d) of this Section, the 
20 eligibility for which is conditioned upon the member or 
21 participant agreeing to the increase in employee 
22 contributions for service annuities specified in 
23 subsection (b) of Section 12-150; or
24  (ii) to not agree to item (i) of this subsection 
25 (d-15), in which case the member or participant shall not 
26 be eligible for the reduced retirement age specified in 
 
 
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1 subsections (c) and (d) of this Section and shall not be 
2 subject to the increase in employee contributions for 
3 service annuities specified in subsection (b) of Section 
4 12-150. 
5 The election provided for in this subsection shall be made 
6between January 1, 2022 and April 1, 2022. A person subject to 
7this subsection who makes the required election shall remain 
8bound by that election. A person subject to this subsection 
9who fails for any reason to make the required election within 
10the time specified in this subsection shall be deemed to have 
11made the election under item (ii). 
12 (e) Any retirement annuity or supplemental annuity shall 
13be subject to annual increases on the January 1 occurring 
14either on or after the attainment of age 67 (age 65, with 
15respect to service under Article 12 that is subject to this 
16Section, for a member or participant under Article 12 who 
17first becomes a member or participant under Article 12 on or 
18after January 1, 2022 or who makes the election under item (i) 
19of subsection (d-15); and beginning on July 6, 2017 (the 
20effective date of Public Act 100-23), age 65 with respect to 
21service under Article 8 or Article 11 for eligible persons 
22who: (i) are subject to subsection (c-5) of this Section; or 
23(ii) made the election under item (i) of subsection (d-10) of 
24this Section) or the first anniversary of the annuity start 
25date, whichever is later. Each annual increase shall be 
26calculated at 3% or one-half the annual unadjusted percentage 
 
 
HB5909- 461 -LRB103 43117 RPS 76377 b


1increase (but not less than zero) in the consumer price 
2index-u for the 12 months ending with the September preceding 
3each November 1, whichever is less, of the originally granted 
4retirement annuity. If the annual unadjusted percentage change 
5in the consumer price index-u for the 12 months ending with the 
6September preceding each November 1 is zero or there is a 
7decrease, then the annuity shall not be increased. 
8 For the purposes of Section 1-103.1 of this Code, the 
9changes made to this Section by Public Act 102-263 are 
10applicable without regard to whether the employee was in 
11active service on or after August 6, 2021 (the effective date 
12of Public Act 102-263). 
13 For the purposes of Section 1-103.1 of this Code, the 
14changes made to this Section by Public Act 100-23 are 
15applicable without regard to whether the employee was in 
16active service on or after July 6, 2017 (the effective date of 
17Public Act 100-23). 
18 (f) The initial survivor's or widow's annuity of an 
19otherwise eligible survivor or widow of a retired member or 
20participant who first became a member or participant on or 
21after January 1, 2011 shall be in the amount of 66 2/3% of the 
22retired member's or participant's retirement annuity at the 
23date of death. In the case of the death of a member or 
24participant who has not retired and who first became a member 
25or participant on or after January 1, 2011, eligibility for a 
26survivor's or widow's annuity shall be determined by the 
 
 
HB5909- 462 -LRB103 43117 RPS 76377 b


1applicable Article of this Code. The initial benefit shall be 
266 2/3% of the earned annuity without a reduction due to age. A 
3child's annuity of an otherwise eligible child shall be in the 
4amount prescribed under each Article if applicable. Any 
5survivor's or widow's annuity shall be increased (1) on each 
6January 1 occurring on or after the commencement of the 
7annuity if the deceased member died while receiving a 
8retirement annuity or (2) in other cases, on each January 1 
9occurring after the first anniversary of the commencement of 
10the annuity. Each annual increase shall be calculated at 3% or 
11one-half the annual unadjusted percentage increase (but not 
12less than zero) in the consumer price index-u for the 12 months 
13ending with the September preceding each November 1, whichever 
14is less, of the originally granted survivor's annuity. If the 
15annual unadjusted percentage change in the consumer price 
16index-u for the 12 months ending with the September preceding 
17each November 1 is zero or there is a decrease, then the 
18annuity shall not be increased. 
19 (g) The benefits in Section 14-110 apply if the person is a 
20fire fighter in the fire protection service of a department, a 
21security employee of the Department of Corrections or the 
22Department of Juvenile Justice, or a security employee of the 
23Department of Innovation and Technology, as those terms are 
24defined in subsection (b) and subsection (c) of Section 
2514-110. A person who meets the requirements of this Section is 
26entitled to an annuity calculated under the provisions of 
 
 
HB5909- 463 -LRB103 43117 RPS 76377 b


1Section 14-110, in lieu of the regular or minimum retirement 
2annuity, only if the person has withdrawn from service with 
3not less than 20 years of eligible creditable service and has 
4attained age 60, regardless of whether the attainment of age 
560 occurs while the person is still in service. 
6 (g-5) The benefits in Section 14-110 apply if the person 
7is a State policeman, investigator for the Secretary of State, 
8conservation police officer, investigator for the Department 
9of Revenue or the Illinois Gaming Board, investigator for the 
10Office of the Attorney General, Commerce Commission police 
11officer, or arson investigator, as those terms are defined in 
12subsection (b) and subsection (c) of Section 14-110. A person 
13who meets the requirements of this Section is entitled to an 
14annuity calculated under the provisions of Section 14-110, in 
15lieu of the regular or minimum retirement annuity, only if the 
16person has withdrawn from service with not less than 20 years 
17of eligible creditable service and has attained age 55, 
18regardless of whether the attainment of age 55 occurs while 
19the person is still in service. 
20 (h) If a person who first becomes a member or a participant 
21of a retirement system or pension fund subject to this Section 
22on or after January 1, 2011 is receiving a retirement annuity 
23or retirement pension under that system or fund and becomes a 
24member or participant under any other system or fund created 
25by this Code and is employed on a full-time basis, except for 
26those members or participants exempted from the provisions of 
 
 
HB5909- 464 -LRB103 43117 RPS 76377 b


1this Section under subsection (a) of this Section, then the 
2person's retirement annuity or retirement pension under that 
3system or fund shall be suspended during that employment. Upon 
4termination of that employment, the person's retirement 
5annuity or retirement pension payments shall resume and be 
6recalculated if recalculation is provided for under the 
7applicable Article of this Code.
8 If a person who first becomes a member of a retirement 
9system or pension fund subject to this Section on or after 
10January 1, 2012 and is receiving a retirement annuity or 
11retirement pension under that system or fund and accepts on a 
12contractual basis a position to provide services to a 
13governmental entity from which he or she has retired, then 
14that person's annuity or retirement pension earned as an 
15active employee of the employer shall be suspended during that 
16contractual service. A person receiving an annuity or 
17retirement pension under this Code shall notify the pension 
18fund or retirement system from which he or she is receiving an 
19annuity or retirement pension, as well as his or her 
20contractual employer, of his or her retirement status before 
21accepting contractual employment. A person who fails to submit 
22such notification shall be guilty of a Class A misdemeanor and 
23required to pay a fine of $1,000. Upon termination of that 
24contractual employment, the person's retirement annuity or 
25retirement pension payments shall resume and, if appropriate, 
26be recalculated under the applicable provisions of this Code. 
 
 
HB5909- 465 -LRB103 43117 RPS 76377 b


1 (i) (Blank). 
2 (j) In the case of a conflict between the provisions of 
3this Section and any other provision of this Code, the 
4provisions of this Section shall control.
5(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
6102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
75-6-22; 103-529, eff. 8-11-23.)

8 (Text of Section from P.A. 102-813)
9 Sec. 1-160. Provisions applicable to new hires. 
10 (a) The provisions of this Section apply to a person who, 
11on or after January 1, 2011, first becomes a member or a 
12participant under any reciprocal retirement system, regardless 
13of when that reciprocal retirement system became a reciprocal 
14retirement system, or pension fund established under this 
15Code, other than a retirement system or pension fund 
16established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this 
17Code, notwithstanding any other provision of this Code to the 
18contrary, but do not apply to any self-managed plan 
19established under this Code or to any participant of the 
20retirement plan established under Section 22-101; except that 
21this Section applies to a person who elected to establish 
22alternative credits by electing in writing after January 1, 
232011, but before August 8, 2011, under Section 7-145.1 of this 
24Code. Notwithstanding anything to the contrary in this 
25Section, for purposes of this Section, a person who is a Tier 1 
 
 
HB5909- 466 -LRB103 43117 RPS 76377 b


1regular employee as defined in Section 7-109.4 of this Code or 
2who participated in a retirement system under Article 15 prior 
3to January 1, 2011 shall be deemed a person who first became a 
4member or participant prior to January 1, 2011 under any 
5retirement system or pension fund subject to this Section. The 
6changes made to this Section by Public Act 98-596 are a 
7clarification of existing law and are intended to be 
8retroactive to January 1, 2011 (the effective date of Public 
9Act 96-889), notwithstanding the provisions of Section 1-103.1 
10of this Code.
11 This Section does not apply to a person who first becomes a 
12noncovered employee under Article 14 on or after the 
13implementation date of the plan created under Section 1-161 
14for that Article, unless that person elects under subsection 
15(b) of Section 1-161 to instead receive the benefits provided 
16under this Section and the applicable provisions of that 
17Article.
18 This Section does not apply to a person who first becomes a 
19member or participant under Article 16 on or after the 
20implementation date of the plan created under Section 1-161 
21for that Article, unless that person elects under subsection 
22(b) of Section 1-161 to instead receive the benefits provided 
23under this Section and the applicable provisions of that 
24Article.
25 This Section does not apply to a person who elects under 
26subsection (c-5) of Section 1-161 to receive the benefits 
 
 
HB5909- 467 -LRB103 43117 RPS 76377 b


1under Section 1-161. 
2 This Section does not apply to a person who first becomes a 
3member or participant of an affected pension fund on or after 6 
4months after the resolution or ordinance date, as defined in 
5Section 1-162, unless that person elects under subsection (c) 
6of Section 1-162 to receive the benefits provided under this 
7Section and the applicable provisions of the Article under 
8which he or she is a member or participant. 
9 (b) "Final average salary" means, except as otherwise 
10provided in this subsection, the average monthly (or annual) 
11salary obtained by dividing the total salary or earnings 
12calculated under the Article applicable to the member or 
13participant during the 96 consecutive months (or 8 consecutive 
14years) of service within the last 120 months (or 10 years) of 
15service in which the total salary or earnings calculated under 
16the applicable Article was the highest by the number of months 
17(or years) of service in that period. For the purposes of a 
18person who first becomes a member or participant of any 
19retirement system or pension fund to which this Section 
20applies on or after January 1, 2011, in this Code, "final 
21average salary" shall be substituted for the following:
22  (1) (Blank).
23  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
24 annual salary for any 4 consecutive years within the last 
25 10 years of service immediately preceding the date of 
26 withdrawal". 
 
 
HB5909- 468 -LRB103 43117 RPS 76377 b


1  (3) In Article 13, "average final salary". 
2  (4) In Article 14, "final average compensation". 
3  (5) In Article 17, "average salary". 
4  (6) In Section 22-207, "wages or salary received by 
5 him at the date of retirement or discharge". 
6 A member of the Teachers' Retirement System of the State 
7of Illinois who retires on or after June 1, 2021 and for whom 
8the 2020-2021 school year is used in the calculation of the 
9member's final average salary shall use the higher of the 
10following for the purpose of determining the member's final 
11average salary:
12  (A) the amount otherwise calculated under the first 
13 paragraph of this subsection; or
14  (B) an amount calculated by the Teachers' Retirement 
15 System of the State of Illinois using the average of the 
16 monthly (or annual) salary obtained by dividing the total 
17 salary or earnings calculated under Article 16 applicable 
18 to the member or participant during the 96 months (or 8 
19 years) of service within the last 120 months (or 10 years) 
20 of service in which the total salary or earnings 
21 calculated under the Article was the highest by the number 
22 of months (or years) of service in that period.
23 (b-5) Beginning on January 1, 2011, for all purposes under 
24this Code (including without limitation the calculation of 
25benefits and employee contributions), the annual earnings, 
26salary, or wages (based on the plan year) of a member or 
 
 
HB5909- 469 -LRB103 43117 RPS 76377 b


1participant to whom this Section applies shall not exceed 
2$106,800; however, that amount shall annually thereafter be 
3increased by the lesser of (i) 3% of that amount, including all 
4previous adjustments, or (ii) one-half the annual unadjusted 
5percentage increase (but not less than zero) in the consumer 
6price index-u for the 12 months ending with the September 
7preceding each November 1, including all previous adjustments.
8 For the purposes of this Section, "consumer price index-u" 
9means the index published by the Bureau of Labor Statistics of 
10the United States Department of Labor that measures the 
11average change in prices of goods and services purchased by 
12all urban consumers, United States city average, all items, 
131982-84 = 100. The new amount resulting from each annual 
14adjustment shall be determined by the Public Pension Division 
15of the Department of Insurance and made available to the 
16boards of the retirement systems and pension funds by November 
171 of each year. 
18 (b-10) Beginning on January 1, 2024, for all purposes 
19under this Code (including, without limitation, the 
20calculation of benefits and employee contributions), the 
21annual earnings, salary, or wages (based on the plan year) of a 
22member or participant under Article 9 to whom this Section 
23applies shall include an annual earnings, salary, or wage cap 
24that tracks the Social Security wage base. Maximum annual 
25earnings, wages, or salary shall be the annual contribution 
26and benefit base established for the applicable year by the 
 
 
HB5909- 470 -LRB103 43117 RPS 76377 b


1Commissioner of the Social Security Administration under the 
2federal Social Security Act. 
3 However, in no event shall the annual earnings, salary, or 
4wages for the purposes of this Article and Article 9 exceed any 
5limitation imposed on annual earnings, salary, or wages under 
6Section 1-117. Under no circumstances shall the maximum amount 
7of annual earnings, salary, or wages be greater than the 
8amount set forth in this subsection (b-10) as a result of 
9reciprocal service or any provisions regarding reciprocal 
10services, nor shall the Fund under Article 9 be required to pay 
11any refund as a result of the application of this maximum 
12annual earnings, salary, and wage cap. 
13 Nothing in this subsection (b-10) shall cause or otherwise 
14result in any retroactive adjustment of any employee 
15contributions. Nothing in this subsection (b-10) shall cause 
16or otherwise result in any retroactive adjustment of 
17disability or other payments made between January 1, 2011 and 
18January 1, 2024. 
19 (c) A member or participant is entitled to a retirement 
20annuity upon written application if he or she has attained age 
2167 (age 65, with respect to service under Article 12 that is 
22subject to this Section, for a member or participant under 
23Article 12 who first becomes a member or participant under 
24Article 12 on or after January 1, 2022 or who makes the 
25election under item (i) of subsection (d-15) of this Section) 
26and has at least 10 years of service credit and is otherwise 
 
 
HB5909- 471 -LRB103 43117 RPS 76377 b


1eligible under the requirements of the applicable Article. 
2 A member or participant who has attained age 62 (age 60, 
3with respect to service under Article 12 that is subject to 
4this Section, for a member or participant under Article 12 who 
5first becomes a member or participant under Article 12 on or 
6after January 1, 2022 or who makes the election under item (i) 
7of subsection (d-15) of this Section) and has at least 10 years 
8of service credit and is otherwise eligible under the 
9requirements of the applicable Article may elect to receive 
10the lower retirement annuity provided in subsection (d) of 
11this Section. 
12 (c-5) A person who first becomes a member or a participant 
13subject to this Section on or after July 6, 2017 (the effective 
14date of Public Act 100-23), notwithstanding any other 
15provision of this Code to the contrary, is entitled to a 
16retirement annuity under Article 8 or Article 11 upon written 
17application if he or she has attained age 65 and has at least 
1810 years of service credit and is otherwise eligible under the 
19requirements of Article 8 or Article 11 of this Code, 
20whichever is applicable. 
21 (d) The retirement annuity of a member or participant who 
22is retiring after attaining age 62 (age 60, with respect to 
23service under Article 12 that is subject to this Section, for a 
24member or participant under Article 12 who first becomes a 
25member or participant under Article 12 on or after January 1, 
262022 or who makes the election under item (i) of subsection 
 
 
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1(d-15) of this Section) with at least 10 years of service 
2credit shall be reduced by one-half of 1% for each full month 
3that the member's age is under age 67 (age 65, with respect to 
4service under Article 12 that is subject to this Section, for a 
5member or participant under Article 12 who first becomes a 
6member or participant under Article 12 on or after January 1, 
72022 or who makes the election under item (i) of subsection 
8(d-15) of this Section).
9 (d-5) The retirement annuity payable under Article 8 or 
10Article 11 to an eligible person subject to subsection (c-5) 
11of this Section who is retiring at age 60 with at least 10 
12years of service credit shall be reduced by one-half of 1% for 
13each full month that the member's age is under age 65. 
14 (d-10) Each person who first became a member or 
15participant under Article 8 or Article 11 of this Code on or 
16after January 1, 2011 and prior to July 6, 2017 (the effective 
17date of Public Act 100-23) shall make an irrevocable election 
18either:
19  (i) to be eligible for the reduced retirement age 
20 provided in subsections (c-5) and (d-5) of this Section, 
21 the eligibility for which is conditioned upon the member 
22 or participant agreeing to the increases in employee 
23 contributions for age and service annuities provided in 
24 subsection (a-5) of Section 8-174 of this Code (for 
25 service under Article 8) or subsection (a-5) of Section 
26 11-170 of this Code (for service under Article 11); or 
 
 
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1  (ii) to not agree to item (i) of this subsection 
2 (d-10), in which case the member or participant shall 
3 continue to be subject to the retirement age provisions in 
4 subsections (c) and (d) of this Section and the employee 
5 contributions for age and service annuity as provided in 
6 subsection (a) of Section 8-174 of this Code (for service 
7 under Article 8) or subsection (a) of Section 11-170 of 
8 this Code (for service under Article 11). 
9 The election provided for in this subsection shall be made 
10between October 1, 2017 and November 15, 2017. A person 
11subject to this subsection who makes the required election 
12shall remain bound by that election. A person subject to this 
13subsection who fails for any reason to make the required 
14election within the time specified in this subsection shall be 
15deemed to have made the election under item (ii). 
16 (d-15) Each person who first becomes a member or 
17participant under Article 12 on or after January 1, 2011 and 
18prior to January 1, 2022 shall make an irrevocable election 
19either: 
20  (i) to be eligible for the reduced retirement age 
21 specified in subsections (c) and (d) of this Section, the 
22 eligibility for which is conditioned upon the member or 
23 participant agreeing to the increase in employee 
24 contributions for service annuities specified in 
25 subsection (b) of Section 12-150; or
26  (ii) to not agree to item (i) of this subsection 
 
 
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1 (d-15), in which case the member or participant shall not 
2 be eligible for the reduced retirement age specified in 
3 subsections (c) and (d) of this Section and shall not be 
4 subject to the increase in employee contributions for 
5 service annuities specified in subsection (b) of Section 
6 12-150. 
7 The election provided for in this subsection shall be made 
8between January 1, 2022 and April 1, 2022. A person subject to 
9this subsection who makes the required election shall remain 
10bound by that election. A person subject to this subsection 
11who fails for any reason to make the required election within 
12the time specified in this subsection shall be deemed to have 
13made the election under item (ii). 
14 (e) Any retirement annuity or supplemental annuity shall 
15be subject to annual increases on the January 1 occurring 
16either on or after the attainment of age 67 (age 65, with 
17respect to service under Article 12 that is subject to this 
18Section, for a member or participant under Article 12 who 
19first becomes a member or participant under Article 12 on or 
20after January 1, 2022 or who makes the election under item (i) 
21of subsection (d-15); and beginning on July 6, 2017 (the 
22effective date of Public Act 100-23), age 65 with respect to 
23service under Article 8 or Article 11 for eligible persons 
24who: (i) are subject to subsection (c-5) of this Section; or 
25(ii) made the election under item (i) of subsection (d-10) of 
26this Section) or the first anniversary of the annuity start 
 
 
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1date, whichever is later. Each annual increase shall be 
2calculated at 3% or one-half the annual unadjusted percentage 
3increase (but not less than zero) in the consumer price 
4index-u for the 12 months ending with the September preceding 
5each November 1, whichever is less, of the originally granted 
6retirement annuity. If the annual unadjusted percentage change 
7in the consumer price index-u for the 12 months ending with the 
8September preceding each November 1 is zero or there is a 
9decrease, then the annuity shall not be increased. 
10 For the purposes of Section 1-103.1 of this Code, the 
11changes made to this Section by Public Act 102-263 are 
12applicable without regard to whether the employee was in 
13active service on or after August 6, 2021 (the effective date 
14of Public Act 102-263). 
15 For the purposes of Section 1-103.1 of this Code, the 
16changes made to this Section by Public Act 100-23 are 
17applicable without regard to whether the employee was in 
18active service on or after July 6, 2017 (the effective date of 
19Public Act 100-23). 
20 (f) The initial survivor's or widow's annuity of an 
21otherwise eligible survivor or widow of a retired member or 
22participant who first became a member or participant on or 
23after January 1, 2011 shall be in the amount of 66 2/3% of the 
24retired member's or participant's retirement annuity at the 
25date of death. In the case of the death of a member or 
26participant who has not retired and who first became a member 
 
 
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1or participant on or after January 1, 2011, eligibility for a 
2survivor's or widow's annuity shall be determined by the 
3applicable Article of this Code. The initial benefit shall be 
466 2/3% of the earned annuity without a reduction due to age. A 
5child's annuity of an otherwise eligible child shall be in the 
6amount prescribed under each Article if applicable. Any 
7survivor's or widow's annuity shall be increased (1) on each 
8January 1 occurring on or after the commencement of the 
9annuity if the deceased member died while receiving a 
10retirement annuity or (2) in other cases, on each January 1 
11occurring after the first anniversary of the commencement of 
12the annuity. Each annual increase shall be calculated at 3% or 
13one-half the annual unadjusted percentage increase (but not 
14less than zero) in the consumer price index-u for the 12 months 
15ending with the September preceding each November 1, whichever 
16is less, of the originally granted survivor's annuity. If the 
17annual unadjusted percentage change in the consumer price 
18index-u for the 12 months ending with the September preceding 
19each November 1 is zero or there is a decrease, then the 
20annuity shall not be increased. 
21 (g) The benefits in Section 14-110 apply only if the 
22person is a State policeman, a fire fighter in the fire 
23protection service of a department, a conservation police 
24officer, an investigator for the Secretary of State, an arson 
25investigator, a Commerce Commission police officer, 
26investigator for the Department of Revenue or the Illinois 
 
 
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1Gaming Board, a security employee of the Department of 
2Corrections or the Department of Juvenile Justice, or a 
3security employee of the Department of Innovation and 
4Technology, as those terms are defined in subsection (b) and 
5subsection (c) of Section 14-110. A person who meets the 
6requirements of this Section is entitled to an annuity 
7calculated under the provisions of Section 14-110, in lieu of 
8the regular or minimum retirement annuity, only if the person 
9has withdrawn from service with not less than 20 years of 
10eligible creditable service and has attained age 60, 
11regardless of whether the attainment of age 60 occurs while 
12the person is still in service. 
13 (h) If a person who first becomes a member or a participant 
14of a retirement system or pension fund subject to this Section 
15on or after January 1, 2011 is receiving a retirement annuity 
16or retirement pension under that system or fund and becomes a 
17member or participant under any other system or fund created 
18by this Code and is employed on a full-time basis, except for 
19those members or participants exempted from the provisions of 
20this Section under subsection (a) of this Section, then the 
21person's retirement annuity or retirement pension under that 
22system or fund shall be suspended during that employment. Upon 
23termination of that employment, the person's retirement 
24annuity or retirement pension payments shall resume and be 
25recalculated if recalculation is provided for under the 
26applicable Article of this Code.
 
 
HB5909- 478 -LRB103 43117 RPS 76377 b


1 If a person who first becomes a member of a retirement 
2system or pension fund subject to this Section on or after 
3January 1, 2012 and is receiving a retirement annuity or 
4retirement pension under that system or fund and accepts on a 
5contractual basis a position to provide services to a 
6governmental entity from which he or she has retired, then 
7that person's annuity or retirement pension earned as an 
8active employee of the employer shall be suspended during that 
9contractual service. A person receiving an annuity or 
10retirement pension under this Code shall notify the pension 
11fund or retirement system from which he or she is receiving an 
12annuity or retirement pension, as well as his or her 
13contractual employer, of his or her retirement status before 
14accepting contractual employment. A person who fails to submit 
15such notification shall be guilty of a Class A misdemeanor and 
16required to pay a fine of $1,000. Upon termination of that 
17contractual employment, the person's retirement annuity or 
18retirement pension payments shall resume and, if appropriate, 
19be recalculated under the applicable provisions of this Code. 
20 (i) (Blank). 
21 (j) In the case of a conflict between the provisions of 
22this Section and any other provision of this Code, the 
23provisions of this Section shall control.
24(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
25102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
265-13-22; 103-529, eff. 8-11-23.)

 
 
HB5909- 479 -LRB103 43117 RPS 76377 b


1 (Text of Section from P.A. 102-956)
2 Sec. 1-160. Provisions applicable to new hires. 
3 (a) The provisions of this Section apply to a person who, 
4on or after January 1, 2011, first becomes a member or a 
5participant under any reciprocal retirement system, regardless 
6of when that reciprocal retirement system became a reciprocal 
7retirement system, or pension fund established under this 
8Code, other than a retirement system or pension fund 
9established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this 
10Code, notwithstanding any other provision of this Code to the 
11contrary, but do not apply to any self-managed plan 
12established under this Code or to any participant of the 
13retirement plan established under Section 22-101; except that 
14this Section applies to a person who elected to establish 
15alternative credits by electing in writing after January 1, 
162011, but before August 8, 2011, under Section 7-145.1 of this 
17Code. Notwithstanding anything to the contrary in this 
18Section, for purposes of this Section, a person who is a Tier 1 
19regular employee as defined in Section 7-109.4 of this Code or 
20who participated in a retirement system under Article 15 prior 
21to January 1, 2011 shall be deemed a person who first became a 
22member or participant prior to January 1, 2011 under any 
23retirement system or pension fund subject to this Section. The 
24changes made to this Section by Public Act 98-596 are a 
25clarification of existing law and are intended to be 
 
 
HB5909- 480 -LRB103 43117 RPS 76377 b


1retroactive to January 1, 2011 (the effective date of Public 
2Act 96-889), notwithstanding the provisions of Section 1-103.1 
3of this Code.
4 This Section does not apply to a person who first becomes a 
5noncovered employee under Article 14 on or after the 
6implementation date of the plan created under Section 1-161 
7for that Article, unless that person elects under subsection 
8(b) of Section 1-161 to instead receive the benefits provided 
9under this Section and the applicable provisions of that 
10Article.
11 This Section does not apply to a person who first becomes a 
12member or participant under Article 16 on or after the 
13implementation date of the plan created under Section 1-161 
14for that Article, unless that person elects under subsection 
15(b) of Section 1-161 to instead receive the benefits provided 
16under this Section and the applicable provisions of that 
17Article.
18 This Section does not apply to a person who elects under 
19subsection (c-5) of Section 1-161 to receive the benefits 
20under Section 1-161. 
21 This Section does not apply to a person who first becomes a 
22member or participant of an affected pension fund on or after 6 
23months after the resolution or ordinance date, as defined in 
24Section 1-162, unless that person elects under subsection (c) 
25of Section 1-162 to receive the benefits provided under this 
26Section and the applicable provisions of the Article under 
 
 
HB5909- 481 -LRB103 43117 RPS 76377 b


1which he or she is a member or participant. 
2 (b) "Final average salary" means, except as otherwise 
3provided in this subsection, the average monthly (or annual) 
4salary obtained by dividing the total salary or earnings 
5calculated under the Article applicable to the member or 
6participant during the 96 consecutive months (or 8 consecutive 
7years) of service within the last 120 months (or 10 years) of 
8service in which the total salary or earnings calculated under 
9the applicable Article was the highest by the number of months 
10(or years) of service in that period. For the purposes of a 
11person who first becomes a member or participant of any 
12retirement system or pension fund to which this Section 
13applies on or after January 1, 2011, in this Code, "final 
14average salary" shall be substituted for the following:
15  (1) (Blank).
16  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
17 annual salary for any 4 consecutive years within the last 
18 10 years of service immediately preceding the date of 
19 withdrawal". 
20  (3) In Article 13, "average final salary". 
21  (4) In Article 14, "final average compensation". 
22  (5) In Article 17, "average salary". 
23  (6) In Section 22-207, "wages or salary received by 
24 him at the date of retirement or discharge". 
25 A member of the Teachers' Retirement System of the State 
26of Illinois who retires on or after June 1, 2021 and for whom 
 
 
HB5909- 482 -LRB103 43117 RPS 76377 b


1the 2020-2021 school year is used in the calculation of the 
2member's final average salary shall use the higher of the 
3following for the purpose of determining the member's final 
4average salary:
5  (A) the amount otherwise calculated under the first 
6 paragraph of this subsection; or
7  (B) an amount calculated by the Teachers' Retirement 
8 System of the State of Illinois using the average of the 
9 monthly (or annual) salary obtained by dividing the total 
10 salary or earnings calculated under Article 16 applicable 
11 to the member or participant during the 96 months (or 8 
12 years) of service within the last 120 months (or 10 years) 
13 of service in which the total salary or earnings 
14 calculated under the Article was the highest by the number 
15 of months (or years) of service in that period.
16 (b-5) Beginning on January 1, 2011, for all purposes under 
17this Code (including without limitation the calculation of 
18benefits and employee contributions), the annual earnings, 
19salary, or wages (based on the plan year) of a member or 
20participant to whom this Section applies shall not exceed 
21$106,800; however, that amount shall annually thereafter be 
22increased by the lesser of (i) 3% of that amount, including all 
23previous adjustments, or (ii) one-half the annual unadjusted 
24percentage increase (but not less than zero) in the consumer 
25price index-u for the 12 months ending with the September 
26preceding each November 1, including all previous adjustments.
 
 
HB5909- 483 -LRB103 43117 RPS 76377 b


1 For the purposes of this Section, "consumer price index-u" 
2means the index published by the Bureau of Labor Statistics of 
3the United States Department of Labor that measures the 
4average change in prices of goods and services purchased by 
5all urban consumers, United States city average, all items, 
61982-84 = 100. The new amount resulting from each annual 
7adjustment shall be determined by the Public Pension Division 
8of the Department of Insurance and made available to the 
9boards of the retirement systems and pension funds by November 
101 of each year. 
11 (b-10) Beginning on January 1, 2024, for all purposes 
12under this Code (including, without limitation, the 
13calculation of benefits and employee contributions), the 
14annual earnings, salary, or wages (based on the plan year) of a 
15member or participant under Article 9 to whom this Section 
16applies shall include an annual earnings, salary, or wage cap 
17that tracks the Social Security wage base. Maximum annual 
18earnings, wages, or salary shall be the annual contribution 
19and benefit base established for the applicable year by the 
20Commissioner of the Social Security Administration under the 
21federal Social Security Act. 
22 However, in no event shall the annual earnings, salary, or 
23wages for the purposes of this Article and Article 9 exceed any 
24limitation imposed on annual earnings, salary, or wages under 
25Section 1-117. Under no circumstances shall the maximum amount 
26of annual earnings, salary, or wages be greater than the 
 
 
HB5909- 484 -LRB103 43117 RPS 76377 b


1amount set forth in this subsection (b-10) as a result of 
2reciprocal service or any provisions regarding reciprocal 
3services, nor shall the Fund under Article 9 be required to pay 
4any refund as a result of the application of this maximum 
5annual earnings, salary, and wage cap. 
6 Nothing in this subsection (b-10) shall cause or otherwise 
7result in any retroactive adjustment of any employee 
8contributions. Nothing in this subsection (b-10) shall cause 
9or otherwise result in any retroactive adjustment of 
10disability or other payments made between January 1, 2011 and 
11January 1, 2024. 
12 (c) A member or participant is entitled to a retirement 
13annuity upon written application if he or she has attained age 
1467 (age 65, with respect to service under Article 12 that is 
15subject to this Section, for a member or participant under 
16Article 12 who first becomes a member or participant under 
17Article 12 on or after January 1, 2022 or who makes the 
18election under item (i) of subsection (d-15) of this Section) 
19and has at least 10 years of service credit and is otherwise 
20eligible under the requirements of the applicable Article. 
21 A member or participant who has attained age 62 (age 60, 
22with respect to service under Article 12 that is subject to 
23this Section, for a member or participant under Article 12 who 
24first becomes a member or participant under Article 12 on or 
25after January 1, 2022 or who makes the election under item (i) 
26of subsection (d-15) of this Section) and has at least 10 years 
 
 
HB5909- 485 -LRB103 43117 RPS 76377 b


1of service credit and is otherwise eligible under the 
2requirements of the applicable Article may elect to receive 
3the lower retirement annuity provided in subsection (d) of 
4this Section. 
5 (c-5) A person who first becomes a member or a participant 
6subject to this Section on or after July 6, 2017 (the effective 
7date of Public Act 100-23), notwithstanding any other 
8provision of this Code to the contrary, is entitled to a 
9retirement annuity under Article 8 or Article 11 upon written 
10application if he or she has attained age 65 and has at least 
1110 years of service credit and is otherwise eligible under the 
12requirements of Article 8 or Article 11 of this Code, 
13whichever is applicable. 
14 (d) The retirement annuity of a member or participant who 
15is retiring after attaining age 62 (age 60, with respect to 
16service under Article 12 that is subject to this Section, for a 
17member or participant under Article 12 who first becomes a 
18member or participant under Article 12 on or after January 1, 
192022 or who makes the election under item (i) of subsection 
20(d-15) of this Section) with at least 10 years of service 
21credit shall be reduced by one-half of 1% for each full month 
22that the member's age is under age 67 (age 65, with respect to 
23service under Article 12 that is subject to this Section, for a 
24member or participant under Article 12 who first becomes a 
25member or participant under Article 12 on or after January 1, 
262022 or who makes the election under item (i) of subsection 
 
 
HB5909- 486 -LRB103 43117 RPS 76377 b


1(d-15) of this Section).
2 (d-5) The retirement annuity payable under Article 8 or 
3Article 11 to an eligible person subject to subsection (c-5) 
4of this Section who is retiring at age 60 with at least 10 
5years of service credit shall be reduced by one-half of 1% for 
6each full month that the member's age is under age 65. 
7 (d-10) Each person who first became a member or 
8participant under Article 8 or Article 11 of this Code on or 
9after January 1, 2011 and prior to July 6, 2017 (the effective 
10date of Public Act 100-23) shall make an irrevocable election 
11either:
12  (i) to be eligible for the reduced retirement age 
13 provided in subsections (c-5) and (d-5) of this Section, 
14 the eligibility for which is conditioned upon the member 
15 or participant agreeing to the increases in employee 
16 contributions for age and service annuities provided in 
17 subsection (a-5) of Section 8-174 of this Code (for 
18 service under Article 8) or subsection (a-5) of Section 
19 11-170 of this Code (for service under Article 11); or 
20  (ii) to not agree to item (i) of this subsection 
21 (d-10), in which case the member or participant shall 
22 continue to be subject to the retirement age provisions in 
23 subsections (c) and (d) of this Section and the employee 
24 contributions for age and service annuity as provided in 
25 subsection (a) of Section 8-174 of this Code (for service 
26 under Article 8) or subsection (a) of Section 11-170 of 
 
 
HB5909- 487 -LRB103 43117 RPS 76377 b


1 this Code (for service under Article 11). 
2 The election provided for in this subsection shall be made 
3between October 1, 2017 and November 15, 2017. A person 
4subject to this subsection who makes the required election 
5shall remain bound by that election. A person subject to this 
6subsection who fails for any reason to make the required 
7election within the time specified in this subsection shall be 
8deemed to have made the election under item (ii). 
9 (d-15) Each person who first becomes a member or 
10participant under Article 12 on or after January 1, 2011 and 
11prior to January 1, 2022 shall make an irrevocable election 
12either: 
13  (i) to be eligible for the reduced retirement age 
14 specified in subsections (c) and (d) of this Section, the 
15 eligibility for which is conditioned upon the member or 
16 participant agreeing to the increase in employee 
17 contributions for service annuities specified in 
18 subsection (b) of Section 12-150; or
19  (ii) to not agree to item (i) of this subsection 
20 (d-15), in which case the member or participant shall not 
21 be eligible for the reduced retirement age specified in 
22 subsections (c) and (d) of this Section and shall not be 
23 subject to the increase in employee contributions for 
24 service annuities specified in subsection (b) of Section 
25 12-150. 
26 The election provided for in this subsection shall be made 
 
 
HB5909- 488 -LRB103 43117 RPS 76377 b


1between January 1, 2022 and April 1, 2022. A person subject to 
2this subsection who makes the required election shall remain 
3bound by that election. A person subject to this subsection 
4who fails for any reason to make the required election within 
5the time specified in this subsection shall be deemed to have 
6made the election under item (ii). 
7 (e) Any retirement annuity or supplemental annuity shall 
8be subject to annual increases on the January 1 occurring 
9either on or after the attainment of age 67 (age 65, with 
10respect to service under Article 12 that is subject to this 
11Section, for a member or participant under Article 12 who 
12first becomes a member or participant under Article 12 on or 
13after January 1, 2022 or who makes the election under item (i) 
14of subsection (d-15); and beginning on July 6, 2017 (the 
15effective date of Public Act 100-23), age 65 with respect to 
16service under Article 8 or Article 11 for eligible persons 
17who: (i) are subject to subsection (c-5) of this Section; or 
18(ii) made the election under item (i) of subsection (d-10) of 
19this Section) or the first anniversary of the annuity start 
20date, whichever is later. Each annual increase shall be 
21calculated at 3% or one-half the annual unadjusted percentage 
22increase (but not less than zero) in the consumer price 
23index-u for the 12 months ending with the September preceding 
24each November 1, whichever is less, of the originally granted 
25retirement annuity. If the annual unadjusted percentage change 
26in the consumer price index-u for the 12 months ending with the 
 
 
HB5909- 489 -LRB103 43117 RPS 76377 b


1September preceding each November 1 is zero or there is a 
2decrease, then the annuity shall not be increased. 
3 For the purposes of Section 1-103.1 of this Code, the 
4changes made to this Section by Public Act 102-263 are 
5applicable without regard to whether the employee was in 
6active service on or after August 6, 2021 (the effective date 
7of Public Act 102-263). 
8 For the purposes of Section 1-103.1 of this Code, the 
9changes made to this Section by Public Act 100-23 are 
10applicable without regard to whether the employee was in 
11active service on or after July 6, 2017 (the effective date of 
12Public Act 100-23). 
13 (f) The initial survivor's or widow's annuity of an 
14otherwise eligible survivor or widow of a retired member or 
15participant who first became a member or participant on or 
16after January 1, 2011 shall be in the amount of 66 2/3% of the 
17retired member's or participant's retirement annuity at the 
18date of death. In the case of the death of a member or 
19participant who has not retired and who first became a member 
20or participant on or after January 1, 2011, eligibility for a 
21survivor's or widow's annuity shall be determined by the 
22applicable Article of this Code. The initial benefit shall be 
2366 2/3% of the earned annuity without a reduction due to age. A 
24child's annuity of an otherwise eligible child shall be in the 
25amount prescribed under each Article if applicable. Any 
26survivor's or widow's annuity shall be increased (1) on each 
 
 
HB5909- 490 -LRB103 43117 RPS 76377 b


1January 1 occurring on or after the commencement of the 
2annuity if the deceased member died while receiving a 
3retirement annuity or (2) in other cases, on each January 1 
4occurring after the first anniversary of the commencement of 
5the annuity. Each annual increase shall be calculated at 3% or 
6one-half the annual unadjusted percentage increase (but not 
7less than zero) in the consumer price index-u for the 12 months 
8ending with the September preceding each November 1, whichever 
9is less, of the originally granted survivor's annuity. If the 
10annual unadjusted percentage change in the consumer price 
11index-u for the 12 months ending with the September preceding 
12each November 1 is zero or there is a decrease, then the 
13annuity shall not be increased. 
14 (g) The benefits in Section 14-110 apply only if the 
15person is a State policeman, a fire fighter in the fire 
16protection service of a department, a conservation police 
17officer, an investigator for the Secretary of State, an 
18investigator for the Office of the Attorney General, an arson 
19investigator, a Commerce Commission police officer, 
20investigator for the Department of Revenue or the Illinois 
21Gaming Board, a security employee of the Department of 
22Corrections or the Department of Juvenile Justice, or a 
23security employee of the Department of Innovation and 
24Technology, as those terms are defined in subsection (b) and 
25subsection (c) of Section 14-110. A person who meets the 
26requirements of this Section is entitled to an annuity 
 
 
HB5909- 491 -LRB103 43117 RPS 76377 b


1calculated under the provisions of Section 14-110, in lieu of 
2the regular or minimum retirement annuity, only if the person 
3has withdrawn from service with not less than 20 years of 
4eligible creditable service and has attained age 60, 
5regardless of whether the attainment of age 60 occurs while 
6the person is still in service. 
7 (h) If a person who first becomes a member or a participant 
8of a retirement system or pension fund subject to this Section 
9on or after January 1, 2011 is receiving a retirement annuity 
10or retirement pension under that system or fund and becomes a 
11member or participant under any other system or fund created 
12by this Code and is employed on a full-time basis, except for 
13those members or participants exempted from the provisions of 
14this Section under subsection (a) of this Section, then the 
15person's retirement annuity or retirement pension under that 
16system or fund shall be suspended during that employment. Upon 
17termination of that employment, the person's retirement 
18annuity or retirement pension payments shall resume and be 
19recalculated if recalculation is provided for under the 
20applicable Article of this Code.
21 If a person who first becomes a member of a retirement 
22system or pension fund subject to this Section on or after 
23January 1, 2012 and is receiving a retirement annuity or 
24retirement pension under that system or fund and accepts on a 
25contractual basis a position to provide services to a 
26governmental entity from which he or she has retired, then 
 
 
HB5909- 492 -LRB103 43117 RPS 76377 b


1that person's annuity or retirement pension earned as an 
2active employee of the employer shall be suspended during that 
3contractual service. A person receiving an annuity or 
4retirement pension under this Code shall notify the pension 
5fund or retirement system from which he or she is receiving an 
6annuity or retirement pension, as well as his or her 
7contractual employer, of his or her retirement status before 
8accepting contractual employment. A person who fails to submit 
9such notification shall be guilty of a Class A misdemeanor and 
10required to pay a fine of $1,000. Upon termination of that 
11contractual employment, the person's retirement annuity or 
12retirement pension payments shall resume and, if appropriate, 
13be recalculated under the applicable provisions of this Code. 
14 (i) (Blank). 
15 (j) In the case of a conflict between the provisions of 
16this Section and any other provision of this Code, the 
17provisions of this Section shall control.
18(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
19102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
208-11-23.)

21
Article 4.


22 Section 4-5. The Illinois Administrative Procedure Act is 
23amended by adding Section 5-45.55 as follows:

 
 
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1 (5 ILCS 100/5-45.55 new)
2 Sec. 5-45.55. Emergency rulemaking; accelerated pension 
3benefit payments. To provide for the expeditious and timely 
4implementation of accelerated pension benefit payments under 
5Articles 2 and 18 of the Illinois Pension Code, emergency 
6rules implementing the accelerated pension benefit payments 
7under Article 2 may be adopted in accordance with Section 5-45 
8by the Board of Trustees established under Article 2 of the 
9Illinois Pension Code and emergency rules implementing the 
10accelerated pension benefit payments under Article 18 may be 
11adopted in accordance with Section 5-45 by the Board of 
12Trustees established under Article 18 of the Illinois Pension 
13Code. The adoption of emergency rules authorized by Section 
145-45 and this Section is deemed to be necessary for the public 
15interest, safety, and welfare.
16 This Section is repealed one year after the effective date 
17of this amendatory Act of the 103rd General Assembly.

18 Section 4-15. The Illinois Pension Code is amended by 
19adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11, 
2018-161.5, and 18-161.6 as follows:

21 (40 ILCS 5/2-154.5 new)
22 Sec. 2-154.5. Accelerated pension benefit payment in lieu 
23of any pension benefit.
24 (a) As used in this Section:
 
 
HB5909- 494 -LRB103 43117 RPS 76377 b


1 "Eligible person" means a person who:
2  (1) has terminated service;
3  (2) has accrued sufficient service credit to be 
4 eligible to receive a retirement annuity under this 
5 Article;
6  (3) has not received any retirement annuity under this 
7 Article; and
8  (4) has not made the election under Section 2-154.6.
9 "Pension benefit" means the benefits under this Article, 
10including any anticipated annual increases, that an eligible 
11person is entitled to upon attainment of the applicable 
12retirement age. "Pension benefit" also includes applicable 
13survivor's or disability benefits.
14 (b) As soon as practical after the effective date of this 
15amendatory Act of the 103rd General Assembly, the System shall 
16calculate, using actuarial tables and other assumptions 
17adopted by the Board, the present value of pension benefits 
18for each eligible person who requests that information and 
19shall offer each eligible person the opportunity to 
20irrevocably elect to receive an amount determined by the 
21System to be equal to 60% of the present value of his or her 
22pension benefits in lieu of receiving any pension benefit. The 
23offer shall specify the dollar amount that the eligible person 
24will receive if he or she so elects and shall expire when a 
25subsequent offer is made to an eligible person. An eligible 
26person is limited to one calculation and offer per calendar 
 
 
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1year. The System shall make a good faith effort to contact 
2every eligible person to notify him or her of the election. 
3Until January 1, 2030, an eligible person may irrevocably 
4elect to receive an accelerated pension benefit payment in the 
5amount that the System offers under this subsection in lieu of 
6receiving any pension benefit. A person who elects to receive 
7an accelerated pension benefit payment under this Section may 
8not elect to proceed under the Retirement Systems Reciprocal 
9Act with respect to service under this Article.
10 (c) A person's creditable service under this Article shall 
11be terminated upon the person's receipt of an accelerated 
12pension benefit payment under this Section, and no other 
13benefit shall be paid under this Article based on the 
14terminated creditable service, including any retirement, 
15survivor, or other benefit; except that to the extent that 
16participation, benefits, or premiums under the State Employees 
17Group Insurance Act of 1971 are based on the amount of service 
18credit, the terminated service credit shall be used for that 
19purpose.
20 (d) If a person who has received an accelerated pension 
21benefit payment under this Section returns to active service 
22under this Article, then:
23  (1) Any benefits under the System earned as a result 
24 of that return to active service shall be based solely on 
25 the person's creditable service arising from the return to 
26 active service.
 
 
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1  (2) The accelerated pension benefit payment may not be 
2 repaid to the System, and the terminated creditable 
3 service may not under any circumstances be reinstated.
4 (e) As a condition of receiving an accelerated pension 
5benefit payment, the accelerated pension benefit payment must 
6be transferred into a tax qualified retirement plan or 
7account. The accelerated pension benefit payment under this 
8Section may be subject to withholding or payment of applicable 
9taxes, but to the extent permitted by federal law, a person who 
10receives an accelerated pension benefit payment under this 
11Section must direct the System to pay all of that payment as a 
12rollover into another retirement plan or account qualified 
13under the Internal Revenue Code of 1986, as amended.
14 (f) Upon receipt of a member's irrevocable election to 
15receive an accelerated pension benefit payment under this 
16Section, the System shall submit a voucher to the Comptroller 
17for payment of the member's accelerated pension benefit 
18payment. The Comptroller shall transfer the amount of the 
19voucher from the General Revenue Fund to the System, and the 
20System shall transfer the amount into the member's eligible 
21retirement plan or qualified account.
22 (g) The Board shall adopt any rules, including emergency 
23rules, necessary to implement this Section.
24 (h) No provision of this Section shall be interpreted in a 
25way that would cause the applicable System to cease to be a 
26qualified plan under the Internal Revenue Code of 1986.

 
 
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1 (40 ILCS 5/2-154.6 new)
2 Sec. 2-154.6. Accelerated pension benefit payment for a 
3reduction in annual retirement annuity and survivor's annuity 
4increases.
5 (a) As used in this Section:
6 "Accelerated pension benefit payment" means a lump sum 
7payment equal to 70% of the difference of the present value of 
8the automatic annual increases to a Tier 1 participant's 
9retirement annuity and survivor's annuity using the formula 
10applicable to the Tier 1 participant and the present value of 
11the automatic annual increases to the Tier 1 participant's 
12retirement annuity using the formula provided under subsection 
13(b-5) and survivor's annuity using the formula provided under 
14subsection (b-6).
15 "Eligible person" means a person who:
16  (1) is a Tier 1 participant;
17  (2) has submitted an application for a retirement 
18 annuity under this Article;
19  (3) meets the age and service requirements for 
20 receiving a retirement annuity under this Article;
21  (4) has not received any retirement annuity under this 
22 Article; and
23  (5) has not made the election under Section 2-154.5.
24 (b) As soon as practical after the effective date of this 
25amendatory Act of the 103rd General Assembly and until January 
 
 
HB5909- 498 -LRB103 43117 RPS 76377 b


11, 2030, the System shall implement an accelerated pension 
2benefit payment option for eligible persons. Upon the request 
3of an eligible person, the System shall calculate, using 
4actuarial tables and other assumptions adopted by the Board, 
5an accelerated pension benefit payment amount and shall offer 
6that eligible person the opportunity to irrevocably elect to 
7have his or her automatic annual increases in retirement 
8annuity calculated in accordance with the formula provided 
9under subsection (b-5) and any increases in survivor's annuity 
10payable to his or her survivor's annuity beneficiary 
11calculated in accordance with the formula provided under 
12subsection (b-6) in exchange for the accelerated pension 
13benefit payment. The election under this subsection must be 
14made before the eligible person receives the first payment of 
15a retirement annuity otherwise payable under this Article.
16 (b-5) Notwithstanding any other provision of law, the 
17retirement annuity of a person who made the election under 
18subsection (b) shall be subject to annual increases on the 
19January 1 occurring either on or after the attainment of age 67 
20or the first anniversary of the annuity start date, whichever 
21is later. Each annual increase shall be calculated at 1.5% of 
22the originally granted retirement annuity.
23 (b-6) Notwithstanding any other provision of law, a 
24survivor's annuity payable to a survivor's annuity beneficiary 
25of a person who made the election under subsection (b) shall be 
26subject to annual increases on the January 1 occurring on or 
 
 
HB5909- 499 -LRB103 43117 RPS 76377 b


1after the first anniversary of the commencement of the 
2annuity. Each annual increase shall be calculated at 1.5% of 
3the originally granted survivor's annuity.
4 (c) If a person who has received an accelerated pension 
5benefit payment returns to active service under this Article, 
6then:
7  (1) the calculation of any future automatic annual 
8 increase in retirement annuity shall be calculated in 
9 accordance with the formula provided under subsection 
10 (b-5); and
11  (2) the accelerated pension benefit payment may not be 
12 repaid to the System.
13 (d) As a condition of receiving an accelerated pension 
14benefit payment, the accelerated pension benefit payment must 
15be transferred into a tax qualified retirement plan or 
16account. The accelerated pension benefit payment under this 
17Section may be subject to withholding or payment of applicable 
18taxes, but to the extent permitted by federal law, a person who 
19receives an accelerated pension benefit payment under this 
20Section must direct the System to pay all of that payment as a 
21rollover into another retirement plan or account qualified 
22under the Internal Revenue Code of 1986, as amended.
23 (d-5) Upon receipt of a participant's irrevocable election 
24to receive an accelerated pension benefit payment under this 
25Section, the System shall submit a voucher to the Comptroller 
26for payment of the participant's accelerated pension benefit 
 
 
HB5909- 500 -LRB103 43117 RPS 76377 b


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

10 (40 ILCS 5/17-156.10 new)
11 Sec. 17-156.10. Accelerated pension benefit payment in 
12lieu of any pension benefit.
13 (a) As used in this Section:
14 "Eligible person" means a person who:
15  (1) has terminated service;
16  (2) has accrued sufficient service credit to be 
17 eligible to receive a service retirement pension under 
18 this Article;
19  (3) has not received any service retirement pension 
20 under this Article; and
21  (4) has not made the election under Section 17-156.11.
22 "Pension benefit" means the benefits under this Article, 
23including any anticipated annual increases, that an eligible 
24person is entitled to upon attainment of the applicable 
25retirement age. "Pension benefit" also includes applicable 
 
 
HB5909- 501 -LRB103 43117 RPS 76377 b


1survivor's pensions, duty disability pensions, and disability 
2retirement pensions.
3 (b) As soon as practical after the effective date of this 
4amendatory Act of the 103rd General Assembly, the Fund shall 
5calculate, using actuarial tables and other assumptions 
6adopted by the Board, the present value of pension benefits 
7for each eligible person who requests that information and 
8shall offer each eligible person the opportunity to 
9irrevocably elect to receive an amount determined by the Fund 
10to be equal to 60% of the present value of his or her pension 
11benefits in lieu of receiving any pension benefit. The offer 
12shall specify the dollar amount that the eligible person will 
13receive if he or she so elects and shall expire when a 
14subsequent offer is made to an eligible person. An eligible 
15person is limited to one calculation and offer per calendar 
16year. The Fund shall make a good faith effort to contact every 
17eligible person to notify him or her of the election. Until 
18January 1, 2030, an eligible person may irrevocably elect to 
19receive an accelerated pension benefit payment in the amount 
20that the Fund offers under this subsection in lieu of 
21receiving any pension benefit. A person who elects to receive 
22an accelerated pension benefit payment under this Section may 
23not elect to proceed under the Retirement Systems Reciprocal 
24Act with respect to service under this Article.
25 (c) A person's creditable service under this Article shall 
26be terminated upon the person's receipt of an accelerated 
 
 
HB5909- 502 -LRB103 43117 RPS 76377 b


1pension benefit payment under this Section, and no other 
2benefit shall be paid under this Article based on the 
3terminated creditable service, including any retirement, 
4survivor, or other pension benefit; except that to the extent 
5that participation, benefits, or premiums under the State 
6Employees Group Insurance Act of 1971 are based on the amount 
7of service credit, the terminated service credit shall be used 
8for that purpose.
9 (d) If a person who has received an accelerated pension 
10benefit payment under this Section returns to active service 
11under this Article, then:
12  (1) Any benefits under the Fund earned as a result of 
13 that return to active service shall be based solely on the 
14 person's creditable service arising from the return to 
15 active service.
16  (2) The accelerated pension benefit payment may not be 
17 repaid to the Fund, and the terminated creditable service 
18 may not under any circumstances be reinstated.
19 (e) As a condition of receiving an accelerated pension 
20benefit payment, the accelerated pension benefit payment must 
21be transferred into a tax qualified retirement plan or 
22account. The accelerated pension benefit payment under this 
23Section may be subject to withholding or payment of applicable 
24taxes, but to the extent permitted by federal law, a person who 
25receives an accelerated pension benefit payment under this 
26Section must direct the Fund to pay all of that payment as a 
 
 
HB5909- 503 -LRB103 43117 RPS 76377 b


1rollover into another retirement plan or account qualified 
2under the Internal Revenue Code of 1986, as amended.
3 (f) Upon receipt of a member's irrevocable election to 
4receive an accelerated pension benefit payment under this 
5Section, the Fund shall submit a voucher to the Comptroller 
6for payment of the member's accelerated pension benefit 
7payment. The Comptroller shall transfer the amount of the 
8voucher from the General Revenue Fund to the Fund, and the Fund 
9shall transfer the amount into the member's eligible 
10retirement plan or qualified account.
11 (g) The Board shall adopt any rules necessary to implement 
12this Section.
13 (h) No provision of this Section shall be interpreted in a 
14way that would cause the Fund to cease to be a qualified plan 
15under the Internal Revenue Code of 1986.

16 (40 ILCS 5/17-156.11 new)
17 Sec. 17-156.11. Accelerated pension benefit payment for a 
18reduction in annual service retirement pension and survivor's 
19pension increases. 
20 (a) As used in this Section:
21 "Accelerated pension benefit payment" means a lump sum 
22payment equal to 70% of the difference of the present value of 
23the automatic annual increases to a Tier 1 member's service 
24retirement pension and survivor's pension using the formula 
25applicable to the Tier 1 member and the present value of the 
 
 
HB5909- 504 -LRB103 43117 RPS 76377 b


1automatic annual increases to the Tier 1 member's service 
2retirement pension using the formula provided under subsection 
3(b-5) and survivor's pension using the formula provided under 
4subsection (b-6).
5 "Eligible person" means a person who:
6  (1) is a Tier 1 member;
7  (2) has submitted an application for a service 
8 retirement pension under this Article;
9  (3) meets the age and service requirements for 
10 receiving a service retirement pension under this Article;
11  (4) has not received any service retirement pension 
12 under this Article; and
13  (5) has not made the election under Section 17-156.10.
14 "Tier 1 member" means a person who first became a member 
15before January 1, 2011.
16 (b) As soon as practical after the effective date of this 
17amendatory Act of the 103rd General Assembly and until January 
181, 2030, the Fund shall implement an accelerated pension 
19benefit payment option for eligible persons. Upon the request 
20of an eligible person, the Fund shall calculate, using 
21actuarial tables and other assumptions adopted by the Board, 
22an accelerated pension benefit payment amount and shall offer 
23that eligible person the opportunity to irrevocably elect to 
24have his or her automatic annual increases in service 
25retirement pension calculated in accordance with the formula 
26provided under subsection (b-5) and any increases in 
 
 
HB5909- 505 -LRB103 43117 RPS 76377 b


1survivor's pension payable to his or her survivor's pension 
2beneficiary calculated in accordance with the formula provided 
3under subsection (b-6) in exchange for the accelerated pension 
4benefit payment. The election under this subsection must be 
5made before the eligible person receives the first payment of 
6a service retirement pension otherwise payable under this 
7Article.
8 (b-5) Notwithstanding any other provision of law, the 
9service retirement pension of a person who made the election 
10under subsection (b) shall be subject to annual increases on 
11the January 1 occurring either on or after the attainment of 
12age 67 or the first anniversary of the pension start date, 
13whichever is later. Each annual increase shall be calculated 
14at 1.5% of the originally granted service retirement pension.
15 (b-6) Notwithstanding any other provision of law, a 
16survivor's pension payable to a survivor's pension beneficiary 
17of a person who made the election under subsection (b) shall be 
18subject to annual increases on the January 1 occurring on or 
19after the first anniversary of the commencement of the 
20pension. Each annual increase shall be calculated at 1.5% of 
21the originally granted survivor's pension.
22 (c) If a person who has received an accelerated pension 
23benefit payment returns to active service under this Article, 
24then:
25  (1) the calculation of any future automatic annual 
26 increase in service retirement pension shall be calculated 
 
 
HB5909- 506 -LRB103 43117 RPS 76377 b


1 in accordance with the formula provided under subsection 
2 (b-5); and
3  (2) the accelerated pension benefit payment may not be 
4 repaid to the Fund.
5 (d) As a condition of receiving an accelerated pension 
6benefit payment, the accelerated pension benefit payment must 
7be transferred into a tax qualified retirement plan or 
8account. The accelerated pension benefit payment under this 
9Section may be subject to withholding or payment of applicable 
10taxes, but to the extent permitted by federal law, a person who 
11receives an accelerated pension benefit payment under this 
12Section must direct the Fund to pay all of that payment as a 
13rollover into another retirement plan or account qualified 
14under the Internal Revenue Code of 1986, as amended.
15 (d-5) Upon receipt of a member's irrevocable election to 
16receive an accelerated pension benefit payment under this 
17Section, the Fund shall submit a voucher to the Comptroller 
18for payment of the member's accelerated pension benefit 
19payment. The Comptroller shall transfer the amount of the 
20voucher from the General Revenue Fund to the Fund, and the Fund 
21shall transfer the amount into the member's eligible 
22retirement plan or qualified account.
23 (e) The Board shall adopt any rules, including emergency 
24rules, necessary to implement this Section.
25 (f) No provision of this Section shall be interpreted in a 
26way that would cause the Fund to cease to be a qualified plan 
 
 
HB5909- 507 -LRB103 43117 RPS 76377 b


1under the Internal Revenue Code of 1986.

2 (40 ILCS 5/18-161.5 new)
3 Sec. 18-161.5. Accelerated pension benefit payment in lieu 
4of any pension benefit.
5 (a) As used in this Section:
6 "Eligible person" means a person who:
7  (1) has terminated service;
8  (2) has accrued sufficient service credit to be 
9 eligible to receive a retirement annuity under this 
10 Article;
11  (3) has not received any retirement annuity under this 
12 Article; and
13  (4) has not made the election under Section 18-161.6.
14 "Pension benefit" means the benefits under this Article, 
15including any anticipated annual increases, that an eligible 
16person is entitled to upon attainment of the applicable 
17retirement age. "Pension benefit" also includes applicable 
18survivor's or disability benefits.
19 (b) As soon as practical after the effective date of this 
20amendatory Act of the 103rd General Assembly, the System shall 
21calculate, using actuarial tables and other assumptions 
22adopted by the Board, the present value of pension benefits 
23for each eligible person who requests that information and 
24shall offer each eligible person the opportunity to 
25irrevocably elect to receive an amount determined by the 
 
 
HB5909- 508 -LRB103 43117 RPS 76377 b


1System to be equal to 60% of the present value of his or her 
2pension benefits in lieu of receiving any pension benefit. The 
3offer shall specify the dollar amount that the eligible person 
4will receive if he or she so elects and shall expire when a 
5subsequent offer is made to an eligible person. An eligible 
6person is limited to one calculation and offer per calendar 
7year. The System shall make a good faith effort to contact 
8every eligible person to notify him or her of the election. 
9Until January 1, 2030, an eligible person may irrevocably 
10elect to receive an accelerated pension benefit payment in the 
11amount that the System offers under this subsection in lieu of 
12receiving any pension benefit. A person who elects to receive 
13an accelerated pension benefit payment under this Section may 
14not elect to proceed under the Retirement Systems Reciprocal 
15Act with respect to service under this Article.
16 (c) A person's creditable service under this Article shall 
17be terminated upon the person's receipt of an accelerated 
18pension benefit payment under this Section, and no other 
19benefit shall be paid under this Article based on the 
20terminated creditable service, including any retirement, 
21survivor, or other benefit; except that to the extent that 
22participation, benefits, or premiums under the State Employees 
23Group Insurance Act of 1971 are based on the amount of service 
24credit, the terminated service credit shall be used for that 
25purpose.
26 (d) If a person who has received an accelerated pension 
 
 
HB5909- 509 -LRB103 43117 RPS 76377 b


1benefit payment under this Section returns to active service 
2under this Article, then:
3  (1) Any benefits under the System earned as a result 
4 of that return to active service shall be based solely on 
5 the person's creditable service arising from the return to 
6 active service.
7  (2) The accelerated pension benefit payment may not be 
8 repaid to the System, and the terminated creditable 
9 service may not under any circumstances be reinstated.
10 (e) As a condition of receiving an accelerated pension 
11benefit payment, the accelerated pension benefit payment must 
12be transferred into a tax qualified retirement plan or 
13account. The accelerated pension benefit payment under this 
14Section may be subject to withholding or payment of applicable 
15taxes, but to the extent permitted by federal law, a person who 
16receives an accelerated pension benefit payment under this 
17Section must direct the System to pay all of that payment as a 
18rollover into another retirement plan or account qualified 
19under the Internal Revenue Code of 1986, as amended.
20 (f) Upon receipt of a member's irrevocable election to 
21receive an accelerated pension benefit payment under this 
22Section, the System shall submit a voucher to the Comptroller 
23for payment of the member's accelerated pension benefit 
24payment. The Comptroller shall transfer the amount of the 
25voucher from the General Revenue Fund to the System, and the 
26System shall transfer the amount into the member's eligible 
 
 
HB5909- 510 -LRB103 43117 RPS 76377 b


1retirement plan or qualified account.
2 (g) The Board shall adopt any rules, including emergency 
3rules, necessary to implement this Section.
4 (h) No provision of this Section shall be interpreted in a 
5way that would cause the applicable System to cease to be a 
6qualified plan under the Internal Revenue Code of 1986.

7 (40 ILCS 5/18-161.6 new)
8 Sec. 18-161.6.  Accelerated pension benefit payment for a 
9reduction in annual retirement annuity and survivor's annuity 
10increases.
11 (a) As used in this Section:
12 "Accelerated pension benefit payment" means a lump sum 
13payment equal to 70% of the difference of the present value of 
14the automatic annual increases to a Tier 1 participant's 
15retirement annuity and survivor's annuity using the formula 
16applicable to the Tier 1 participant and the present value of 
17the automatic annual increases to the Tier 1 participant's 
18retirement annuity using the formula provided under subsection 
19(b-5) and survivor's annuity using the formula provided under 
20subsection (b-6).
21 "Eligible person" means a person who:
22  (1) is a Tier 1 participant;
23  (2) has submitted an application for a retirement 
24 annuity under this Article;
25  (3) meets the age and service requirements for 
 
 
HB5909- 511 -LRB103 43117 RPS 76377 b


1 receiving a retirement annuity under this Article;
2  (4) has not received any retirement annuity under this 
3 Article; and
4  (5) has not made the election under Section 18-161.5.
5 "Tier 1 participant" means a person who first became a 
6participant before January 1, 2011.
7 (b) As soon as practical after the effective date of this 
8amendatory Act of the 103rd General Assembly and until January 
91, 2030, the System shall implement an accelerated pension 
10benefit payment option for eligible persons. Upon the request 
11of an eligible person, the System shall calculate, using 
12actuarial tables and other assumptions adopted by the Board, 
13an accelerated pension benefit payment amount and shall offer 
14that eligible person the opportunity to irrevocably elect to 
15have his or her automatic annual increases in retirement 
16annuity calculated in accordance with the formula provided 
17under subsection (b-5) and any increases in survivor's annuity 
18payable to his or her survivor's annuity beneficiary 
19calculated in accordance with the formula provided under 
20subsection (b-6) in exchange for the accelerated pension 
21benefit payment. The election under this subsection must be 
22made before the eligible person receives the first payment of 
23a retirement annuity otherwise payable under this Article.
24 (b-5) Notwithstanding any other provision of law, the 
25retirement annuity of a person who made the election under 
26subsection (b) shall be subject to annual increases on the 
 
 
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1January 1 occurring either on or after the attainment of age 67 
2or the first anniversary of the annuity start date, whichever 
3is later. Each annual increase shall be calculated at 1.5% of 
4the originally granted retirement annuity.
5 (b-6) Notwithstanding any other provision of law, a 
6survivor's annuity payable to a survivor's annuity beneficiary 
7of a person who made the election under subsection (b) shall be 
8subject to annual increases on the January 1 occurring on or 
9after the first anniversary of the commencement of the 
10annuity. Each annual increase shall be calculated at 1.5% of 
11the originally granted survivor's annuity.
12 (c) If a person who has received an accelerated pension 
13benefit payment returns to active service under this Article, 
14then:
15  (1) the calculation of any future automatic annual 
16 increase in retirement annuity shall be calculated in 
17 accordance with the formula provided under subsection 
18 (b-5); and
19  (2) the accelerated pension benefit payment may not be 
20 repaid to the System.
21 (d) As a condition of receiving an accelerated pension 
22benefit payment, the accelerated pension benefit payment must 
23be transferred into a tax qualified retirement plan or 
24account. The accelerated pension benefit payment under this 
25Section may be subject to withholding or payment of applicable 
26taxes, but to the extent permitted by federal law, a person who 
 
 
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1receives an accelerated pension benefit payment under this 
2Section must direct the System to pay all of that payment as a 
3rollover into another retirement plan or account qualified 
4under the Internal Revenue Code of 1986, as amended.
5 (d-5) Upon receipt of a participant's irrevocable election 
6to receive an accelerated pension benefit payment under this 
7Section, the System shall submit a voucher to the Comptroller 
8for payment of the participant's accelerated pension benefit 
9payment. The Comptroller shall transfer the amount of the 
10voucher from the General Revenue Fund to the System, and the 
11System shall transfer the amount into the member's eligible 
12retirement plan or qualified account.
13 (e) The Board shall adopt any rules, including emergency 
14rules, necessary to implement this Section.
15 (f) No provision of this Section shall be interpreted in a 
16way that would cause the applicable System to cease to be a 
17qualified plan under the Internal Revenue Code of 1986.

18
Article 5. 


19 Section 5-5. The Illinois Pension Code is amended by 
20adding Sections 3-144.3, 4-138.15, 5-240, and 6-232 as 
21follows:

22 (40 ILCS 5/3-144.3 new)
23 Sec. 3-144.3. Retirement Systems Reciprocal Act. The 
 
 
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1Retirement Systems Reciprocal Act, Article 20 of this Code, is 
2adopted and made a part of this Article, but only with respect 
3to a person who, on or after the effective date of this 
4amendatory Act of the 103rd General Assembly, is entitled 
5under this Article or through a participating system under the 
6Retirement Systems Reciprocal Act, as defined in Section 
720-108, to begin receiving a retirement annuity or survivor's 
8annuity (as those terms are defined in Article 20) and who 
9elects to proceed under the Retirement Systems Reciprocal Act.

10 (40 ILCS 5/4-138.15 new)
11 Sec. 4-138.15. Retirement Systems Reciprocal Act. The 
12Retirement Systems Reciprocal Act, Article 20 of this Code, is 
13adopted and made a part of this Article, but only with respect 
14to a person who, on or after the effective date of this 
15amendatory Act of the 103rd General Assembly, is entitled 
16under this Article or through a participating system under the 
17Retirement Systems Reciprocal Act, as defined in Section 
1820-108, to begin receiving a retirement annuity or survivor's 
19annuity (as those terms are defined in Article 20) and who 
20elects to proceed under the Retirement Systems Reciprocal Act.

21 (40 ILCS 5/5-240 new)
22 Sec. 5-240. Retirement Systems Reciprocal Act. The 
23Retirement Systems Reciprocal Act, Article 20 of this Code, is 
24adopted and made a part of this Article, but only with respect 
 
 
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1to a person who, on or after the effective date of this 
2amendatory Act of the 103rd General Assembly, is entitled 
3under this Article or through a participating system under the 
4Retirement Systems Reciprocal Act, as defined in Section 
520-108, to begin receiving a retirement annuity or survivor's 
6annuity (as those terms are defined in Article 20) and who 
7elects to proceed under the Retirement Systems Reciprocal Act. 

8 (40 ILCS 5/6-232 new)
9 Sec. 6-232. Retirement Systems Reciprocal Act. The 
10Retirement Systems Reciprocal Act, Article 20 of this Code, is 
11adopted and made a part of this Article, but only with respect 
12to a person who, on or after the effective date of this 
13amendatory Act of the 103rd General Assembly, is entitled 
14under this Article or through a participating system under the 
15Retirement Systems Reciprocal Act, as defined in Section 
1620-108, to begin receiving a retirement annuity or survivor's 
17annuity (as those terms are defined in Article 20) and who 
18elects to proceed under the Retirement Systems Reciprocal Act. 

19
Article 7. 


20 Section 7-5. The Illinois Pension Code is amended by 
21changing Section 7-109.3 as follows:

22 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
 
 
HB5909- 516 -LRB103 43117 RPS 76377 b


1 Sec. 7-109.3. "Sheriff's Law Enforcement Employees". 
2 (a) "Sheriff's law enforcement employee" or "SLEP" means:
3  (1) A county sheriff and all deputies, other than 
4 special deputies, employed on a full time basis in the 
5 office of the sheriff.
6  (2) A person who has elected to participate in this 
7 Fund under Section 3-109.1 of this Code, and who is 
8 employed by a participating municipality to perform police 
9 duties.
10  (3) A law enforcement officer employed on a full time 
11 basis by a Forest Preserve District, provided that such 
12 officer shall be deemed a "sheriff's law enforcement 
13 employee" for the purposes of this Article, and service in 
14 that capacity shall be deemed to be service as a sheriff's 
15 law enforcement employee, only if the board of 
16 commissioners of the District have so elected by adoption 
17 of an affirmative resolution. Such election, once made, 
18 may not be rescinded.
19  (4) A person not eligible to participate in a fund 
20 established under Article 3 of this Code who is employed 
21 on a full-time basis by a participating municipality or 
22 participating instrumentality to perform police duties at 
23 an airport, but only if the governing authority of the 
24 employer has approved sheriff's law enforcement employee 
25 status for its airport police employees by adoption of an 
26 affirmative resolution. Such approval, once given, may not 
 
 
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1 be rescinded.
2  (5) A person first hired on or after January 1, 2011 
3 who (i) is employed by a participating municipality that 
4 has both 30 or more full-time police officers and 50 or 
5 more full-time firefighters and has not established a fund 
6 under Article 3 or Article 4 of this Code and (ii) is 
7 employed on a full-time basis by that participating 
8 municipality to perform police duties or firefighting and 
9 EMS duties; but only if the governing authority of that 
10 municipality has approved sheriff's law enforcement 
11 employee status for its police officer or firefighter 
12 employees by adoption of an affirmative resolution. The 
13 resolution must specify that SLEP status shall be 
14 applicable to such employment occurring on or after the 
15 adoption of the resolution. Such resolution shall be 
16 irrevocable, but shall automatically terminate upon the 
17 establishment of an Article 3 or 4 fund by the 
18 municipality. 
19  (6) A person who is a county correctional officer or 
20 probation officer.
21  (7) A person who participates in the Fund and 
22 qualifies as a firefighter, as defined in Section 3 of the 
23 Public Safety Employee Benefits Act.
24  (8) A person who is a sworn law enforcement officer 
25 for a municipal employer that has not established a 
26 pension fund under Article 3. 
 
 
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1 (b) An employee who is a sheriff's law enforcement 
2employee and is granted military leave or authorized leave of 
3absence shall receive service credit in that capacity. 
4Sheriff's law enforcement employees shall not be entitled to 
5out-of-State service credit under Section 7-139.
6(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)

7
Article 8. 


8 Section 8-5. The Illinois Pension Code is amended by 
9changing Section 4-106 as follows:

10 (40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
11 Sec. 4-106. Firefighter, firefighters. "Firefighter, 
12firefighters":
13 (a) In municipalities which have adopted Division 1 of 
14Article 10 of the Illinois Municipal Code, any person employed 
15in the municipality's fire service as a firefighter, fire 
16engineer, marine engineer, fire pilot, bomb technician or 
17scuba diver; and in any of these positions where such person's 
18duties also include those of a firefighter as classified by 
19the Civil Service Commission of that city, and whose duty is to 
20participate in the work of controlling and extinguishing fires 
21at the location of any such fires.
22 (b) In municipalities which are subject to Division 2.1 of 
23Article 10 of the Illinois Municipal Code, any person employed 
 
 
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1by a city in its fire service as a firefighter, fire engineer, 
2marine engineer, fire pilot, bomb technician, or scuba diver; 
3and, in any of these positions whose duties also include those 
4of a firefighter and are certified in the same manner as a 
5firefighter in that city.
6 (c) Any person employed in a municipality's or fire 
7protection district's fire service as a de facto firefighter.
8 In this definition, "de facto firefighter" means a 
9firefighter:
10  (1) who spends a majority of the firefighter's working 
11 time participating in the work of controlling and 
12 extinguishing fires at the location of any such fires, 
13 preparing for such work or waiting to respond to such 
14 calls for work; and
15  (2) whose scheduled or actual work hours are 
16 commensurate in duration and frequency with firefighters 
17 who are subject to Division 1 or Division 2.1 of Article 10 
18 of the Illinois Municipal Code. 
19 "De facto firefighter" does not include part-time 
20firefighters who are not covered under this Section; 
21auxiliary, reserve, or voluntary firefighters, including 
22paid-on-call firefighters; and clerks, dispatchers, or other 
23civilian employees of a fire department or fire protection 
24district who are not routinely expected to perform firefighter 
25duties. In municipalities which are subject to neither 
26Division 1 nor Division 2.1 of Article 10 of the Illinois 
 
 
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1Municipal Code, any person who would have been included as a 
2firefighter under sub-paragraph (a) or (b) above except that 
3he served as a de facto and not as a de jure firefighter.
4 (d) Notwithstanding the other provisions of this Section, 
5"firefighter" does not include any person who is actively 
6participating in the State Universities Retirement System 
7under subsection (h) of Section 15-107 with respect to the 
8employment for which he or she is a participating employee in 
9that System.
10 (e) This amendatory Act of 1977 does not affect persons 
11covered by this Article prior to September 22, 1977.
12 The changes made to this Section by this amendatory Act of 
13the 103rd General Assembly do not affect persons covered by 
14this Article before the effective date of this amendatory Act 
15of the 103rd General Assembly. 
16(Source: P.A. 90-576, eff. 3-31-98.)

17
Article 9. 


18 Section 9-5. The Illinois Pension Code is amended by 
19changing Section 4-109.1 as follows:

20 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
21 Sec. 4-109.1. Increase in pension. 
22 (a) Except as provided in subsection (e), the monthly 
23pension of a firefighter who retires after July 1, 1971 and 
 
 
HB5909- 521 -LRB103 43117 RPS 76377 b


1prior to January 1, 1986, shall, upon either the first of the 
2month following the first anniversary of the date of 
3retirement if 60 years of age or over at retirement date, or 
4upon the first day of the month following attainment of age 60 
5if it occurs after the first anniversary of retirement, be 
6increased by 2% of the originally granted monthly pension and 
7by an additional 2% in each January thereafter. Effective 
8January 1976, the rate of the annual increase shall be 3% of 
9the originally granted monthly pension. 
10 (b) The monthly pension of a firefighter who retired from 
11service with 20 or more years of service, on or before July 1, 
121971, shall be increased, in January of the year following the 
13year of attaining age 65 or in January 1972, if then over age 
1465, by 2% of the originally granted monthly pension, for each 
15year the firefighter received pension payments. In each 
16January thereafter, he or she shall receive an additional 
17increase of 2% of the original monthly pension. Effective 
18January 1976, the rate of the annual increase shall be 3%. 
19 (c) The monthly pension of a firefighter who is receiving 
20a disability pension under this Article shall be increased, in 
21January of the year following the year the firefighter attains 
22age 60, or in January 1974, if then over age 60, by 2% of the 
23originally granted monthly pension for each year he or she 
24received pension payments. In each January thereafter, the 
25firefighter shall receive an additional increase of 2% of the 
26original monthly pension. Effective January 1976, the rate of 
 
 
HB5909- 522 -LRB103 43117 RPS 76377 b


1the annual increase shall be 3%. Notwithstanding any other 
2provision of this Article, this subsection applies to a 
3firefighter regardless of whether that firefighter first 
4became a firefighter on or after January 1, 2011. 
5Notwithstanding Section 1-103.1, the changes made to this 
6Section apply without regard to whether the firefighter is in 
7service on or after the effective date of this amendatory Act 
8of the 103rd General Assembly. 
9 (c-1) On January 1, 1998, every child's disability benefit 
10payable on that date under Section 4-110 or 4-110.1 shall be 
11increased by an amount equal to 1/12 of 3% of the amount of the 
12benefit, multiplied by the number of months for which the 
13benefit has been payable. On each January 1 thereafter, every 
14child's disability benefit payable under Section 4-110 or 
154-110.1 shall be increased by 3% of the amount of the benefit 
16then being paid, including any previous increases received 
17under this Article. These increases are not subject to any 
18limitation on the maximum benefit amount included in Section 
194-110 or 4-110.1. 
20 (c-2) On July 1, 2004, every pension payable to or on 
21behalf of a minor or disabled surviving child that is payable 
22on that date under Section 4-114 shall be increased by an 
23amount equal to 1/12 of 3% of the amount of the pension, 
24multiplied by the number of months for which the benefit has 
25been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and 
26July 1, 2008, every pension payable to or on behalf of a minor 
 
 
HB5909- 523 -LRB103 43117 RPS 76377 b


1or disabled surviving child that is payable under Section 
24-114 shall be increased by 3% of the amount of the pension 
3then being paid, including any previous increases received 
4under this Article. These increases are not subject to any 
5limitation on the maximum benefit amount included in Section 
64-114. 
7 (d) The monthly pension of a firefighter who retires after 
8January 1, 1986, shall, upon either the first of the month 
9following the first anniversary of the date of retirement if 
1055 years of age or over, or upon the first day of the month 
11following attainment of age 55 if it occurs after the first 
12anniversary of retirement, be increased by 1/12 of 3% of the 
13originally granted monthly pension for each full month that 
14has elapsed since the pension began, and by an additional 3% in 
15each January thereafter. 
16 The changes made to this subsection (d) by this amendatory 
17Act of the 91st General Assembly apply to all initial 
18increases that become payable under this subsection on or 
19after January 1, 1999. All initial increases that became 
20payable under this subsection on or after January 1, 1999 and 
21before the effective date of this amendatory Act shall be 
22recalculated and the additional amount accruing for that 
23period, if any, shall be payable to the pensioner in a lump 
24sum. 
25 (e) Notwithstanding the provisions of subsection (a), upon 
26the first day of the month following (1) the first anniversary 
 
 
HB5909- 524 -LRB103 43117 RPS 76377 b


1of the date of retirement, or (2) the attainment of age 55, or 
2(3) July 1, 1987, whichever occurs latest, the monthly pension 
3of a firefighter who retired on or after January 1, 1977 and on 
4or before January 1, 1986 and did not receive an increase under 
5subsection (a) before July 1, 1987, shall be increased by 3% of 
6the originally granted monthly pension for each full year that 
7has elapsed since the pension began, and by an additional 3% in 
8each January thereafter. The increases provided under this 
9subsection are in lieu of the increases provided in subsection 
10(a). 
11 (f) In July 2009, the monthly pension of a firefighter who 
12retired before July 1, 1977 shall be recalculated and 
13increased to reflect the amount that the firefighter would 
14have received in July 2009 had the firefighter been receiving 
15a 3% compounded increase for each year he or she received 
16pension payments after January 1, 1986, plus any increases in 
17pension received for each year prior to January 1, 1986. In 
18each January thereafter, he or she shall receive an additional 
19increase of 3% of the amount of the pension then being paid. 
20The changes made to this Section by this amendatory Act of the 
2196th General Assembly apply without regard to whether the 
22firefighter was in service on or after its effective date. 
23 (g) Notwithstanding any other provision of this Article, 
24the monthly pension of a person who first becomes a 
25firefighter under this Article on or after January 1, 2011 
26shall be increased on the January 1 occurring either on or 
 
 
HB5909- 525 -LRB103 43117 RPS 76377 b


1after the attainment of age 60 or the first anniversary of the 
2pension start date, whichever is later. Each annual increase 
3shall be calculated at 3% or one-half the annual unadjusted 
4percentage increase (but not less than zero) in the consumer 
5price index-u for the 12 months ending with the September 
6preceding each November 1, whichever is less, of the 
7originally granted pension. If the annual unadjusted 
8percentage change in the consumer price index-u for a 12-month 
9period ending in September is zero or, when compared with the 
10preceding period, decreases, then the pension shall not be 
11increased. 
12 For the purposes of this subsection (g), "consumer price 
13index-u" means the index published by the Bureau of Labor 
14Statistics of the United States Department of Labor that 
15measures the average change in prices of goods and services 
16purchased by all urban consumers, United States city average, 
17all items, 1982-84 = 100. The new amount resulting from each 
18annual adjustment shall be determined by the Public Pension 
19Division of the Department of Insurance and made available to 
20the boards of the pension funds. 
21(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)

22
Article 10. 


23 Section 10-5. The Illinois Pension Code is amended by 
24changing Section 4-109.2 as follows:

 
 
HB5909- 526 -LRB103 43117 RPS 76377 b


1 (40 ILCS 5/4-109.2) (from Ch. 108 1/2, par. 4-109.2)
2 Sec. 4-109.2. Minimum pension. 
3 (a) Beginning January 1, 1984, the minimum disability 
4pension granted under Section 4-110 or 4-111, the minimum 
5surviving spouse's pension, and the minimum retirement pension 
6granted to a firefighter with 20 or more years of creditable 
7service, shall be $300 per month, without regard to whether 
8the death, disability or retirement of the firefighter 
9occurred prior to that date. 
10 Beginning July 1, 1987, the minimum retirement pension 
11payable to a firefighter with 20 or more years of creditable 
12service, the minimum disability pension payable under Section 
134-110 or 4-111, and the minimum surviving spouse's pension 
14shall be $400 per month, without regard to whether the death, 
15retirement or disability of the firefighter occurred prior to 
16that date. 
17 Beginning July 1, 1993, the minimum retirement pension 
18payable to a firefighter with 20 or more years of creditable 
19service and the minimum surviving spouse's pension shall be 
20$475 per month, without regard to whether the firefighter was 
21in service on or after the effective date of this amendatory 
22Act of 1993. 
23 (b) Beginning January 1, 1999, the minimum retirement 
24pension payable to a firefighter with 20 or more years of 
25creditable service, the minimum disability pension payable 
 
 
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1under Section 4-110, 4-110.1, or 4-111, and the minimum 
2surviving spouse's pension shall be $600 per month, without 
3regard to whether the firefighter was in service on or after 
4the effective date of this amendatory Act of the 91st General 
5Assembly. 
6 In the case of a pensioner whose pension began before the 
7effective date of this amendatory Act and is subject to 
8increase under this subsection (b), the pensioner shall be 
9entitled to a lump sum payment of the amount of that increase 
10accruing from January 1, 1999 (or the date the pension began, 
11if later) to the effective date of this amendatory Act. 
12 (c) Beginning January 1, 2000, the minimum retirement 
13pension payable to a firefighter with 20 or more years of 
14creditable service, the minimum disability pension payable 
15under Section 4-110, 4-110.1, or 4-111, and the minimum 
16surviving spouse's pension shall be $800 per month, without 
17regard to whether the firefighter was in service on or after 
18the effective date of this amendatory Act of the 91st General 
19Assembly. 
20 (d) Beginning January 1, 2001, the minimum retirement 
21pension payable to a firefighter with 20 or more years of 
22creditable service, the minimum disability pension payable 
23under Section 4-110, 4-110.1, or 4-111, and the minimum 
24surviving spouse's pension shall be $1000 per month, without 
25regard to whether the firefighter was in service on or after 
26the effective date of this amendatory Act of the 91st General 
 
 
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1Assembly. 
2 (e) Beginning July 1, 2004, the minimum retirement pension 
3payable to a firefighter with 20 or more years of creditable 
4service, the minimum disability pension payable under Section 
54-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
6pension shall be $1030 per month, without regard to whether 
7the firefighter was in service on or after the effective date 
8of this amendatory Act of the 93rd General Assembly.
9 (f) Beginning July 1, 2005, the minimum retirement pension 
10payable to a firefighter with 20 or more years of creditable 
11service, the minimum disability pension payable under Section 
124-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
13pension shall be $1060.90 per month, without regard to whether 
14the firefighter was in service on or after the effective date 
15of this amendatory Act of the 93rd General Assembly.
16 (g) Beginning July 1, 2006, the minimum retirement pension 
17payable to a firefighter with 20 or more years of creditable 
18service, the minimum disability pension payable under Section 
194-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
20pension shall be $1092.73 per month, without regard to whether 
21the firefighter was in service on or after the effective date 
22of this amendatory Act of the 93rd General Assembly.
23 (h) Beginning July 1, 2007, the minimum retirement pension 
24payable to a firefighter with 20 or more years of creditable 
25service, the minimum disability pension payable under Section 
264-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
 
 
HB5909- 529 -LRB103 43117 RPS 76377 b


1pension shall be $1125.51 per month, without regard to whether 
2the firefighter was in service on or after the effective date 
3of this amendatory Act of the 93rd General Assembly.
4 (i) Beginning July 1, 2008, the minimum retirement pension 
5payable to a firefighter with 20 or more years of creditable 
6service, the minimum disability pension payable under Section 
74-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
8pension shall be $1159.27 per month, without regard to whether 
9the firefighter was in service on or after the effective date 
10of this amendatory Act of the 93rd General Assembly. 
11 (j) Beginning July 1, 2025, the minimum retirement pension 
12payable to a firefighter with 20 or more years of creditable 
13service, the minimum disability pension payable under Section 
144-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
15pension shall be $1,822.50 per month, without regard to 
16whether the firefighter was in service on or after the 
17effective date of this amendatory Act of the 103rd General 
18Assembly. A one-time payment of $62,471.40 shall be paid to 
19each active member or participant subject to the minimum 
20retirement pension adjustment in this subsection.
21 (k) Beginning July 1, 2026, the minimum retirement pension 
22payable to a firefighter with 20 or more years of creditable 
23service, the minimum disability pension payable under Section 
244-110, 4-110.1, or 4-111, and the minimum surviving spouse's 
25pension shall be no less than 150% of the federal poverty level 
26for all persons receiving annuities on or after that date 
 
 
HB5909- 530 -LRB103 43117 RPS 76377 b


1without regard to whether the firefighter was in service on or 
2after the effective date of this amendatory Act of the 103rd 
3General Assembly.
4 (l) For purposes of this Section, "federal poverty level" 
5means the poverty guidelines applicable to an individual in a 
6single-person household located in Illinois, as updated 
7periodically in the Federal Register by the United States 
8Department of Health and Human Services under the authority of 
942 U.S.C. 9902(2). 
10(Source: P.A. 93-689, eff. 7-1-04.)

11
Article 11. 


12 Section 11-5. The Illinois Pension Code is amended by 
13changing Sections 1-160, 8-174, 11-170, and 12-150 as follows:

14 (40 ILCS 5/1-160)
15 (Text of Section from P.A. 102-719)
16 Sec. 1-160. Provisions applicable to new hires. 
17 (a) The provisions of this Section apply to a person who, 
18on or after January 1, 2011, first becomes a member or a 
19participant under any reciprocal retirement system or pension 
20fund established under this Code, other than a retirement 
21system or pension fund established under Article 2, 3, 4, 5, 6, 
227, 15, or 18 of this Code, notwithstanding any other provision 
23of this Code to the contrary, but do not apply to any 
 
 
HB5909- 531 -LRB103 43117 RPS 76377 b


1self-managed plan established under this Code or to any 
2participant of the retirement plan established under Section 
322-101; except that this Section applies to a person who 
4elected to establish alternative credits by electing in 
5writing after January 1, 2011, but before August 8, 2011, 
6under Section 7-145.1 of this Code. Notwithstanding anything 
7to the contrary in this Section, for purposes of this Section, 
8a person who is a Tier 1 regular employee as defined in Section 
97-109.4 of this Code or who participated in a retirement 
10system under Article 15 prior to January 1, 2011 shall be 
11deemed a person who first became a member or participant prior 
12to January 1, 2011 under any retirement system or pension fund 
13subject to this Section. The changes made to this Section by 
14Public Act 98-596 are a clarification of existing law and are 
15intended to be retroactive to January 1, 2011 (the effective 
16date of Public Act 96-889), notwithstanding the provisions of 
17Section 1-103.1 of this Code.
18 This Section does not apply to a person who first becomes a 
19noncovered employee under Article 14 on or after the 
20implementation date of the plan created under Section 1-161 
21for that Article, unless that person elects under subsection 
22(b) of Section 1-161 to instead receive the benefits provided 
23under this Section and the applicable provisions of that 
24Article.
25 This Section does not apply to a person who first becomes a 
26member or participant under Article 16 on or after the 
 
 
HB5909- 532 -LRB103 43117 RPS 76377 b


1implementation date of the plan created under Section 1-161 
2for that Article, unless that person elects under subsection 
3(b) of Section 1-161 to instead receive the benefits provided 
4under this Section and the applicable provisions of that 
5Article.
6 This Section does not apply to a person who elects under 
7subsection (c-5) of Section 1-161 to receive the benefits 
8under Section 1-161. 
9 This Section does not apply to a person who first becomes a 
10member or participant of an affected pension fund on or after 6 
11months after the resolution or ordinance date, as defined in 
12Section 1-162, unless that person elects under subsection (c) 
13of Section 1-162 to receive the benefits provided under this 
14Section and the applicable provisions of the Article under 
15which he or she is a member or participant. 
16 (b) "Final average salary" means, except as otherwise 
17provided in this subsection, the average monthly (or annual) 
18salary obtained by dividing the total salary or earnings 
19calculated under the Article applicable to the member or 
20participant during the 96 consecutive months (or 8 consecutive 
21years) of service within the last 120 months (or 10 years) of 
22service in which the total salary or earnings calculated under 
23the applicable Article was the highest by the number of months 
24(or years) of service in that period. For the purposes of a 
25person who first becomes a member or participant of any 
26retirement system or pension fund to which this Section 
 
 
HB5909- 533 -LRB103 43117 RPS 76377 b


1applies on or after January 1, 2011, in this Code, "final 
2average salary" shall be substituted for the following:
3  (1) (Blank).
4  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
5 annual salary for any 4 consecutive years within the last 
6 10 years of service immediately preceding the date of 
7 withdrawal". 
8  (3) In Article 13, "average final salary". 
9  (4) In Article 14, "final average compensation". 
10  (5) In Article 17, "average salary". 
11  (6) In Section 22-207, "wages or salary received by 
12 him at the date of retirement or discharge". 
13 A member of the Teachers' Retirement System of the State 
14of Illinois who retires on or after June 1, 2021 and for whom 
15the 2020-2021 school year is used in the calculation of the 
16member's final average salary shall use the higher of the 
17following for the purpose of determining the member's final 
18average salary:
19  (A) the amount otherwise calculated under the first 
20 paragraph of this subsection; or
21  (B) an amount calculated by the Teachers' Retirement 
22 System of the State of Illinois using the average of the 
23 monthly (or annual) salary obtained by dividing the total 
24 salary or earnings calculated under Article 16 applicable 
25 to the member or participant during the 96 months (or 8 
26 years) of service within the last 120 months (or 10 years) 
 
 
HB5909- 534 -LRB103 43117 RPS 76377 b


1 of service in which the total salary or earnings 
2 calculated under the Article was the highest by the number 
3 of months (or years) of service in that period.
4 (b-5) Beginning on January 1, 2011, for all purposes under 
5this Code (including without limitation the calculation of 
6benefits and employee contributions), the annual earnings, 
7salary, or wages (based on the plan year) of a member or 
8participant to whom this Section applies shall not exceed 
9$106,800; however, that amount shall annually thereafter be 
10increased by the lesser of (i) 3% of that amount, including all 
11previous adjustments, or (ii) one-half the annual unadjusted 
12percentage increase (but not less than zero) in the consumer 
13price index-u for the 12 months ending with the September 
14preceding each November 1, including all previous adjustments.
15 For the purposes of this Section, "consumer price index-u" 
16means the index published by the Bureau of Labor Statistics of 
17the United States Department of Labor that measures the 
18average change in prices of goods and services purchased by 
19all urban consumers, United States city average, all items, 
201982-84 = 100. The new amount resulting from each annual 
21adjustment shall be determined by the Public Pension Division 
22of the Department of Insurance and made available to the 
23boards of the retirement systems and pension funds by November 
241 of each year. 
25 (b-10) Beginning on January 1, 2024, for all purposes 
26under this Code (including, without limitation, the 
 
 
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1calculation of benefits and employee contributions), the 
2annual earnings, salary, or wages (based on the plan year) of a 
3member or participant under Article 9 to whom this Section 
4applies shall include an annual earnings, salary, or wage cap 
5that tracks the Social Security wage base. Maximum annual 
6earnings, wages, or salary shall be the annual contribution 
7and benefit base established for the applicable year by the 
8Commissioner of the Social Security Administration under the 
9federal Social Security Act. 
10 However, in no event shall the annual earnings, salary, or 
11wages for the purposes of this Article and Article 9 exceed any 
12limitation imposed on annual earnings, salary, or wages under 
13Section 1-117. Under no circumstances shall the maximum amount 
14of annual earnings, salary, or wages be greater than the 
15amount set forth in this subsection (b-10) as a result of 
16reciprocal service or any provisions regarding reciprocal 
17services, nor shall the Fund under Article 9 be required to pay 
18any refund as a result of the application of this maximum 
19annual earnings, salary, and wage cap. 
20 Nothing in this subsection (b-10) shall cause or otherwise 
21result in any retroactive adjustment of any employee 
22contributions. Nothing in this subsection (b-10) shall cause 
23or otherwise result in any retroactive adjustment of 
24disability or other payments made between January 1, 2011 and 
25January 1, 2024. 
26 (c) A member or participant is entitled to a retirement 
 
 
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1annuity upon written application if he or she has attained age 
267 (age 65, with respect to service under Article 12 that is 
3subject to this Section, for a member or participant under 
4Article 12 who first becomes a member or participant under 
5Article 12 on or after January 1, 2022 or who makes the 
6election under item (i) of subsection (d-15) of this Section) 
7and has at least 10 years of service credit and is otherwise 
8eligible under the requirements of the applicable Article. 
9 A member or participant who has attained age 62 (age 60, 
10with respect to service under Article 12 that is subject to 
11this Section, for a member or participant under Article 12 who 
12first becomes a member or participant under Article 12 on or 
13after January 1, 2022 or who makes the election under item (i) 
14of subsection (d-15) of this Section) and has at least 10 years 
15of service credit and is otherwise eligible under the 
16requirements of the applicable Article may elect to receive 
17the lower retirement annuity provided in subsection (d) of 
18this Section. 
19 (c-5) (Blank). A person who first becomes a member or a 
20participant subject to this Section on or after July 6, 2017 
21(the effective date of Public Act 100-23), notwithstanding any 
22other provision of this Code to the contrary, is entitled to a 
23retirement annuity under Article 8 or Article 11 upon written 
24application if he or she has attained age 65 and has at least 
2510 years of service credit and is otherwise eligible under the 
26requirements of Article 8 or Article 11 of this Code, 
 
 
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1whichever is applicable. 
2 (d) The retirement annuity of a member or participant who 
3is retiring after attaining age 62 (age 60, with respect to 
4service under Article 12 that is subject to this Section, for a 
5member or participant under Article 12 who first becomes a 
6member or participant under Article 12 on or after January 1, 
72022 or who makes the election under item (i) of subsection 
8(d-15) of this Section) with at least 10 years of service 
9credit shall be reduced by one-half of 1% for each full month 
10that the member's age is under age 67 (age 65, with respect to 
11service under Article 12 that is subject to this Section, for a 
12member or participant under Article 12 who first becomes a 
13member or participant under Article 12 on or after January 1, 
142022 or who makes the election under item (i) of subsection 
15(d-15) of this Section).
16 (d-5) (Blank). The retirement annuity payable under 
17Article 8 or Article 11 to an eligible person subject to 
18subsection (c-5) of this Section who is retiring at age 60 with 
19at least 10 years of service credit shall be reduced by 
20one-half of 1% for each full month that the member's age is 
21under age 65. 
22 (d-10) Each person who first became a member or 
23participant under Article 8 or Article 11 of this Code on or 
24after January 1, 2011 and prior to July 6, 2017 (the effective 
25date of Public Act 100-23) shall make an irrevocable election 
26either:
 
 
HB5909- 538 -LRB103 43117 RPS 76377 b


1  (i) to be eligible for the reduced retirement age 
2 provided in subsections (c-5) and (d-5) of this Section, 
3 the eligibility for which is conditioned upon the member 
4 or participant agreeing to the increases in employee 
5 contributions for age and service annuities provided in 
6 subsection (a-5) of Section 8-174 of this Code (for 
7 service under Article 8) or subsection (a-5) of Section 
8 11-170 of this Code (for service under Article 11); or 
9  (ii) to not agree to item (i) of this subsection 
10 (d-10), in which case the member or participant shall 
11 continue to be subject to the retirement age provisions in 
12 subsections (c) and (d) of this Section and the employee 
13 contributions for age and service annuity as provided in 
14 subsection (a) of Section 8-174 of this Code (for service 
15 under Article 8) or subsection (a) of Section 11-170 of 
16 this Code (for service under Article 11). 
17 The election provided for in this subsection shall be made 
18between October 1, 2017 and November 15, 2017. A person 
19subject to this subsection who makes the required election 
20shall remain bound by that election, except that an election 
21made under this subsection is rescinded by operation of law 
22and such person is subject to the provisions otherwise 
23applicable to a participant who first became a participant 
24under Article 8 or Article 11 on or after January 1, 2011. A 
25person subject to this subsection who fails for any reason to 
26make the required election within the time specified in this 
 
 
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1subsection shall be deemed to have made the election under 
2item (ii). 
3 (d-15) Each person who first becomes a member or 
4participant under Article 12 on or after January 1, 2011 and 
5prior to January 1, 2022 shall make an irrevocable election 
6either: 
7  (i) to be eligible for the reduced retirement age 
8 specified in subsections (c) and (d) of this Section, the 
9 eligibility for which is conditioned upon the member or 
10 participant agreeing to the increase in employee 
11 contributions for service annuities specified in 
12 subsection (b) of Section 12-150; or
13  (ii) to not agree to item (i) of this subsection 
14 (d-15), in which case the member or participant shall not 
15 be eligible for the reduced retirement age specified in 
16 subsections (c) and (d) of this Section and shall not be 
17 subject to the increase in employee contributions for 
18 service annuities specified in subsection (b) of Section 
19 12-150. 
20 The election provided for in this subsection shall be made 
21between January 1, 2022 and April 1, 2022. A person subject to 
22this subsection who makes the required election shall remain 
23bound by that election, except that an election made under 
24this subsection is rescinded by operation of law and such 
25person is subject to the provisions otherwise applicable to a 
26participant who first became a participant under Article 12 on 
 
 
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1or after January 1, 2011. A person subject to this subsection 
2who fails for any reason to make the required election within 
3the time specified in this subsection shall be deemed to have 
4made the election under item (ii). 
5 (e) Any retirement annuity or supplemental annuity shall 
6be subject to annual increases on the January 1 occurring 
7either on or after the attainment of age 67 (age 65, with 
8respect to service under Article 12 that is subject to this 
9Section, for a member or participant under Article 12 who 
10first becomes a member or participant under Article 12 on or 
11after January 1, 2022 or who makes the election under item (i) 
12of subsection (d-15); and beginning on July 6, 2017 (the 
13effective date of Public Act 100-23), age 65 with respect to 
14service under Article 8 or Article 11 for eligible persons 
15who: (i) are subject to subsection (c-5) of this Section; or 
16(ii) made the election under item (i) of subsection (d-10) of 
17this Section) or the first anniversary of the annuity start 
18date, whichever is later. Each annual increase shall be 
19calculated at 3% or one-half the annual unadjusted percentage 
20increase (but not less than zero) in the consumer price 
21index-u for the 12 months ending with the September preceding 
22each November 1, whichever is less, of the originally granted 
23retirement annuity. If the annual unadjusted percentage change 
24in the consumer price index-u for the 12 months ending with the 
25September preceding each November 1 is zero or there is a 
26decrease, then the annuity shall not be increased. 
 
 
HB5909- 541 -LRB103 43117 RPS 76377 b


1 For the purposes of Section 1-103.1 of this Code, the 
2changes made to this Section by Public Act 102-263 are 
3applicable without regard to whether the employee was in 
4active service on or after August 6, 2021 (the effective date 
5of Public Act 102-263). 
6 For the purposes of Section 1-103.1 of this Code, the 
7changes made to this Section by Public Act 100-23 are 
8applicable without regard to whether the employee was in 
9active service on or after July 6, 2017 (the effective date of 
10Public Act 100-23). 
11 (f) The initial survivor's or widow's annuity of an 
12otherwise eligible survivor or widow of a retired member or 
13participant who first became a member or participant on or 
14after January 1, 2011 shall be in the amount of 66 2/3% of the 
15retired member's or participant's retirement annuity at the 
16date of death. In the case of the death of a member or 
17participant who has not retired and who first became a member 
18or participant on or after January 1, 2011, eligibility for a 
19survivor's or widow's annuity shall be determined by the 
20applicable Article of this Code. The initial benefit shall be 
2166 2/3% of the earned annuity without a reduction due to age. A 
22child's annuity of an otherwise eligible child shall be in the 
23amount prescribed under each Article if applicable. Any 
24survivor's or widow's annuity shall be increased (1) on each 
25January 1 occurring on or after the commencement of the 
26annuity if the deceased member died while receiving a 
 
 
HB5909- 542 -LRB103 43117 RPS 76377 b


1retirement annuity or (2) in other cases, on each January 1 
2occurring after the first anniversary of the commencement of 
3the annuity. Each annual increase shall be calculated at 3% or 
4one-half the annual unadjusted percentage increase (but not 
5less than zero) in the consumer price index-u for the 12 months 
6ending with the September preceding each November 1, whichever 
7is less, of the originally granted survivor's annuity. If the 
8annual unadjusted percentage change in the consumer price 
9index-u for the 12 months ending with the September preceding 
10each November 1 is zero or there is a decrease, then the 
11annuity shall not be increased. 
12 (g) The benefits in Section 14-110 apply if the person is a 
13fire fighter in the fire protection service of a department, a 
14security employee of the Department of Corrections or the 
15Department of Juvenile Justice, or a security employee of the 
16Department of Innovation and Technology, as those terms are 
17defined in subsection (b) and subsection (c) of Section 
1814-110. A person who meets the requirements of this Section is 
19entitled to an annuity calculated under the provisions of 
20Section 14-110, in lieu of the regular or minimum retirement 
21annuity, only if the person has withdrawn from service with 
22not less than 20 years of eligible creditable service and has 
23attained age 60, regardless of whether the attainment of age 
2460 occurs while the person is still in service. 
25 (g-5) The benefits in Section 14-110 apply if the person 
26is a State policeman, investigator for the Secretary of State, 
 
 
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1conservation police officer, investigator for the Department 
2of Revenue or the Illinois Gaming Board, investigator for the 
3Office of the Attorney General, Commerce Commission police 
4officer, or arson investigator, as those terms are defined in 
5subsection (b) and subsection (c) of Section 14-110. A person 
6who meets the requirements of this Section is entitled to an 
7annuity calculated under the provisions of Section 14-110, in 
8lieu of the regular or minimum retirement annuity, only if the 
9person has withdrawn from service with not less than 20 years 
10of eligible creditable service and has attained age 55, 
11regardless of whether the attainment of age 55 occurs while 
12the person is still in service. 
13 (h) If a person who first becomes a member or a participant 
14of a retirement system or pension fund subject to this Section 
15on or after January 1, 2011 is receiving a retirement annuity 
16or retirement pension under that system or fund and becomes a 
17member or participant under any other system or fund created 
18by this Code and is employed on a full-time basis, except for 
19those members or participants exempted from the provisions of 
20this Section under subsection (a) of this Section, then the 
21person's retirement annuity or retirement pension under that 
22system or fund shall be suspended during that employment. Upon 
23termination of that employment, the person's retirement 
24annuity or retirement pension payments shall resume and be 
25recalculated if recalculation is provided for under the 
26applicable Article of this Code.
 
 
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1 If a person who first becomes a member of a retirement 
2system or pension fund subject to this Section on or after 
3January 1, 2012 and is receiving a retirement annuity or 
4retirement pension under that system or fund and accepts on a 
5contractual basis a position to provide services to a 
6governmental entity from which he or she has retired, then 
7that person's annuity or retirement pension earned as an 
8active employee of the employer shall be suspended during that 
9contractual service. A person receiving an annuity or 
10retirement pension under this Code shall notify the pension 
11fund or retirement system from which he or she is receiving an 
12annuity or retirement pension, as well as his or her 
13contractual employer, of his or her retirement status before 
14accepting contractual employment. A person who fails to submit 
15such notification shall be guilty of a Class A misdemeanor and 
16required to pay a fine of $1,000. Upon termination of that 
17contractual employment, the person's retirement annuity or 
18retirement pension payments shall resume and, if appropriate, 
19be recalculated under the applicable provisions of this Code. 
20 (i) (Blank). 
21 (j) In the case of a conflict between the provisions of 
22this Section and any other provision of this Code, the 
23provisions of this Section shall control.
24(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
25102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 
265-6-22; 103-529, eff. 8-11-23.)

 
 
HB5909- 545 -LRB103 43117 RPS 76377 b


1 (Text of Section from P.A. 102-813)
2 Sec. 1-160. Provisions applicable to new hires. 
3 (a) The provisions of this Section apply to a person who, 
4on or after January 1, 2011, first becomes a member or a 
5participant under any reciprocal retirement system or pension 
6fund established under this Code, other than a retirement 
7system or pension fund established under Article 2, 3, 4, 5, 6, 
87, 15, or 18 of this Code, notwithstanding any other provision 
9of this Code to the contrary, but do not apply to any 
10self-managed plan established under this Code or to any 
11participant of the retirement plan established under Section 
1222-101; except that this Section applies to a person who 
13elected to establish alternative credits by electing in 
14writing after January 1, 2011, but before August 8, 2011, 
15under Section 7-145.1 of this Code. Notwithstanding anything 
16to the contrary in this Section, for purposes of this Section, 
17a person who is a Tier 1 regular employee as defined in Section 
187-109.4 of this Code or who participated in a retirement 
19system under Article 15 prior to January 1, 2011 shall be 
20deemed a person who first became a member or participant prior 
21to January 1, 2011 under any retirement system or pension fund 
22subject to this Section. The changes made to this Section by 
23Public Act 98-596 are a clarification of existing law and are 
24intended to be retroactive to January 1, 2011 (the effective 
25date of Public Act 96-889), notwithstanding the provisions of 
 
 
HB5909- 546 -LRB103 43117 RPS 76377 b


1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a 
3noncovered employee under Article 14 on or after the 
4implementation date of the plan created under Section 1-161 
5for that Article, unless that person elects under subsection 
6(b) of Section 1-161 to instead receive the benefits provided 
7under this Section and the applicable provisions of that 
8Article.
9 This Section does not apply to a person who first becomes a 
10member or participant under Article 16 on or after the 
11implementation date of the plan created under Section 1-161 
12for that Article, unless that person elects under subsection 
13(b) of Section 1-161 to instead receive the benefits provided 
14under this Section and the applicable provisions of that 
15Article.
16 This Section does not apply to a person who elects under 
17subsection (c-5) of Section 1-161 to receive the benefits 
18under Section 1-161. 
19 This Section does not apply to a person who first becomes a 
20member or participant of an affected pension fund on or after 6 
21months after the resolution or ordinance date, as defined in 
22Section 1-162, unless that person elects under subsection (c) 
23of Section 1-162 to receive the benefits provided under this 
24Section and the applicable provisions of the Article under 
25which he or she is a member or participant. 
26 (b) "Final average salary" means, except as otherwise 
 
 
HB5909- 547 -LRB103 43117 RPS 76377 b


1provided in this subsection, the average monthly (or annual) 
2salary obtained by dividing the total salary or earnings 
3calculated under the Article applicable to the member or 
4participant during the 96 consecutive months (or 8 consecutive 
5years) of service within the last 120 months (or 10 years) of 
6service in which the total salary or earnings calculated under 
7the applicable Article was the highest by the number of months 
8(or years) of service in that period. For the purposes of a 
9person who first becomes a member or participant of any 
10retirement system or pension fund to which this Section 
11applies on or after January 1, 2011, in this Code, "final 
12average salary" shall be substituted for the following:
13  (1) (Blank).
14  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
15 annual salary for any 4 consecutive years within the last 
16 10 years of service immediately preceding the date of 
17 withdrawal". 
18  (3) In Article 13, "average final salary". 
19  (4) In Article 14, "final average compensation". 
20  (5) In Article 17, "average salary". 
21  (6) In Section 22-207, "wages or salary received by 
22 him at the date of retirement or discharge". 
23 A member of the Teachers' Retirement System of the State 
24of Illinois who retires on or after June 1, 2021 and for whom 
25the 2020-2021 school year is used in the calculation of the 
26member's final average salary shall use the higher of the 
 
 
HB5909- 548 -LRB103 43117 RPS 76377 b


1following for the purpose of determining the member's final 
2average salary:
3  (A) the amount otherwise calculated under the first 
4 paragraph of this subsection; or
5  (B) an amount calculated by the Teachers' Retirement 
6 System of the State of Illinois using the average of the 
7 monthly (or annual) salary obtained by dividing the total 
8 salary or earnings calculated under Article 16 applicable 
9 to the member or participant during the 96 months (or 8 
10 years) of service within the last 120 months (or 10 years) 
11 of service in which the total salary or earnings 
12 calculated under the Article was the highest by the number 
13 of months (or years) of service in that period.
14 (b-5) Beginning on January 1, 2011, for all purposes under 
15this Code (including without limitation the calculation of 
16benefits and employee contributions), the annual earnings, 
17salary, or wages (based on the plan year) of a member or 
18participant to whom this Section applies shall not exceed 
19$106,800; however, that amount shall annually thereafter be 
20increased by the lesser of (i) 3% of that amount, including all 
21previous adjustments, or (ii) one-half the annual unadjusted 
22percentage increase (but not less than zero) in the consumer 
23price index-u for the 12 months ending with the September 
24preceding each November 1, including all previous adjustments.
25 For the purposes of this Section, "consumer price index-u" 
26means the index published by the Bureau of Labor Statistics of 
 
 
HB5909- 549 -LRB103 43117 RPS 76377 b


1the United States Department of Labor that measures the 
2average change in prices of goods and services purchased by 
3all urban consumers, United States city average, all items, 
41982-84 = 100. The new amount resulting from each annual 
5adjustment shall be determined by the Public Pension Division 
6of the Department of Insurance and made available to the 
7boards of the retirement systems and pension funds by November 
81 of each year. 
9 (b-10) Beginning on January 1, 2024, for all purposes 
10under this Code (including, without limitation, the 
11calculation of benefits and employee contributions), the 
12annual earnings, salary, or wages (based on the plan year) of a 
13member or participant under Article 9 to whom this Section 
14applies shall include an annual earnings, salary, or wage cap 
15that tracks the Social Security wage base. Maximum annual 
16earnings, wages, or salary shall be the annual contribution 
17and benefit base established for the applicable year by the 
18Commissioner of the Social Security Administration under the 
19federal Social Security Act. 
20 However, in no event shall the annual earnings, salary, or 
21wages for the purposes of this Article and Article 9 exceed any 
22limitation imposed on annual earnings, salary, or wages under 
23Section 1-117. Under no circumstances shall the maximum amount 
24of annual earnings, salary, or wages be greater than the 
25amount set forth in this subsection (b-10) as a result of 
26reciprocal service or any provisions regarding reciprocal 
 
 
HB5909- 550 -LRB103 43117 RPS 76377 b


1services, nor shall the Fund under Article 9 be required to pay 
2any refund as a result of the application of this maximum 
3annual earnings, salary, and wage cap. 
4 Nothing in this subsection (b-10) shall cause or otherwise 
5result in any retroactive adjustment of any employee 
6contributions. Nothing in this subsection (b-10) shall cause 
7or otherwise result in any retroactive adjustment of 
8disability or other payments made between January 1, 2011 and 
9January 1, 2024. 
10 (c) A member or participant is entitled to a retirement 
11annuity upon written application if he or she has attained age 
1267 (age 65, with respect to service under Article 12 that is 
13subject to this Section, for a member or participant under 
14Article 12 who first becomes a member or participant under 
15Article 12 on or after January 1, 2022 or who makes the 
16election under item (i) of subsection (d-15) of this Section) 
17and has at least 10 years of service credit and is otherwise 
18eligible under the requirements of the applicable Article. 
19 A member or participant who has attained age 62 (age 60, 
20with respect to service under Article 12 that is subject to 
21this Section, for a member or participant under Article 12 who 
22first becomes a member or participant under Article 12 on or 
23after January 1, 2022 or who makes the election under item (i) 
24of subsection (d-15) of this Section) and has at least 10 years 
25of service credit and is otherwise eligible under the 
26requirements of the applicable Article may elect to receive 
 
 
HB5909- 551 -LRB103 43117 RPS 76377 b


1the lower retirement annuity provided in subsection (d) of 
2this Section. 
3 (c-5) (Blank). A person who first becomes a member or a 
4participant subject to this Section on or after July 6, 2017 
5(the effective date of Public Act 100-23), notwithstanding any 
6other provision of this Code to the contrary, is entitled to a 
7retirement annuity under Article 8 or Article 11 upon written 
8application if he or she has attained age 65 and has at least 
910 years of service credit and is otherwise eligible under the 
10requirements of Article 8 or Article 11 of this Code, 
11whichever is applicable. 
12 (d) The retirement annuity of a member or participant who 
13is retiring after attaining age 62 (age 60, with respect to 
14service under Article 12 that is subject to this Section, for a 
15member or participant under Article 12 who first becomes a 
16member or participant under Article 12 on or after January 1, 
172022 or who makes the election under item (i) of subsection 
18(d-15) of this Section) with at least 10 years of service 
19credit shall be reduced by one-half of 1% for each full month 
20that the member's age is under age 67 (age 65, with respect to 
21service under Article 12 that is subject to this Section, for a 
22member or participant under Article 12 who first becomes a 
23member or participant under Article 12 on or after January 1, 
242022 or who makes the election under item (i) of subsection 
25(d-15) of this Section).
26 (d-5) (Blank). The retirement annuity payable under 
 
 
HB5909- 552 -LRB103 43117 RPS 76377 b


1Article 8 or Article 11 to an eligible person subject to 
2subsection (c-5) of this Section who is retiring at age 60 with 
3at least 10 years of service credit shall be reduced by 
4one-half of 1% for each full month that the member's age is 
5under age 65. 
6 (d-10) Each person who first became a member or 
7participant under Article 8 or Article 11 of this Code on or 
8after January 1, 2011 and prior to July 6, 2017 (the effective 
9date of Public Act 100-23) shall make an irrevocable election 
10either:
11  (i) to be eligible for the reduced retirement age 
12 provided in subsections (c-5) and (d-5) of this Section, 
13 the eligibility for which is conditioned upon the member 
14 or participant agreeing to the increases in employee 
15 contributions for age and service annuities provided in 
16 subsection (a-5) of Section 8-174 of this Code (for 
17 service under Article 8) or subsection (a-5) of Section 
18 11-170 of this Code (for service under Article 11); or 
19  (ii) to not agree to item (i) of this subsection 
20 (d-10), in which case the member or participant shall 
21 continue to be subject to the retirement age provisions in 
22 subsections (c) and (d) of this Section and the employee 
23 contributions for age and service annuity as provided in 
24 subsection (a) of Section 8-174 of this Code (for service 
25 under Article 8) or subsection (a) of Section 11-170 of 
26 this Code (for service under Article 11). 
 
 
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1 The election provided for in this subsection shall be made 
2between October 1, 2017 and November 15, 2017. A person 
3subject to this subsection who makes the required election 
4shall remain bound by that election, except that an election 
5made under this subsection is rescinded by operation of law 
6and such person is subject to the provisions otherwise 
7applicable to a participant who first became a participant 
8under Article 8 or Article 11 on or after January 1, 2011. A 
9person subject to this subsection who fails for any reason to 
10make the required election within the time specified in this 
11subsection shall be deemed to have made the election under 
12item (ii). 
13 (d-15) Each person who first becomes a member or 
14participant under Article 12 on or after January 1, 2011 and 
15prior to January 1, 2022 shall make an irrevocable election 
16either: 
17  (i) to be eligible for the reduced retirement age 
18 specified in subsections (c) and (d) of this Section, the 
19 eligibility for which is conditioned upon the member or 
20 participant agreeing to the increase in employee 
21 contributions for service annuities specified in 
22 subsection (b) of Section 12-150; or
23  (ii) to not agree to item (i) of this subsection 
24 (d-15), in which case the member or participant shall not 
25 be eligible for the reduced retirement age specified in 
26 subsections (c) and (d) of this Section and shall not be 
 
 
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1 subject to the increase in employee contributions for 
2 service annuities specified in subsection (b) of Section 
3 12-150. 
4 The election provided for in this subsection shall be made 
5between January 1, 2022 and April 1, 2022. A person subject to 
6this subsection who makes the required election shall remain 
7bound by that election, except that an election made under 
8this subsection is rescinded by operation of law and such 
9person is subject to the provisions otherwise applicable to a 
10participant who first became a participant under Article 12 on 
11or after January 1, 2011. A person subject to this subsection 
12who fails for any reason to make the required election within 
13the time specified in this subsection shall be deemed to have 
14made the election under item (ii). 
15 (e) Any retirement annuity or supplemental annuity shall 
16be subject to annual increases on the January 1 occurring 
17either on or after the attainment of age 67 (age 65, with 
18respect to service under Article 12 that is subject to this 
19Section, for a member or participant under Article 12 who 
20first becomes a member or participant under Article 12 on or 
21after January 1, 2022 or who makes the election under item (i) 
22of subsection (d-15); and beginning on July 6, 2017 (the 
23effective date of Public Act 100-23), age 65 with respect to 
24service under Article 8 or Article 11 for eligible persons 
25who: (i) are subject to subsection (c-5) of this Section; or 
26(ii) made the election under item (i) of subsection (d-10) of 
 
 
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1this Section) or the first anniversary of the annuity start 
2date, whichever is later. Each annual increase shall be 
3calculated at 3% or one-half the annual unadjusted percentage 
4increase (but not less than zero) in the consumer price 
5index-u for the 12 months ending with the September preceding 
6each November 1, whichever is less, of the originally granted 
7retirement annuity. If the annual unadjusted percentage change 
8in the consumer price index-u for the 12 months ending with the 
9September preceding each November 1 is zero or there is a 
10decrease, then the annuity shall not be increased. 
11 For the purposes of Section 1-103.1 of this Code, the 
12changes made to this Section by Public Act 102-263 are 
13applicable without regard to whether the employee was in 
14active service on or after August 6, 2021 (the effective date 
15of Public Act 102-263). 
16 For the purposes of Section 1-103.1 of this Code, the 
17changes made to this Section by Public Act 100-23 are 
18applicable without regard to whether the employee was in 
19active service on or after July 6, 2017 (the effective date of 
20Public Act 100-23). 
21 (f) The initial survivor's or widow's annuity of an 
22otherwise eligible survivor or widow of a retired member or 
23participant who first became a member or participant on or 
24after January 1, 2011 shall be in the amount of 66 2/3% of the 
25retired member's or participant's retirement annuity at the 
26date of death. In the case of the death of a member or 
 
 
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1participant who has not retired and who first became a member 
2or participant on or after January 1, 2011, eligibility for a 
3survivor's or widow's annuity shall be determined by the 
4applicable Article of this Code. The initial benefit shall be 
566 2/3% of the earned annuity without a reduction due to age. A 
6child's annuity of an otherwise eligible child shall be in the 
7amount prescribed under each Article if applicable. Any 
8survivor's or widow's annuity shall be increased (1) on each 
9January 1 occurring on or after the commencement of the 
10annuity if the deceased member died while receiving a 
11retirement annuity or (2) in other cases, on each January 1 
12occurring after the first anniversary of the commencement of 
13the annuity. Each annual increase shall be calculated at 3% or 
14one-half the annual unadjusted percentage increase (but not 
15less than zero) in the consumer price index-u for the 12 months 
16ending with the September preceding each November 1, whichever 
17is less, of the originally granted survivor's annuity. If the 
18annual unadjusted percentage change in the consumer price 
19index-u for the 12 months ending with the September preceding 
20each November 1 is zero or there is a decrease, then the 
21annuity shall not be increased. 
22 (g) The benefits in Section 14-110 apply only if the 
23person is a State policeman, a fire fighter in the fire 
24protection service of a department, a conservation police 
25officer, an investigator for the Secretary of State, an arson 
26investigator, a Commerce Commission police officer, 
 
 
HB5909- 557 -LRB103 43117 RPS 76377 b


1investigator for the Department of Revenue or the Illinois 
2Gaming Board, a security employee of the Department of 
3Corrections or the Department of Juvenile Justice, or a 
4security employee of the Department of Innovation and 
5Technology, as those terms are defined in subsection (b) and 
6subsection (c) of Section 14-110. A person who meets the 
7requirements of this Section is entitled to an annuity 
8calculated under the provisions of Section 14-110, in lieu of 
9the regular or minimum retirement annuity, only if the person 
10has withdrawn from service with not less than 20 years of 
11eligible creditable service and has attained age 60, 
12regardless of whether the attainment of age 60 occurs while 
13the person is still in service. 
14 (h) If a person who first becomes a member or a participant 
15of a retirement system or pension fund subject to this Section 
16on or after January 1, 2011 is receiving a retirement annuity 
17or retirement pension under that system or fund and becomes a 
18member or participant under any other system or fund created 
19by this Code and is employed on a full-time basis, except for 
20those members or participants exempted from the provisions of 
21this Section under subsection (a) of this Section, then the 
22person's retirement annuity or retirement pension under that 
23system or fund shall be suspended during that employment. Upon 
24termination of that employment, the person's retirement 
25annuity or retirement pension payments shall resume and be 
26recalculated if recalculation is provided for under the 
 
 
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1applicable Article of this Code.
2 If a person who first becomes a member of a retirement 
3system or pension fund subject to this Section on or after 
4January 1, 2012 and is receiving a retirement annuity or 
5retirement pension under that system or fund and accepts on a 
6contractual basis a position to provide services to a 
7governmental entity from which he or she has retired, then 
8that person's annuity or retirement pension earned as an 
9active employee of the employer shall be suspended during that 
10contractual service. A person receiving an annuity or 
11retirement pension under this Code shall notify the pension 
12fund or retirement system from which he or she is receiving an 
13annuity or retirement pension, as well as his or her 
14contractual employer, of his or her retirement status before 
15accepting contractual employment. A person who fails to submit 
16such notification shall be guilty of a Class A misdemeanor and 
17required to pay a fine of $1,000. Upon termination of that 
18contractual employment, the person's retirement annuity or 
19retirement pension payments shall resume and, if appropriate, 
20be recalculated under the applicable provisions of this Code. 
21 (i) (Blank). 
22 (j) In the case of a conflict between the provisions of 
23this Section and any other provision of this Code, the 
24provisions of this Section shall control.
25(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 
26102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 
 
 
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15-13-22; 103-529, eff. 8-11-23.)

2 (Text of Section from P.A. 102-956)
3 Sec. 1-160. Provisions applicable to new hires. 
4 (a) The provisions of this Section apply to a person who, 
5on or after January 1, 2011, first becomes a member or a 
6participant under any reciprocal retirement system or pension 
7fund established under this Code, other than a retirement 
8system or pension fund established under Article 2, 3, 4, 5, 6, 
97, 15, or 18 of this Code, notwithstanding any other provision 
10of this Code to the contrary, but do not apply to any 
11self-managed plan established under this Code or to any 
12participant of the retirement plan established under Section 
1322-101; except that this Section applies to a person who 
14elected to establish alternative credits by electing in 
15writing after January 1, 2011, but before August 8, 2011, 
16under Section 7-145.1 of this Code. Notwithstanding anything 
17to the contrary in this Section, for purposes of this Section, 
18a person who is a Tier 1 regular employee as defined in Section 
197-109.4 of this Code or who participated in a retirement 
20system under Article 15 prior to January 1, 2011 shall be 
21deemed a person who first became a member or participant prior 
22to January 1, 2011 under any retirement system or pension fund 
23subject to this Section. The changes made to this Section by 
24Public Act 98-596 are a clarification of existing law and are 
25intended to be retroactive to January 1, 2011 (the effective 
 
 
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1date of Public Act 96-889), notwithstanding the provisions of 
2Section 1-103.1 of this Code.
3 This Section does not apply to a person who first becomes a 
4noncovered employee under Article 14 on or after the 
5implementation date of the plan created under Section 1-161 
6for that Article, unless that person elects under subsection 
7(b) of Section 1-161 to instead receive the benefits provided 
8under this Section and the applicable provisions of that 
9Article.
10 This Section does not apply to a person who first becomes a 
11member or participant under Article 16 on or after the 
12implementation date of the plan created under Section 1-161 
13for that Article, unless that person elects under subsection 
14(b) of Section 1-161 to instead receive the benefits provided 
15under this Section and the applicable provisions of that 
16Article.
17 This Section does not apply to a person who elects under 
18subsection (c-5) of Section 1-161 to receive the benefits 
19under Section 1-161. 
20 This Section does not apply to a person who first becomes a 
21member or participant of an affected pension fund on or after 6 
22months after the resolution or ordinance date, as defined in 
23Section 1-162, unless that person elects under subsection (c) 
24of Section 1-162 to receive the benefits provided under this 
25Section and the applicable provisions of the Article under 
26which he or she is a member or participant. 
 
 
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1 (b) "Final average salary" means, except as otherwise 
2provided in this subsection, the average monthly (or annual) 
3salary obtained by dividing the total salary or earnings 
4calculated under the Article applicable to the member or 
5participant during the 96 consecutive months (or 8 consecutive 
6years) of service within the last 120 months (or 10 years) of 
7service in which the total salary or earnings calculated under 
8the applicable Article was the highest by the number of months 
9(or years) of service in that period. For the purposes of a 
10person who first becomes a member or participant of any 
11retirement system or pension fund to which this Section 
12applies on or after January 1, 2011, in this Code, "final 
13average salary" shall be substituted for the following:
14  (1) (Blank).
15  (2) In Articles 8, 9, 10, 11, and 12, "highest average 
16 annual salary for any 4 consecutive years within the last 
17 10 years of service immediately preceding the date of 
18 withdrawal". 
19  (3) In Article 13, "average final salary". 
20  (4) In Article 14, "final average compensation". 
21  (5) In Article 17, "average salary". 
22  (6) In Section 22-207, "wages or salary received by 
23 him at the date of retirement or discharge". 
24 A member of the Teachers' Retirement System of the State 
25of Illinois who retires on or after June 1, 2021 and for whom 
26the 2020-2021 school year is used in the calculation of the 
 
 
HB5909- 562 -LRB103 43117 RPS 76377 b


1member's final average salary shall use the higher of the 
2following for the purpose of determining the member's final 
3average salary:
4  (A) the amount otherwise calculated under the first 
5 paragraph of this subsection; or
6  (B) an amount calculated by the Teachers' Retirement 
7 System of the State of Illinois using the average of the 
8 monthly (or annual) salary obtained by dividing the total 
9 salary or earnings calculated under Article 16 applicable 
10 to the member or participant during the 96 months (or 8 
11 years) of service within the last 120 months (or 10 years) 
12 of service in which the total salary or earnings 
13 calculated under the Article was the highest by the number 
14 of months (or years) of service in that period.
15 (b-5) Beginning on January 1, 2011, for all purposes under 
16this Code (including without limitation the calculation of 
17benefits and employee contributions), the annual earnings, 
18salary, or wages (based on the plan year) of a member or 
19participant to whom this Section applies shall not exceed 
20$106,800; however, that amount shall annually thereafter be 
21increased by the lesser of (i) 3% of that amount, including all 
22previous adjustments, or (ii) one-half the annual unadjusted 
23percentage increase (but not less than zero) in the consumer 
24price index-u for the 12 months ending with the September 
25preceding each November 1, including all previous adjustments.
26 For the purposes of this Section, "consumer price index-u" 
 
 
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1means the index published by the Bureau of Labor Statistics of 
2the United States Department of Labor that measures the 
3average change in prices of goods and services purchased by 
4all urban consumers, United States city average, all items, 
51982-84 = 100. The new amount resulting from each annual 
6adjustment shall be determined by the Public Pension Division 
7of the Department of Insurance and made available to the 
8boards of the retirement systems and pension funds by November 
91 of each year. 
10 (b-10) Beginning on January 1, 2024, for all purposes 
11under this Code (including, without limitation, the 
12calculation of benefits and employee contributions), the 
13annual earnings, salary, or wages (based on the plan year) of a 
14member or participant under Article 9 to whom this Section 
15applies shall include an annual earnings, salary, or wage cap 
16that tracks the Social Security wage base. Maximum annual 
17earnings, wages, or salary shall be the annual contribution 
18and benefit base established for the applicable year by the 
19Commissioner of the Social Security Administration under the 
20federal Social Security Act. 
21 However, in no event shall the annual earnings, salary, or 
22wages for the purposes of this Article and Article 9 exceed any 
23limitation imposed on annual earnings, salary, or wages under 
24Section 1-117. Under no circumstances shall the maximum amount 
25of annual earnings, salary, or wages be greater than the 
26amount set forth in this subsection (b-10) as a result of 
 
 
HB5909- 564 -LRB103 43117 RPS 76377 b


1reciprocal service or any provisions regarding reciprocal 
2services, nor shall the Fund under Article 9 be required to pay 
3any refund as a result of the application of this maximum 
4annual earnings, salary, and wage cap. 
5 Nothing in this subsection (b-10) shall cause or otherwise 
6result in any retroactive adjustment of any employee 
7contributions. Nothing in this subsection (b-10) shall cause 
8or otherwise result in any retroactive adjustment of 
9disability or other payments made between January 1, 2011 and 
10January 1, 2024. 
11 (c) A member or participant is entitled to a retirement 
12annuity upon written application if he or she has attained age 
1367 (age 65, with respect to service under Article 12 that is 
14subject to this Section, for a member or participant under 
15Article 12 who first becomes a member or participant under 
16Article 12 on or after January 1, 2022 or who makes the 
17election under item (i) of subsection (d-15) of this Section) 
18and has at least 10 years of service credit and is otherwise 
19eligible under the requirements of the applicable Article. 
20 A member or participant who has attained age 62 (age 60, 
21with respect to service under Article 12 that is subject to 
22this Section, for a member or participant under Article 12 who 
23first becomes a member or participant under Article 12 on or 
24after January 1, 2022 or who makes the election under item (i) 
25of subsection (d-15) of this Section) and has at least 10 years 
26of service credit and is otherwise eligible under the 
 
 
HB5909- 565 -LRB103 43117 RPS 76377 b


1requirements of the applicable Article may elect to receive 
2the lower retirement annuity provided in subsection (d) of 
3this Section. 
4 (c-5) (Blank). A person who first becomes a member or a 
5participant subject to this Section on or after July 6, 2017 
6(the effective date of Public Act 100-23), notwithstanding any 
7other provision of this Code to the contrary, is entitled to a 
8retirement annuity under Article 8 or Article 11 upon written 
9application if he or she has attained age 65 and has at least 
1010 years of service credit and is otherwise eligible under the 
11requirements of Article 8 or Article 11 of this Code, 
12whichever is applicable. 
13 (d) The retirement annuity of a member or participant who 
14is retiring after attaining age 62 (age 60, with respect to 
15service under Article 12 that is subject to this Section, for a 
16member or participant under Article 12 who first becomes a 
17member or participant under Article 12 on or after January 1, 
182022 or who makes the election under item (i) of subsection 
19(d-15) of this Section) with at least 10 years of service 
20credit shall be reduced by one-half of 1% for each full month 
21that the member's age is under age 67 (age 65, with respect to 
22service under Article 12 that is subject to this Section, for a 
23member or participant under Article 12 who first becomes a 
24member or participant under Article 12 on or after January 1, 
252022 or who makes the election under item (i) of subsection 
26(d-15) of this Section).
 
 
HB5909- 566 -LRB103 43117 RPS 76377 b


1 (d-5) (Blank). The retirement annuity payable under 
2Article 8 or Article 11 to an eligible person subject to 
3subsection (c-5) of this Section who is retiring at age 60 with 
4at least 10 years of service credit shall be reduced by 
5one-half of 1% for each full month that the member's age is 
6under age 65. 
7 (d-10) Each person who first became a member or 
8participant under Article 8 or Article 11 of this Code on or 
9after January 1, 2011 and prior to July 6, 2017 (the effective 
10date of Public Act 100-23) shall make an irrevocable election 
11either:
12  (i) to be eligible for the reduced retirement age 
13 provided in subsections (c-5) and (d-5) of this Section, 
14 the eligibility for which is conditioned upon the member 
15 or participant agreeing to the increases in employee 
16 contributions for age and service annuities provided in 
17 subsection (a-5) of Section 8-174 of this Code (for 
18 service under Article 8) or subsection (a-5) of Section 
19 11-170 of this Code (for service under Article 11); or 
20  (ii) to not agree to item (i) of this subsection 
21 (d-10), in which case the member or participant shall 
22 continue to be subject to the retirement age provisions in 
23 subsections (c) and (d) of this Section and the employee 
24 contributions for age and service annuity as provided in 
25 subsection (a) of Section 8-174 of this Code (for service 
26 under Article 8) or subsection (a) of Section 11-170 of 
 
 
HB5909- 567 -LRB103 43117 RPS 76377 b


1 this Code (for service under Article 11). 
2 The election provided for in this subsection shall be made 
3between October 1, 2017 and November 15, 2017. A person 
4subject to this subsection who makes the required election 
5shall remain bound by that election, except that an election 
6made under this subsection is rescinded by operation of law 
7and such person is subject to the provisions otherwise 
8applicable to a participant who first became a participant 
9under Article 8 or Article 11 on or after January 1, 2011. A 
10person subject to this subsection who fails for any reason to 
11make the required election within the time specified in this 
12subsection shall be deemed to have made the election under 
13item (ii). 
14 (d-15) Each person who first becomes a member or 
15participant under Article 12 on or after January 1, 2011 and 
16prior to January 1, 2022 shall make an irrevocable election 
17either: 
18  (i) to be eligible for the reduced retirement age 
19 specified in subsections (c) and (d) of this Section, the 
20 eligibility for which is conditioned upon the member or 
21 participant agreeing to the increase in employee 
22 contributions for service annuities specified in 
23 subsection (b) of Section 12-150; or
24  (ii) to not agree to item (i) of this subsection 
25 (d-15), in which case the member or participant shall not 
26 be eligible for the reduced retirement age specified in 
 
 
HB5909- 568 -LRB103 43117 RPS 76377 b


1 subsections (c) and (d) of this Section and shall not be 
2 subject to the increase in employee contributions for 
3 service annuities specified in subsection (b) of Section 
4 12-150. 
5 The election provided for in this subsection shall be made 
6between January 1, 2022 and April 1, 2022. A person subject to 
7this subsection who makes the required election shall remain 
8bound by that election, except that an election made under 
9this subsection is rescinded by operation of law and such 
10person is subject to the provisions otherwise applicable to a 
11participant who first became a participant under Article 12 on 
12or after January 1, 2011. A person subject to this subsection 
13who fails for any reason to make the required election within 
14the time specified in this subsection shall be deemed to have 
15made the election under item (ii). 
16 (e) Any retirement annuity or supplemental annuity shall 
17be subject to annual increases on the January 1 occurring 
18either on or after the attainment of age 67 (age 65, with 
19respect to service under Article 12 that is subject to this 
20Section, for a member or participant under Article 12 who 
21first becomes a member or participant under Article 12 on or 
22after January 1, 2022 or who makes the election under item (i) 
23of subsection (d-15); and beginning on July 6, 2017 (the 
24effective date of Public Act 100-23), age 65 with respect to 
25service under Article 8 or Article 11 for eligible persons 
26who: (i) are subject to subsection (c-5) of this Section; or 
 
 
HB5909- 569 -LRB103 43117 RPS 76377 b


1(ii) made the election under item (i) of subsection (d-10) of 
2this Section) or the first anniversary of the annuity start 
3date, whichever is later. Each annual increase shall be 
4calculated at 3% or one-half the annual unadjusted percentage 
5increase (but not less than zero) in the consumer price 
6index-u for the 12 months ending with the September preceding 
7each November 1, whichever is less, of the originally granted 
8retirement annuity. If the annual unadjusted percentage change 
9in the consumer price index-u for the 12 months ending with the 
10September preceding each November 1 is zero or there is a 
11decrease, then the annuity shall not be increased. 
12 For the purposes of Section 1-103.1 of this Code, the 
13changes made to this Section by Public Act 102-263 are 
14applicable without regard to whether the employee was in 
15active service on or after August 6, 2021 (the effective date 
16of Public Act 102-263). 
17 For the purposes of Section 1-103.1 of this Code, the 
18changes made to this Section by Public Act 100-23 are 
19applicable without regard to whether the employee was in 
20active service on or after July 6, 2017 (the effective date of 
21Public Act 100-23). 
22 (f) The initial survivor's or widow's annuity of an 
23otherwise eligible survivor or widow of a retired member or 
24participant who first became a member or participant on or 
25after January 1, 2011 shall be in the amount of 66 2/3% of the 
26retired member's or participant's retirement annuity at the 
 
 
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1date of death. In the case of the death of a member or 
2participant who has not retired and who first became a member 
3or participant on or after January 1, 2011, eligibility for a 
4survivor's or widow's annuity shall be determined by the 
5applicable Article of this Code. The initial benefit shall be 
666 2/3% of the earned annuity without a reduction due to age. A 
7child's annuity of an otherwise eligible child shall be in the 
8amount prescribed under each Article if applicable. Any 
9survivor's or widow's annuity shall be increased (1) on each 
10January 1 occurring on or after the commencement of the 
11annuity if the deceased member died while receiving a 
12retirement annuity or (2) in other cases, on each January 1 
13occurring after the first anniversary of the commencement of 
14the annuity. Each annual increase shall be calculated at 3% or 
15one-half the annual unadjusted percentage increase (but not 
16less than zero) in the consumer price index-u for the 12 months 
17ending with the September preceding each November 1, whichever 
18is less, of the originally granted survivor's annuity. If the 
19annual unadjusted percentage change in the consumer price 
20index-u for the 12 months ending with the September preceding 
21each November 1 is zero or there is a decrease, then the 
22annuity shall not be increased. 
23 (g) The benefits in Section 14-110 apply only if the 
24person is a State policeman, a fire fighter in the fire 
25protection service of a department, a conservation police 
26officer, an investigator for the Secretary of State, an 
 
 
HB5909- 571 -LRB103 43117 RPS 76377 b


1investigator for the Office of the Attorney General, an arson 
2investigator, a Commerce Commission police officer, 
3investigator for the Department of Revenue or the Illinois 
4Gaming Board, a security employee of the Department of 
5Corrections or the Department of Juvenile Justice, or a 
6security employee of the Department of Innovation and 
7Technology, as those terms are defined in subsection (b) and 
8subsection (c) of Section 14-110. A person who meets the 
9requirements of this Section is entitled to an annuity 
10calculated under the provisions of Section 14-110, in lieu of 
11the regular or minimum retirement annuity, only if the person 
12has withdrawn from service with not less than 20 years of 
13eligible creditable service and has attained age 60, 
14regardless of whether the attainment of age 60 occurs while 
15the person is still in service. 
16 (h) If a person who first becomes a member or a participant 
17of a retirement system or pension fund subject to this Section 
18on or after January 1, 2011 is receiving a retirement annuity 
19or retirement pension under that system or fund and becomes a 
20member or participant under any other system or fund created 
21by this Code and is employed on a full-time basis, except for 
22those members or participants exempted from the provisions of 
23this Section under subsection (a) of this Section, then the 
24person's retirement annuity or retirement pension under that 
25system or fund shall be suspended during that employment. Upon 
26termination of that employment, the person's retirement 
 
 
HB5909- 572 -LRB103 43117 RPS 76377 b


1annuity or retirement pension payments shall resume and be 
2recalculated if recalculation is provided for under the 
3applicable Article of this Code.
4 If a person who first becomes a member of a retirement 
5system or pension fund subject to this Section on or after 
6January 1, 2012 and is receiving a retirement annuity or 
7retirement pension under that system or fund and accepts on a 
8contractual basis a position to provide services to a 
9governmental entity from which he or she has retired, then 
10that person's annuity or retirement pension earned as an 
11active employee of the employer shall be suspended during that 
12contractual service. A person receiving an annuity or 
13retirement pension under this Code shall notify the pension 
14fund or retirement system from which he or she is receiving an 
15annuity or retirement pension, as well as his or her 
16contractual employer, of his or her retirement status before 
17accepting contractual employment. A person who fails to submit 
18such notification shall be guilty of a Class A misdemeanor and 
19required to pay a fine of $1,000. Upon termination of that 
20contractual employment, the person's retirement annuity or 
21retirement pension payments shall resume and, if appropriate, 
22be recalculated under the applicable provisions of this Code. 
23 (i) (Blank). 
24 (j) In the case of a conflict between the provisions of 
25this Section and any other provision of this Code, the 
26provisions of this Section shall control.
 
 
HB5909- 573 -LRB103 43117 RPS 76377 b


1(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 
2102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 
38-11-23.)

4 (40 ILCS 5/8-174) (from Ch. 108 1/2, par. 8-174)
5 Sec. 8-174. Contributions for age and service annuities 
6for present employees and future entrants. 
7 (a) Beginning on the effective date and prior to July 1, 
81947, 3 1/4%; and beginning on July 1, 1947 and prior to July 
91, 1953, 5%; and beginning July 1, 1953, and prior to January 
101, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each 
11payment of the salary of each present employee and future 
12entrant, except as provided in subsection (a-5) and (a-10), 
13shall be contributed to the fund as a deduction from salary for 
14age and service annuity.
15 (a-5) Except as provided in subsection (a-10), for an 
16employee who made the election under item (i) of subsection 
17(d-10) of Section 1-160: prior to the effective date of this 
18amendatory Act of the 100th General Assembly, 6.5%; and 
19beginning on the effective date of this amendatory Act of the 
20100th General Assembly and prior to January 1, 2018, 7.5%; and 
21beginning January 1, 2018 and prior to January 1, 2019, 8.5%; 
22and beginning January 1, 2019 and thereafter, employee 
23contributions for those employees who made the election under 
24item (i) of subsection (d-10) of Section 1-160 shall be the 
25lesser of: (i) the total normal cost, calculated using the 
 
 
HB5909- 574 -LRB103 43117 RPS 76377 b


1entry age normal actuarial method, projected for the prior 
2fiscal year for the benefits and expenses of the plan of 
3benefits applicable to those members and participants who 
4first became members or participants on or after the effective 
5date of this amendatory Act of the 100th General Assembly and 
6to those employees who made the election under item (i) of 
7subsection (d-10) of Section 1-160, but not less than 6.5% of 
8each payment of salary combined with the employee 
9contributions provided for in subsection (b) of Section 8-137 
10and Section 8-182 of this Article; or (ii) the aggregate 
11employee contribution consisting of 9.5% of each payment of 
12salary combined with the employee contributions provided for 
13in subsection (b) of Section 8-137 and 8-182 of this Article.
14 For the one-year period beginning with the first pay 
15period in January of each year after the date when the funded 
16ratio of the fund as determined in the annual actuarial 
17valuation is first determined to have reached the 90% funding 
18goal, and each subsequent one-year period thereafter for as 
19long as the fund maintains a funding ratio of 75% or more, 
20employee contributions for age and service annuity for those 
21employees who made the election under item (i) of subsection 
22(d-10) of Section 1-160 shall be 5.5% of each payment of 
23salary. If the funding ratio falls below 75%, then employee 
24contributions for age and service annuity for those employees 
25who made the election under item (i) of subsection (d-10) 
26shall revert to the lesser of: (A) the total normal cost, 
 
 
HB5909- 575 -LRB103 43117 RPS 76377 b


1calculated using the entry age normal actuarial method, 
2projected for the prior fiscal year for the benefits and 
3expenses of the plan of benefits applicable to those members 
4and participants who first became members or participants on 
5or after the effective date of this amendatory Act of the 100th 
6General Assembly and to those employees who made the election 
7under item (i) of subsection (d-10) of Section 1-160, but not 
8less than 6.5% of each payment of salary combined with the 
9employee contributions provided for in subsection (b) of 
10Section 8-137 and Section 8-182 of this Article; or (B) the 
11aggregate employee contribution consisting of 9.5% of each 
12payment of salary combined with the employee contributions 
13provided for in subsection (b) of Section 8-137 and 8-182 of 
14this Article. If the fund once again is determined to have 
15reached a funding ratio of 75%, the 5.5% of salary 
16contribution for age and service annuity shall resume. An 
17employee who made the election under item (ii) of subsection 
18(d-10) of Section 1-160 shall continue to have the 
19contributions for age and service annuity determined under 
20subsection (a) of this Section.
21 If contributions are reduced to less than the aggregate 
22employee contribution described in item (ii) or item (B) of 
23this subsection due to application of the normal cost 
24criterion, the employee contribution amount shall be 
25consistent for that fiscal year.
26 The normal cost, for the purposes of this subsection (a-5) 
 
 
HB5909- 576 -LRB103 43117 RPS 76377 b


1and subsection (a-10), shall be calculated by an independent 
2enrolled actuary mutually agreed upon by the fund and the 
3City. The fees and expenses of the independent actuary shall 
4be the responsibility of the City. For purposes of this 
5subsection (a-5), the fund and the City shall both be 
6considered to be the clients of the actuary, and the actuary 
7shall utilize participant data and actuarial standards to 
8calculate the normal cost. The fund shall provide information 
9that the actuary requests in order to calculate the applicable 
10normal cost.
11 (a-10) For each employee subject to subsection (c-5) of 
12Section 1-160, 9.5% of each payment of salary shall be 
13contributed to the fund as a deduction from salary for age and 
14service annuity. Beginning January 1, 2018 and each year 
15thereafter, employee contributions for each employee subject 
16to this subsection (a-10) shall be the lesser of: (i) the total 
17normal cost, calculated using the entry age normal actuarial 
18method, projected for the prior fiscal year for the benefits 
19and expenses of the plan of benefits applicable to those 
20members and participants who first become members or 
21participants on or after the effective date of this amendatory 
22Act of the 100th General Assembly and to those employees who 
23made the election under item (i) of subsection (d-10) of 
24Section 1-160, but not less than 6.5% of each payment of salary 
25combined with the employee contributions provided for in 
26subsection (b) of Section 8-137 and Section 8-182 of this 
 
 
HB5909- 577 -LRB103 43117 RPS 76377 b


1Article; or (ii) the aggregate employee contribution 
2consisting of 9.5% of each payment of salary combined with the 
3employee contributions provided for in subsection (b) of 
4Section 8-137 and Section 8-182 of this Article.
5 For the one-year period beginning with the first pay 
6period in January of each year after the date when the funded 
7ratio of the fund as determined in the annual actuarial 
8valuation is first determined to have reached the 90% funding 
9goal, and each subsequent one-year period thereafter for as 
10long as the fund maintains a funding ratio of 75% or more, 
11employee contributions for age and service annuity for each 
12employee subject to this subsection (a-10) shall be 5.5% of 
13each payment of salary. If the funding ratio falls below 75%, 
14then employee contributions for age and service annuity for 
15each employee subject to this subsection (a-10) shall revert 
16to the lesser of: (A) the total normal cost, calculated using 
17the entry age normal actuarial method, projected for the prior 
18fiscal year for the benefits and expenses of the plan of 
19benefits applicable to those members and participants who 
20first become members or participants on or after the effective 
21date of this amendatory Act of the 100th General Assembly and 
22to those employees who made the election under item (i) of 
23subsection (d-10) of Section 1-160, but not less than 6.5% of 
24each payment of salary combined with the employee 
25contributions provided for in subsection (b) of Section 8-137 
26and Section 8-182 of this Article; or (B) the aggregate 
 
 
HB5909- 578 -LRB103 43117 RPS 76377 b


1employee contribution consisting of 9.5% of each payment of 
2salary combined with the employee contributions provided for 
3in subsection (b) of Section 8-137 and Section 8-182 of this 
4Article. If the fund once again is determined to have reached a 
5funding ratio of 75%, the 5.5% of salary contribution for age 
6and service annuity shall resume.
7 If contributions are reduced to less than the aggregate 
8employee contribution described in item (ii) or item (B) of 
9this subsection (a-10) due to application of the normal cost 
10criterion, the employee contribution amount shall be 
11consistent for that fiscal year.
12 Such deductions beginning on the effective date and prior 
13to July 1, 1947 shall be made for a future entrant while he is 
14in the service until he attains age 65 and for a present 
15employee while he is in the service until the amount so 
16deducted from his salary with the amount deducted from his 
17salary or paid by him according to law to any municipal pension 
18fund in force on the effective date with interest on both such 
19amounts at 4% per annum equals the sum that would have been to 
20his credit from sums deducted from his salary if deductions at 
21the rate herein stated had been made during his entire service 
22until he attained age 65 with interest at 4% per annum for the 
23period subsequent to his attainment of age 65. Such deductions 
24beginning July 1, 1947 shall be made and continued for 
25employees while in the service.
26 (b) Concurrently with each employee contribution, the city 
 
 
HB5909- 579 -LRB103 43117 RPS 76377 b


1shall contribute beginning on the effective date and prior to 
2July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to 
3July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 
46, 2017, 6% of each payment of such salary until the employee 
5attains age 65. Beginning July 6, 2017, the Fund shall credit 
6sums equal to 6% of each payment of such salary for annuity 
7purposes. The amounts credited for annuity purposes shall not 
8be credited for refund purposes. 
9 (c) Each employee contribution made prior to the date the 
10age and service annuity for an employee is fixed and each 
11corresponding city contribution shall be credited to the 
12employee and allocated to the account of the employee for 
13whose benefit it is made.
14 (d) The changes made to this subsection by this amendatory 
15Act of the 103rd General Assembly do not entitle an employee to 
16any refund of contributions already made. However, the changes 
17made to this subsection by this amendatory Act of the 103rd 
18General Assembly are not intended to limit an employee's 
19entitlement to a refund under any other provision of this 
20Code. Notwithstanding Section 1-103.1, the changes to this 
21Section made by this amendatory Act of the 100th General 
22Assembly apply regardless of whether the employee was in 
23active service on or after the effective date of this 
24amendatory Act of the 100th General Assembly.
25(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.)

 
 
HB5909- 580 -LRB103 43117 RPS 76377 b


1 (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
2 Sec. 11-170. Contributions for age and service annuities 
3for present employees, future entrants and re-entrants. 
4 (a) Beginning on the effective date and prior to July 1, 
51947, 3 1/4%; and beginning on July 1, 1947 and prior to July 
61, 1953, 5%; and beginning July 1, 1953 and prior to January 1, 
71972, 6%; and beginning January 1, 1972, 6 1/2% of each payment 
8of the salary of each present employee, future entrant, and 
9re-entrant, except as provided in subsection (a-5) and (a-10), 
10shall be contributed to the fund as a deduction from salary for 
11age and service annuity.
12 (a-5) Except as provided in subsection (a-10), for an 
13employee who made the election under item (i) of subsection 
14(d-10) of Section 1-160: prior to the effective date of this 
15amendatory Act of the 100th General Assembly, 6.5%; and 
16beginning on the effective date of this amendatory Act of the 
17100th General Assembly and prior to January 1, 2018, 7.5%; and 
18beginning January 1, 2018 and prior to January 1, 2019, 8.5%; 
19and beginning January 1, 2019 and thereafter, employee 
20contributions for those employees who made the election under 
21item (i) of subsection (d-10) of Section 1-160 shall be the 
22lesser of: (i) the total normal cost, calculated using the 
23entry age normal actuarial method, projected for the prior 
24fiscal year for the benefits and expenses of the plan of 
25benefits applicable to those members and participants who 
26first became members or participants on or after the effective 
 
 
HB5909- 581 -LRB103 43117 RPS 76377 b


1date of this amendatory Act of the 100th General Assembly and 
2to those employees who made the election under item (i) of 
3subsection (d-10) of Section 1-160, but not less than 6.5% of 
4each payment of salary combined with the employee 
5contributions provided for in subsection (b) of Section 
611-134.1 and Section 11-174 of this Article; or (ii) the 
7aggregate employee contribution consisting of 9.5% of each 
8payment of salary combined with the employee contributions 
9provided for in subsection (b) of Section 11-134.1 and 11-174 
10of this Article.
11 For the one-year period beginning with the first pay 
12period in January of each year the date when the funded ratio 
13of the fund as determined in the annual actuarial valuation is 
14first determined to have reached the 90% funding goal, and 
15each subsequent one-year period thereafter for as long as the 
16fund maintains a funding ratio of 75% or more, employee 
17contributions for age and service annuity for those employees 
18who made the election under item (i) of subsection (d-10) of 
19Section 1-160 shall be 5.5% of each payment of salary. If the 
20funding ratio falls below 75%, then employee contributions for 
21age and service annuity for those employees who made the 
22election under item (i) of subsection (d-10) shall revert to 
23the lesser of: (A) the total normal cost, calculated using the 
24entry age normal actuarial method, projected for the prior 
25fiscal year for the benefits and expenses of the plan of 
26benefits applicable to those members and participants who 
 
 
HB5909- 582 -LRB103 43117 RPS 76377 b


1first became members or participants on or after the effective 
2date of this amendatory Act of the 100th General Assembly and 
3to those employees who made the election under item (i) of 
4subsection (d-10) of Section 1-160, but not less than 6.5% of 
5each payment of salary combined with the employee 
6contributions provided for in subsection (b) of Section 
711-134.1 and Section 11-174 of this Article; or (B) the 
8aggregate employee contribution consisting of 9.5% of each 
9payment of salary combined with the employee contributions 
10provided for in subsection (b) of Section 11-134.1 and 11-174 
11of this Article. If the fund once again is determined to have 
12reached a funding ratio of 75%, the 5.5% of salary 
13contribution for age and service annuity shall resume. An 
14employee who made the election under item (ii) of subsection 
15(d-10) of Section 1-160 shall continue to have the 
16contributions for age and service annuity determined under 
17subsection (a) of this Section.
18 If contributions are reduced to less than the aggregate 
19employee contribution described in item (ii) or item (B) of 
20this subsection due to application of the normal cost 
21criterion, the employee contribution amount shall be 
22consistent for that fiscal year. 
23 The normal cost, for the purposes of this subsection (a-5) 
24and subsection (a-10), shall be calculated by an independent 
25enrolled actuary mutually agreed upon by the fund and the 
26City. The fees and expenses of the independent actuary shall 
 
 
HB5909- 583 -LRB103 43117 RPS 76377 b


1be the responsibility of the City. For purposes of this 
2subsection (a-5), the fund and the City shall both be 
3considered to be the clients of the actuary, and the actuary 
4shall utilize participant data and actuarial standards to 
5calculate the normal cost. The fund shall provide information 
6that the actuary requests in order to calculate the applicable 
7normal cost.
8 (a-10) For each employee subject to subsection (c-5) of 
9Section 1-160, 9.5% of each payment of salary shall be 
10contributed to the fund as a deduction from salary for age and 
11service annuity. Beginning January 1, 2018 and each year 
12thereafter, employee contributions for each employee subject 
13to this subsection (a-10) shall be the lesser of: (i) the total 
14normal cost, calculated using the entry age normal actuarial 
15method, projected for the prior fiscal year for the benefits 
16and expenses of the plan of benefits applicable to those 
17members and participants who first become members or 
18participants on or after the effective date of this amendatory 
19Act of the 100th General Assembly and to those employees who 
20made the election under item (i) of subsection (d-10) of 
21Section 1-160, but not less than 6.5% of each payment of salary 
22combined with the employee contributions provided for in 
23subsection (b) of Section 11-134.1 and Section 11-174 of this 
24Article; or (ii) the aggregate employee contribution 
25consisting of 9.5% of each payment of salary combined with the 
26employee contributions provided for in subsection (b) of 
 
 
HB5909- 584 -LRB103 43117 RPS 76377 b


1Section 11-134.1 and Section 11-174 of this Article.
2 For the one-year period beginning with the first pay 
3period in January of each year after the date when the funded 
4ratio of the fund as determined in the annual actuarial 
5valuation is first determined to have reached the 90% funding 
6goal, and each subsequent one-year period thereafter for as 
7long as the fund maintains a funding ratio of 75% or more, 
8employee contributions for age and service annuity for each 
9employee subject to this subsection (a-10) shall be 5.5% of 
10each payment of salary. If the funding ratio falls below 75%, 
11then employee contributions for age and service annuity for 
12each employee subject to this subsection (a-10) shall revert 
13to the lesser of: (A) the total normal cost, calculated using 
14the entry age normal actuarial method, projected for the prior 
15fiscal year for the benefits and expenses of the plan of 
16benefits applicable to those members and participants who 
17first become members or participants on or after the effective 
18date of this amendatory Act of the 100th General Assembly and 
19to those employees who made the election under item (i) of 
20subsection (d-10) of Section 1-160, but not less than 6.5% of 
21each payment of salary combined with the employee 
22contributions provided for in subsection (b) of Section 
2311-134.1 and Section 11-174 of this Article; or (B) the 
24aggregate employee contribution consisting of 9.5% of each 
25payment of salary combined with the employee contributions 
26provided for in subsection (b) of Section 11-134.1 and Section 
 
 
HB5909- 585 -LRB103 43117 RPS 76377 b


111-174 of this Article. If the fund once again is determined to 
2have reached a funding ratio of 75%, the 5.5% of salary 
3contribution for age and service annuity shall resume.
4 If contributions are reduced to less than the aggregate 
5employee contribution described in item (ii) or item (B) of 
6this subsection (a-10) due to application of the normal cost 
7criterion, the employee contribution amount shall be 
8consistent for that fiscal year.
9 Such deductions beginning on the effective date and prior 
10to June 30, 1947, inclusive shall be made for a future entrant 
11while he is in service until he attains age 65, and for a 
12present employee while he is in service until the amount so 
13deducted from his salary with interest at the rate of 4% per 
14annum shall be equal to the sum which would have accumulated to 
15his credit from sums deducted from his salary if deductions at 
16the rate herein stated had been made during his entire service 
17until he attained age 65 with interest at 4% per annum for the 
18period subsequent to his attainment of age 65. Such deductions 
19beginning July 1, 1947 shall be made and continued for 
20employees while in the service.
21 (b) Concurrently with each employee contribution, the city 
22shall contribute beginning on the effective date and prior to 
23July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to 
24July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 
256, 2017, 6% of each payment of such salary until the employee 
26attains age 65. Beginning July 6, 2017, the Fund shall credit 
 
 
HB5909- 586 -LRB103 43117 RPS 76377 b


1sums equal to 6% of each payment of such salary for annuity 
2purposes. The amounts credited for annuity purposes shall not 
3be credited for refund purposes.
4 (c) Each employee contribution made prior to the date age 
5and service annuity for an employee is fixed and each 
6corresponding city contribution shall be allocated to the 
7account of and credited to the employee for whose benefit it is 
8made.
9 (d) The changes made to this subsection by this amendatory 
10Act of the 103rd General Assembly do not entitle an employee to 
11any refund of contributions already made. However, the changes 
12made to this subsection by this amendatory Act of the 103rd 
13General Assembly are not intended to limit an employee's 
14entitlement to a refund under any other provision of this 
15Code. Notwithstanding Section 1-103.1, the changes to this 
16Section made by this amendatory Act of the 100th General 
17Assembly apply regardless of whether the employee was in 
18active service on or after the effective date of this 
19amendatory Act.
20(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.)

21 (40 ILCS 5/12-150) (from Ch. 108 1/2, par. 12-150)
22 Sec. 12-150. Contributions by employees for service 
23annuity.  
24 (a) From each payment of salary to a present employee 
25beginning August 4, 1961, and prior to September 1, 1971, 
 
 
HB5909- 587 -LRB103 43117 RPS 76377 b


1there shall be deducted as contributions for service annuity 
26% of such payment. Beginning September 1, 1971, the deduction 
3shall be 6 1/2% of salary. These contributions shall continue 
4until the amounts thus deducted will provide an accumulation, 
5at regular interest, at least equal to the amount that would be 
6provided on such date from employee contributions, assuming 
7regular interest to such date, if such employee had been 
8contributing in accordance with the provisions of "The 1919 
9Act" and this Article from the beginning of his service and the 
10salary of the employee during his prior service was the same as 
11it was on July 1, 1919, or on July 1, 1937 in the case of an 
12employee of the board.
13 (b) From each payment of salary to a future entrant 
14beginning August 4, 1961, and prior to September 1, 1971, 
15there shall be deducted as contributions for service annuity 
166% of such payment. Beginning September 1, 1971, the deduction 
17shall be 6 1/2% of salary. Beginning January 1, 1990, the 
18deduction shall be 7% of salary, except that the deduction 
19shall be 9% of salary for a person who first becomes an 
20employee on or after January 1, 2022 or who makes the election 
21under item (i) of subsection (d-15) of Section 1-160.
22 The changes made to this subsection by this amendatory Act 
23of the 103rd General Assembly do not entitle an employee to any 
24refund of contributions already made. However, the changes 
25made to this subsection by this amendatory Act of the 103rd 
26General Assembly are not intended to limit an employee's 
 
 
HB5909- 588 -LRB103 43117 RPS 76377 b


1entitlement to a refund under any other provision of this 
2Code. 
3 (c) For service rendered prior to August 4, 1961, the 
4rates of contribution by employees for service annuity shall 
5be as follows: July 1, 1919 to July 20, 1947, inclusive, 4% of 
6salary; July 21, 1947 to August 3, 1961, inclusive, 5% of 
7salary.
8 For the period from July 1, 1919, to August 4, 1961 such 
9deductions for a present employee shall continue until such 
10date as the amounts deducted will provide an accumulation at 
11least equal to that which would be provided on such date, 
12assuming regular interest to such date, from deductions from 
13salary of such employee if such employee had been under the 
14provisions of "The 1919 Act" and this Article from the 
15beginning of his service and the salary of such employee 
16during his period of prior service was the same as it was on 
17July 1, 1919 or on July 1, 1937 in the case of an employee of 
18the board.
19 (d) Any employee shall have the option to contribute for 
20service annuity an amount, together with regular interest, 
21equal to the difference between the amount he had accumulated 
22in the fund on June 30, 1947, from contributions at the rate of 
234% of salary, together with regular interest, and the amount 
24he would have accumulated, together with regular interest, if 
25he had made contributions at the rate of 5% of salary. All such 
26contributions shall be subject to salary limitations and other 
 
 
HB5909- 589 -LRB103 43117 RPS 76377 b


1conditions in effect prior to July 1, 1947. Upon making such 
2contribution the employer of such employee shall contribute in 
3the ratio of 2 to 1 with such employee.
4(Source: P.A. 102-263, eff. 8-6-21.)

5
Article 12. 


6 Section 12-5. The Illinois Pension Code is amended by 
7changing Section 15-113.4 as follows:

8 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
9 (Text of Section WITHOUT the changes made by P.A. 98-599, 
10which has been held unconstitutional)
11 Sec. 15-113.4. Service for unused sick leave. "Service for 
12unused sick leave": A participant who is an employee under 
13this System or one of the other systems subject to Article 20 
14of this Code within 60 days immediately preceding the date on 
15which his or her retirement annuity begins, is entitled to 
16credit for service for that portion of unused sick leave 
17earned in the course of employment with an employer and 
18credited on the date of termination of employment by an 
19employer for which payment is not received, in accordance with 
20the following schedule: 30 through 90 full calendar days and 
2120 through 59 full work days of unused sick leave, 1/4 of a 
22year of service; 91 through 180 full calendar days and 60 
23through 119 full work days, 1/2 of a year of service; 181 
 
 
HB5909- 590 -LRB103 43117 RPS 76377 b


1through 270 full calendar days and 120 through 179 full work 
2days, 3/4 of a year of service; 271 through 360 full calendar 
3days and 180 through 240 full work days, one year of service. 
4Notwithstanding any other law to the contrary, a participant 
5is entitled to a maximum of 2 years of service credit for that 
6portion of unused sick leave earned in the course of 
7employment with an employer and credited on the date of 
8termination of employment by an employer for which payment is 
9not received. Only uncompensated, unused sick leave earned in 
10accordance with an employer's sick leave accrual policy 
11generally applicable to employees or a class of employees 
12shall be taken into account in calculating service credit 
13under this Section. Any uncompensated, unused sick leave 
14granted by an employer to facilitate the hiring, retirement, 
15termination, or other special circumstances of an employee 
16shall not be taken into account in calculating service credit 
17under this Section. If a participant transfers from one 
18employer to another, the unused sick leave credited by the 
19previous employer shall be considered in determining service 
20to be credited under this Section, even if the participant 
21terminated service prior to the effective date of P.A. 86-272 
22(August 23, 1989); if necessary, the retirement annuity shall 
23be recalculated to reflect such sick leave credit. Each 
24employer shall certify to the board the number of days of 
25unused sick leave accrued to the participant's credit on the 
26date that the participant's status as an employee terminated. 
 
 
HB5909- 591 -LRB103 43117 RPS 76377 b


1This period of unused sick leave shall not be considered in 
2determining the date the retirement annuity begins.
3(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

4
Article 13. 


5 Section 13-5. The Illinois Pension Code is amended by 
6changing Sections 15-155 and 16-158 as follows:

7 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
8 Sec. 15-155. Employer contributions. 
9 (a) The State of Illinois shall make contributions by 
10appropriations of amounts which, together with the other 
11employer contributions from trust, federal, and other funds, 
12employee contributions, income from investments, and other 
13income of this System, will be sufficient to meet the cost of 
14maintaining and administering the System on a 90% funded basis 
15in accordance with actuarial recommendations.
16 The Board shall determine the amount of State 
17contributions required for each fiscal year on the basis of 
18the actuarial tables and other assumptions adopted by the 
19Board and the recommendations of the actuary, using the 
20formula in subsection (a-1).
21 (a-1) For State fiscal years 2012 through 2045, the 
22minimum contribution to the System to be made by the State for 
23each fiscal year shall be an amount determined by the System to 
 
 
HB5909- 592 -LRB103 43117 RPS 76377 b


1be sufficient to bring the total assets of the System up to 90% 
2of the total actuarial liabilities of the System by the end of 
3State fiscal year 2045. In making these determinations, the 
4required State contribution shall be calculated each year as a 
5level percentage of payroll over the years remaining to and 
6including fiscal year 2045 and shall be determined under the 
7projected unit credit actuarial cost method.
8 For each of State fiscal years 2018, 2019, and 2020, the 
9State shall make an additional contribution to the System 
10equal to 2% of the total payroll of each employee who is deemed 
11to have elected the benefits under Section 1-161 or who has 
12made the election under subsection (c) of Section 1-161. 
13 A change in an actuarial or investment assumption that 
14increases or decreases the required State contribution and 
15first applies in State fiscal year 2018 or thereafter shall be 
16implemented in equal annual amounts over a 5-year period 
17beginning in the State fiscal year in which the actuarial 
18change first applies to the required State contribution.
19 A change in an actuarial or investment assumption that 
20increases or decreases the required State contribution and 
21first applied to the State contribution in fiscal year 2014, 
222015, 2016, or 2017 shall be implemented:
23  (i) as already applied in State fiscal years before 
24 2018; and
25  (ii) in the portion of the 5-year period beginning in 
26 the State fiscal year in which the actuarial change first 
 
 
HB5909- 593 -LRB103 43117 RPS 76377 b


1 applied that occurs in State fiscal year 2018 or 
2 thereafter, by calculating the change in equal annual 
3 amounts over that 5-year period and then implementing it 
4 at the resulting annual rate in each of the remaining 
5 fiscal years in that 5-year period.
6 For State fiscal years 1996 through 2005, the State 
7contribution to the System, as a percentage of the applicable 
8employee payroll, shall be increased in equal annual 
9increments so that by State fiscal year 2011, the State is 
10contributing at the rate required under this Section.
11 Notwithstanding any other provision of this Article, the 
12total required State contribution for State fiscal year 2006 
13is $166,641,900. 
14 Notwithstanding any other provision of this Article, the 
15total required State contribution for State fiscal year 2007 
16is $252,064,100. 
17 For each of State fiscal years 2008 through 2009, the 
18State contribution to the System, as a percentage of the 
19applicable employee payroll, shall be increased in equal 
20annual increments from the required State contribution for 
21State fiscal year 2007, so that by State fiscal year 2011, the 
22State is contributing at the rate otherwise required under 
23this Section. 
24 Notwithstanding any other provision of this Article, the 
25total required State contribution for State fiscal year 2010 
26is $702,514,000 and shall be made from the State Pensions Fund 
 
 
HB5909- 594 -LRB103 43117 RPS 76377 b


1and proceeds of bonds sold in fiscal year 2010 pursuant to 
2Section 7.2 of the General Obligation Bond Act, less (i) the 
3pro rata share of bond sale expenses determined by the 
4System's share of total bond proceeds, (ii) any amounts 
5received from the General Revenue Fund in fiscal year 2010, 
6(iii) any reduction in bond proceeds due to the issuance of 
7discounted bonds, if applicable. 
8 Notwithstanding any other provision of this Article, the 
9total required State contribution for State fiscal year 2011 
10is the amount recertified by the System on or before April 1, 
112011 pursuant to Section 15-165 and shall be made from the 
12State Pensions Fund and proceeds of bonds sold in fiscal year 
132011 pursuant to Section 7.2 of the General Obligation Bond 
14Act, less (i) the pro rata share of bond sale expenses 
15determined by the System's share of total bond proceeds, (ii) 
16any amounts received from the General Revenue Fund in fiscal 
17year 2011, and (iii) any reduction in bond proceeds due to the 
18issuance of discounted bonds, if applicable. 
19 Beginning in State fiscal year 2046, the minimum State 
20contribution for each fiscal year shall be the amount needed 
21to maintain the total assets of the System at 90% of the total 
22actuarial liabilities of the System.
23 Amounts received by the System pursuant to Section 25 of 
24the Budget Stabilization Act or Section 8.12 of the State 
25Finance Act in any fiscal year do not reduce and do not 
26constitute payment of any portion of the minimum State 
 
 
HB5909- 595 -LRB103 43117 RPS 76377 b


1contribution required under this Article in that fiscal year. 
2Such amounts shall not reduce, and shall not be included in the 
3calculation of, the required State contributions under this 
4Article in any future year until the System has reached a 
5funding ratio of at least 90%. A reference in this Article to 
6the "required State contribution" or any substantially similar 
7term does not include or apply to any amounts payable to the 
8System under Section 25 of the Budget Stabilization Act.
9 Notwithstanding any other provision of this Section, the 
10required State contribution for State fiscal year 2005 and for 
11fiscal year 2008 and each fiscal year thereafter, as 
12calculated under this Section and certified under Section 
1315-165, shall not exceed an amount equal to (i) the amount of 
14the required State contribution that would have been 
15calculated under this Section for that fiscal year if the 
16System had not received any payments under subsection (d) of 
17Section 7.2 of the General Obligation Bond Act, minus (ii) the 
18portion of the State's total debt service payments for that 
19fiscal year on the bonds issued in fiscal year 2003 for the 
20purposes of that Section 7.2, as determined and certified by 
21the Comptroller, that is the same as the System's portion of 
22the total moneys distributed under subsection (d) of Section 
237.2 of the General Obligation Bond Act. In determining this 
24maximum for State fiscal years 2008 through 2010, however, the 
25amount referred to in item (i) shall be increased, as a 
26percentage of the applicable employee payroll, in equal 
 
 
HB5909- 596 -LRB103 43117 RPS 76377 b


1increments calculated from the sum of the required State 
2contribution for State fiscal year 2007 plus the applicable 
3portion of the State's total debt service payments for fiscal 
4year 2007 on the bonds issued in fiscal year 2003 for the 
5purposes of Section 7.2 of the General Obligation Bond Act, so 
6that, by State fiscal year 2011, the State is contributing at 
7the rate otherwise required under this Section.
8 (a-2) Beginning in fiscal year 2018, each employer under 
9this Article shall pay to the System a required contribution 
10determined as a percentage of projected payroll and sufficient 
11to produce an annual amount equal to:
12  (i) for each of fiscal years 2018, 2019, and 2020, the 
13 defined benefit normal cost of the defined benefit plan, 
14 less the employee contribution, for each employee of that 
15 employer who has elected or who is deemed to have elected 
16 the benefits under Section 1-161 or who has made the 
17 election under subsection (c) of Section 1-161; for fiscal 
18 year 2021 and each fiscal year thereafter, the defined 
19 benefit normal cost of the defined benefit plan, less the 
20 employee contribution, plus 2%, for each employee of that 
21 employer who has elected or who is deemed to have elected 
22 the benefits under Section 1-161 or who has made the 
23 election under subsection (c) of Section 1-161; plus
24  (ii) the amount required for that fiscal year to 
25 amortize any unfunded actuarial accrued liability 
26 associated with the present value of liabilities 
 
 
HB5909- 597 -LRB103 43117 RPS 76377 b


1 attributable to the employer's account under Section 
2 15-155.2, determined as a level percentage of payroll over 
3 a 30-year rolling amortization period.
4 In determining contributions required under item (i) of 
5this subsection, the System shall determine an aggregate rate 
6for all employers, expressed as a percentage of projected 
7payroll. 
8 In determining the contributions required under item (ii) 
9of this subsection, the amount shall be computed by the System 
10on the basis of the actuarial assumptions and tables used in 
11the most recent actuarial valuation of the System that is 
12available at the time of the computation. 
13 The contributions required under this subsection (a-2) 
14shall be paid by an employer concurrently with that employer's 
15payroll payment period. The State, as the actual employer of 
16an employee, shall make the required contributions under this 
17subsection. 
18 As used in this subsection, "academic year" means the 
1912-month period beginning September 1. 
20 (b) If an employee is paid from trust or federal funds, the 
21employer shall pay to the Board contributions from those funds 
22which are sufficient to cover the accruing normal costs on 
23behalf of the employee. However, universities having employees 
24who are compensated out of local auxiliary funds, income 
25funds, or service enterprise funds are not required to pay 
26such contributions on behalf of those employees. The local 
 
 
HB5909- 598 -LRB103 43117 RPS 76377 b


1auxiliary funds, income funds, and service enterprise funds of 
2universities shall not be considered trust funds for the 
3purpose of this Article, but funds of alumni associations, 
4foundations, and athletic associations which are affiliated 
5with the universities included as employers under this Article 
6and other employers which do not receive State appropriations 
7are considered to be trust funds for the purpose of this 
8Article.
9 (b-1) The City of Urbana and the City of Champaign shall 
10each make employer contributions to this System for their 
11respective firefighter employees who participate in this 
12System pursuant to subsection (h) of Section 15-107. The rate 
13of contributions to be made by those municipalities shall be 
14determined annually by the Board on the basis of the actuarial 
15assumptions adopted by the Board and the recommendations of 
16the actuary, and shall be expressed as a percentage of salary 
17for each such employee. The Board shall certify the rate to the 
18affected municipalities as soon as may be practical. The 
19employer contributions required under this subsection shall be 
20remitted by the municipality to the System at the same time and 
21in the same manner as employee contributions.
22 (c) Through State fiscal year 1995: The total employer 
23contribution shall be apportioned among the various funds of 
24the State and other employers, whether trust, federal, or 
25other funds, in accordance with actuarial procedures approved 
26by the Board. State of Illinois contributions for employers 
 
 
HB5909- 599 -LRB103 43117 RPS 76377 b


1receiving State appropriations for personal services shall be 
2payable from appropriations made to the employers or to the 
3System. The contributions for Class I community colleges 
4covering earnings other than those paid from trust and federal 
5funds, shall be payable solely from appropriations to the 
6Illinois Community College Board or the System for employer 
7contributions.
8 (d) Beginning in State fiscal year 1996, the required 
9State contributions to the System shall be appropriated 
10directly to the System and shall be payable through vouchers 
11issued in accordance with subsection (c) of Section 15-165, 
12except as provided in subsection (g).
13 (e) The State Comptroller shall draw warrants payable to 
14the System upon proper certification by the System or by the 
15employer in accordance with the appropriation laws and this 
16Code.
17 (f) Normal costs under this Section means liability for 
18pensions and other benefits which accrues to the System 
19because of the credits earned for service rendered by the 
20participants during the fiscal year and expenses of 
21administering the System, but shall not include the principal 
22of or any redemption premium or interest on any bonds issued by 
23the Board or any expenses incurred or deposits required in 
24connection therewith.
25 (g) If the amount of a participant's earnings for any 
26academic year used to determine the final rate of earnings, 
 
 
HB5909- 600 -LRB103 43117 RPS 76377 b


1determined on a full-time equivalent basis, exceeds the amount 
2of his or her earnings with the same employer for the previous 
3academic year, determined on a full-time equivalent basis, by 
4more than 6%, the participant's employer shall pay to the 
5System, in addition to all other payments required under this 
6Section and in accordance with guidelines established by the 
7System, the present value of the increase in benefits 
8resulting from the portion of the increase in earnings that is 
9in excess of 6%. This present value shall be computed by the 
10System on the basis of the actuarial assumptions and tables 
11used in the most recent actuarial valuation of the System that 
12is available at the time of the computation. The System may 
13require the employer to provide any pertinent information or 
14documentation.
15 Whenever it determines that a payment is or may be 
16required under this subsection (g), the System shall calculate 
17the amount of the payment and bill the employer for that 
18amount. The bill shall specify the calculations used to 
19determine the amount due. If the employer disputes the amount 
20of the bill, it may, within 30 days after receipt of the bill, 
21apply to the System in writing for a recalculation. The 
22application must specify in detail the grounds of the dispute 
23and, if the employer asserts that the calculation is subject 
24to subsection (h), (h-5), or (i) of this Section, must include 
25an affidavit setting forth and attesting to all facts within 
26the employer's knowledge that are pertinent to the 
 
 
HB5909- 601 -LRB103 43117 RPS 76377 b


1applicability of that subsection. Upon receiving a timely 
2application for recalculation, the System shall review the 
3application and, if appropriate, recalculate the amount due. 
4 The employer contributions required under this subsection 
5(g) may be paid in the form of a lump sum within 90 days after 
6receipt of the bill. If the employer contributions are not 
7paid within 90 days after receipt of the bill, then interest 
8will be charged at a rate equal to the System's annual 
9actuarially assumed rate of return on investment compounded 
10annually from the 91st day after receipt of the bill. Payments 
11must be concluded within 3 years after the employer's receipt 
12of the bill.
13 When assessing payment for any amount due under this 
14subsection (g), the System shall include earnings, to the 
15extent not established by a participant under Section 
1615-113.11 or 15-113.12, that would have been paid to the 
17participant had the participant not taken (i) periods of 
18voluntary or involuntary furlough occurring on or after July 
191, 2015 and on or before June 30, 2017 or (ii) periods of 
20voluntary pay reduction in lieu of furlough occurring on or 
21after July 1, 2015 and on or before June 30, 2017. Determining 
22earnings that would have been paid to a participant had the 
23participant not taken periods of voluntary or involuntary 
24furlough or periods of voluntary pay reduction shall be the 
25responsibility of the employer, and shall be reported in a 
26manner prescribed by the System.
 
 
HB5909- 602 -LRB103 43117 RPS 76377 b


1 This subsection (g) does not apply to (1) Tier 2 hybrid 
2plan members and (2) Tier 2 defined benefit members who first 
3participate under this Article on or after the implementation 
4date of the Optional Hybrid Plan. 
5 (g-1) (Blank).
6 (h) This subsection (h) applies only to payments made or 
7salary increases given on or after June 1, 2005 but before July 
81, 2011. The changes made by Public Act 94-1057 shall not 
9require the System to refund any payments received before July 
1031, 2006 (the effective date of Public Act 94-1057).
11 When assessing payment for any amount due under subsection 
12(g), the System shall exclude earnings increases paid to 
13participants under contracts or collective bargaining 
14agreements entered into, amended, or renewed before June 1, 
152005. 
16 When assessing payment for any amount due under subsection 
17(g), the System shall exclude earnings increases paid to a 
18participant at a time when the participant is 10 or more years 
19from retirement eligibility under Section 15-135. 
20 When assessing payment for any amount due under subsection 
21(g), the System shall exclude earnings increases resulting 
22from overload work, including a contract for summer teaching, 
23or overtime when the employer has certified to the System, and 
24the System has approved the certification, that: (i) in the 
25case of overloads (A) the overload work is for the sole purpose 
26of academic instruction in excess of the standard number of 
 
 
HB5909- 603 -LRB103 43117 RPS 76377 b


1instruction hours for a full-time employee occurring during 
2the academic year that the overload is paid and (B) the 
3earnings increases are equal to or less than the rate of pay 
4for academic instruction computed using the participant's 
5current salary rate and work schedule; and (ii) in the case of 
6overtime, the overtime was necessary for the educational 
7mission.
8 When assessing payment for any amount due under subsection 
9(g), the System shall exclude any earnings increase resulting 
10from (i) a promotion for which the employee moves from one 
11classification to a higher classification under the State 
12Universities Civil Service System, (ii) a promotion in 
13academic rank for a tenured or tenure-track faculty position, 
14or (iii) a promotion that the Illinois Community College Board 
15has recommended in accordance with subsection (k) of this 
16Section. These earnings increases shall be excluded only if 
17the promotion is to a position that has existed and been filled 
18by a member for no less than one complete academic year and the 
19earnings increase as a result of the promotion is an increase 
20that results in an amount no greater than the average salary 
21paid for other similar positions.
22 (h-5) When assessing payment for any amount due under 
23subsection (g), the System shall exclude any earnings increase 
24paid in an academic year beginning on or after July 1, 2020 
25resulting from overload work performed in an academic year 
26subsequent to an academic year in which the employer was 
 
 
HB5909- 604 -LRB103 43117 RPS 76377 b


1unable to offer or allow to be conducted overload work due to 
2an emergency declaration limiting such activities. 
3 (i) (Blank). When assessing payment for any amount due 
4under subsection (g), the System shall exclude any salary 
5increase described in subsection (h) of this Section given on 
6or after July 1, 2011 but before July 1, 2014 under a contract 
7or collective bargaining agreement entered into, amended, or 
8renewed on or after June 1, 2005 but before July 1, 2011. 
9Except as provided in subsection (h-5), any payments made or 
10salary increases given after June 30, 2014 shall be used in 
11assessing payment for any amount due under subsection (g) of 
12this Section. 
13 (j) The System shall prepare a report and file copies of 
14the report with the Governor and the General Assembly by 
15January 1, 2007 that contains all of the following 
16information:
17  (1) The number of recalculations required by the 
18 changes made to this Section by Public Act 94-1057 for 
19 each employer.
20  (2) The dollar amount by which each employer's 
21 contribution to the System was changed due to 
22 recalculations required by Public Act 94-1057.
23  (3) The total amount the System received from each 
24 employer as a result of the changes made to this Section by 
25 Public Act 94-4.
26  (4) The increase in the required State contribution 
 
 
HB5909- 605 -LRB103 43117 RPS 76377 b


1 resulting from the changes made to this Section by Public 
2 Act 94-1057.
3 (j-5) For State fiscal years beginning on or after July 1, 
42017, if the amount of a participant's earnings for any State 
5fiscal year exceeds the amount of the salary set by law for the 
6Governor that is in effect on July 1 of that fiscal year, the 
7participant's employer shall pay to the System, in addition to 
8all other payments required under this Section and in 
9accordance with guidelines established by the System, an 
10amount determined by the System to be equal to the employer 
11normal cost, as established by the System and expressed as a 
12total percentage of payroll, multiplied by the amount of 
13earnings in excess of the amount of the salary set by law for 
14the Governor. This amount shall be computed by the System on 
15the basis of the actuarial assumptions and tables used in the 
16most recent actuarial valuation of the System that is 
17available at the time of the computation. The System may 
18require the employer to provide any pertinent information or 
19documentation.
20 Whenever it determines that a payment is or may be 
21required under this subsection, the System shall calculate the 
22amount of the payment and bill the employer for that amount. 
23The bill shall specify the calculation used to determine the 
24amount due. If the employer disputes the amount of the bill, it 
25may, within 30 days after receipt of the bill, apply to the 
26System in writing for a recalculation. The application must 
 
 
HB5909- 606 -LRB103 43117 RPS 76377 b


1specify in detail the grounds of the dispute. Upon receiving a 
2timely application for recalculation, the System shall review 
3the application and, if appropriate, recalculate the amount 
4due. 
5 The employer contributions required under this subsection 
6may be paid in the form of a lump sum within 90 days after 
7issuance of the bill. If the employer contributions are not 
8paid within 90 days after issuance of the bill, then interest 
9will be charged at a rate equal to the System's annual 
10actuarially assumed rate of return on investment compounded 
11annually from the 91st day after issuance of the bill. All 
12payments must be received within 3 years after issuance of the 
13bill. If the employer fails to make complete payment, 
14including applicable interest, within 3 years, then the System 
15may, after giving notice to the employer, certify the 
16delinquent amount to the State Comptroller, and the 
17Comptroller shall thereupon deduct the certified delinquent 
18amount from State funds payable to the employer and pay them 
19instead to the System. 
20 This subsection (j-5) does not apply to a participant's 
21earnings to the extent an employer pays the employer normal 
22cost of such earnings. 
23 The changes made to this subsection (j-5) by Public Act 
24100-624 are intended to apply retroactively to July 6, 2017 
25(the effective date of Public Act 100-23). 
26 (k) The Illinois Community College Board shall adopt rules 
 
 
HB5909- 607 -LRB103 43117 RPS 76377 b


1for recommending lists of promotional positions submitted to 
2the Board by community colleges and for reviewing the 
3promotional lists on an annual basis. When recommending 
4promotional lists, the Board shall consider the similarity of 
5the positions submitted to those positions recognized for 
6State universities by the State Universities Civil Service 
7System. The Illinois Community College Board shall file a copy 
8of its findings with the System. The System shall consider the 
9findings of the Illinois Community College Board when making 
10determinations under this Section. The System shall not 
11exclude any earnings increases resulting from a promotion when 
12the promotion was not submitted by a community college. 
13Nothing in this subsection (k) shall require any community 
14college to submit any information to the Community College 
15Board. 
16 (l) For purposes of determining the required State 
17contribution to the System, the value of the System's assets 
18shall be equal to the actuarial value of the System's assets, 
19which shall be calculated as follows:
20 As of June 30, 2008, the actuarial value of the System's 
21assets shall be equal to the market value of the assets as of 
22that date. In determining the actuarial value of the System's 
23assets for fiscal years after June 30, 2008, any actuarial 
24gains or losses from investment return incurred in a fiscal 
25year shall be recognized in equal annual amounts over the 
265-year period following that fiscal year. 
 
 
HB5909- 608 -LRB103 43117 RPS 76377 b


1 (m) For purposes of determining the required State 
2contribution to the system for a particular year, the 
3actuarial value of assets shall be assumed to earn a rate of 
4return equal to the system's actuarially assumed rate of 
5return. 
6(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
7102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 
85-13-22.)

9 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
10 Sec. 16-158. Contributions by State and other employing 
11units. 
12 (a) The State shall make contributions to the System by 
13means of appropriations from the Common School Fund and other 
14State funds of amounts which, together with other employer 
15contributions, employee contributions, investment income, and 
16other income, will be sufficient to meet the cost of 
17maintaining and administering the System on a 90% funded basis 
18in accordance with actuarial recommendations.
19 The Board shall determine the amount of State 
20contributions required for each fiscal year on the basis of 
21the actuarial tables and other assumptions adopted by the 
22Board and the recommendations of the actuary, using the 
23formula in subsection (b-3).
24 (a-1) Annually, on or before November 15 until November 
2515, 2011, the Board shall certify to the Governor the amount of 
 
 
HB5909- 609 -LRB103 43117 RPS 76377 b


1the required State contribution for the coming fiscal year. 
2The certification under this subsection (a-1) shall include a 
3copy of the actuarial recommendations upon which it is based 
4and shall specifically identify the System's projected State 
5normal cost for that fiscal year.
6 On or before May 1, 2004, the Board shall recalculate and 
7recertify to the Governor the amount of the required State 
8contribution to the System for State fiscal year 2005, taking 
9into account the amounts appropriated to and received by the 
10System under subsection (d) of Section 7.2 of the General 
11Obligation Bond Act.
12 On or before July 1, 2005, the Board shall recalculate and 
13recertify to the Governor the amount of the required State 
14contribution to the System for State fiscal year 2006, taking 
15into account the changes in required State contributions made 
16by Public Act 94-4. 
17 On or before April 1, 2011, the Board shall recalculate 
18and recertify to the Governor the amount of the required State 
19contribution to the System for State fiscal year 2011, 
20applying the changes made by Public Act 96-889 to the System's 
21assets and liabilities as of June 30, 2009 as though Public Act 
2296-889 was approved on that date. 
23 (a-5) On or before November 1 of each year, beginning 
24November 1, 2012, the Board shall submit to the State Actuary, 
25the Governor, and the General Assembly a proposed 
26certification of the amount of the required State contribution 
 
 
HB5909- 610 -LRB103 43117 RPS 76377 b


1to the System for the next fiscal year, along with all of the 
2actuarial assumptions, calculations, and data upon which that 
3proposed certification is based. On or before January 1 of 
4each year, beginning January 1, 2013, the State Actuary shall 
5issue a preliminary report concerning the proposed 
6certification and identifying, if necessary, recommended 
7changes in actuarial assumptions that the Board must consider 
8before finalizing its certification of the required State 
9contributions. On or before January 15, 2013 and each January 
1015 thereafter, the Board shall certify to the Governor and the 
11General Assembly the amount of the required State contribution 
12for the next fiscal year. The Board's certification must note 
13any deviations from the State Actuary's recommended changes, 
14the reason or reasons for not following the State Actuary's 
15recommended changes, and the fiscal impact of not following 
16the State Actuary's recommended changes on the required State 
17contribution. 
18 (a-10) By November 1, 2017, the Board shall recalculate 
19and recertify to the State Actuary, the Governor, and the 
20General Assembly the amount of the State contribution to the 
21System for State fiscal year 2018, taking into account the 
22changes in required State contributions made by Public Act 
23100-23. The State Actuary shall review the assumptions and 
24valuations underlying the Board's revised certification and 
25issue a preliminary report concerning the proposed 
26recertification and identifying, if necessary, recommended 
 
 
HB5909- 611 -LRB103 43117 RPS 76377 b


1changes in actuarial assumptions that the Board must consider 
2before finalizing its certification of the required State 
3contributions. The Board's final certification must note any 
4deviations from the State Actuary's recommended changes, the 
5reason or reasons for not following the State Actuary's 
6recommended changes, and the fiscal impact of not following 
7the State Actuary's recommended changes on the required State 
8contribution. 
9 (a-15) On or after June 15, 2019, but no later than June 
1030, 2019, the Board shall recalculate and recertify to the 
11Governor and the General Assembly the amount of the State 
12contribution to the System for State fiscal year 2019, taking 
13into account the changes in required State contributions made 
14by Public Act 100-587. The recalculation shall be made using 
15assumptions adopted by the Board for the original fiscal year 
162019 certification. The monthly voucher for the 12th month of 
17fiscal year 2019 shall be paid by the Comptroller after the 
18recertification required pursuant to this subsection is 
19submitted to the Governor, Comptroller, and General Assembly. 
20The recertification submitted to the General Assembly shall be 
21filed with the Clerk of the House of Representatives and the 
22Secretary of the Senate in electronic form only, in the manner 
23that the Clerk and the Secretary shall direct. 
24 (b) Through State fiscal year 1995, the State 
25contributions shall be paid to the System in accordance with 
26Section 18-7 of the School Code.
 
 
HB5909- 612 -LRB103 43117 RPS 76377 b


1 (b-1) Unless otherwise directed by the Comptroller under 
2subsection (b-1.1), the Board shall submit vouchers for 
3payment of State contributions to the System for the 
4applicable month on the 15th day of each month, or as soon 
5thereafter as may be practicable. The amount vouchered for a 
6monthly payment shall total one-twelfth of the required annual 
7State contribution certified under subsection (a-1). 
8 (b-1.1) Beginning in State fiscal year 2025, if the 
9Comptroller requests that the Board submit, during a State 
10fiscal year, vouchers for multiple monthly payments for the 
11advance payment of State contributions due to the System for 
12that State fiscal year, then the Board shall submit those 
13additional vouchers as directed by the Comptroller, 
14notwithstanding subsection (b-1). Unless an act of 
15appropriations provides otherwise, nothing in this Section 
16authorizes the Board to submit, in a State fiscal year, 
17vouchers for the payment of State contributions to the System 
18in an amount that exceeds the rate of payroll that is certified 
19by the System under this Section for that State fiscal year. 
20 (b-1.2) The vouchers described in subsections (b-1) and 
21(b-1.1) shall be paid by the State Comptroller and Treasurer 
22by warrants drawn on the funds appropriated to the System for 
23that fiscal year.
24 If in any month the amount remaining unexpended from all 
25other appropriations to the System for the applicable fiscal 
26year (including the appropriations to the System under Section 
 
 
HB5909- 613 -LRB103 43117 RPS 76377 b


18.12 of the State Finance Act and Section 1 of the State 
2Pension Funds Continuing Appropriation Act) is less than the 
3amount lawfully vouchered under this subsection, the 
4difference shall be paid from the Common School Fund under the 
5continuing appropriation authority provided in Section 1.1 of 
6the State Pension Funds Continuing Appropriation Act.
7 (b-2) Allocations from the Common School Fund apportioned 
8to school districts not coming under this System shall not be 
9diminished or affected by the provisions of this Article.
10 (b-3) For State fiscal years 2012 through 2045, the 
11minimum contribution to the System to be made by the State for 
12each fiscal year shall be an amount determined by the System to 
13be sufficient to bring the total assets of the System up to 90% 
14of the total actuarial liabilities of the System by the end of 
15State fiscal year 2045. In making these determinations, the 
16required State contribution shall be calculated each year as a 
17level percentage of payroll over the years remaining to and 
18including fiscal year 2045 and shall be determined under the 
19projected unit credit actuarial cost method.
20 For each of State fiscal years 2018, 2019, and 2020, the 
21State shall make an additional contribution to the System 
22equal to 2% of the total payroll of each employee who is deemed 
23to have elected the benefits under Section 1-161 or who has 
24made the election under subsection (c) of Section 1-161. 
25 A change in an actuarial or investment assumption that 
26increases or decreases the required State contribution and 
 
 
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1first applies in State fiscal year 2018 or thereafter shall be 
2implemented in equal annual amounts over a 5-year period 
3beginning in the State fiscal year in which the actuarial 
4change first applies to the required State contribution.
5 A change in an actuarial or investment assumption that 
6increases or decreases the required State contribution and 
7first applied to the State contribution in fiscal year 2014, 
82015, 2016, or 2017 shall be implemented:
9  (i) as already applied in State fiscal years before 
10 2018; and
11  (ii) in the portion of the 5-year period beginning in 
12 the State fiscal year in which the actuarial change first 
13 applied that occurs in State fiscal year 2018 or 
14 thereafter, by calculating the change in equal annual 
15 amounts over that 5-year period and then implementing it 
16 at the resulting annual rate in each of the remaining 
17 fiscal years in that 5-year period.
18 For State fiscal years 1996 through 2005, the State 
19contribution to the System, as a percentage of the applicable 
20employee payroll, shall be increased in equal annual 
21increments so that by State fiscal year 2011, the State is 
22contributing at the rate required under this Section; except 
23that in the following specified State fiscal years, the State 
24contribution to the System shall not be less than the 
25following indicated percentages of the applicable employee 
26payroll, even if the indicated percentage will produce a State 
 
 
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1contribution in excess of the amount otherwise required under 
2this subsection and subsection (a), and notwithstanding any 
3contrary certification made under subsection (a-1) before May 
427, 1998 (the effective date of Public Act 90-582): 10.02% in 
5FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 
62002; 12.86% in FY 2003; and 13.56% in FY 2004.
7 Notwithstanding any other provision of this Article, the 
8total required State contribution for State fiscal year 2006 
9is $534,627,700. 
10 Notwithstanding any other provision of this Article, the 
11total required State contribution for State fiscal year 2007 
12is $738,014,500. 
13 For each of State fiscal years 2008 through 2009, the 
14State contribution to the System, as a percentage of the 
15applicable employee payroll, shall be increased in equal 
16annual increments from the required State contribution for 
17State fiscal year 2007, so that by State fiscal year 2011, the 
18State is contributing at the rate otherwise required under 
19this Section. 
20 Notwithstanding any other provision of this Article, the 
21total required State contribution for State fiscal year 2010 
22is $2,089,268,000 and shall be made from the proceeds of bonds 
23sold in fiscal year 2010 pursuant to Section 7.2 of the General 
24Obligation Bond Act, less (i) the pro rata share of bond sale 
25expenses determined by the System's share of total bond 
26proceeds, (ii) any amounts received from the Common School 
 
 
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1Fund in fiscal year 2010, and (iii) any reduction in bond 
2proceeds due to the issuance of discounted bonds, if 
3applicable. 
4 Notwithstanding any other provision of this Article, the 
5total required State contribution for State fiscal year 2011 
6is the amount recertified by the System on or before April 1, 
72011 pursuant to subsection (a-1) of this Section and shall be 
8made from the proceeds of bonds sold in fiscal year 2011 
9pursuant to Section 7.2 of the General Obligation Bond Act, 
10less (i) the pro rata share of bond sale expenses determined by 
11the System's share of total bond proceeds, (ii) any amounts 
12received from the Common School Fund in fiscal year 2011, and 
13(iii) any reduction in bond proceeds due to the issuance of 
14discounted bonds, if applicable. This amount shall include, in 
15addition to the amount certified by the System, an amount 
16necessary to meet employer contributions required by the State 
17as an employer under paragraph (e) of this Section, which may 
18also be used by the System for contributions required by 
19paragraph (a) of Section 16-127. 
20 Beginning in State fiscal year 2046, the minimum State 
21contribution for each fiscal year shall be the amount needed 
22to maintain the total assets of the System at 90% of the total 
23actuarial liabilities of the System.
24 Amounts received by the System pursuant to Section 25 of 
25the Budget Stabilization Act or Section 8.12 of the State 
26Finance Act in any fiscal year do not reduce and do not 
 
 
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1constitute payment of any portion of the minimum State 
2contribution required under this Article in that fiscal year. 
3Such amounts shall not reduce, and shall not be included in the 
4calculation of, the required State contributions under this 
5Article in any future year until the System has reached a 
6funding ratio of at least 90%. A reference in this Article to 
7the "required State contribution" or any substantially similar 
8term does not include or apply to any amounts payable to the 
9System under Section 25 of the Budget Stabilization Act.
10 Notwithstanding any other provision of this Section, the 
11required State contribution for State fiscal year 2005 and for 
12fiscal year 2008 and each fiscal year thereafter, as 
13calculated under this Section and certified under subsection 
14(a-1), shall not exceed an amount equal to (i) the amount of 
15the required State contribution that would have been 
16calculated under this Section for that fiscal year if the 
17System had not received any payments under subsection (d) of 
18Section 7.2 of the General Obligation Bond Act, minus (ii) the 
19portion of the State's total debt service payments for that 
20fiscal year on the bonds issued in fiscal year 2003 for the 
21purposes of that Section 7.2, as determined and certified by 
22the Comptroller, that is the same as the System's portion of 
23the total moneys distributed under subsection (d) of Section 
247.2 of the General Obligation Bond Act. In determining this 
25maximum for State fiscal years 2008 through 2010, however, the 
26amount referred to in item (i) shall be increased, as a 
 
 
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1percentage of the applicable employee payroll, in equal 
2increments calculated from the sum of the required State 
3contribution for State fiscal year 2007 plus the applicable 
4portion of the State's total debt service payments for fiscal 
5year 2007 on the bonds issued in fiscal year 2003 for the 
6purposes of Section 7.2 of the General Obligation Bond Act, so 
7that, by State fiscal year 2011, the State is contributing at 
8the rate otherwise required under this Section.
9 (b-4) Beginning in fiscal year 2018, each employer under 
10this Article shall pay to the System a required contribution 
11determined as a percentage of projected payroll and sufficient 
12to produce an annual amount equal to:
13  (i) for each of fiscal years 2018, 2019, and 2020, the 
14 defined benefit normal cost of the defined benefit plan, 
15 less the employee contribution, for each employee of that 
16 employer who has elected or who is deemed to have elected 
17 the benefits under Section 1-161 or who has made the 
18 election under subsection (b) of Section 1-161; for fiscal 
19 year 2021 and each fiscal year thereafter, the defined 
20 benefit normal cost of the defined benefit plan, less the 
21 employee contribution, plus 2%, for each employee of that 
22 employer who has elected or who is deemed to have elected 
23 the benefits under Section 1-161 or who has made the 
24 election under subsection (b) of Section 1-161; plus
25  (ii) the amount required for that fiscal year to 
26 amortize any unfunded actuarial accrued liability 
 
 
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1 associated with the present value of liabilities 
2 attributable to the employer's account under Section 
3 16-158.3, determined as a level percentage of payroll over 
4 a 30-year rolling amortization period.
5 In determining contributions required under item (i) of 
6this subsection, the System shall determine an aggregate rate 
7for all employers, expressed as a percentage of projected 
8payroll. 
9 In determining the contributions required under item (ii) 
10of this subsection, the amount shall be computed by the System 
11on the basis of the actuarial assumptions and tables used in 
12the most recent actuarial valuation of the System that is 
13available at the time of the computation. 
14 The contributions required under this subsection (b-4) 
15shall be paid by an employer concurrently with that employer's 
16payroll payment period. The State, as the actual employer of 
17an employee, shall make the required contributions under this 
18subsection. 
19 (c) Payment of the required State contributions and of all 
20pensions, retirement annuities, death benefits, refunds, and 
21other benefits granted under or assumed by this System, and 
22all expenses in connection with the administration and 
23operation thereof, are obligations of the State.
24 If members are paid from special trust or federal funds 
25which are administered by the employing unit, whether school 
26district or other unit, the employing unit shall pay to the 
 
 
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1System from such funds the full accruing retirement costs 
2based upon that service, which, beginning July 1, 2017, shall 
3be at a rate, expressed as a percentage of salary, equal to the 
4total employer's normal cost, expressed as a percentage of 
5payroll, as determined by the System. Employer contributions, 
6based on salary paid to members from federal funds, may be 
7forwarded by the distributing agency of the State of Illinois 
8to the System prior to allocation, in an amount determined in 
9accordance with guidelines established by such agency and the 
10System. Any contribution for fiscal year 2015 collected as a 
11result of the change made by Public Act 98-674 shall be 
12considered a State contribution under subsection (b-3) of this 
13Section. 
14 (d) Effective July 1, 1986, any employer of a teacher as 
15defined in paragraph (8) of Section 16-106 shall pay the 
16employer's normal cost of benefits based upon the teacher's 
17service, in addition to employee contributions, as determined 
18by the System. Such employer contributions shall be forwarded 
19monthly in accordance with guidelines established by the 
20System.
21 However, with respect to benefits granted under Section 
2216-133.4 or 16-133.5 to a teacher as defined in paragraph (8) 
23of Section 16-106, the employer's contribution shall be 12% 
24(rather than 20%) of the member's highest annual salary rate 
25for each year of creditable service granted, and the employer 
26shall also pay the required employee contribution on behalf of 
 
 
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1the teacher. For the purposes of Sections 16-133.4 and 
216-133.5, a teacher as defined in paragraph (8) of Section 
316-106 who is serving in that capacity while on leave of 
4absence from another employer under this Article shall not be 
5considered an employee of the employer from which the teacher 
6is on leave.
7 (e) Beginning July 1, 1998, every employer of a teacher 
8shall pay to the System an employer contribution computed as 
9follows:
10  (1) Beginning July 1, 1998 through June 30, 1999, the 
11 employer contribution shall be equal to 0.3% of each 
12 teacher's salary.
13  (2) Beginning July 1, 1999 and thereafter, the 
14 employer contribution shall be equal to 0.58% of each 
15 teacher's salary.
16The school district or other employing unit may pay these 
17employer contributions out of any source of funding available 
18for that purpose and shall forward the contributions to the 
19System on the schedule established for the payment of member 
20contributions.
21 These employer contributions are intended to offset a 
22portion of the cost to the System of the increases in 
23retirement benefits resulting from Public Act 90-582.
24 Each employer of teachers is entitled to a credit against 
25the contributions required under this subsection (e) with 
26respect to salaries paid to teachers for the period January 1, 
 
 
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12002 through June 30, 2003, equal to the amount paid by that 
2employer under subsection (a-5) of Section 6.6 of the State 
3Employees Group Insurance Act of 1971 with respect to salaries 
4paid to teachers for that period.
5 The additional 1% employee contribution required under 
6Section 16-152 by Public Act 90-582 is the responsibility of 
7the teacher and not the teacher's employer, unless the 
8employer agrees, through collective bargaining or otherwise, 
9to make the contribution on behalf of the teacher.
10 If an employer is required by a contract in effect on May 
111, 1998 between the employer and an employee organization to 
12pay, on behalf of all its full-time employees covered by this 
13Article, all mandatory employee contributions required under 
14this Article, then the employer shall be excused from paying 
15the employer contribution required under this subsection (e) 
16for the balance of the term of that contract. The employer and 
17the employee organization shall jointly certify to the System 
18the existence of the contractual requirement, in such form as 
19the System may prescribe. This exclusion shall cease upon the 
20termination, extension, or renewal of the contract at any time 
21after May 1, 1998.
22 (f) If the amount of a teacher's salary for any school year 
23used to determine final average salary exceeds the member's 
24annual full-time salary rate with the same employer for the 
25previous school year by more than 6%, the teacher's employer 
26shall pay to the System, in addition to all other payments 
 
 
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1required under this Section and in accordance with guidelines 
2established by the System, the present value of the increase 
3in benefits resulting from the portion of the increase in 
4salary that is in excess of 6%. This present value shall be 
5computed by the System on the basis of the actuarial 
6assumptions and tables used in the most recent actuarial 
7valuation of the System that is available at the time of the 
8computation. If a teacher's salary for the 2005-2006 school 
9year is used to determine final average salary under this 
10subsection (f), then the changes made to this subsection (f) 
11by Public Act 94-1057 shall apply in calculating whether the 
12increase in his or her salary is in excess of 6%. For the 
13purposes of this Section, change in employment under Section 
1410-21.12 of the School Code on or after June 1, 2005 shall 
15constitute a change in employer. The System may require the 
16employer to provide any pertinent information or 
17documentation. The changes made to this subsection (f) by 
18Public Act 94-1111 apply without regard to whether the teacher 
19was in service on or after its effective date. 
20 Whenever it determines that a payment is or may be 
21required under this subsection, the System shall calculate the 
22amount of the payment and bill the employer for that amount. 
23The bill shall specify the calculations used to determine the 
24amount due. If the employer disputes the amount of the bill, it 
25may, within 30 days after receipt of the bill, apply to the 
26System in writing for a recalculation. The application must 
 
 
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1specify in detail the grounds of the dispute and, if the 
2employer asserts that the calculation is subject to subsection 
3(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section, 
4must include an affidavit setting forth and attesting to all 
5facts within the employer's knowledge that are pertinent to 
6the applicability of that subsection. Upon receiving a timely 
7application for recalculation, the System shall review the 
8application and, if appropriate, recalculate the amount due.  
9 The employer contributions required under this subsection 
10(f) may be paid in the form of a lump sum within 90 days after 
11receipt of the bill. If the employer contributions are not 
12paid within 90 days after receipt of the bill, then interest 
13will be charged at a rate equal to the System's annual 
14actuarially assumed rate of return on investment compounded 
15annually from the 91st day after receipt of the bill. Payments 
16must be concluded within 3 years after the employer's receipt 
17of the bill. 
18 (f-1) (Blank).
19 (g) This subsection (g) applies only to payments made or 
20salary increases given on or after June 1, 2005 but before July 
211, 2011. The changes made by Public Act 94-1057 shall not 
22require the System to refund any payments received before July 
2331, 2006 (the effective date of Public Act 94-1057).
24 When assessing payment for any amount due under subsection 
25(f), the System shall exclude salary increases paid to 
26teachers under contracts or collective bargaining agreements 
 
 
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1entered into, amended, or renewed before June 1, 2005. 
2 When assessing payment for any amount due under subsection 
3(f), the System shall exclude salary increases paid to a 
4teacher at a time when the teacher is 10 or more years from 
5retirement eligibility under Section 16-132 or 16-133.2. 
6 When assessing payment for any amount due under subsection 
7(f), the System shall exclude salary increases resulting from 
8overload work, including summer school, when the school 
9district has certified to the System, and the System has 
10approved the certification, that (i) the overload work is for 
11the sole purpose of classroom instruction in excess of the 
12standard number of classes for a full-time teacher in a school 
13district during a school year and (ii) the salary increases 
14are equal to or less than the rate of pay for classroom 
15instruction computed on the teacher's current salary and work 
16schedule. 
17 When assessing payment for any amount due under subsection 
18(f), the System shall exclude a salary increase resulting from 
19a promotion (i) for which the employee is required to hold a 
20certificate or supervisory endorsement issued by the State 
21Teacher Certification Board that is a different certification 
22or supervisory endorsement than is required for the teacher's 
23previous position and (ii) to a position that has existed and 
24been filled by a member for no less than one complete academic 
25year and the salary increase from the promotion is an increase 
26that results in an amount no greater than the lesser of the 
 
 
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1average salary paid for other similar positions in the 
2district requiring the same certification or the amount 
3stipulated in the collective bargaining agreement for a 
4similar position requiring the same certification. 
5 When assessing payment for any amount due under subsection 
6(f), the System shall exclude any payment to the teacher from 
7the State of Illinois or the State Board of Education over 
8which the employer does not have discretion, notwithstanding 
9that the payment is included in the computation of final 
10average salary. 
11 (g-5) When assessing payment for any amount due under 
12subsection (f), the System shall exclude salary increases 
13resulting from overload or stipend work performed in a school 
14year subsequent to a school year in which the employer was 
15unable to offer or allow to be conducted overload or stipend 
16work due to an emergency declaration limiting such activities.
17 (g-10) When assessing payment for any amount due under 
18subsection (f), the System shall exclude salary increases 
19resulting from increased instructional time that exceeded the 
20instructional time required during the 2019-2020 school year 
21or any school year thereafter. 
22 (g-15) When assessing payment for any amount due under 
23subsection (f), the System shall exclude salary increases 
24resulting from teaching summer school on or after May 1, 2021 
25and before September 15, 2022. 
26 (g-20) When assessing payment for any amount due under 
 
 
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1subsection (f), the System shall exclude salary increases 
2necessary to bring a school board in compliance with Public 
3Act 101-443 or this amendatory Act of the 103rd General 
4Assembly. 
5 (h) (Blank). When assessing payment for any amount due 
6under subsection (f), the System shall exclude any salary 
7increase described in subsection (g) of this Section given on 
8or after July 1, 2011 but before July 1, 2014 under a contract 
9or collective bargaining agreement entered into, amended, or 
10renewed on or after June 1, 2005 but before July 1, 2011. 
11Notwithstanding any other provision of this Section, any 
12payments made or salary increases given after June 30, 2014 
13shall be used in assessing payment for any amount due under 
14subsection (f) of this Section. 
15 (i) The System shall prepare a report and file copies of 
16the report with the Governor and the General Assembly by 
17January 1, 2007 that contains all of the following 
18information:
19  (1) The number of recalculations required by the 
20 changes made to this Section by Public Act 94-1057 for 
21 each employer.
22  (2) The dollar amount by which each employer's 
23 contribution to the System was changed due to 
24 recalculations required by Public Act 94-1057.
25  (3) The total amount the System received from each 
26 employer as a result of the changes made to this Section by 
 
 
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1 Public Act 94-4.
2  (4) The increase in the required State contribution 
3 resulting from the changes made to this Section by Public 
4 Act 94-1057. 
5 (i-5) For school years beginning on or after July 1, 2017, 
6if the amount of a participant's salary for any school year 
7exceeds the amount of the salary set for the Governor, the 
8participant's employer shall pay to the System, in addition to 
9all other payments required under this Section and in 
10accordance with guidelines established by the System, an 
11amount determined by the System to be equal to the employer 
12normal cost, as established by the System and expressed as a 
13total percentage of payroll, multiplied by the amount of 
14salary in excess of the amount of the salary set for the 
15Governor. This amount shall be computed by the System on the 
16basis of the actuarial assumptions and tables used in the most 
17recent actuarial valuation of the System that is available at 
18the time of the computation. The System may require the 
19employer to provide any pertinent information or 
20documentation.
21 Whenever it determines that a payment is or may be 
22required under this subsection, the System shall calculate the 
23amount of the payment and bill the employer for that amount. 
24The bill shall specify the calculations used to determine the 
25amount due. If the employer disputes the amount of the bill, it 
26may, within 30 days after receipt of the bill, apply to the 
 
 
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1System in writing for a recalculation. The application must 
2specify in detail the grounds of the dispute. Upon receiving a 
3timely application for recalculation, the System shall review 
4the application and, if appropriate, recalculate the amount 
5due. 
6 The employer contributions required under this subsection 
7may be paid in the form of a lump sum within 90 days after 
8receipt of the bill. If the employer contributions are not 
9paid within 90 days after receipt of the bill, then interest 
10will be charged at a rate equal to the System's annual 
11actuarially assumed rate of return on investment compounded 
12annually from the 91st day after receipt of the bill. Payments 
13must be concluded within 3 years after the employer's receipt 
14of the bill. 
15 (j) For purposes of determining the required State 
16contribution to the System, the value of the System's assets 
17shall be equal to the actuarial value of the System's assets, 
18which shall be calculated as follows:
19 As of June 30, 2008, the actuarial value of the System's 
20assets shall be equal to the market value of the assets as of 
21that date. In determining the actuarial value of the System's 
22assets for fiscal years after June 30, 2008, any actuarial 
23gains or losses from investment return incurred in a fiscal 
24year shall be recognized in equal annual amounts over the 
255-year period following that fiscal year. 
26 (k) For purposes of determining the required State 
 
 
HB5909- 630 -LRB103 43117 RPS 76377 b


1contribution to the system for a particular year, the 
2actuarial value of assets shall be assumed to earn a rate of 
3return equal to the system's actuarially assumed rate of 
4return. 
5(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 
6102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff. 
78-11-23; 103-588, eff. 6-5-24.)

8
Article 14. 


9 Section 14-5. The Illinois Pension Code is amended by 
10changing Section 7-142.1 as follows:

11 (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
12 Sec. 7-142.1. Sheriff's law enforcement employees. 
13 (a) In lieu of the retirement annuity provided by 
14subparagraph 1 of paragraph (a) of Section 7-142: 
15 Any sheriff's law enforcement employee who has 20 or more 
16years of service in that capacity and who terminates service 
17prior to January 1, 1988 shall be entitled at his option to 
18receive a monthly retirement annuity for his service as a 
19sheriff's law enforcement employee computed by multiplying 2% 
20for each year of such service up to 10 years, 2 1/4% for each 
21year of such service above 10 years and up to 20 years, and 2 
221/2% for each year of such service above 20 years, by his 
23annual final rate of earnings and dividing by 12. 
 
 
HB5909- 631 -LRB103 43117 RPS 76377 b


1 Any sheriff's law enforcement employee who has 20 or more 
2years of service in that capacity and who terminates service 
3on or after January 1, 1988 and before July 1, 2004 shall be 
4entitled at his option to receive a monthly retirement annuity 
5for his service as a sheriff's law enforcement employee 
6computed by multiplying 2.5% for each year of such service up 
7to 20 years, 2% for each year of such service above 20 years 
8and up to 30 years, and 1% for each year of such service above 
930 years, by his annual final rate of earnings and dividing by 
1012. 
11 Any sheriff's law enforcement employee who has 20 or more 
12years of service in that capacity and who terminates service 
13on or after July 1, 2004 shall be entitled at his or her option 
14to receive a monthly retirement annuity for service as a 
15sheriff's law enforcement employee computed by multiplying 
162.5% for each year of such service by his annual final rate of 
17earnings and dividing by 12. 
18 If a sheriff's law enforcement employee has service in any 
19other capacity, his retirement annuity for service as a 
20sheriff's law enforcement employee may be computed under this 
21Section and the retirement annuity for his other service under 
22Section 7-142. 
23 In no case shall the total monthly retirement annuity for 
24persons who retire before July 1, 2004 exceed 75% of the 
25monthly final rate of earnings. In no case shall the total 
26monthly retirement annuity for persons who retire on or after 
 
 
HB5909- 632 -LRB103 43117 RPS 76377 b


1July 1, 2004 exceed 80% of the monthly final rate of earnings. 
2 (b) Whenever continued group insurance coverage is elected 
3in accordance with the provisions of Section 367h of the 
4Illinois Insurance Code, as now or hereafter amended, the 
5total monthly premium for such continued group insurance 
6coverage or such portion thereof as is not paid by the 
7municipality shall, upon request of the person electing such 
8continued group insurance coverage, be deducted from any 
9monthly pension benefit otherwise payable to such person 
10pursuant to this Section, to be remitted by the Fund to the 
11insurance company or other entity providing the group 
12insurance coverage. 
13 (c) A sheriff's law enforcement employee who began service 
14in that capacity prior to the effective date of this 
15amendatory Act of the 97th General Assembly and who has 
16service in any other capacity may convert up to 10 years of 
17that service into service as a sheriff's law enforcement 
18employee by paying to the Fund an amount equal to (1) the 
19additional employee contribution required under Section 
207-173.1, plus (2) the additional employer contribution 
21required under Section 7-172, plus (3) interest on items (1) 
22and (2) at the prescribed rate from the date of the service to 
23the date of payment. Application must be received by the Board 
24while the employee is an active participant in the Fund. 
25Payment must be received while the member is an active 
26participant, except that one payment will be permitted after 
 
 
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1termination of participation. 
2 (d) The changes to subsections (a) and (b) of this Section 
3made by this amendatory Act of the 94th General Assembly apply 
4only to persons in service on or after July 1, 2004. In the 
5case of such a person who begins to receive a retirement 
6annuity before the effective date of this amendatory Act of 
7the 94th General Assembly, the annuity shall be recalculated 
8prospectively to reflect those changes, with the resulting 
9increase beginning to accrue on the first annuity payment date 
10following the effective date of this amendatory Act. 
11 (e) Any elected county officer who was entitled to receive 
12a stipend from the State on or after July 1, 2009 and on or 
13before June 30, 2010 may establish earnings credit for the 
14amount of stipend not received, if the elected county official 
15applies in writing to the fund within 6 months after the 
16effective date of this amendatory Act of the 96th General 
17Assembly and pays to the fund an amount equal to (i) employee 
18contributions on the amount of stipend not received, (ii) 
19employer contributions determined by the Board equal to the 
20employer's normal cost of the benefit on the amount of stipend 
21not received, plus (iii) interest on items (i) and (ii) at the 
22actuarially assumed rate. 
23 (f) Notwithstanding any other provision of this Article, 
24the provisions of this subsection (f) apply to a person who 
25first becomes a sheriff's law enforcement employee under this 
26Article on or after January 1, 2011 and does not have any prior 
 
 
HB5909- 634 -LRB103 43117 RPS 76377 b


1service with any other pension fund or retirement system 
2established under this Code.
3 A sheriff's law enforcement employee age 55 or more who 
4has 10 or more years of service in that capacity shall be 
5entitled at his option to receive a monthly retirement annuity 
6for his or her service as a sheriff's law enforcement employee 
7computed by multiplying 2.5% for each year of such service by 
8his or her final rate of earnings.
9 The retirement annuity of a sheriff's law enforcement 
10employee who is retiring after attaining age 50 with 10 or more 
11years of creditable service shall be reduced by one-half of 1% 
12for each month that the sheriff's law enforcement employee's 
13age is under age 55.
14 The maximum retirement annuity under this subsection (f) 
15shall be 75% of final rate of earnings.
16 For the purposes of this subsection (f), "final rate of 
17earnings" means the average monthly earnings obtained by 
18dividing the total salary of the sheriff's law enforcement 
19employee during the 96 consecutive months of service within 
20the last 120 months of service in which the total earnings was 
21the highest by the number of months of service in that period. 
22 Notwithstanding any other provision of this Article, 
23beginning on January 1, 2011, for all purposes under this Code 
24(including without limitation the calculation of benefits and 
25employee contributions), the annual earnings of a sheriff's 
26law enforcement employee to whom this Section applies shall 
 
 
HB5909- 635 -LRB103 43117 RPS 76377 b


1not include overtime and shall not exceed $106,800; however, 
2that amount shall annually thereafter be increased by the 
3lesser of (i) 3% of that amount, including all previous 
4adjustments, or (ii) one-half the annual unadjusted percentage 
5increase (but not less than zero) in the consumer price 
6index-u for the 12 months ending with the September preceding 
7each November 1, including all previous adjustments. 
8 (g) Notwithstanding any other provision of this Article, 
9the monthly annuity of a person who first becomes a sheriff's 
10law enforcement employee under this Article on or after 
11January 1, 2011 shall be increased on the January 1 occurring 
12either on or after the attainment of age 60 or the first 
13anniversary of the annuity start date, whichever is later. 
14Each annual increase shall be calculated at 3% or one-half the 
15annual unadjusted percentage increase (but not less than zero) 
16in the consumer price index-u for the 12 months ending with the 
17September preceding each November 1, whichever is less, of the 
18originally granted retirement annuity. If the annual 
19unadjusted percentage change in the consumer price index-u for 
20a 12-month period ending in September is zero or, when 
21compared with the preceding period, decreases, then the 
22annuity shall not be increased. 
23 (h) Notwithstanding any other provision of this Article, 
24for a person who first becomes a sheriff's law enforcement 
25employee under this Article on or after January 1, 2011, the 
26annuity to which the surviving spouse, children, or parents 
 
 
HB5909- 636 -LRB103 43117 RPS 76377 b


1are entitled under this subsection (h) shall be in the amount 
2of 66 2/3% of the sheriff's law enforcement employee's earned 
3annuity at the date of death.
4 (i) Notwithstanding any other provision of this Article, 
5the monthly annuity of a survivor of a person who first becomes 
6a sheriff's law enforcement employee under this Article on or 
7after January 1, 2011 shall be increased on the January 1 after 
8attainment of age 60 by the recipient of the survivor's 
9annuity and each January 1 thereafter by 3% or one-half the 
10annual unadjusted percentage increase in the consumer price 
11index-u for the 12 months ending with the September preceding 
12each November 1, whichever is less, of the originally granted 
13pension. If the annual unadjusted percentage change in the 
14consumer price index-u for a 12-month period ending in 
15September is zero or, when compared with the preceding period, 
16decreases, then the annuity shall not be increased. 
17 (j) For the purposes of this Section, "consumer price 
18index-u" means the index published by the Bureau of Labor 
19Statistics of the United States Department of Labor that 
20measures the average change in prices of goods and services 
21purchased by all urban consumers, United States city average, 
22all items, 1982-84 = 100. The new amount resulting from each 
23annual adjustment shall be determined by the Public Pension 
24Division of the Department of Insurance and made available to 
25the boards of the pension funds. 
26(Source: P.A. 100-148, eff. 8-18-17.)

 
 
HB5909- 637 -LRB103 43117 RPS 76377 b


1
Article 90. 


2 Section 90-5. The Illinois Pension Code is amended by 
3changing Sections 2-162, 12-195, 14-152.1, 15-198, 16-203, and 
418-169 as follows:

5 (40 ILCS 5/2-162)
6 Sec. 2-162. Application and expiration of new benefit 
7increases.
8 (a) As used in this Section, "new benefit increase" means 
9an increase in the amount of any benefit provided under this 
10Article, or an expansion of the conditions of eligibility for 
11any benefit under this Article, that results from an amendment 
12to this Code that takes effect after the effective date of this 
13amendatory Act of the 94th General Assembly. "New benefit 
14increase", however, does not include any benefit increase 
15resulting from the changes made to this Article by this 
16amendatory Act of the 103rd General Assembly. 
17 (b) Notwithstanding any other provision of this Code or 
18any subsequent amendment to this Code, every new benefit 
19increase is subject to this Section and shall be deemed to be 
20granted only in conformance with and contingent upon 
21compliance with the provisions of this Section. 
22 (c) The Public Act enacting a new benefit increase must 
23identify and provide for payment to the System of additional 
 
 
HB5909- 638 -LRB103 43117 RPS 76377 b


1funding at least sufficient to fund the resulting annual 
2increase in cost to the System as it accrues.
3 Every new benefit increase is contingent upon the General 
4Assembly providing the additional funding required under this 
5subsection. The Commission on Government Forecasting and 
6Accountability shall analyze whether adequate additional 
7funding has been provided for the new benefit increase and 
8shall report its analysis to the Public Pension Division of 
9the Department of Insurance. A new benefit increase created by 
10a Public Act that does not include the additional funding 
11required under this subsection is null and void. If the Public 
12Pension Division determines that the additional funding 
13provided for a new benefit increase under this subsection is 
14or has become inadequate, it may so certify to the Governor and 
15the State Comptroller and, in the absence of corrective action 
16by the General Assembly, the new benefit increase shall expire 
17at the end of the fiscal year in which the certification is 
18made. 
19 (d) Every new benefit increase shall expire 5 years after 
20its effective date or on such earlier date as may be specified 
21in the language enacting the new benefit increase or provided 
22under subsection (c). This does not prevent the General 
23Assembly from extending or re-creating a new benefit increase 
24by law.
25 (e) Except as otherwise provided in the language creating 
26the new benefit increase, a new benefit increase that expires 
 
 
HB5909- 639 -LRB103 43117 RPS 76377 b


1under this Section continues to apply to persons who applied 
2and qualified for the affected benefit while the new benefit 
3increase was in effect and to the affected beneficiaries and 
4alternate payees of such persons, but does not apply to any 
5other person, including without limitation a person who 
6continues in service after the expiration date and did not 
7apply and qualify for the affected benefit while the new 
8benefit increase was in effect.
9(Source: P.A. 103-426, eff. 8-4-23.)

10 (40 ILCS 5/12-195)
11 Sec. 12-195. Application and expiration of new benefit 
12increases.
13 (a) As used in this Section, "new benefit increase" means 
14an increase in the amount of any benefit provided under this 
15Article, or an expansion of the conditions of eligibility for 
16any benefit under this Article, that results from an amendment 
17to this Code that takes effect after the effective date of this 
18amendatory Act of the 98th General Assembly. "New benefit 
19increase", however, does not include any benefit increase 
20resulting from the changes made to this Article by this 
21amendatory Act of the 103rd General Assembly. 
22 (b) Notwithstanding any other provision of this Code or 
23any subsequent amendment to this Code, every new benefit 
24increase is subject to this Section and shall be deemed to be 
25granted only in conformance with and contingent upon 
 
 
HB5909- 640 -LRB103 43117 RPS 76377 b


1compliance with the provisions of this Section.
2 (c) The Public Act enacting a new benefit increase must 
3identify and provide for payment to the Fund of additional 
4funding at least sufficient to fund the resulting annual 
5increase in cost to the Fund as it accrues.
6 Every new benefit increase is contingent upon the General 
7Assembly providing the additional funding required under this 
8subsection (c). The State Actuary shall analyze whether 
9adequate additional funding has been provided for the new 
10benefit increase. A new benefit increase created by a Public 
11Act that does not include the additional funding required 
12under this subsection (c) is null and void. If the State 
13Actuary determines that the additional funding provided for a 
14new benefit increase under this subsection (c) is or has 
15become inadequate, it may so certify to the Governor and the 
16State Comptroller and, in the absence of corrective action by 
17the General Assembly, the new benefit increase shall expire at 
18the end of the fiscal year in which the certification is made.
19(Source: P.A. 102-263, eff. 8-6-21.)

20 (40 ILCS 5/14-152.1)
21 Sec. 14-152.1. Application and expiration of new benefit 
22increases.
23 (a) As used in this Section, "new benefit increase" means 
24an increase in the amount of any benefit provided under this 
25Article, or an expansion of the conditions of eligibility for 
 
 
HB5909- 641 -LRB103 43117 RPS 76377 b


1any benefit under this Article, that results from an amendment 
2to this Code that takes effect after June 1, 2005 (the 
3effective date of Public Act 94-4). "New benefit increase", 
4however, does not include any benefit increase resulting from 
5the changes made to Article 1 or this Article by Public Act 
696-37, Public Act 100-23, Public Act 100-587, Public Act 
7100-611, Public Act 101-10, Public Act 101-610, Public Act 
8102-210, Public Act 102-856, Public Act 102-956, or this 
9amendatory Act of the 103rd General Assembly this amendatory 
10Act of the 102nd General Assembly. 
11 (b) Notwithstanding any other provision of this Code or 
12any subsequent amendment to this Code, every new benefit 
13increase is subject to this Section and shall be deemed to be 
14granted only in conformance with and contingent upon 
15compliance with the provisions of this Section. 
16 (c) The Public Act enacting a new benefit increase must 
17identify and provide for payment to the System of additional 
18funding at least sufficient to fund the resulting annual 
19increase in cost to the System as it accrues.
20 Every new benefit increase is contingent upon the General 
21Assembly providing the additional funding required under this 
22subsection. The Commission on Government Forecasting and 
23Accountability shall analyze whether adequate additional 
24funding has been provided for the new benefit increase and 
25shall report its analysis to the Public Pension Division of 
26the Department of Insurance. A new benefit increase created by 
 
 
HB5909- 642 -LRB103 43117 RPS 76377 b


1a Public Act that does not include the additional funding 
2required under this subsection is null and void. If the Public 
3Pension Division determines that the additional funding 
4provided for a new benefit increase under this subsection is 
5or has become inadequate, it may so certify to the Governor and 
6the State Comptroller and, in the absence of corrective action 
7by the General Assembly, the new benefit increase shall expire 
8at the end of the fiscal year in which the certification is 
9made. 
10 (d) Every new benefit increase shall expire 5 years after 
11its effective date or on such earlier date as may be specified 
12in the language enacting the new benefit increase or provided 
13under subsection (c). This does not prevent the General 
14Assembly from extending or re-creating a new benefit increase 
15by law.
16 (e) Except as otherwise provided in the language creating 
17the new benefit increase, a new benefit increase that expires 
18under this Section continues to apply to persons who applied 
19and qualified for the affected benefit while the new benefit 
20increase was in effect and to the affected beneficiaries and 
21alternate payees of such persons, but does not apply to any 
22other person, including, without limitation, a person who 
23continues in service after the expiration date and did not 
24apply and qualify for the affected benefit while the new 
25benefit increase was in effect.
26(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
 
 
HB5909- 643 -LRB103 43117 RPS 76377 b


1101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. 
21-1-23; 102-956, eff. 5-27-22.)

3 (40 ILCS 5/15-198)
4 Sec. 15-198. Application and expiration of new benefit 
5increases.
6 (a) As used in this Section, "new benefit increase" means 
7an increase in the amount of any benefit provided under this 
8Article, or an expansion of the conditions of eligibility for 
9any benefit under this Article, that results from an amendment 
10to this Code that takes effect after June 1, 2005 (the 
11effective date of Public Act 94-4). "New benefit increase", 
12however, does not include any benefit increase resulting from 
13the changes made to Article 1 or this Article by Public Act 
14100-23, Public Act 100-587, Public Act 100-769, Public Act 
15101-10, Public Act 101-610, Public Act 102-16, Public Act 
16103-80, or Public Act 103-548, or this amendatory Act of the 
17103rd General Assembly.
18 (b) Notwithstanding any other provision of this Code or 
19any subsequent amendment to this Code, every new benefit 
20increase is subject to this Section and shall be deemed to be 
21granted only in conformance with and contingent upon 
22compliance with the provisions of this Section. 
23 (c) The Public Act enacting a new benefit increase must 
24identify and provide for payment to the System of additional 
25funding at least sufficient to fund the resulting annual 
 
 
HB5909- 644 -LRB103 43117 RPS 76377 b


1increase in cost to the System as it accrues.
2 Every new benefit increase is contingent upon the General 
3Assembly providing the additional funding required under this 
4subsection. The Commission on Government Forecasting and 
5Accountability shall analyze whether adequate additional 
6funding has been provided for the new benefit increase and 
7shall report its analysis to the Public Pension Division of 
8the Department of Insurance. A new benefit increase created by 
9a Public Act that does not include the additional funding 
10required under this subsection is null and void. If the Public 
11Pension Division determines that the additional funding 
12provided for a new benefit increase under this subsection is 
13or has become inadequate, it may so certify to the Governor and 
14the State Comptroller and, in the absence of corrective action 
15by the General Assembly, the new benefit increase shall expire 
16at the end of the fiscal year in which the certification is 
17made. 
18 (d) Every new benefit increase shall expire 5 years after 
19its effective date or on such earlier date as may be specified 
20in the language enacting the new benefit increase or provided 
21under subsection (c). This does not prevent the General 
22Assembly from extending or re-creating a new benefit increase 
23by law.
24 (e) Except as otherwise provided in the language creating 
25the new benefit increase, a new benefit increase that expires 
26under this Section continues to apply to persons who applied 
 
 
HB5909- 645 -LRB103 43117 RPS 76377 b


1and qualified for the affected benefit while the new benefit 
2increase was in effect and to the affected beneficiaries and 
3alternate payees of such persons, but does not apply to any 
4other person, including, without limitation, a person who 
5continues in service after the expiration date and did not 
6apply and qualify for the affected benefit while the new 
7benefit increase was in effect.
8(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23; 
9103-548, eff. 8-11-23; 103-605, eff. 7-1-24.)

10 (40 ILCS 5/16-203)
11 Sec. 16-203. Application and expiration of new benefit 
12increases.
13 (a) As used in this Section, "new benefit increase" means 
14an increase in the amount of any benefit provided under this 
15Article, or an expansion of the conditions of eligibility for 
16any benefit under this Article, that results from an amendment 
17to this Code that takes effect after June 1, 2005 (the 
18effective date of Public Act 94-4). "New benefit increase", 
19however, does not include any benefit increase resulting from 
20the changes made to Article 1 or this Article by Public Act 
2195-910, Public Act 100-23, Public Act 100-587, Public Act 
22100-743, Public Act 100-769, Public Act 101-10, Public Act 
23101-49, Public Act 102-16, or Public Act 102-871, or this 
24amendatory Act of the 103rd General Assembly.
25 (b) Notwithstanding any other provision of this Code or 
 
 
HB5909- 646 -LRB103 43117 RPS 76377 b


1any subsequent amendment to this Code, every new benefit 
2increase is subject to this Section and shall be deemed to be 
3granted only in conformance with and contingent upon 
4compliance with the provisions of this Section. 
5 (c) The Public Act enacting a new benefit increase must 
6identify and provide for payment to the System of additional 
7funding at least sufficient to fund the resulting annual 
8increase in cost to the System as it accrues.
9 Every new benefit increase is contingent upon the General 
10Assembly providing the additional funding required under this 
11subsection. The Commission on Government Forecasting and 
12Accountability shall analyze whether adequate additional 
13funding has been provided for the new benefit increase and 
14shall report its analysis to the Public Pension Division of 
15the Department of Insurance. A new benefit increase created by 
16a Public Act that does not include the additional funding 
17required under this subsection is null and void. If the Public 
18Pension Division determines that the additional funding 
19provided for a new benefit increase under this subsection is 
20or has become inadequate, it may so certify to the Governor and 
21the State Comptroller and, in the absence of corrective action 
22by the General Assembly, the new benefit increase shall expire 
23at the end of the fiscal year in which the certification is 
24made. 
25 (d) Every new benefit increase shall expire 5 years after 
26its effective date or on such earlier date as may be specified 
 
 
HB5909- 647 -LRB103 43117 RPS 76377 b


1in the language enacting the new benefit increase or provided 
2under subsection (c). This does not prevent the General 
3Assembly from extending or re-creating a new benefit increase 
4by law.
5 (e) Except as otherwise provided in the language creating 
6the new benefit increase, a new benefit increase that expires 
7under this Section continues to apply to persons who applied 
8and qualified for the affected benefit while the new benefit 
9increase was in effect and to the affected beneficiaries and 
10alternate payees of such persons, but does not apply to any 
11other person, including, without limitation, a person who 
12continues in service after the expiration date and did not 
13apply and qualify for the affected benefit while the new 
14benefit increase was in effect.
15(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
16102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. 
176-30-23.)

18 (40 ILCS 5/18-169)
19 Sec. 18-169. Application and expiration of new benefit 
20increases.
21 (a) As used in this Section, "new benefit increase" means 
22an increase in the amount of any benefit provided under this 
23Article, or an expansion of the conditions of eligibility for 
24any benefit under this Article, that results from an amendment 
25to this Code that takes effect after the effective date of this 
 
 
HB5909- 648 -LRB103 43117 RPS 76377 b


1amendatory Act of the 94th General Assembly. "New benefit 
2increase", however, does not include any benefit increase 
3resulting from the changes made to this Article by this 
4amendatory Act of the 103rd General Assembly. 
5 (b) Notwithstanding any other provision of this Code or 
6any subsequent amendment to this Code, every new benefit 
7increase is subject to this Section and shall be deemed to be 
8granted only in conformance with and contingent upon 
9compliance with the provisions of this Section. 
10 (c) The Public Act enacting a new benefit increase must 
11identify and provide for payment to the System of additional 
12funding at least sufficient to fund the resulting annual 
13increase in cost to the System as it accrues.
14 Every new benefit increase is contingent upon the General 
15Assembly providing the additional funding required under this 
16subsection. The Commission on Government Forecasting and 
17Accountability shall analyze whether adequate additional 
18funding has been provided for the new benefit increase and 
19shall report its analysis to the Public Pension Division of 
20the Department of Insurance. A new benefit increase created by 
21a Public Act that does not include the additional funding 
22required under this subsection is null and void. If the Public 
23Pension Division determines that the additional funding 
24provided for a new benefit increase under this subsection is 
25or has become inadequate, it may so certify to the Governor and 
26the State Comptroller and, in the absence of corrective action 
 
 
HB5909- 649 -LRB103 43117 RPS 76377 b


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

21 Section 90-90. The State Mandates Act is amended by adding 
22Section 8.48 as follows:

23 (30 ILCS 805/8.48 new)
24 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and 
 
 
HB5909- 650 -LRB103 43117 RPS 76377 b


18 of this Act, no reimbursement by the State is required for 
2the implementation of any mandate created by this amendatory 
3Act of the 103rd General Assembly.

4
Article 99. 


5 Section 99-99. Effective date. This Act takes effect upon 
6becoming law.
 
 
HB5909- 651 -LRB103 43117 RPS 76377 b


1
INDEX

2
Statutes amended in order of appearance

3 40 ILCS 5/1-160
4 40 ILCS 5/1-163 new
5 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.1
6 40 ILCS 5/3-153 new
7 40 ILCS 5/4-145 new
8 40 ILCS 5/5-239 new
9 40 ILCS 5/6-231 new
10 40 ILCS 5/7-226 new
11 40 ILCS 5/8-251.5 new
12 40 ILCS 5/9-242 new
13 40 ILCS 5/10-110 new
14 40 ILCS 5/11-233 new
15 40 ILCS 5/12-196 new
16 40 ILCS 5/13-217 new
17 40 ILCS 5/14-157 new
18 40 ILCS 5/15-203 new
19 40 ILCS 5/16-207 new
20 40 ILCS 5/17-160 new
21 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-125
22 40 ILCS 5/1-160
23 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.1
24 40 ILCS 5/3-111from Ch. 108 1/2, par. 3-111
25 40 ILCS 5/4-109from Ch. 108 1/2, par. 4-109
 
 
HB5909- 652 -LRB103 43117 RPS 76377 b


1 40 ILCS 5/5-238
2 40 ILCS 5/6-229
3 40 ILCS 5/7-116from Ch. 108 1/2, par. 7-116
4 40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1
5 40 ILCS 5/15-112from Ch. 108 1/2, par. 15-112
6 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-125
7 40 ILCS 5/1-160
8 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
9 40 ILCS 5/3-111.1from Ch. 108 1/2, par. 3-111.1
10 40 ILCS 5/4-109.1from Ch. 108 1/2, par. 4-109.1
11 40 ILCS 5/5-167.1from Ch. 108 1/2, par. 5-167.1
12 40 ILCS 5/6-164from Ch. 108 1/2, par. 6-164
13 40 ILCS 5/7-142from Ch. 108 1/2, par. 7-142
14 40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1
15 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
16 40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
17 40 ILCS 5/1-160
18 40 ILCS 5/2-119from Ch. 108 1/2, par. 2-119
19 40 ILCS 5/2-119.01from Ch. 108 1/2, par. 2-119.01
20 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
21 40 ILCS 5/3-111from Ch. 108 1/2, par. 3-111
22 40 ILCS 5/3-111.1from Ch. 108 1/2, par. 3-111.1
23 40 ILCS 5/4-109from Ch. 108 1/2, par. 4-109
24 40 ILCS 5/4-109.1from Ch. 108 1/2, par. 4-109.1
25 40 ILCS 5/5-167.1from Ch. 108 1/2, par. 5-167.1
26 40 ILCS 5/5-238
 
 
HB5909- 653 -LRB103 43117 RPS 76377 b


1 40 ILCS 5/6-164from Ch. 108 1/2, par. 6-164
2 40 ILCS 5/6-229
3 40 ILCS 5/7-142from Ch. 108 1/2, par. 7-142
4 40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1
5 40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110
6 40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
7 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
8 40 ILCS 5/18-124from Ch. 108 1/2, par. 18-124
9 40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
10 40 ILCS 5/1-160
11 5 ILCS 100/5-45.55 new
12 40 ILCS 5/2-154.5 new
13 40 ILCS 5/2-154.6 new
14 40 ILCS 5/17-156.10 new
15 40 ILCS 5/17-156.11 new
16 40 ILCS 5/18-161.5 new
17 40 ILCS 5/18-161.6 new
18 40 ILCS 5/3-144.3 new
19 40 ILCS 5/4-138.15 new
20 40 ILCS 5/5-240 new
21 40 ILCS 5/6-232 new
22 40 ILCS 5/7-109.3from Ch. 108 1/2, par. 7-109.3
23 40 ILCS 5/4-106from Ch. 108 1/2, par. 4-106
24 40 ILCS 5/4-109.1from Ch. 108 1/2, par. 4-109.1
25 40 ILCS 5/4-109.2from Ch. 108 1/2, par. 4-109.2
26 40 ILCS 5/1-160
 
 
HB5909- 654 -LRB103 43117 RPS 76377 b