Bill Text: IL SB0011 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the General Assembly, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement annuity delayed and reduced or (ii) maintain the current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Restricts participation in the General Assembly Retirement System to persons who became participants before the effective date. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. In the Chicago Teacher Article, requires the Fund to make consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding changes made by the amendatory Act; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the 100th General Assembly become law.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2017-02-08 - Senate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a) [SB0011 Detail]

Download: Illinois-2017-SB0011-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0011

Introduced 1/11/2017, by Sen. John J. Cullerton

SYNOPSIS AS INTRODUCED:
See Index

Amends the General Assembly, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement annuity delayed and reduced or (ii) maintain the current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Restricts participation in the General Assembly Retirement System to persons who became participants before the effective date. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. In the Chicago Teacher Article, requires the Fund to make consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding changes made by the amendatory Act; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the 100th General Assembly become law.
LRB100 06001 RPS 16030 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB0011LRB100 06001 RPS 16030 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 Section 5. The Illinois Public Labor Relations Act is
5amended by changing Sections 10 and 15 and by adding Section
67.6 as follows:
7 (5 ILCS 315/7.6 new)
8 Sec. 7.6. No collective bargaining or interest arbitration
9regarding certain changes to the Illinois Pension Code.
10 (a) Notwithstanding any other provision of this Act,
11employers shall not be required to bargain over matters
12affected by the changes, the impact of the changes, and the
13implementation of the changes to Article 15, 16, or 17 of the
14Illinois Pension Code made by this amendatory Act of the 100th
15General Assembly, which are deemed to be prohibited subjects of
16bargaining. Notwithstanding any provision of this Act, the
17changes, impact of the changes, or implementation of the
18changes to Article 15, 16, or 17 of the Illinois Pension Code
19made by this amendatory Act of the 100th General Assembly shall
20not be subject to interest arbitration or any award issued
21pursuant to interest arbitration. The provisions of this
22Section shall not apply to an employment contract or collective
23bargaining agreement that is in effect on the effective date of

SB0011- 2 -LRB100 06001 RPS 16030 b
1this amendatory Act of the 100th General Assembly. However, any
2such contract or agreement that is modified, amended, renewed,
3or superseded after the effective date of this amendatory Act
4of the 100th General Assembly shall be subject to the
5provisions of this Section. Each employer with active employees
6participating in a retirement system or pension fund
7established under Article 15, 16, or 17 of the Illinois Pension
8Code shall comply with and be subject to the provisions of this
9amendatory Act of the 100th General Assembly. The provisions of
10this Section shall not apply to the ability of any employer and
11employee representative to bargain collectively with regard to
12the pick up of employee contributions pursuant to Section
1315-157.1, 16-152.1, 17-130.1, or 17-130.2 of the Illinois
14Pension Code.
15 (b) Subject to and except for the matters set forth in
16subsection (a) of this Section that are deemed prohibited
17subjects of bargaining, nothing in this Section shall be
18construed as otherwise limiting any of the obligations and
19requirements applicable to employers under any of the
20provisions of this Act, including, but not limited to, the
21requirement to bargain collectively with regard to policy
22matters directly affecting wages, hours, and terms and
23conditions of employment as well as the impact thereon upon
24request by employee representatives. Subject to and except for
25the matters set forth in subsection (a) of this Section that
26are deemed prohibited subjects of bargaining, nothing in this

SB0011- 3 -LRB100 06001 RPS 16030 b
1Section shall be construed as otherwise limiting any of the
2rights of employees or employee representatives under the
3provisions of this Act.
4 (c) In case of any conflict between this Section and any
5other provisions of this Act or any other law, the provisions
6of this Section shall control.
7 (5 ILCS 315/10) (from Ch. 48, par. 1610)
8 Sec. 10. Unfair labor practices.
9 (a) It shall be an unfair labor practice for an employer or
10its agents:
11 (1) to interfere with, restrain or coerce public
12 employees in the exercise of the rights guaranteed in this
13 Act or to dominate or interfere with the formation,
14 existence or administration of any labor organization or
15 contribute financial or other support to it; provided, an
16 employer shall not be prohibited from permitting employees
17 to confer with him during working hours without loss of
18 time or pay;
19 (2) to discriminate in regard to hire or tenure of
20 employment or any term or condition of employment in order
21 to encourage or discourage membership in or other support
22 for any labor organization. Nothing in this Act or any
23 other law precludes a public employer from making an
24 agreement with a labor organization to require as a
25 condition of employment the payment of a fair share under

SB0011- 4 -LRB100 06001 RPS 16030 b
1 paragraph (e) of Section 6;
2 (3) to discharge or otherwise discriminate against a
3 public employee because he has signed or filed an
4 affidavit, petition or charge or provided any information
5 or testimony under this Act;
6 (4) subject to and except as provided in Section 7.6,
7 to refuse to bargain collectively in good faith with a
8 labor organization which is the exclusive representative
9 of public employees in an appropriate unit, including, but
10 not limited to, the discussing of grievances with the
11 exclusive representative; however, no actions of the
12 employer taken to implement or otherwise comply with the
13 provisions of subsection (a) of Section 7.6 shall
14 constitute or give rise to an unfair labor practice under
15 this Act;
16 (5) to violate any of the rules and regulations
17 established by the Board with jurisdiction over them
18 relating to the conduct of representation elections or the
19 conduct affecting the representation elections;
20 (6) to expend or cause the expenditure of public funds
21 to any external agent, individual, firm, agency,
22 partnership or association in any attempt to influence the
23 outcome of representational elections held pursuant to
24 Section 9 of this Act; provided, that nothing in this
25 subsection shall be construed to limit an employer's right
26 to internally communicate with its employees as provided in

SB0011- 5 -LRB100 06001 RPS 16030 b
1 subsection (c) of this Section, to be represented on any
2 matter pertaining to unit determinations, unfair labor
3 practice charges or pre-election conferences in any formal
4 or informal proceeding before the Board, or to seek or
5 obtain advice from legal counsel. Nothing in this paragraph
6 shall be construed to prohibit an employer from expending
7 or causing the expenditure of public funds on, or seeking
8 or obtaining services or advice from, any organization,
9 group, or association established by and including public
10 or educational employers, whether covered by this Act, the
11 Illinois Educational Labor Relations Act or the public
12 employment labor relations law of any other state or the
13 federal government, provided that such services or advice
14 are generally available to the membership of the
15 organization, group or association, and are not offered
16 solely in an attempt to influence the outcome of a
17 particular representational election; or
18 (7) to refuse to reduce a collective bargaining
19 agreement to writing or to refuse to sign such agreement.
20 (b) It shall be an unfair labor practice for a labor
21organization or its agents:
22 (1) to restrain or coerce public employees in the
23 exercise of the rights guaranteed in this Act, provided,
24 (i) that this paragraph shall not impair the right of a
25 labor organization to prescribe its own rules with respect
26 to the acquisition or retention of membership therein or

SB0011- 6 -LRB100 06001 RPS 16030 b
1 the determination of fair share payments and (ii) that a
2 labor organization or its agents shall commit an unfair
3 labor practice under this paragraph in duty of fair
4 representation cases only by intentional misconduct in
5 representing employees under this Act;
6 (2) to restrain or coerce a public employer in the
7 selection of his representatives for the purposes of
8 collective bargaining or the settlement of grievances; or
9 (3) to cause, or attempt to cause, an employer to
10 discriminate against an employee in violation of
11 subsection (a)(2);
12 (4) to refuse to bargain collectively in good faith
13 with a public employer, if it has been designated in
14 accordance with the provisions of this Act as the exclusive
15 representative of public employees in an appropriate unit;
16 (5) to violate any of the rules and regulations
17 established by the boards with jurisdiction over them
18 relating to the conduct of representation elections or the
19 conduct affecting the representation elections;
20 (6) to discriminate against any employee because he has
21 signed or filed an affidavit, petition or charge or
22 provided any information or testimony under this Act;
23 (7) to picket or cause to be picketed, or threaten to
24 picket or cause to be picketed, any public employer where
25 an object thereof is forcing or requiring an employer to
26 recognize or bargain with a labor organization of the

SB0011- 7 -LRB100 06001 RPS 16030 b
1 representative of its employees, or forcing or requiring
2 the employees of an employer to accept or select such labor
3 organization as their collective bargaining
4 representative, unless such labor organization is
5 currently certified as the representative of such
6 employees:
7 (A) where the employer has lawfully recognized in
8 accordance with this Act any labor organization and a
9 question concerning representation may not
10 appropriately be raised under Section 9 of this Act;
11 (B) where within the preceding 12 months a valid
12 election under Section 9 of this Act has been
13 conducted; or
14 (C) where such picketing has been conducted
15 without a petition under Section 9 being filed within a
16 reasonable period of time not to exceed 30 days from
17 the commencement of such picketing; provided that when
18 such a petition has been filed the Board shall
19 forthwith, without regard to the provisions of
20 subsection (a) of Section 9 or the absence of a showing
21 of a substantial interest on the part of the labor
22 organization, direct an election in such unit as the
23 Board finds to be appropriate and shall certify the
24 results thereof; provided further, that nothing in
25 this subparagraph shall be construed to prohibit any
26 picketing or other publicity for the purpose of

SB0011- 8 -LRB100 06001 RPS 16030 b
1 truthfully advising the public that an employer does
2 not employ members of, or have a contract with, a labor
3 organization unless an effect of such picketing is to
4 induce any individual employed by any other person in
5 the course of his employment, not to pick up, deliver,
6 or transport any goods or not to perform any services;
7 or
8 (8) to refuse to reduce a collective bargaining
9 agreement to writing or to refuse to sign such agreement.
10 (c) The expressing of any views, argument, or opinion or
11the dissemination thereof, whether in written, printed,
12graphic, or visual form, shall not constitute or be evidence of
13an unfair labor practice under any of the provisions of this
14Act, if such expression contains no threat of reprisal or force
15or promise of benefit.
16(Source: P.A. 86-412; 87-736.)
17 (5 ILCS 315/15) (from Ch. 48, par. 1615)
18 (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20 Sec. 15. Act Takes Precedence.
21 (a) In case of any conflict between the provisions of this
22Act and any other law (other than Section 5 of the State
23Employees Group Insurance Act of 1971 and other than the
24changes made to the Illinois Pension Code by this amendatory
25Act of the 96th General Assembly), executive order or

SB0011- 9 -LRB100 06001 RPS 16030 b
1administrative regulation relating to wages, hours and
2conditions of employment and employment relations, the
3provisions of this Act or any collective bargaining agreement
4negotiated thereunder shall prevail and control. Nothing in
5this Act shall be construed to replace or diminish the rights
6of employees established by Sections 28 and 28a of the
7Metropolitan Transit Authority Act, Sections 2.15 through 2.19
8of the Regional Transportation Authority Act. The provisions of
9this Act are subject to Section 5 of the State Employees Group
10Insurance Act of 1971. Nothing in this Act shall be construed
11to replace the necessity of complaints against a sworn peace
12officer, as defined in Section 2(a) of the Uniform Peace
13Officer Disciplinary Act, from having a complaint supported by
14a sworn affidavit.
15 (b) Except as provided in subsection (a) above, any
16collective bargaining contract between a public employer and a
17labor organization executed pursuant to this Act shall
18supersede any contrary statutes, charters, ordinances, rules
19or regulations relating to wages, hours and conditions of
20employment and employment relations adopted by the public
21employer or its agents. Any collective bargaining agreement
22entered into prior to the effective date of this Act shall
23remain in full force during its duration.
24 (c) It is the public policy of this State, pursuant to
25paragraphs (h) and (i) of Section 6 of Article VII of the
26Illinois Constitution, that the provisions of this Act are the

SB0011- 10 -LRB100 06001 RPS 16030 b
1exclusive exercise by the State of powers and functions which
2might otherwise be exercised by home rule units. Such powers
3and functions may not be exercised concurrently, either
4directly or indirectly, by any unit of local government,
5including any home rule unit, except as otherwise authorized by
6this Act.
7 (d) Notwithstanding any other provision of law, no
8collective bargaining agreement entered into, renewed, or
9extended after the effective date of this amendatory Act of the
10100th General Assembly or any arbitration award issued under
11such collective bargaining agreement may violate or conflict
12with the changes made by this amendatory Act of the 100th
13General Assembly.
14(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
15 Section 10. The Civil Administrative Code of Illinois is
16amended by adding Section 5-647 as follows:
17 (20 ILCS 5/5-647 new)
18 Sec. 5-647. Future increases in income. A Department must
19not pay, offer, or agree to pay any future increase in income,
20as that term is defined in Section 15-112.1 or 16-121.1 of the
21Illinois Pension Code, to any person in a manner that violates
22Section 15-132.9 or 16-122.9 of the Illinois Pension Code.
23 Section 15. The Illinois Pension Code is amended by

SB0011- 11 -LRB100 06001 RPS 16030 b
1changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124,
22-126, 2-134, 2-162, 15-108.1, 15-111, 15-136, 15-155, 15-157,
315-165, 15-198, 16-121, 16-133.1, 16-136.1, 16-152, 16-158,
416-203, 17-113.4, 17-116, 17-119.2, 17-129, 17-130, 18-131,
5and 18-140 and by adding Sections 2-105.3, 2-107.9, 2-110.3,
62-165.1, 2-166.1, 15-112.1, 15-132.9, 15-200.1, 15-201.1,
716-107.1, 16-121.1, 16-122.9, 16-205.1, 16-206.1, 17-106.05,
817-113.5, and 17-115.5 as follows:
9 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
10 Sec. 2-101. Creation of system. A retirement system is
11created to provide retirement annuities, survivor's annuities
12and other benefits for certain members of the General Assembly,
13certain elected state officials, and their beneficiaries.
14 The system shall be known as the "General Assembly
15Retirement System". All its funds and property shall be a trust
16separate from all other entities, maintained for the purpose of
17securing payment of annuities and benefits under this Article.
18 Participation in the retirement system created under this
19Article is restricted to persons who became participants before
20the effective date of this amendatory Act of the 100th General
21Assembly. Beginning on that date, the System shall not accept
22any new participants.
23(Source: P.A. 83-1440.)
24 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)

SB0011- 12 -LRB100 06001 RPS 16030 b
1 Sec. 2-105. Member. "Member": Members of the General
2Assembly of this State, including persons who enter military
3service while a member of the General Assembly, and any person
4serving as Governor, Lieutenant Governor, Secretary of State,
5Treasurer, Comptroller, or Attorney General for the period of
6service in such office.
7 Any person who has served for 10 or more years as Clerk or
8Assistant Clerk of the House of Representatives, Secretary or
9Assistant Secretary of the Senate, or any combination thereof,
10may elect to become a member of this system while thenceforth
11engaged in such service by filing a written election with the
12board. Any person so electing shall be deemed an active member
13of the General Assembly for the purpose of validating and
14transferring any service credits earned under any of the funds
15and systems established under Articles 3 through 18 of this
16Code.
17 However, notwithstanding any other provision of this
18Article, a person shall not be deemed a member for the purposes
19of this Article unless he or she became a participant of the
20System before the effective date of this amendatory Act of the
21100th General Assembly.
22(Source: P.A. 85-1008.)
23 (40 ILCS 5/2-105.3 new)
24 Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
25participant who first became a participant before January 1,

SB0011- 13 -LRB100 06001 RPS 16030 b
12011.
2 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
3 Sec. 2-107. Participant. "Participant": Any member who
4elects to participate; and any former member who elects to
5continue participation under Section 2-117.1, for the duration
6of such continued participation. However, notwithstanding any
7other provision of this Article, a person shall not be deemed a
8participant for the purposes of this Article unless he or she
9became a participant of the System before the effective date of
10this amendatory Act of the 100th General Assembly.
11(Source: P.A. 86-1488.)
12 (40 ILCS 5/2-107.9 new)
13 Sec. 2-107.9. Future increase in income. "Future increase
14in income" means an increase in income in any form offered to a
15Tier 1 employee for service under this Article after June 30,
162018 that qualifies as "salary", as defined in Section 2-108,
17or would qualify as "salary" but for the fact that it was
18offered to and accepted by a Tier 1 employee under the
19condition set forth in subsection (c) of Section 2-110.3.
20 (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
21 (Text of Section WITHOUT the changes made by P.A. 98-599,
22which has been held unconstitutional)
23 Sec. 2-108. Salary. "Salary":

SB0011- 14 -LRB100 06001 RPS 16030 b
1 (1) For members of the General Assembly, the total
2compensation paid to the member by the State for one year of
3service, including the additional amounts, if any, paid to the
4member as an officer pursuant to Section 1 of "An Act in
5relation to the compensation and emoluments of the members of
6the General Assembly", approved December 6, 1907, as now or
7hereafter amended.
8 (2) For the State executive officers specified in Section
92-105, the total compensation paid to the member for one year
10of service.
11 (3) For members of the System who are participants under
12Section 2-117.1, or who are serving as Clerk or Assistant Clerk
13of the House of Representatives or Secretary or Assistant
14Secretary of the Senate, the total compensation paid to the
15member for one year of service, but not to exceed the salary of
16the highest salaried officer of the General Assembly.
17 However, in the event that federal law results in any
18participant receiving imputed income based on the value of
19group term life insurance provided by the State, such imputed
20income shall not be included in salary for the purposes of this
21Article.
22 Notwithstanding any other provision of this Section,
23"salary" does not include any future increase in income that is
24offered for service to a Tier 1 employee under this Article
25pursuant to the condition set forth in subsection (c) of
26Section 2-110.3 and accepted under that condition by a Tier 1

SB0011- 15 -LRB100 06001 RPS 16030 b
1employee who has made the election under paragraph (2) of
2subsection (a) of Section 2-110.3.
3 Notwithstanding any other provision of this Section,
4"salary" does not include any consideration payment made to a
5Tier 1 employee.
6(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
7 (40 ILCS 5/2-110.3 new)
8 Sec. 2-110.3. Election by Tier 1 employees.
9 (a) Each active Tier 1 employee shall make an irrevocable
10election either:
11 (1) to agree to delay his or her eligibility for
12 automatic annual increases in retirement annuity as
13 provided in subsection (a-1) of Section 2-119.1 and to have
14 the amount of the automatic annual increases in his or her
15 retirement annuity that are otherwise provided for in this
16 Article calculated, instead, as provided in subsection
17 (a-1) of Section 2-119.1; or
18 (2) to not agree to paragraph (1) of this subsection.
19 The election required under this subsection (a) shall be
20made by each active Tier 1 employee no earlier than January 1,
212018 and no later than March 1, 2018, except that a person who
22returns to active service as a Tier 1 employee under this
23Article on or after January 1, 2018 and has not yet made an
24election under this Section must make the election under this
25subsection (a) within 60 days after returning to active service

SB0011- 16 -LRB100 06001 RPS 16030 b
1as a Tier 1 employee.
2 If a Tier 1 employee fails for any reason to make a
3required election under this subsection within the time
4specified, then the employee shall be deemed to have made the
5election under paragraph (2) of this subsection.
6 (a-5) If this Section is enjoined or stayed by an Illinois
7court or a court of competent jurisdiction pending the entry of
8a final and unappealable decision, and this Section is
9determined to be constitutional or otherwise valid by a final
10unappealable decision of an Illinois court or a court of
11competent jurisdiction, then the election procedure set forth
12in subsection (a) of this Section shall commence on the 180th
13calendar day after the date of the issuance of the final
14unappealable decision and shall conclude at the end of the
15270th calendar day after that date.
16 (a-10) All elections under subsection (a) that are made or
17deemed to be made before July 1, 2018 shall take effect on July
181, 2018. Elections that are made or deemed to be made on or
19after July 1, 2018 shall take effect on the first day of the
20month following the month in which the election is made or
21deemed to be made.
22 (b) As adequate and legal consideration provided under this
23amendatory Act of the 100th General Assembly for making an
24election under paragraph (1) of subsection (a) of this Section,
25the State of Illinois shall be expressly and irrevocably
26prohibited from offering any future increases in income to a

SB0011- 17 -LRB100 06001 RPS 16030 b
1Tier 1 employee who has made an election under paragraph (1) of
2subsection (a) of this Section on the condition of not
3constituting salary under Section 2-108.
4 As adequate and legal consideration provided under this
5amendatory Act of the 100th General Assembly for making an
6election under paragraph (1) of subsection (a) of this Section,
7each Tier 1 employee who has made an election under paragraph
8(1) of subsection (a) of this Section shall receive a
9consideration payment equal to 10% of the contributions made by
10or on behalf of the employee under Section 2-126 before the
11effective date of that election. The State Comptroller shall
12pay the consideration payment to the Tier 1 employee out of
13funds appropriated for that purpose under Section 1.9 of the
14State Pension Funds Continuing Appropriation Act. The System
15shall calculate the amount of each consideration payment and
16shall certify to the State Comptroller the amount of the
17consideration payment, together with the name, address, and any
18other available payment information of the Tier 1 employee as
19found in the records of the System.
20 (c) A Tier 1 employee who makes the election under
21paragraph (2) of subsection (a) of this Section shall not be
22subject to paragraph (1) of subsection (a) of this Section.
23However, any future increases in income offered for service as
24a member under this Article to a Tier 1 employee who has made
25the election under paragraph (2) of subsection (a) of this
26Section shall be offered expressly and irrevocably on the

SB0011- 18 -LRB100 06001 RPS 16030 b
1condition of not constituting salary under Section 2-108, and
2the member may not accept any future increase in income that is
3offered without this condition.
4 (d) The System shall make a good faith effort to contact
5each Tier 1 employee subject to this Section. The System shall
6mail information describing the required election to each Tier
71 employee by United States Postal Service mail to his or her
8last known address on file with the System. If the Tier 1
9employee is not responsive to other means of contact, it is
10sufficient for the System to publish the details of any
11required elections on its website or to publish those details
12in a regularly published newsletter or other existing public
13forum.
14 Tier 1 employees who are subject to this Section shall be
15provided with an election packet containing information
16regarding their options, as well as the forms necessary to make
17the required election. Upon request, the System shall offer
18Tier 1 employees an opportunity to receive information from the
19System before making the required election. The information may
20be provided through video materials, group presentations,
21individual consultation with a member or authorized
22representative of the System in person or by telephone or other
23electronic means, or any combination of those methods. The
24System shall not provide advice or counseling with respect to
25which election a Tier 1 employee should make or specific to the
26legal or tax circumstances of or consequences to the Tier 1

SB0011- 19 -LRB100 06001 RPS 16030 b
1employee.
2 The System shall inform Tier 1 employees in the election
3packet required under this subsection that the Tier 1 employee
4may also wish to obtain information and counsel relating to the
5election required under this Section from any other available
6source, including, but not limited to, labor organizations and
7private counsel.
8 In no event shall the System, its staff, or the Board be
9held liable for any information given to a member regarding the
10elections under this Section. The System shall coordinate with
11the Illinois Department of Central Management Services and each
12other retirement system administering an election in
13accordance with this amendatory Act of the 100th General
14Assembly to provide information concerning the impact of the
15election set forth in this Section.
16 (e) Notwithstanding any other provision of law, any future
17increases in income offered by the State of Illinois for
18service as a member must be offered expressly and irrevocably
19on the condition of not constituting "salary" under Section
202-108 to any Tier 1 employee who has made an election under
21paragraph (2) of subsection (a) of this Section. A Tier 1
22employee who has made an election under paragraph (2) of
23subsection (a) of this Section shall not accept any future
24increase in income that is offered for service as a member
25under this Article without the condition set forth in this
26subsection.

SB0011- 20 -LRB100 06001 RPS 16030 b
1 For purposes of legislative intent, the condition set forth
2in this subsection shall be construed in a manner that ensures
3that the condition is not violated or circumvented through any
4contrivance of any kind.
5 (f) A member's election under this Section is not a
6prohibited election under subdivision (j)(1) of Section 1-119
7of this Code.
8 (g) No provision of this Section shall be interpreted in a
9way that would cause the System to cease to be a qualified plan
10under Section 401(a) of the Internal Revenue Code of 1986. The
11provisions of this Section shall be subject to and implemented
12in a manner that complies with Section 11 of Article IV of the
13Illinois Constitution.
14 (h) If an election created by this amendatory Act in any
15other Article of this Code or any change deriving from that
16election is determined to be unconstitutional or otherwise
17invalid by a final unappealable decision of an Illinois court
18or a court of competent jurisdiction, the invalidity of that
19provision shall not in any way affect the validity of this
20Section or the changes deriving from the election required
21under this Section.
22 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
23 (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25 Sec. 2-119.1. Automatic increase in retirement annuity.

SB0011- 21 -LRB100 06001 RPS 16030 b
1 (a) Except as provided in subsection (a-1), a A participant
2who retires after June 30, 1967, and who has not received an
3initial increase under this Section before the effective date
4of this amendatory Act of 1991, shall, in January or July next
5following the first anniversary of retirement, whichever
6occurs first, and in the same month of each year thereafter,
7but in no event prior to age 60, have the amount of the
8originally granted retirement annuity increased as follows:
9for each year through 1971, 1 1/2%; for each year from 1972
10through 1979, 2%; and for 1980 and each year thereafter, 3%.
11Annuitants who have received an initial increase under this
12subsection prior to the effective date of this amendatory Act
13of 1991 shall continue to receive their annual increases in the
14same month as the initial increase.
15 (a-1) Notwithstanding any other provision of this Article,
16for a Tier 1 employee who made the election under paragraph (1)
17of subsection (a) of Section 2-110.3:
18 (1) The initial increase in retirement annuity under
19 this Section shall occur on the January 1 occurring either
20 on or after the attainment of age 67 or the fifth
21 anniversary of the annuity start date, whichever is
22 earlier.
23 (2) The amount of each automatic annual increase in
24 retirement annuity occurring on or after the effective date
25 of that election shall be calculated as a percentage of the
26 originally granted retirement annuity, equal to 3% or

SB0011- 22 -LRB100 06001 RPS 16030 b
1 one-half the annual unadjusted percentage increase (but
2 not less than zero) in the consumer price index-u for the
3 12 months ending with the September preceding each November
4 1, whichever is less. If the annual unadjusted percentage
5 change in the consumer price index-u for the 12 months
6 ending with the September preceding each November 1 is zero
7 or there is a decrease, then the annuity shall not be
8 increased.
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 average
12change in prices of goods and services purchased by all urban
13consumers, United States city average, all items, 1982-84 =
14100. The new amount resulting from each annual adjustment shall
15be determined by the Public Pension Division of the Department
16of Insurance and made available to the board of the retirement
17system by November 1 of each year.
18 (b) Beginning January 1, 1990, for eligible participants
19who remain in service after attaining 20 years of creditable
20service, the 3% increases provided under subsection (a) shall
21begin to accrue on the January 1 next following the date upon
22which the participant (1) attains age 55, or (2) attains 20
23years of creditable service, whichever occurs later, and shall
24continue to accrue while the participant remains in service;
25such increases shall become payable on January 1 or July 1,
26whichever occurs first, next following the first anniversary of

SB0011- 23 -LRB100 06001 RPS 16030 b
1retirement. For any person who has service credit in the System
2for the entire period from January 15, 1969 through December
331, 1992, regardless of the date of termination of service, the
4reference to age 55 in clause (1) of this subsection (b) shall
5be deemed to mean age 50.
6 This subsection (b) does not apply to any person who first
7becomes a member of the System after August 8, 2003 (the
8effective date of Public Act 93-494) this amendatory Act of the
993rd General Assembly.
10 (b-5) Notwithstanding any other provision of this Article,
11a participant who first becomes a participant on or after
12January 1, 2011 (the effective date of Public Act 96-889)
13shall, in January or July next following the first anniversary
14of retirement, whichever occurs first, and in the same month of
15each year thereafter, but in no event prior to age 67, have the
16amount of the retirement annuity then being paid increased by
173% or the annual unadjusted percentage increase in the Consumer
18Price Index for All Urban Consumers as determined by the Public
19Pension Division of the Department of Insurance under
20subsection (a) of Section 2-108.1, whichever is less.
21 (c) The foregoing provisions relating to automatic
22increases are not applicable to a participant who retires
23before having made contributions (at the rate prescribed in
24Section 2-126) for automatic increases for less than the
25equivalent of one full year. However, in order to be eligible
26for the automatic increases, such a participant may make

SB0011- 24 -LRB100 06001 RPS 16030 b
1arrangements to pay to the system the amount required to bring
2the total contributions for the automatic increase to the
3equivalent of one year's contributions based upon his or her
4last salary.
5 (d) A participant who terminated service prior to July 1,
61967, with at least 14 years of service is entitled to an
7increase in retirement annuity beginning January, 1976, and to
8additional increases in January of each year thereafter.
9 The initial increase shall be 1 1/2% of the originally
10granted retirement annuity multiplied by the number of full
11years that the annuitant was in receipt of such annuity prior
12to January 1, 1972, plus 2% of the originally granted
13retirement annuity for each year after that date. The
14subsequent annual increases shall be at the rate of 2% of the
15originally granted retirement annuity for each year through
161979 and at the rate of 3% for 1980 and thereafter.
17 (e) Beginning January 1, 1990, and except as provided in
18subsection (a-1), all automatic annual increases payable under
19this Section shall be calculated as a percentage of the total
20annuity payable at the time of the increase, including previous
21increases granted under this Article.
22(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
23 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
24 (Text of Section WITHOUT the changes made by P.A. 98-599,
25which has been held unconstitutional)

SB0011- 25 -LRB100 06001 RPS 16030 b
1 Sec. 2-124. Contributions by State.
2 (a) The State shall make contributions to the System by
3appropriations of amounts which, together with the
4contributions of participants, interest earned on investments,
5and other income will meet the cost of maintaining and
6administering the System on a 90% funded basis in accordance
7with actuarial recommendations.
8 (b) The Board shall determine the amount of State
9contributions required for each fiscal year on the basis of the
10actuarial tables and other assumptions adopted by the Board and
11the prescribed rate of interest, using the formula in
12subsection (c).
13 (c) For State fiscal years 2018 through 2045 (except as
14otherwise provided for fiscal year 2019), the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17sufficient to bring the total assets of the System up to 90% of
18the total actuarial liabilities of the System by the end of
19State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of total payroll, including payroll that is
22not deemed pensionable, over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25 For State fiscal year 2019:
26 (1) The initial calculation and certification shall be

SB0011- 26 -LRB100 06001 RPS 16030 b
1 based on the amount determined above.
2 (2) For purposes of the recertification due on or
3 before May 1, 2018, the recalculation of the required State
4 contribution for fiscal year 2019 shall take into account
5 the effect on the System's liabilities of the elections
6 made under Section 2-110.3.
7 (3) For purposes of the recertification due on or
8 before October 1, 2018, the total required State
9 contribution for fiscal year 2019 shall be reduced by the
10 amount of the consideration payments made to Tier 1
11 employees who made the election under paragraph (1) of
12 subsection (a) of Section 2-110.3.
13 Beginning in State fiscal year 2018, any increase or
14decrease in State contribution over the prior fiscal year due
15exclusively to changes in actuarial or investment assumptions
16adopted by the Board shall be included in the State
17contribution to the System, as a percentage of the applicable
18employee payroll, and shall be increased in equal annual
19increments so that by the State fiscal year occurring 5 years
20after the adoption of the actuarial or investment assumptions,
21the State is contributing at the rate otherwise required under
22this Section.
23 If Section 2-110.3 is determined to be unconstitutional or
24otherwise invalid by a final unappealable decision of an
25Illinois court or a court of competent jurisdiction, then the
26changes made to this Section by this amendatory Act of the

SB0011- 27 -LRB100 06001 RPS 16030 b
1100th General Assembly shall not take effect and are repealed
2by operation of law.
3 For State fiscal years 2012 through 2017 2045, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 90% of
7the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13 For State fiscal years 1996 through 2005, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16so that by State fiscal year 2011, the State is contributing at
17the rate required under this Section.
18 Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2006 is
20$4,157,000.
21 Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2007 is
23$5,220,300.
24 For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

SB0011- 28 -LRB100 06001 RPS 16030 b
1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4 Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010 is
6$10,454,000 and shall be made from the proceeds of bonds sold
7in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the General Revenue
11Fund in fiscal year 2010, and (iii) any reduction in bond
12proceeds due to the issuance of discounted bonds, if
13applicable.
14 Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011 is
16the amount recertified by the System on or before April 1, 2011
17pursuant to Section 2-134 and shall be made from the proceeds
18of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
19the General Obligation Bond Act, less (i) the pro rata share of
20bond sale expenses determined by the System's share of total
21bond proceeds, (ii) any amounts received from the General
22Revenue Fund in fiscal year 2011, and (iii) any reduction in
23bond proceeds due to the issuance of discounted bonds, if
24applicable.
25 Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed to

SB0011- 29 -LRB100 06001 RPS 16030 b
1maintain the total assets of the System at 90% of the total
2actuarial liabilities of the System.
3 Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 90%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15 Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter, as calculated
18under this Section and certified under Section 2-134, shall not
19exceed an amount equal to (i) the amount of the required State
20contribution that would have been calculated under this Section
21for that fiscal year if the System had not received any
22payments under subsection (d) of Section 7.2 of the General
23Obligation Bond Act, minus (ii) the portion of the State's
24total debt service payments for that fiscal year on the bonds
25issued in fiscal year 2003 for the purposes of that Section
267.2, as determined and certified by the Comptroller, that is

SB0011- 30 -LRB100 06001 RPS 16030 b
1the same as the System's portion of the total moneys
2distributed under subsection (d) of Section 7.2 of the General
3Obligation Bond Act. In determining this maximum for State
4fiscal years 2008 through 2010, however, the amount referred to
5in item (i) shall be increased, as a percentage of the
6applicable employee payroll, in equal increments calculated
7from the sum of the required State contribution for State
8fiscal year 2007 plus the applicable portion of the State's
9total debt service payments for fiscal year 2007 on the bonds
10issued in fiscal year 2003 for the purposes of Section 7.2 of
11the General Obligation Bond Act, so that, by State fiscal year
122011, the State is contributing at the rate otherwise required
13under this Section.
14 (d) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18 As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25 (e) For purposes of determining the required State
26contribution to the system for a particular year, the actuarial

SB0011- 31 -LRB100 06001 RPS 16030 b
1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
57-13-12.)
6 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
7 (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9 Sec. 2-126. Contributions by participants.
10 (a) Each participant shall contribute toward the cost of
11his or her retirement annuity a percentage of each payment of
12salary received by him or her for service as a member as
13follows: for service between October 31, 1947 and January 1,
141959, 5%; for service between January 1, 1959 and June 30,
151969, 6%; for service between July 1, 1969 and January 10,
161973, 6 1/2%; for service after January 10, 1973, 7%; for
17service after December 31, 1981, 8 1/2%.
18 (b) Beginning August 2, 1949, each male participant, and
19from July 1, 1971, each female participant shall contribute
20towards the cost of the survivor's annuity 2% of salary.
21 A participant who has no eligible survivor's annuity
22beneficiary may elect to cease making contributions for
23survivor's annuity under this subsection. A survivor's annuity
24shall not be payable upon the death of a person who has made
25this election, unless prior to that death the election has been

SB0011- 32 -LRB100 06001 RPS 16030 b
1revoked and the amount of the contributions that would have
2been paid under this subsection in the absence of the election
3is paid to the System, together with interest at the rate of 4%
4per year from the date the contributions would have been made
5to the date of payment.
6 (c) Beginning July 1, 1967, each participant shall
7contribute 1% of salary towards the cost of automatic increase
8in annuity provided in Section 2-119.1. These contributions
9shall be made concurrently with contributions for retirement
10annuity purposes.
11 (d) In addition, each participant serving as an officer of
12the General Assembly shall contribute, for the same purposes
13and at the same rates as are required of a regular participant,
14on each additional payment received as an officer. If the
15participant serves as an officer for at least 2 but less than 4
16years, he or she shall contribute an amount equal to the amount
17that would have been contributed had the participant served as
18an officer for 4 years. Persons who serve as officers in the
1987th General Assembly but cannot receive the additional payment
20to officers because of the ban on increases in salary during
21their terms may nonetheless make contributions based on those
22additional payments for the purpose of having the additional
23payments included in their highest salary for annuity purposes;
24however, persons electing to make these additional
25contributions must also pay an amount representing the
26corresponding employer contributions, as calculated by the

SB0011- 33 -LRB100 06001 RPS 16030 b
1System.
2 (e) Notwithstanding any other provision of this Article,
3the required contribution of a participant who first becomes a
4participant on or after January 1, 2011 shall not exceed the
5contribution that would be due under this Article if that
6participant's highest salary for annuity purposes were
7$106,800, plus any increases in that amount under Section
82-108.1.
9 (f) Beginning July 1, 2018 or the effective date of the
10Tier 1 employee's election under paragraph (1) of subsection
11(a) of Section 2-110.3, whichever is later, in lieu of the
12contributions otherwise required under this Section, each Tier
131 employee who made the election under paragraph (1) of
14subsection (a) of Section 2-110.3 shall contribute 8.5% of each
15payment of salary toward the cost of his or her retirement
16annuity and 1.85% of each payment of salary toward the cost of
17the survivor's annuity.
18(Source: P.A. 96-1490, eff. 1-1-11.)
19 (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22 Sec. 2-134. To certify required State contributions and
23submit vouchers.
24 (a) The Board shall certify to the Governor on or before
25December 15 of each year until December 15, 2011 the amount of

SB0011- 34 -LRB100 06001 RPS 16030 b
1the required State contribution to the System for the next
2fiscal year and shall specifically identify the System's
3projected State normal cost for that fiscal year. The
4certification shall include a copy of the actuarial
5recommendations upon which it is based and shall specifically
6identify the System's projected State normal cost for that
7fiscal year.
8 On or before November 1 of each year, beginning November 1,
92012, the Board shall submit to the State Actuary, the
10Governor, and the General Assembly a proposed certification of
11the amount of the required State contribution to the System for
12the next fiscal year, along with all of the actuarial
13assumptions, calculations, and data upon which that proposed
14certification is based. On or before January 1 of each year
15beginning January 1, 2013, the State Actuary shall issue a
16preliminary report concerning the proposed certification and
17identifying, if necessary, recommended changes in actuarial
18assumptions that the Board must consider before finalizing its
19certification of the required State contributions. On or before
20January 15, 2013 and every January 15 thereafter, the Board
21shall certify to the Governor and the General Assembly the
22amount of the required State contribution for the next fiscal
23year. The Board's certification must note any deviations from
24the State Actuary's recommended changes, the reason or reasons
25for not following the State Actuary's recommended changes, and
26the fiscal impact of not following the State Actuary's

SB0011- 35 -LRB100 06001 RPS 16030 b
1recommended changes on the required State contribution.
2 On or before May 1, 2004, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8 On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by this amendatory Act of the 94th General Assembly.
13 On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19 As soon as practical after the effective date of this
20amendatory Act of the 100th General Assembly, the State Actuary
21and the Board shall recalculate and recertify to the Governor
22and the General Assembly the amount of the State contribution
23to the System for State fiscal year 2018, taking into account
24the changes in required State contributions made by this
25amendatory Act of the 100th General Assembly.
26 On or before May 1, 2018, the Board shall recalculate and

SB0011- 36 -LRB100 06001 RPS 16030 b
1recertify to the Governor and the General Assembly the amount
2of the required State contribution to the System for State
3fiscal year 2019, taking into account the effect on the
4System's liabilities of the elections made under Section
52-110.3.
6 On or before October 1, 2018, the Board shall recalculate
7and recertify to the Governor and the General Assembly the
8amount of the required State contribution to the System for
9State fiscal year 2019, taking into account the reduction
10specified under item (3) of subsection (c) of Section 2-124.
11 (b) Beginning in State fiscal year 1996, on or as soon as
12possible after the 15th day of each month the Board shall
13submit vouchers for payment of State contributions to the
14System, in a total monthly amount of one-twelfth of the
15required annual State contribution certified under subsection
16(a). From the effective date of this amendatory Act of the 93rd
17General Assembly through June 30, 2004, the Board shall not
18submit vouchers for the remainder of fiscal year 2004 in excess
19of the fiscal year 2004 certified contribution amount
20determined under this Section after taking into consideration
21the transfer to the System under subsection (d) of Section
226z-61 of the State Finance Act. These vouchers shall be paid by
23the State Comptroller and Treasurer by warrants drawn on the
24funds appropriated to the System for that fiscal year. If in
25any month the amount remaining unexpended from all other
26appropriations to the System for the applicable fiscal year

SB0011- 37 -LRB100 06001 RPS 16030 b
1(including the appropriations to the System under Section 8.12
2of the State Finance Act and Section 1 of the State Pension
3Funds Continuing Appropriation Act) is less than the amount
4lawfully vouchered under this Section, the difference shall be
5paid from the General Revenue Fund under the continuing
6appropriation authority provided in Section 1.1 of the State
7Pension Funds Continuing Appropriation Act.
8 (c) The full amount of any annual appropriation for the
9System for State fiscal year 1995 shall be transferred and made
10available to the System at the beginning of that fiscal year at
11the request of the Board. Any excess funds remaining at the end
12of any fiscal year from appropriations shall be retained by the
13System as a general reserve to meet the System's accrued
14liabilities.
15(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1697-694, eff. 6-18-12.)
17 (40 ILCS 5/2-162)
18 (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20 Sec. 2-162. Application and expiration of new benefit
21increases.
22 (a) As used in this Section, "new benefit increase" means
23an increase in the amount of any benefit provided under this
24Article, or an expansion of the conditions of eligibility for
25any benefit under this Article, that results from an amendment

SB0011- 38 -LRB100 06001 RPS 16030 b
1to this Code that takes effect after the effective date of this
2amendatory Act of the 94th General Assembly. "New benefit
3increase", however, does not include any benefit increase
4resulting from the changes made to this Article by this
5amendatory Act of the 100th General Assembly.
6 (b) Notwithstanding any other provision of this Code or any
7subsequent amendment to this Code, every new benefit increase
8is subject to this Section and shall be deemed to be granted
9only in conformance with and contingent upon compliance with
10the provisions of this Section.
11 (c) The Public Act enacting a new benefit increase must
12identify and provide for payment to the System of additional
13funding at least sufficient to fund the resulting annual
14increase in cost to the System as it accrues.
15 Every new benefit increase is contingent upon the General
16Assembly providing the additional funding required under this
17subsection. The Commission on Government Forecasting and
18Accountability shall analyze whether adequate additional
19funding has been provided for the new benefit increase and
20shall report its analysis to the Public Pension Division of the
21Department of Insurance Financial and Professional Regulation.
22A new benefit increase created by a Public Act that does not
23include the additional funding required under this subsection
24is null and void. If the Public Pension Division determines
25that the additional funding provided for a new benefit increase
26under this subsection is or has become inadequate, it may so

SB0011- 39 -LRB100 06001 RPS 16030 b
1certify to the Governor and the State Comptroller and, in the
2absence of corrective action by the General Assembly, the new
3benefit increase shall expire at the end of the fiscal year in
4which the certification is made.
5 (d) Every new benefit increase shall expire 5 years after
6its effective date or on such earlier date as may be specified
7in the language enacting the new benefit increase or provided
8under subsection (c). This does not prevent the General
9Assembly from extending or re-creating a new benefit increase
10by law.
11 (e) Except as otherwise provided in the language creating
12the new benefit increase, a new benefit increase that expires
13under this Section continues to apply to persons who applied
14and qualified for the affected benefit while the new benefit
15increase was in effect and to the affected beneficiaries and
16alternate payees of such persons, but does not apply to any
17other person, including without limitation a person who
18continues in service after the expiration date and did not
19apply and qualify for the affected benefit while the new
20benefit increase was in effect.
21(Source: P.A. 94-4, eff. 6-1-05.)
22 (40 ILCS 5/2-165.1 new)
23 Sec. 2-165.1. Defined contribution plan.
24 (a) By July 1, 2018, the System shall prepare and implement
25a voluntary defined contribution plan for up to 5% of eligible

SB0011- 40 -LRB100 06001 RPS 16030 b
1active Tier 1 employees. The System shall determine the 5% cap
2by the number of active Tier 1 employees on the effective date
3of this Section. The defined contribution plan developed under
4this Section shall be a plan that aggregates employer and
5employee contributions in individual participant accounts
6which, after meeting any other requirements, are used for
7payouts after retirement in accordance with this Section and
8any other applicable laws.
9 As used in this Section, "defined benefit plan" means the
10retirement plan available under this Article to Tier 1
11employees who have not made the election authorized under this
12Section.
13 (1) Under the defined contribution plan, an active Tier
14 1 employee of this System could elect to cease accruing
15 benefits in the defined benefit plan under this Article and
16 begin accruing benefits for future service in the defined
17 contribution plan. Service credit under the defined
18 contribution plan may be used for determining retirement
19 eligibility under the defined benefit plan.
20 (2) Participants in the defined contribution plan
21 shall pay employee contributions at the same rate as Tier 1
22 employees in this System who do not participate in the
23 defined contribution plan.
24 (3) State contributions shall be paid into the accounts
25 of all participants in the defined contribution plan at a
26 uniform rate, expressed as a percentage of compensation and

SB0011- 41 -LRB100 06001 RPS 16030 b
1 determined for each year. This rate shall be no higher than
2 the employer's normal cost for Tier 1 employees in the
3 defined benefit plan for that year, as determined by the
4 System and expressed as a percentage of compensation, and
5 shall be no lower than 3% of compensation. The State shall
6 adjust this rate annually.
7 (4) The defined contribution plan shall require 5 years
8 of participation in the defined contribution plan before
9 vesting in State contributions. If the participant fails to
10 vest in them, the State contributions, and the earnings
11 thereon, shall be forfeited.
12 (5) The defined contribution plan may provide for
13 participants in the plan to be eligible for defined
14 disability benefits. If it does, the System shall reduce
15 the employee contributions credited to the participant's
16 defined contribution plan account by an amount determined
17 by the System to cover the cost of offering such benefits.
18 (6) The defined contribution plan shall provide a
19 variety of options for investments. These options shall
20 include investments handled by the Illinois State Board of
21 Investment as well as private sector investment options.
22 (7) The defined contribution plan shall provide a
23 variety of options for payouts to retirees and their
24 survivors.
25 (8) To the extent authorized under federal law and as
26 authorized by the System, the plan shall allow former

SB0011- 42 -LRB100 06001 RPS 16030 b
1 participants in the plan to transfer or roll over employee
2 and vested State contributions, and the earnings thereon,
3 into other qualified retirement plans.
4 (9) The System shall reduce the employee contributions
5 credited to the participant's defined contribution plan
6 account by an amount determined by the System to cover the
7 cost of offering these benefits and any applicable
8 administrative fees.
9 (b) Only persons who are active Tier 1 employees of the
10System on the effective date of this Section are eligible to
11participate in the defined contribution plan. Participation in
12the defined contribution plan shall be limited to the first 5%
13of eligible persons who elect to participate. The election to
14participate in the defined contribution plan is voluntary and
15irrevocable.
16 (c) An eligible active Tier 1 employee may irrevocably
17elect to participate in the defined contribution plan by filing
18with the System a written application to participate that is
19received by the System prior to its determination that 5% of
20eligible persons have elected to participate in the defined
21contribution plan.
22 When the System first determines that 5% of eligible
23persons have elected to participate in the defined contribution
24plan, the System shall provide notice to previously eligible
25employees that the plan is no longer available and shall cease
26accepting applications to participate.

SB0011- 43 -LRB100 06001 RPS 16030 b
1 (d) The System shall make a good faith effort to contact
2each active Tier 1 employee who is eligible to participate in
3the defined contribution plan. The System shall mail
4information describing the option to join the defined
5contribution plan to each of these employees to his or her last
6known address on file with the System. If the employee is not
7responsive to other means of contact, it is sufficient for the
8System to publish the details of the option on its website.
9 Upon request for further information describing the
10option, the System shall provide employees with information
11from the System before exercising the option to join the plan,
12including information on the impact to their vested benefits or
13non-vested service. The individual consultation shall include
14projections of the participant's defined benefits at
15retirement or earlier termination of service and the value of
16the participant's account at retirement or earlier termination
17of service. The System shall not provide advice or counseling
18with respect to whether the employee should exercise the
19option. The System shall inform Tier 1 employees who are
20eligible to participate in the defined contribution plan that
21they may also wish to obtain information and counsel relating
22to their option from any other available source, including but
23not limited to labor organizations, private counsel, and
24financial advisors.
25 (e) In no event shall the System, its staff, its authorized
26representatives, or the Board be liable for any information

SB0011- 44 -LRB100 06001 RPS 16030 b
1given to an employee under this Section. The System may
2coordinate with the Illinois Department of Central Management
3Services and other retirement systems administering a defined
4contribution plan in accordance with this amendatory Act of the
5100th General Assembly to provide information concerning the
6impact of the option set forth in this Section.
7 (f) Notwithstanding any other provision of this Section, no
8person shall begin participating in the defined contribution
9plan until it has attained qualified plan status and received
10all necessary approvals from the U.S. Internal Revenue Service.
11 (g) The System shall report on its progress under this
12Section, including the available details of the defined
13contribution plan and the System's plans for informing eligible
14Tier 1 employees about the plan, to the Governor and the
15General Assembly on or before January 15, 2018.
16 (h) The Illinois State Board of Investments shall be the
17plan sponsor for the defined contribution plan established
18under this Section.
19 (i) The intent of this amendatory Act of the 100th General
20Assembly is to ensure that the State's normal cost of
21participation in the defined contribution plan is similar, and
22if possible equal, to the State's normal cost of participation
23in the defined benefit plan, unless a lower State's normal cost
24is necessary to ensure cost neutrality.
25 (j) If Section 2-110.3 is determined to be unconstitutional
26or otherwise invalid by a final unappealable decision of an

SB0011- 45 -LRB100 06001 RPS 16030 b
1Illinois court or a court of competent jurisdiction, then this
2Section shall not take effect and is repealed by operation of
3law.
4 (40 ILCS 5/2-166.1 new)
5 Sec. 2-166.1. Defined contribution plan; termination. If
6the defined contribution plan is terminated or becomes
7inoperative pursuant to law, then each participant in the plan
8shall automatically be deemed to have been a contributing Tier
91 employee in the System's defined benefit plan during the time
10in which he or she participated in the defined contribution
11plan, and for that purpose the System shall be entitled to
12recover the amounts in the participant's defined contribution
13accounts.
14 (40 ILCS 5/15-108.1)
15 Sec. 15-108.1. Tier 1 member; Tier 1 employee.
16 "Tier 1 member": A participant or an annuitant of a
17retirement annuity under this Article, other than a participant
18in the self-managed plan under Section 15-158.2, who first
19became a participant or member before January 1, 2011 under any
20reciprocal retirement system or pension fund established under
21this Code, other than a retirement system or pension fund
22established under Articles 2, 3, 4, 5, 6, or 18 of this Code.
23"Tier 1 member" includes a person who first became a
24participant under this System before January 1, 2011 and who

SB0011- 46 -LRB100 06001 RPS 16030 b
1accepts a refund and is subsequently reemployed by an employer
2on or after January 1, 2011.
3 "Tier 1 employee": An employee under this Article, other
4than a participant in the self-managed plan under Section
515-158.2, who first became a member or participant before
6January 1, 2011 under any reciprocal retirement system or
7pension fund established under this Code other than a
8retirement system or pension fund established under Article 2,
93, 4, 5, 6, or 18 of this Code. However, for the purposes of the
10election under Section 15-132.9, "Tier 1 employee" does not
11include a participant under this Article who would qualify as a
12Tier 1 employee but who has made an irrevocable election on or
13before June 1, 2017 to retire from service pursuant to the
14terms of a collective bargaining agreement in effect on June 1,
152017, excluding any extension, amendment, or renewal of that
16agreement on or after that date, and has notified the System of
17that election.
18(Source: P.A. 98-92, eff. 7-16-13.)
19 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
20 Sec. 15-111. Earnings.
21 (a) "Earnings": Subject to Section 15-111.5, an amount paid
22for personal services equal to the sum of the basic
23compensation plus extra compensation for summer teaching,
24overtime or other extra service. For periods for which an
25employee receives service credit under subsection (c) of

SB0011- 47 -LRB100 06001 RPS 16030 b
1Section 15-113.1 or Section 15-113.2, earnings are equal to the
2basic compensation on which contributions are paid by the
3employee during such periods. Compensation for employment
4which is irregular, intermittent and temporary shall not be
5considered earnings, unless the participant is also receiving
6earnings from the employer as an employee under Section 15-107.
7 With respect to transition pay paid by the University of
8Illinois to a person who was a participating employee employed
9in the fire department of the University of Illinois's
10Champaign-Urbana campus immediately prior to the elimination
11of that fire department:
12 (1) "Earnings" includes transition pay paid to the
13 employee on or after the effective date of this amendatory
14 Act of the 91st General Assembly.
15 (2) "Earnings" includes transition pay paid to the
16 employee before the effective date of this amendatory Act
17 of the 91st General Assembly only if (i) employee
18 contributions under Section 15-157 have been withheld from
19 that transition pay or (ii) the employee pays to the System
20 before January 1, 2001 an amount representing employee
21 contributions under Section 15-157 on that transition pay.
22 Employee contributions under item (ii) may be paid in a
23 lump sum, by withholding from additional transition pay
24 accruing before January 1, 2001, or in any other manner
25 approved by the System. Upon payment of the employee
26 contributions on transition pay, the corresponding

SB0011- 48 -LRB100 06001 RPS 16030 b
1 employer contributions become an obligation of the State.
2 (a-5) Notwithstanding any other provision of this Section,
3"earnings" does not include any future increase in income that
4is offered for service by an employer to a Tier 1 employee
5under this Article pursuant to the condition set forth in
6subsection (c) of Section 15-132.9 and accepted under that
7condition by a Tier 1 employee who has made the election under
8paragraph (2) of subsection (a) of Section 15-132.9.
9 (a-10) Notwithstanding any other provision of this
10Section, "earnings" does not include any consideration payment
11made to a Tier 1 employee.
12 (b) For a Tier 2 member, the annual earnings shall not
13exceed $106,800; however, that amount shall annually
14thereafter be increased by the lesser of (i) 3% of that amount,
15including all previous adjustments, or (ii) one half the annual
16unadjusted percentage increase (but not less than zero) in the
17consumer price index-u for the 12 months ending with the
18September preceding each November 1, including all previous
19adjustments.
20 For the purposes of this Section, "consumer price index u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the average
23change in prices of goods and services purchased by all urban
24consumers, United States city average, all items, 1982-84 =
25100. The new amount resulting from each annual adjustment shall
26be determined by the Public Pension Division of the Department

SB0011- 49 -LRB100 06001 RPS 16030 b
1of Insurance and made available to the boards of the retirement
2systems and pension funds by November 1 of each year.
3 (c) With each submission of payroll information in the
4manner prescribed by the System, the employer shall certify
5that the payroll information is correct and complies with all
6applicable State and federal laws.
7(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
8 (40 ILCS 5/15-112.1 new)
9 Sec. 15-112.1. Future increase in income. "Future increase
10in income" means an increase in income in any form offered by
11an employer to a Tier 1 employee for service under this Article
12after June 30, 2018 that qualifies as "earnings", as defined in
13Section 15-111, or would qualify as "earnings" but for the fact
14that it was offered to and accepted by a Tier 1 employee under
15the condition set forth in subsection (c) of Section 15-132.9.
16The term "future increase in income" does not include an
17increase in income in any form that is paid to a Tier 1
18employee under an employment contract or a collective
19bargaining agreement that is in effect on the effective date of
20this Section, but does include an increase in income in any
21form pursuant to an extension, amendment, or renewal of any
22such employment contract or collective bargaining agreement on
23or after the effective date of this Section.
24 (40 ILCS 5/15-132.9 new)

SB0011- 50 -LRB100 06001 RPS 16030 b
1 Sec. 15-132.9. Election by Tier 1 employees.
2 (a) Each active Tier 1 employee shall make an irrevocable
3election either:
4 (1) to agree to delay his or her eligibility for
5 automatic annual increases in retirement annuity as
6 provided in subsection (d-1) of Section 15-136 and to have
7 the amount of the automatic annual increases in his or her
8 retirement annuity that are otherwise provided for in this
9 Article calculated, instead, as provided in subsection
10 (d-1) of Section 15-136; or
11 (2) to not agree to the provisions of paragraph (1) of
12 this subsection.
13 The election required under this subsection (a) shall be
14made by each active Tier 1 employee no earlier than January 1,
152018 and no later than March 31, 2018, except that:
16 (i) a person who becomes a Tier 1 employee under this
17 Article on or after January 1, 2018 must make the election
18 under this subsection (a) within 60 days after becoming a
19 Tier 1 employee; and
20 (ii) a person who returns to active service as a Tier 1
21 employee under this Article on or after January 1, 2018 and
22 has not yet made an election under this Section must make
23 the election under this subsection (a) within 60 days after
24 returning to active service as a Tier 1 employee.
25 If a Tier 1 employee fails for any reason to make a
26required election under this subsection within the time

SB0011- 51 -LRB100 06001 RPS 16030 b
1specified, then the employee shall be deemed to have made the
2election under paragraph (2) of this subsection.
3 (a-5) If this Section is enjoined or stayed by an Illinois
4court or a court of competent jurisdiction pending the entry of
5a final and unappealable decision, and this Section is
6determined to be constitutional or otherwise valid by a final
7unappealable decision of an Illinois court or a court of
8competent jurisdiction, then the election procedure set forth
9in subsection (a) of this Section shall commence on the 180th
10calendar day after the date of the issuance of the final
11unappealable decision and shall conclude at the end of the
12270th calendar day after that date.
13 (a-10) All elections under subsection (a) that are made or
14deemed to be made before July 1, 2018 shall take effect on July
151, 2018. Elections that are made or deemed to be made on or
16after July 1, 2018 shall take effect on the first day of the
17month following the month in which the election is made or
18deemed to be made.
19 (b) As adequate and legal consideration provided under this
20amendatory Act of the 100th General Assembly for making an
21election under paragraph (1) of subsection (a) of this Section,
22the employer shall be expressly and irrevocably prohibited from
23offering any future increases in income to a Tier 1 employee
24who has made an election under paragraph (1) of subsection (a)
25of this Section on the condition of not constituting earnings
26under Section 15-111.

SB0011- 52 -LRB100 06001 RPS 16030 b
1 As adequate and legal consideration provided under this
2amendatory Act of the 100th General Assembly for making an
3election under paragraph (1) of subsection (a) of this Section,
4each Tier 1 employee who has made an election under paragraph
5(1) of subsection (a) of this Section shall receive a
6consideration payment equal to 10% of the contributions made by
7or on behalf of the employee under Section 15-157 before the
8effective date of that election. The State Comptroller shall
9pay the consideration payment to the Tier 1 employee out of
10funds appropriated for that purpose under Section 1.9 of the
11State Pension Funds Continuing Appropriation Act. The System
12shall calculate the amount of each consideration payment and
13shall certify to the State Comptroller the amount of the
14consideration payment, together with the name, address, and any
15other available payment information of the Tier 1 employee as
16found in the records of the System.
17 (c) A Tier 1 employee who makes the election under
18paragraph (2) of subsection (a) of this Section shall not be
19subject to paragraph (1) of subsection (a) of this Section.
20However, any future increases in income offered by an employer
21under this Article to a Tier 1 employee who has made the
22election under paragraph (2) of subsection (a) of this Section
23shall be offered by the employer expressly and irrevocably on
24the condition of not constituting earnings under Section
2515-111, and the employee may not accept any future increase in
26income that is offered without this condition.

SB0011- 53 -LRB100 06001 RPS 16030 b
1 (d) The System shall make a good faith effort to contact
2each Tier 1 employee subject to this Section. The System shall
3mail information describing the required election to each Tier
41 employee by United States Postal Service mail to his or her
5last known address on file with the System. If the Tier 1
6employee is not responsive to other means of contact, it is
7sufficient for the System to publish the details of any
8required elections on its website or to publish those details
9in a regularly published newsletter or other existing public
10forum.
11 Tier 1 employees who are subject to this Section shall be
12provided with an election packet containing information
13regarding their options, as well as the forms necessary to make
14the required election. Upon request, the System shall offer
15Tier 1 employees an opportunity to receive information from the
16System before making the required election. The information may
17consist of video materials, group presentations, individual
18consultation with a member or authorized representative of the
19System in person or by telephone or other electronic means, or
20any combination of those methods. The System shall not provide
21advice or counseling with respect to which election a Tier 1
22employee should make or specific to the legal or tax
23circumstances of or consequences to the Tier 1 employee.
24 The System shall inform Tier 1 employees in the election
25packet required under this subsection that the Tier 1 employee
26may also wish to obtain information and counsel relating to the

SB0011- 54 -LRB100 06001 RPS 16030 b
1election required under this Section from any other available
2source, including, but not limited to, labor organizations and
3private counsel.
4 In no event shall the System, its staff, or the Board be
5held liable for any information given to a member regarding the
6elections under this Section. The System shall coordinate with
7the Illinois Department of Central Management Services and each
8other retirement system administering an election in
9accordance with this amendatory Act of the 100th General
10Assembly to provide information concerning the impact of the
11election set forth in this Section.
12 (e) Notwithstanding any other provision of law, an employer
13under this Article is required to offer any future increases in
14income expressly and irrevocably on the condition of not
15constituting "earnings" under Section 15-111 to any Tier 1
16employee who has made an election under paragraph (2) of
17subsection (a) of this Section. A Tier 1 employee who has made
18an election under paragraph (2) of subsection (a) of this
19Section shall not accept any future increase in income that is
20offered by an employer under this Article without the condition
21set forth in this subsection.
22 For purposes of legislative intent, the condition set forth
23in this subsection shall be construed in a manner that ensures
24that the condition is not violated or circumvented through any
25contrivance of any kind.
26 (f) A member's election under this Section is not a

SB0011- 55 -LRB100 06001 RPS 16030 b
1prohibited election under subdivision (j)(1) of Section 1-119
2of this Code.
3 (g) No provision of this Section shall be interpreted in a
4way that would cause the System to cease to be a qualified plan
5under Section 401(a) of the Internal Revenue Code of 1986.
6 (h) If an election created by this amendatory Act in any
7other Article of this Code or any change deriving from that
8election is determined to be unconstitutional or otherwise
9invalid by a final unappealable decision of an Illinois court
10or a court of competent jurisdiction, the invalidity of that
11provision shall not in any way affect the validity of this
12Section or the changes deriving from the election required
13under this Section.
14 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
15 (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17 Sec. 15-136. Retirement annuities - Amount. The provisions
18of this Section 15-136 apply only to those participants who are
19participating in the traditional benefit package or the
20portable benefit package and do not apply to participants who
21are participating in the self-managed plan.
22 (a) The amount of a participant's retirement annuity,
23expressed in the form of a single-life annuity, shall be
24determined by whichever of the following rules is applicable
25and provides the largest annuity:

SB0011- 56 -LRB100 06001 RPS 16030 b
1 Rule 1: The retirement annuity shall be 1.67% of final rate
2of earnings for each of the first 10 years of service, 1.90%
3for each of the next 10 years of service, 2.10% for each year
4of service in excess of 20 but not exceeding 30, and 2.30% for
5each year in excess of 30; or for persons who retire on or
6after January 1, 1998, 2.2% of the final rate of earnings for
7each year of service.
8 Rule 2: The retirement annuity shall be the sum of the
9following, determined from amounts credited to the participant
10in accordance with the actuarial tables and the effective rate
11of interest in effect at the time the retirement annuity
12begins:
13 (i) the normal annuity which can be provided on an
14 actuarially equivalent basis, by the accumulated normal
15 contributions as of the date the annuity begins;
16 (ii) an annuity from employer contributions of an
17 amount equal to that which can be provided on an
18 actuarially equivalent basis from the accumulated normal
19 contributions made by the participant under Section
20 15-113.6 and Section 15-113.7 plus 1.4 times all other
21 accumulated normal contributions made by the participant;
22 and
23 (iii) the annuity that can be provided on an
24 actuarially equivalent basis from the entire contribution
25 made by the participant under Section 15-113.3.
26 With respect to a police officer or firefighter who retires

SB0011- 57 -LRB100 06001 RPS 16030 b
1on or after August 14, 1998, the accumulated normal
2contributions taken into account under clauses (i) and (ii) of
3this Rule 2 shall include the additional normal contributions
4made by the police officer or firefighter under Section
515-157(a).
6 The amount of a retirement annuity calculated under this
7Rule 2 shall be computed solely on the basis of the
8participant's accumulated normal contributions, as specified
9in this Rule and defined in Section 15-116. Neither an employee
10or employer contribution for early retirement under Section
1115-136.2 nor any other employer contribution shall be used in
12the calculation of the amount of a retirement annuity under
13this Rule 2.
14 This amendatory Act of the 91st General Assembly is a
15clarification of existing law and applies to every participant
16and annuitant without regard to whether status as an employee
17terminates before the effective date of this amendatory Act.
18 This Rule 2 does not apply to a person who first becomes an
19employee under this Article on or after July 1, 2005.
20 Rule 3: The retirement annuity of a participant who is
21employed at least one-half time during the period on which his
22or her final rate of earnings is based, shall be equal to the
23participant's years of service not to exceed 30, multiplied by
24(1) $96 if the participant's final rate of earnings is less
25than $3,500, (2) $108 if the final rate of earnings is at least
26$3,500 but less than $4,500, (3) $120 if the final rate of

SB0011- 58 -LRB100 06001 RPS 16030 b
1earnings is at least $4,500 but less than $5,500, (4) $132 if
2the final rate of earnings is at least $5,500 but less than
3$6,500, (5) $144 if the final rate of earnings is at least
4$6,500 but less than $7,500, (6) $156 if the final rate of
5earnings is at least $7,500 but less than $8,500, (7) $168 if
6the final rate of earnings is at least $8,500 but less than
7$9,500, and (8) $180 if the final rate of earnings is $9,500 or
8more, except that the annuity for those persons having made an
9election under Section 15-154(a-1) shall be calculated and
10payable under the portable retirement benefit program pursuant
11to the provisions of Section 15-136.4.
12 Rule 4: A participant who is at least age 50 and has 25 or
13more years of service as a police officer or firefighter, and a
14participant who is age 55 or over and has at least 20 but less
15than 25 years of service as a police officer or firefighter,
16shall be entitled to a retirement annuity of 2 1/4% of the
17final rate of earnings for each of the first 10 years of
18service as a police officer or firefighter, 2 1/2% for each of
19the next 10 years of service as a police officer or
20firefighter, and 2 3/4% for each year of service as a police
21officer or firefighter in excess of 20. The retirement annuity
22for all other service shall be computed under Rule 1. A Tier 2
23member is eligible for a retirement annuity calculated under
24Rule 4 only if that Tier 2 member meets the service
25requirements for that benefit calculation as prescribed under
26this Rule 4 in addition to the applicable age requirement under

SB0011- 59 -LRB100 06001 RPS 16030 b
1subsection (a-5) of Section 15-135.
2 For purposes of this Rule 4, a participant's service as a
3firefighter shall also include the following:
4 (i) service that is performed while the person is an
5 employee under subsection (h) of Section 15-107; and
6 (ii) in the case of an individual who was a
7 participating employee employed in the fire department of
8 the University of Illinois's Champaign-Urbana campus
9 immediately prior to the elimination of that fire
10 department and who immediately after the elimination of
11 that fire department transferred to another job with the
12 University of Illinois, service performed as an employee of
13 the University of Illinois in a position other than police
14 officer or firefighter, from the date of that transfer
15 until the employee's next termination of service with the
16 University of Illinois.
17 (b) For a Tier 1 member, the retirement annuity provided
18under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
19month the participant is under age 60 at the time of
20retirement. However, this reduction shall not apply in the
21following cases:
22 (1) For a disabled participant whose disability
23 benefits have been discontinued because he or she has
24 exhausted eligibility for disability benefits under clause
25 (6) of Section 15-152;
26 (2) For a participant who has at least the number of

SB0011- 60 -LRB100 06001 RPS 16030 b
1 years of service required to retire at any age under
2 subsection (a) of Section 15-135; or
3 (3) For that portion of a retirement annuity which has
4 been provided on account of service of the participant
5 during periods when he or she performed the duties of a
6 police officer or firefighter, if these duties were
7 performed for at least 5 years immediately preceding the
8 date the retirement annuity is to begin.
9 (b-5) The retirement annuity of a Tier 2 member who is
10retiring after attaining age 62 with at least 10 years of
11service credit shall be reduced by 1/2 of 1% for each full
12month that the member's age is under age 67.
13 (c) The maximum retirement annuity provided under Rules 1,
142, 4, and 5 shall be the lesser of (1) the annual limit of
15benefits as specified in Section 415 of the Internal Revenue
16Code of 1986, as such Section may be amended from time to time
17and as such benefit limits shall be adjusted by the
18Commissioner of Internal Revenue, and (2) 80% of final rate of
19earnings.
20 (d) Subject to the provisions of subsection (d-1), a A Tier
211 member whose status as an employee terminates after August
2214, 1969 shall receive automatic increases in his or her
23retirement 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

SB0011- 61 -LRB100 06001 RPS 16030 b
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, and except as provided in
21subsection (d-1), all automatic annual increases payable under
22this Section shall be calculated as a percentage of the total
23annuity payable at the time of the increase, including all
24increases previously granted under this Article.
25 The change made in this subsection by P.A. 85-1008 is
26effective January 26, 1988, and is applicable without regard to

SB0011- 62 -LRB100 06001 RPS 16030 b
1whether status as an employee terminated before that date.
2 (d-1) Notwithstanding any other provision of this Article,
3for a Tier 1 employee who made the election under paragraph (1)
4of subsection (a) of Section 15-132.9:
5 (1) The initial increase in retirement annuity under
6 this Section shall occur on the January 1 occurring either
7 on or after the attainment of age 67 or the fifth
8 anniversary of the annuity start date, whichever is
9 earlier.
10 (2) The amount of each automatic annual increase in
11 retirement annuity occurring on or after the effective date
12 of that election shall be calculated as a percentage of the
13 originally granted retirement annuity, equal to 3% or
14 one-half the annual unadjusted percentage increase (but
15 not less than zero) in the consumer price index-u for the
16 12 months ending with the September preceding each November
17 1, whichever is less. If the annual unadjusted percentage
18 change in the consumer price index-u for the 12 months
19 ending with the September preceding each November 1 is zero
20 or there is a decrease, then the annuity shall not be
21 increased.
22 For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

SB0011- 63 -LRB100 06001 RPS 16030 b
1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the board of the retirement
4system by November 1 of each year.
5 (d-5) A retirement annuity of a Tier 2 member shall receive
6annual increases on the January 1 occurring either on or after
7the attainment of age 67 or the first anniversary of the
8annuity start date, whichever is later. Each annual increase
9shall be calculated at 3% or one half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, whichever is less, of the originally
13granted retirement annuity. If the annual unadjusted
14percentage change in the consumer price index-u for the 12
15months ending with the September preceding each November 1 is
16zero or there is a decrease, then the annuity shall not be
17increased.
18 (e) If, on January 1, 1987, or the date the retirement
19annuity payment period begins, whichever is later, the sum of
20the retirement annuity provided under Rule 1 or Rule 2 of this
21Section and the automatic annual increases provided under the
22preceding subsection or Section 15-136.1, amounts to less than
23the retirement annuity which would be provided by Rule 3, the
24retirement annuity shall be increased as of January 1, 1987, or
25the date the retirement annuity payment period begins,
26whichever is later, to the amount which would be provided by

SB0011- 64 -LRB100 06001 RPS 16030 b
1Rule 3 of this Section. Such increased amount shall be
2considered as the retirement annuity in determining benefits
3provided under other Sections of this Article. This paragraph
4applies without regard to whether status as an employee
5terminated before the effective date of this amendatory Act of
61987, provided that the annuitant was employed at least
7one-half time during the period on which the final rate of
8earnings was based.
9 (f) A participant is entitled to such additional annuity as
10may be provided on an actuarially equivalent basis, by any
11accumulated additional contributions to his or her credit.
12However, the additional contributions made by the participant
13toward the automatic increases in annuity provided under this
14Section shall not be taken into account in determining the
15amount of such additional annuity.
16 (g) If, (1) by law, a function of a governmental unit, as
17defined by Section 20-107 of this Code, is transferred in whole
18or in part to an employer, and (2) a participant transfers
19employment from such governmental unit to such employer within
206 months after the transfer of the function, and (3) the sum of
21(A) the annuity payable to the participant under Rule 1, 2, or
223 of this Section (B) all proportional annuities payable to the
23participant by all other retirement systems covered by Article
2420, and (C) the initial primary insurance amount to which the
25participant is entitled under the Social Security Act, is less
26than the retirement annuity which would have been payable if

SB0011- 65 -LRB100 06001 RPS 16030 b
1all of the participant's pension credits validated under
2Section 20-109 had been validated under this system, a
3supplemental annuity equal to the difference in such amounts
4shall be payable to the participant.
5 (h) On January 1, 1981, an annuitant who was receiving a
6retirement annuity on or before January 1, 1971 shall have his
7or her retirement annuity then being paid increased $1 per
8month for each year of creditable service. On January 1, 1982,
9an annuitant whose retirement annuity began on or before
10January 1, 1977, shall have his or her retirement annuity then
11being paid increased $1 per month for each year of creditable
12service.
13 (i) On January 1, 1987, any annuitant whose retirement
14annuity began on or before January 1, 1977, shall have the
15monthly retirement annuity increased by an amount equal to 8
16per year of creditable service times the number of years that
17have elapsed since the annuity began.
18(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1998-92, eff. 7-16-13.)
20 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
21 Sec. 15-155. Employer contributions.
22 (a) The State of Illinois shall make contributions by
23appropriations of amounts which, together with the other
24employer contributions from trust, federal, and other funds,
25employee contributions, income from investments, and other

SB0011- 66 -LRB100 06001 RPS 16030 b
1income of this System, will be sufficient to meet the cost of
2maintaining and administering the System on a 90% funded basis
3in accordance with actuarial recommendations.
4 The Board shall determine the amount of State contributions
5required for each fiscal year on the basis of the actuarial
6tables and other assumptions adopted by the Board and the
7recommendations of the actuary, using the formula in subsection
8(a-1).
9 (a-1) For State fiscal years 2018 through 2045 (except as
10otherwise provided for fiscal year 2019), the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the 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 total payroll, including payroll that is
18not deemed pensionable, over the years remaining to and
19including fiscal year 2045 and shall be determined under the
20projected unit credit actuarial cost method.
21 For State fiscal year 2019:
22 (1) The initial calculation and certification shall be
23 based on the amount determined above.
24 (2) For purposes of the recertification due on or
25 before May 1, 2018, the recalculation of the required State
26 contribution for fiscal year 2019 shall take into account

SB0011- 67 -LRB100 06001 RPS 16030 b
1 the effect on the System's liabilities of the elections
2 made under Section 15-132.9.
3 (3) For purposes of the recertification due on or
4 before October 1, 2018, the total required State
5 contribution for fiscal year 2019 shall be reduced by the
6 amount of the consideration payments made to Tier 1
7 employees who made the election under paragraph (1) of
8 subsection (a) of Section 15-132.9.
9 Beginning in State fiscal year 2018, any increase or
10decrease in State contribution over the prior fiscal year due
11exclusively to changes in actuarial or investment assumptions
12adopted by the Board shall be included in the State
13contribution to the System, as a percentage of the applicable
14employee payroll, and shall be increased in equal annual
15increments so that by the State fiscal year occurring 5 years
16after the adoption of the actuarial or investment assumptions,
17the State is contributing at the rate otherwise required under
18this Section.
19 For State fiscal years 2012 through 2017 2045, the minimum
20contribution to the System to be made by the State for each
21fiscal year shall be an amount determined by the System to be
22sufficient to bring the total assets of the System up to 90% of
23the total actuarial liabilities of the System by the end of
24State fiscal year 2045. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

SB0011- 68 -LRB100 06001 RPS 16030 b
1including fiscal year 2045 and shall be determined under the
2projected unit credit actuarial cost method.
3 For State fiscal years 1996 through 2005, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6so that by State fiscal year 2011, the State is contributing at
7the rate required under this Section.
8 Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$166,641,900.
11 Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$252,064,100.
14 For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20 Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$702,514,000 and shall be made from the State Pensions Fund and
23proceeds of bonds sold in fiscal year 2010 pursuant to Section
247.2 of the General Obligation Bond Act, less (i) the pro rata
25share of bond sale expenses determined by the System's share of
26total bond proceeds, (ii) any amounts received from the General

SB0011- 69 -LRB100 06001 RPS 16030 b
1Revenue Fund in fiscal year 2010, (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 is
6the amount recertified by the System on or before April 1, 2011
7pursuant to Section 15-165 and shall be made from the State
8Pensions Fund and 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 General Revenue Fund in fiscal year 2011, and
13(iii) any reduction in bond proceeds due to the issuance of
14discounted bonds, if applicable.
15 Beginning in State fiscal year 2046, the minimum State
16contribution for each fiscal year shall be the amount needed to
17maintain the total assets of the System at 90% of the total
18actuarial liabilities of the System.
19 Amounts received by the System pursuant to Section 25 of
20the Budget Stabilization Act or Section 8.12 of the State
21Finance Act in any fiscal year do not reduce and do not
22constitute payment of any portion of the minimum State
23contribution required under this Article in that fiscal year.
24Such amounts shall not reduce, and shall not be included in the
25calculation of, the required State contributions under this
26Article in any future year until the System has reached a

SB0011- 70 -LRB100 06001 RPS 16030 b
1funding ratio of at least 90%. A reference in this Article to
2the "required State contribution" or any substantially similar
3term does not include or apply to any amounts payable to the
4System under Section 25 of the Budget Stabilization Act.
5 Notwithstanding any other provision of this Section, the
6required State contribution for State fiscal year 2005 and for
7fiscal year 2008 and each fiscal year thereafter, as calculated
8under this Section and certified under Section 15-165, shall
9not exceed an amount equal to (i) the amount of the required
10State contribution that would have been calculated under this
11Section for that fiscal year if the System had not received any
12payments under subsection (d) of Section 7.2 of the General
13Obligation Bond Act, minus (ii) the portion of the State's
14total debt service payments for that fiscal year on the bonds
15issued in fiscal year 2003 for the purposes of that Section
167.2, as determined and certified by the Comptroller, that is
17the same as the System's portion of the total moneys
18distributed under subsection (d) of Section 7.2 of the General
19Obligation Bond Act. In determining this maximum for State
20fiscal years 2008 through 2010, however, the amount referred to
21in item (i) shall be increased, as a percentage of the
22applicable employee payroll, in equal increments calculated
23from the sum of the required State contribution for State
24fiscal year 2007 plus the applicable portion of the State's
25total debt service payments for fiscal year 2007 on the bonds
26issued in fiscal year 2003 for the purposes of Section 7.2 of

SB0011- 71 -LRB100 06001 RPS 16030 b
1the General Obligation Bond Act, so that, by State fiscal year
22011, the State is contributing at the rate otherwise required
3under this Section.
4 (b) If an employee is paid from trust or federal funds, the
5employer shall pay to the Board contributions from those funds
6which are sufficient to cover the accruing normal costs on
7behalf of the employee. However, universities having employees
8who are compensated out of local auxiliary funds, income funds,
9or service enterprise funds are not required to pay such
10contributions on behalf of those employees. The local auxiliary
11funds, income funds, and service enterprise funds of
12universities shall not be considered trust funds for the
13purpose of this Article, but funds of alumni associations,
14foundations, and athletic associations which are affiliated
15with the universities included as employers under this Article
16and other employers which do not receive State appropriations
17are considered to be trust funds for the purpose of this
18Article.
19 (b-1) The City of Urbana and the City of Champaign shall
20each make employer contributions to this System for their
21respective firefighter employees who participate in this
22System pursuant to subsection (h) of Section 15-107. The rate
23of contributions to be made by those municipalities shall be
24determined annually by the Board on the basis of the actuarial
25assumptions adopted by the Board and the recommendations of the
26actuary, and shall be expressed as a percentage of salary for

SB0011- 72 -LRB100 06001 RPS 16030 b
1each such employee. The Board shall certify the rate to the
2affected municipalities as soon as may be practical. The
3employer contributions required under this subsection shall be
4remitted by the municipality to the System at the same time and
5in the same manner as employee contributions.
6 (c) Through State fiscal year 1995: The total employer
7contribution shall be apportioned among the various funds of
8the State and other employers, whether trust, federal, or other
9funds, in accordance with actuarial procedures approved by the
10Board. State of Illinois contributions for employers receiving
11State appropriations for personal services shall be payable
12from appropriations made to the employers or to the System. The
13contributions for Class I community colleges covering earnings
14other than those paid from trust and federal funds, shall be
15payable solely from appropriations to the Illinois Community
16College Board or the System for employer contributions.
17 (d) Beginning in State fiscal year 1996, the required State
18contributions to the System shall be appropriated directly to
19the System and shall be payable through vouchers issued in
20accordance with subsection (c) of Section 15-165, except as
21provided in subsection (g).
22 (e) The State Comptroller shall draw warrants payable to
23the System upon proper certification by the System or by the
24employer in accordance with the appropriation laws and this
25Code.
26 (f) Normal costs under this Section means liability for

SB0011- 73 -LRB100 06001 RPS 16030 b
1pensions and other benefits which accrues to the System because
2of the credits earned for service rendered by the participants
3during the fiscal year and expenses of administering the
4System, but shall not include the principal of or any
5redemption premium or interest on any bonds issued by the Board
6or any expenses incurred or deposits required in connection
7therewith.
8 (g) For academic years beginning on or after June 1, 2005
9and before July 1, 2018, if If the amount of a participant's
10earnings for any academic year used to determine the final rate
11of earnings, determined on a full-time equivalent basis,
12exceeds the amount of his or her earnings with the same
13employer for the previous academic year, determined on a
14full-time equivalent basis, by more than 6%, the participant's
15employer shall pay to the System, in addition to all other
16payments required under this Section and in accordance with
17guidelines established by the System, the present value of the
18increase in benefits resulting from the portion of the increase
19in earnings that is in excess of 6%. This present value shall
20be computed by the System on the basis of the actuarial
21assumptions and tables used in the most recent actuarial
22valuation of the System that is available at the time of the
23computation. The System may require the employer to provide any
24pertinent information or documentation.
25 Whenever it determines that a payment is or may be required
26under this subsection (g), the System shall calculate the

SB0011- 74 -LRB100 06001 RPS 16030 b
1amount of the payment and bill the employer for that amount.
2The bill shall specify the calculations used to determine the
3amount due. If the employer disputes the amount of the bill, it
4may, within 30 days after receipt of the bill, apply to the
5System in writing for a recalculation. The application must
6specify in detail the grounds of the dispute and, if the
7employer asserts that the calculation is subject to subsection
8(h) or (i) of this Section, must include an affidavit setting
9forth and attesting to all facts within the employer's
10knowledge that are pertinent to the applicability of subsection
11(h) or (i). Upon receiving a timely application for
12recalculation, the System shall review the application and, if
13appropriate, recalculate the amount due.
14 The employer contributions required under this subsection
15(g) may be paid in the form of a lump sum within 90 days after
16receipt of the bill. If the employer contributions are not paid
17within 90 days after receipt of the bill, then interest will be
18charged at a rate equal to the System's annual actuarially
19assumed rate of return on investment compounded annually from
20the 91st day after receipt of the bill. Payments must be
21concluded within 3 years after the employer's receipt of the
22bill.
23 When assessing payment for any amount due under this
24subsection (g), the System shall include earnings, to the
25extent not established by a participant under Section 15-113.11
26or 15-113.12, that would have been paid to the participant had

SB0011- 75 -LRB100 06001 RPS 16030 b
1the participant not taken (i) periods of voluntary or
2involuntary furlough occurring on or after July 1, 2015 and on
3or before June 30, 2017 or (ii) periods of voluntary pay
4reduction in lieu of furlough occurring on or after July 1,
52015 and on or before June 30, 2017. Determining earnings that
6would have been paid to a participant had the participant not
7taken periods of voluntary or involuntary furlough or periods
8of voluntary pay reduction shall be the responsibility of the
9employer, and shall be reported in a manner prescribed by the
10System.
11 (g-1) For academic years beginning on or after July 1,
122018, if the amount of a participant's earnings for any
13academic year used to determine the final rate of earnings,
14determined on a full-time equivalent basis, exceeds the amount
15of his or her earnings with the same employer for the previous
16academic year, determined on a full-time equivalent basis, by
17more than the unadjusted percentage increase in the consumer
18price index-u for the calendar year ending on the December 31
19immediately preceding the beginning of the academic year, then
20the participant's employer shall pay to the System, in addition
21to all other payments required under this Section and in
22accordance with guidelines established by the System, the
23present value of the increase in benefits resulting from the
24portion of the increase in earnings that is in excess of the
25unadjusted percentage increase in the consumer price index-u
26for the applicable calendar year. This present value shall be

SB0011- 76 -LRB100 06001 RPS 16030 b
1computed by the System on the basis of the actuarial
2assumptions and tables used in the most recent actuarial
3valuation of the System that is available at the time of the
4computation. The System may require the employer to provide any
5pertinent information or documentation.
6 Whenever it determines that a payment is or may be required
7under this subsection (g-1), the System shall calculate the
8amount of the payment and bill the employer for that amount.
9The bill shall specify the calculations used to determine the
10amount due. If the employer disputes the amount of the bill, it
11may, within 30 days after receipt of the bill, apply to the
12System in writing for a recalculation. The application must
13specify in detail the grounds of the dispute and, if the
14employer asserts that the calculation is subject to subsection
15(i-1) of this Section, must include an affidavit setting forth
16and attesting to all facts within the employer's knowledge that
17are pertinent to the applicability of subsection (i-1). Upon
18receiving a timely application for recalculation, the System
19shall review the application and, if appropriate, recalculate
20the amount due.
21 The employer contributions required under this subsection
22(g-1) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not paid
24within 90 days after receipt of the bill, then interest shall
25be charged at a rate equal to the System's annual actuarially
26assumed rate of return on investment compounded annually from

SB0011- 77 -LRB100 06001 RPS 16030 b
1the 91st day after receipt of the bill. Payments must be
2concluded within 3 years after the employer's receipt of the
3bill.
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 average
7change in prices of goods and services purchased by all urban
8consumers, United States city average, all items, 1982-84 =
9100. The new amount resulting from each annual adjustment shall
10be determined by the Public Pension Division of the Department
11of Insurance and made available to the boards of the retirement
12systems and pension funds by November 1 of each year.
13 (h) This subsection (h) applies only to payments made or
14salary increases given on or after June 1, 2005 but before July
151, 2011. The changes made by Public Act 94-1057 shall not
16require the System to refund any payments received before July
1731, 2006 (the effective date of Public Act 94-1057).
18 When assessing payment for any amount due under subsection
19(g), the System shall exclude earnings increases paid to
20participants under contracts or collective bargaining
21agreements entered into, amended, or renewed before June 1,
222005.
23 When assessing payment for any amount due under subsection
24(g), the System shall exclude earnings increases paid to a
25participant at a time when the participant is 10 or more years
26from retirement eligibility under Section 15-135.

SB0011- 78 -LRB100 06001 RPS 16030 b
1 When assessing payment for any amount due under subsection
2(g), the System shall exclude earnings increases resulting from
3overload work, including a contract for summer teaching, or
4overtime when the employer has certified to the System, and the
5System has approved the certification, that: (i) in the case of
6overloads (A) the overload work is for the sole purpose of
7academic instruction in excess of the standard number of
8instruction hours for a full-time employee occurring during the
9academic year that the overload is paid and (B) the earnings
10increases are equal to or less than the rate of pay for
11academic instruction computed using the participant's current
12salary rate and work schedule; and (ii) in the case of
13overtime, the overtime was necessary for the educational
14mission.
15 When assessing payment for any amount due under subsection
16(g), the System shall exclude any earnings increase resulting
17from (i) a promotion for which the employee moves from one
18classification to a higher classification under the State
19Universities Civil Service System, (ii) a promotion in academic
20rank for a tenured or tenure-track faculty position, or (iii) a
21promotion that the Illinois Community College Board has
22recommended in accordance with subsection (k) of this Section.
23These earnings increases shall be excluded only if the
24promotion is to a position that has existed and been filled by
25a member for no less than one complete academic year and the
26earnings increase as a result of the promotion is an increase

SB0011- 79 -LRB100 06001 RPS 16030 b
1that results in an amount no greater than the average salary
2paid for other similar positions.
3 (i) When assessing payment for any amount due under
4subsection (g), the System shall exclude any salary increase
5described in subsection (h) of this Section given on or after
6July 1, 2011 but before July 1, 2014 under a contract or
7collective bargaining agreement entered into, amended, or
8renewed on or after June 1, 2005 but before July 1, 2011.
9Notwithstanding any other provision of this Section, any
10payments made or salary increases given after June 30, 2014
11shall be used in assessing payment for any amount due under
12subsection (g) of this Section.
13 (i-1) When assessing payment for any amount due under
14subsection (g-1), the System shall exclude salary increases
15paid to participants under contracts or collective bargaining
16agreements entered into, amended, or renewed before the
17effective date of this amendatory Act of the 100th General
18Assembly.
19 (j) The System shall prepare a report and file copies of
20the report with the Governor and the General Assembly by
21January 1, 2007 that contains all of the following information:
22 (1) The number of recalculations required by the
23 changes made to this Section by Public Act 94-1057 for each
24 employer.
25 (2) The dollar amount by which each employer's
26 contribution to the System was changed due to

SB0011- 80 -LRB100 06001 RPS 16030 b
1 recalculations required by Public Act 94-1057.
2 (3) The total amount the System received from each
3 employer as a result of the changes made to this Section by
4 Public Act 94-4.
5 (4) The increase in the required State contribution
6 resulting from the changes made to this Section by Public
7 Act 94-1057.
8 (j-5) For academic years beginning on or after July 1,
92018, if the amount of a participant's earnings for any
10academic year, determined on a full-time equivalent basis,
11exceeds the amount of the salary set for the Governor, the
12participant's employer shall pay to the System, in addition to
13all other payments required under this Section and in
14accordance with guidelines established by the System, the
15amount of the earnings that exceed the salary set for the
16Governor multiplied by the level percentage of payroll used in
17that fiscal year, as determined by the System, to be sufficient
18to bring the total assets of the System up to 90% of the total
19actuarial liabilities of the System by the end of State fiscal
20year 2045. This amount shall be computed by the System on the
21basis of the actuarial assumptions and tables used in the most
22recent actuarial valuation of the System that is available at
23the time of the computation. The System may require the
24employer to provide any pertinent information or
25documentation.
26 Whenever it determines that a payment is or may be required

SB0011- 81 -LRB100 06001 RPS 16030 b
1under this subsection, the System shall calculate the amount of
2the payment and bill the employer for that amount. The bill
3shall specify the calculations used to determine the amount
4due. If the employer disputes the amount of the bill, it may,
5within 30 days after receipt of the bill, apply to the System
6in writing for a recalculation. The application must specify in
7detail the grounds of the dispute. Upon receiving a timely
8application for recalculation, the System shall review the
9application and, if appropriate, recalculate the amount due.
10 The employer contributions required under this subsection
11may be paid in the form of a lump sum within 90 days after
12receipt of the bill. If the employer contributions are not paid
13within 90 days after receipt of the bill, then interest will be
14charged at a rate equal to the System's annual actuarially
15assumed rate of return on investment compounded annually from
16the 91st day after receipt of the bill. Payments must be
17concluded within 3 years after the employer's receipt of the
18bill.
19 (k) The Illinois Community College Board shall adopt rules
20for recommending lists of promotional positions submitted to
21the Board by community colleges and for reviewing the
22promotional lists on an annual basis. When recommending
23promotional lists, the Board shall consider the similarity of
24the positions submitted to those positions recognized for State
25universities by the State Universities Civil Service System.
26The Illinois Community College Board shall file a copy of its

SB0011- 82 -LRB100 06001 RPS 16030 b
1findings with the System. The System shall consider the
2findings of the Illinois Community College Board when making
3determinations under this Section. The System shall not exclude
4any earnings increases resulting from a promotion when the
5promotion was not submitted by a community college. Nothing in
6this subsection (k) shall require any community college to
7submit any information to the Community College Board.
8 (l) For purposes of determining the required State
9contribution to the System, the value of the System's assets
10shall be equal to the actuarial value of the System's assets,
11which shall be calculated as follows:
12 As of June 30, 2008, the actuarial value of the System's
13assets shall be equal to the market value of the assets as of
14that date. In determining the actuarial value of the System's
15assets for fiscal years after June 30, 2008, any actuarial
16gains or losses from investment return incurred in a fiscal
17year shall be recognized in equal annual amounts over the
185-year period following that fiscal year.
19 (m) For purposes of determining the required State
20contribution to the system for a particular year, the actuarial
21value of assets shall be assumed to earn a rate of return equal
22to the system's actuarially assumed rate of return.
23 (n) If Section 15-132.9 is determined to be
24unconstitutional or otherwise invalid by a final unappealable
25decision of an Illinois court or a court of competent
26jurisdiction, then the changes made to this Section by this

SB0011- 83 -LRB100 06001 RPS 16030 b
1amendatory Act of the 100th General Assembly shall not take
2effect and are repealed by operation of law.
3(Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13;
499-897, eff. 1-1-17.)
5 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
6 Sec. 15-157. Employee Contributions.
7 (a) Each participating employee shall make contributions
8towards the retirement benefits payable under the retirement
9program applicable to the employee from each payment of
10earnings applicable to employment under this system on and
11after the date of becoming a participant as follows: Prior to
12September 1, 1949, 3 1/2% of earnings; from September 1, 1949
13to August 31, 1955, 5%; from September 1, 1955 to August 31,
141969, 6%; from September 1, 1969, 6 1/2%. These contributions
15are to be considered as normal contributions for purposes of
16this Article.
17 Each participant who is a police officer or firefighter
18shall make normal contributions of 8% of each payment of
19earnings applicable to employment as a police officer or
20firefighter under this system on or after September 1, 1981,
21unless he or she files with the board within 60 days after the
22effective date of this amendatory Act of 1991 or 60 days after
23the board receives notice that he or she is employed as a
24police officer or firefighter, whichever is later, a written
25notice waiving the retirement formula provided by Rule 4 of

SB0011- 84 -LRB100 06001 RPS 16030 b
1Section 15-136. This waiver shall be irrevocable. If a
2participant had met the conditions set forth in Section
315-132.1 prior to the effective date of this amendatory Act of
41991 but failed to make the additional normal contributions
5required by this paragraph, he or she may elect to pay the
6additional contributions plus compound interest at the
7effective rate. If such payment is received by the board, the
8service shall be considered as police officer service in
9calculating the retirement annuity under Rule 4 of Section
1015-136. While performing service described in clause (i) or
11(ii) of Rule 4 of Section 15-136, a participating employee
12shall be deemed to be employed as a firefighter for the purpose
13of determining the rate of employee contributions under this
14Section.
15 (b) Starting September 1, 1969, each participating
16employee shall make additional contributions of 1/2 of 1% of
17earnings to finance a portion of the cost of the annual
18increases in retirement annuity provided under Section 15-136,
19except that with respect to participants in the self-managed
20plan this additional contribution shall be used to finance the
21benefits obtained under that retirement program. Beginning
22July 1, 2018 or the effective date of the Tier 1 employee's
23election under paragraph (1) of subsection (a) of Section
2415-132.9, whichever is later, each Tier 1 employee who made the
25election under paragraph (1) of subsection (a) of Section
2615-132.9 is no longer required to make contributions under this

SB0011- 85 -LRB100 06001 RPS 16030 b
1subsection.
2 (c) Except as provided in subsection (c-5), in In addition
3to the amounts described in subsections (a) and (b) of this
4Section, each participating employee shall make contributions
5of 1% of earnings applicable under this system on and after
6August 1, 1959. The contributions made under this subsection
7(c) shall be considered as survivor's insurance contributions
8for purposes of this Article if the employee is covered under
9the traditional benefit package, and such contributions shall
10be considered as additional contributions for purposes of this
11Article if the employee is participating in the self-managed
12plan or has elected to participate in the portable benefit
13package and has completed the applicable one-year waiting
14period. Contributions in excess of $80 during any fiscal year
15beginning before August 31, 1969 and in excess of $120 during
16any fiscal year thereafter until September 1, 1971 shall be
17considered as additional contributions for purposes of this
18Article.
19 (c-5) Beginning July 1, 2018 or the effective date of the
20Tier 1 employee's election under paragraph (1) of subsection
21(a) of Section 15-132.9, whichever is later, in lieu of the
22contributions otherwise required under subsection (c), each
23Tier 1 employee who made the election under paragraph (1) of
24subsection (a) of Section 15-132.9 shall make contributions of
250.7% of earnings applicable under this System and each Tier 1
26employee who is a police officer or firefighter who makes

SB0011- 86 -LRB100 06001 RPS 16030 b
1normal contributions of 8% of each payment of earnings
2applicable to employment as a police officer or firefighter
3under this System and who made the election under paragraph (1)
4of subsection (a) of Section 15-132.9 shall make contributions
5of 0.55% of earnings applicable under this System. The
6contributions made under this subsection (c-5) shall be
7considered as survivor's insurance contributions for purposes
8of this Article and such contributions shall be considered as
9additional contributions for purposes of this Article if the
10employee has elected to participate in the portable benefit
11package and has completed the applicable one-year waiting
12period.
13 (d) If the board by board rule so permits and subject to
14such conditions and limitations as may be specified in its
15rules, a participant may make other additional contributions of
16such percentage of earnings or amounts as the participant shall
17elect in a written notice thereof received by the board.
18 (e) That fraction of a participant's total accumulated
19normal contributions, the numerator of which is equal to the
20number of years of service in excess of that which is required
21to qualify for the maximum retirement annuity, and the
22denominator of which is equal to the total service of the
23participant, shall be considered as accumulated additional
24contributions. The determination of the applicable maximum
25annuity and the adjustment in contributions required by this
26provision shall be made as of the date of the participant's

SB0011- 87 -LRB100 06001 RPS 16030 b
1retirement.
2 (f) Notwithstanding the foregoing, a participating
3employee shall not be required to make contributions under this
4Section after the date upon which continuance of such
5contributions would otherwise cause his or her retirement
6annuity to exceed the maximum retirement annuity as specified
7in clause (1) of subsection (c) of Section 15-136.
8 (g) A participant may make contributions for the purchase
9of service credit under this Article; however, only a
10participating employee may make optional contributions under
11subsection (b) of Section 15-157.1 of this Article.
12 (h) A Tier 2 member shall not make contributions on
13earnings that exceed the limitation as prescribed under
14subsection (b) of Section 15-111 of this Article.
15(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
16 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
17 (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19 Sec. 15-165. To certify amounts and submit vouchers.
20 (a) The Board shall certify to the Governor on or before
21November 15 of each year until November 15, 2011 the
22appropriation required from State funds for the purposes of
23this System for the following fiscal year. The certification
24under this subsection (a) shall include a copy of the actuarial
25recommendations upon which it is based and shall specifically

SB0011- 88 -LRB100 06001 RPS 16030 b
1identify the System's projected State normal cost for that
2fiscal year and the projected State cost for the self-managed
3plan for that fiscal year.
4 On or before May 1, 2004, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2005, taking
7into account the amounts appropriated to and received by the
8System under subsection (d) of Section 7.2 of the General
9Obligation Bond Act.
10 On or before July 1, 2005, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2006, taking
13into account the changes in required State contributions made
14by this amendatory Act of the 94th General Assembly.
15 On or before April 1, 2011, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2011, applying
18the changes made by Public Act 96-889 to the System's assets
19and liabilities as of June 30, 2009 as though Public Act 96-889
20was approved on that date.
21 (a-5) On or before November 1 of each year, beginning
22November 1, 2012, the Board shall submit to the State Actuary,
23the Governor, and the General Assembly a proposed certification
24of the amount of the required State contribution to the System
25for the next fiscal year, along with all of the actuarial
26assumptions, calculations, and data upon which that proposed

SB0011- 89 -LRB100 06001 RPS 16030 b
1certification is based. On or before January 1 of each year,
2beginning January 1, 2013, the State Actuary shall issue a
3preliminary report concerning the proposed certification and
4identifying, if necessary, recommended changes in actuarial
5assumptions that the Board must consider before finalizing its
6certification of the required State contributions. On or before
7January 15, 2013 and each January 15 thereafter, the Board
8shall certify to the Governor and the General Assembly the
9amount of the required State contribution for the next fiscal
10year. The Board's certification must note, in a written
11response to the State Actuary, any deviations from the State
12Actuary's recommended changes, the reason or reasons for not
13following the State Actuary's recommended changes, and the
14fiscal impact of not following the State Actuary's recommended
15changes on the required State contribution.
16 (a-10) As soon as practical after the effective date of
17this amendatory Act of the 100th General Assembly, the State
18Actuary and the Board shall recalculate and recertify to the
19Governor and the General Assembly the amount of the State
20contribution to the System for State fiscal year 2018, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 100th General Assembly.
23 (a-15) On or before May 1, 2018, the Board shall
24recalculate and recertify to the Governor and the General
25Assembly the amount of the required State contribution to the
26System for State fiscal year 2019, taking into account the

SB0011- 90 -LRB100 06001 RPS 16030 b
1effect on the System's liabilities of the elections made under
2Section 15-132.9.
3 On or before October 1, 2018, the Board shall recalculate
4and recertify to the Governor and the General Assembly the
5amount of the required State contribution to the System for
6State fiscal year 2019, taking into account the reduction
7specified under item (3) of subsection (a-1) of Section 15-155.
8 (b) The Board shall certify to the State Comptroller or
9employer, as the case may be, from time to time, by its
10chairperson and secretary, with its seal attached, the amounts
11payable to the System from the various funds.
12 (c) Beginning in State fiscal year 1996, on or as soon as
13possible after the 15th day of each month the Board shall
14submit vouchers for payment of State contributions to the
15System, in a total monthly amount of one-twelfth of the
16required annual State contribution certified under subsection
17(a). From the effective date of this amendatory Act of the 93rd
18General Assembly through June 30, 2004, the Board shall not
19submit vouchers for the remainder of fiscal year 2004 in excess
20of the fiscal year 2004 certified contribution amount
21determined under this Section after taking into consideration
22the transfer to the System under subsection (b) of Section
236z-61 of the State Finance Act. These vouchers shall be paid by
24the State Comptroller and Treasurer by warrants drawn on the
25funds appropriated to the System for that fiscal year.
26 If in any month the amount remaining unexpended from all

SB0011- 91 -LRB100 06001 RPS 16030 b
1other appropriations to the System for the applicable fiscal
2year (including the appropriations to the System under Section
38.12 of the State Finance Act and Section 1 of the State
4Pension Funds Continuing Appropriation Act) is less than the
5amount lawfully vouchered under this Section, the difference
6shall be paid from the General Revenue Fund under the
7continuing appropriation authority provided in Section 1.1 of
8the State Pension Funds Continuing Appropriation Act.
9 (d) So long as the payments received are the full amount
10lawfully vouchered under this Section, payments received by the
11System under this Section shall be applied first toward the
12employer contribution to the self-managed plan established
13under Section 15-158.2. Payments shall be applied second toward
14the employer's portion of the normal costs of the System, as
15defined in subsection (f) of Section 15-155. The balance shall
16be applied toward the unfunded actuarial liabilities of the
17System.
18 (e) In the event that the System does not receive, as a
19result of legislative enactment or otherwise, payments
20sufficient to fully fund the employer contribution to the
21self-managed plan established under Section 15-158.2 and to
22fully fund that portion of the employer's portion of the normal
23costs of the System, as calculated in accordance with Section
2415-155(a-1), then any payments received shall be applied
25proportionately to the optional retirement program established
26under Section 15-158.2 and to the employer's portion of the

SB0011- 92 -LRB100 06001 RPS 16030 b
1normal costs of the System, as calculated in accordance with
2Section 15-155(a-1).
3(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
4 (40 ILCS 5/15-198)
5 (Text of Section WITHOUT the changes made by P.A. 98-599,
6which has been held unconstitutional)
7 Sec. 15-198. Application and expiration of new benefit
8increases.
9 (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after the effective date of this
14amendatory Act of the 94th General Assembly. "New benefit
15increase", however, does not include any benefit increase
16resulting from the changes made to this Article by this
17amendatory Act of the 100th General Assembly.
18 (b) Notwithstanding any other provision of this Code or any
19subsequent amendment to this Code, every new benefit increase
20is subject to this Section and shall be deemed to be granted
21only in conformance with and contingent upon compliance with
22the 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

SB0011- 93 -LRB100 06001 RPS 16030 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 the
8Department of Insurance Financial and Professional Regulation.
9A new benefit increase created by a Public Act that does not
10include the additional funding required under this subsection
11is null and void. If the Public Pension Division determines
12that the additional funding provided for a new benefit increase
13under this subsection is or has become inadequate, it may so
14certify to the Governor and the State Comptroller and, in the
15absence of corrective action by the General Assembly, the new
16benefit increase shall expire at the end of the fiscal year in
17which the certification is made.
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

SB0011- 94 -LRB100 06001 RPS 16030 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. 94-4, eff. 6-1-05.)
9 (40 ILCS 5/15-200.1 new)
10 Sec. 15-200.1. Defined contribution plan.
11 (a) By July 1, 2018, the System shall prepare and implement
12a voluntary defined contribution plan for up to 5% of eligible
13active Tier 1 employees. The System shall determine the 5% cap
14by the number of active Tier 1 employees on the effective date
15of this Section. The defined contribution plan developed under
16this Section shall be a plan that aggregates employer and
17employee contributions in individual participant accounts
18which, after meeting any other requirements, are used for
19payouts after retirement in accordance with this Section and
20any other applicable laws.
21 As used in this Section, "defined benefit plan" means the
22retirement plan available under this Article to Tier 1
23employees who have not made the election authorized under this
24Section.
25 (1) Under the defined contribution plan, an active Tier

SB0011- 95 -LRB100 06001 RPS 16030 b
1 1 employee of this System could elect to cease accruing
2 benefits in the defined benefit plan under this Article and
3 begin accruing benefits for future service in the defined
4 contribution plan. Service credit under the defined
5 contribution plan may be used for determining retirement
6 eligibility under the defined benefit plan. An active Tier
7 1 employee who elects to cease accruing benefits in his or
8 her defined benefit plan shall be prohibited from
9 purchasing service credit on or after the date of his or
10 her election. A Tier 1 employee making the irrevocable
11 election provided under this Section shall not receive
12 interest accruals to his or her Rule 2 benefit on or after
13 the date of his or her election.
14 (2) Participants in the defined contribution plan
15 shall pay employee contributions at the same rate as other
16 participants under this Article as determined by the
17 System.
18 (3) State contributions shall be paid into the accounts
19 of all participants in the defined contribution plan at a
20 uniform rate, expressed as a percentage of earnings and
21 determined for each year. This rate shall be no higher than
22 the employer's normal cost for Tier 1 employees in the
23 defined benefit plan for that year, as determined by the
24 System and expressed as a percentage of earnings, and shall
25 be no lower than 3% of earnings. The State shall adjust
26 this rate annually.

SB0011- 96 -LRB100 06001 RPS 16030 b
1 (4) The defined contribution plan shall require 5 years
2 of participation in the defined contribution plan before
3 vesting in State contributions. If the participant fails to
4 vest in them, the State contributions, and the earnings
5 thereon, shall be forfeited.
6 (5) The defined contribution plan may provide for
7 participants in the plan to be eligible for the defined
8 disability benefits available to other participants under
9 this Article. If it does, the System shall reduce the
10 employee contributions credited to the member's defined
11 contribution plan account by an amount determined by the
12 System to cover the cost of offering such benefits.
13 (6) The defined contribution plan shall provide a
14 variety of options for investments. These options shall
15 include investments handled by the System as well as
16 private sector investment options.
17 (7) The defined contribution plan shall provide a
18 variety of options for payouts to retirees and their
19 survivors.
20 (8) To the extent authorized under federal law and as
21 authorized by the System, the plan shall allow former
22 participants in the plan to transfer or roll over employee
23 and vested State contributions, and the earnings thereon,
24 into other qualified retirement plans.
25 (9) The System shall reduce the employee contributions
26 credited to the member's defined contribution plan account

SB0011- 97 -LRB100 06001 RPS 16030 b
1 by an amount determined by the System to cover the cost of
2 offering these benefits and any applicable administrative
3 fees.
4 (b) Only persons who are active Tier 1 employees of the
5System on the effective date of this Section are eligible to
6participate in the defined contribution plan. Participation in
7the defined contribution plan shall be limited to the first 5%
8of eligible persons who elect to participate. The election to
9participate in the defined contribution plan is voluntary and
10irrevocable.
11 (c) An eligible Tier 1 employee may irrevocably elect to
12participate in the defined contribution plan by filing with the
13System a written application to participate that is received by
14the System prior to its determination that 5% of eligible
15persons have elected to participate in the defined contribution
16plan.
17 When the System first determines that 5% of eligible
18persons have elected to participate in the defined contribution
19plan, the System shall provide notice to previously eligible
20employees that the plan is no longer available and shall cease
21accepting applications to participate.
22 (d) The System shall make a good faith effort to contact
23each active Tier 1 employee who is eligible to participate in
24the defined contribution plan. The System shall mail
25information describing the option to join the defined
26contribution plan to each of these employees to his or her last

SB0011- 98 -LRB100 06001 RPS 16030 b
1known address on file with the System. If the employee is not
2responsive to other means of contact, it is sufficient for the
3System to publish the details of the option on its website.
4 Upon request for further information describing the
5option, the System shall provide employees with information
6from the System before exercising the option to join the plan,
7including information on the impact to their vested benefits or
8non-vested service. The individual consultation shall include
9projections of the member's defined benefits at retirement or
10earlier termination of service and the value of the member's
11account at retirement or earlier termination of service. The
12System shall not provide advice or counseling with respect to
13whether the employee should exercise the option. The System
14shall inform Tier 1 employees who are eligible to participate
15in the defined contribution plan that they may also wish to
16obtain information and counsel relating to their option from
17any other available source, including but not limited to labor
18organizations, private counsel, and financial advisors.
19 (e) In no event shall the System, its staff, its authorized
20representatives, or the Board be liable for any information
21given to an employee under this Section. The System may
22coordinate with the Illinois Department of Central Management
23Services and other retirement systems administering a defined
24contribution plan in accordance with this amendatory Act of the
25100th General Assembly to provide information concerning the
26impact of the option set forth in this Section.

SB0011- 99 -LRB100 06001 RPS 16030 b
1 (f) Notwithstanding any other provision of this Section, no
2person shall begin participating in the defined contribution
3plan until it has attained qualified plan status and received
4all necessary approvals from the U.S. Internal Revenue Service.
5 (g) The System shall report on its progress under this
6Section, including the available details of the defined
7contribution plan and the System's plans for informing eligible
8Tier 1 employees about the plan, to the Governor and the
9General Assembly on or before January 15, 2018.
10 (h) If an active Tier 1 employee has not made an election
11under Section 15-134.5 of this Code, then the plan prescribed
12under this Section shall not apply to that Tier 1 employee and
13that Tier 1 employee shall remain eligible to make the election
14prescribed under Section 15-134.5.
15 (i) The intent of this amendatory Act of the 100th General
16Assembly is to ensure that the State's normal cost of
17participation in the defined contribution plan is similar, and
18if possible equal, to the State's normal cost of participation
19in the defined benefit plan, unless a lower State's normal cost
20is necessary to ensure cost neutrality.
21 (j) If Section 15-132.9 is determined to be
22unconstitutional or otherwise invalid by a final unappealable
23decision of an Illinois court or a court of competent
24jurisdiction, then this Section shall not take effect and is
25repealed by operation of law.

SB0011- 100 -LRB100 06001 RPS 16030 b
1 (40 ILCS 5/15-201.1 new)
2 Sec. 15-201.1. Defined contribution plan; termination. If
3the defined contribution plan is terminated or becomes
4inoperative pursuant to law, then each participant in the plan
5shall automatically be deemed to have been a contributing Tier
61 employee participating in the System's defined benefit plan
7during the time in which he or she participated in the defined
8contribution plan, and for that purpose the System shall be
9entitled to recover the amounts in the participant's defined
10contribution accounts.
11 (40 ILCS 5/16-107.1 new)
12 Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
13teacher under this Article who first became a member or
14participant before January 1, 2011 under any reciprocal
15retirement system or pension fund established under this Code
16other than a retirement system or pension fund established
17under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
18the purposes of the election under Section 16-122.9, "Tier 1
19employee" does not include a teacher under this Article who
20would qualify as a Tier 1 employee but who has made an
21irrevocable election on or before June 1, 2017 to retire from
22service pursuant to the terms of a collective bargaining
23agreement in effect on June 1, 2017, excluding any extension,
24amendment, or renewal of that agreement on or after that date,
25and has notified the System of that election.

SB0011- 101 -LRB100 06001 RPS 16030 b
1 (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
2 (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4 Sec. 16-121. Salary. "Salary": The actual compensation
5received by a teacher during any school year and recognized by
6the system in accordance with rules of the board. For purposes
7of this Section, "school year" includes the regular school term
8plus any additional period for which a teacher is compensated
9and such compensation is recognized by the rules of the board.
10 Notwithstanding any other provision of this Section,
11"salary" does not include any future increase in income that is
12offered by an employer for service as a Tier 1 employee under
13this Article pursuant to the condition set forth in subsection
14(c) of Section 16-122.9 and accepted under that condition by a
15Tier 1 employee who has made the election under paragraph (2)
16of subsection (a) of Section 16-122.9.
17 Notwithstanding any other provision of this Section,
18"salary" does not include any consideration payment made to a
19Tier 1 employee.
20(Source: P.A. 84-1028.)
21 (40 ILCS 5/16-121.1 new)
22 Sec. 16-121.1. Future increase in income. "Future increase
23in income" means an increase in income in any form offered by
24an employer to a Tier 1 employee for service under this Article

SB0011- 102 -LRB100 06001 RPS 16030 b
1after June 30, 2018 that qualifies as "salary", as defined in
2Section 16-121, or would qualify as "salary" but for the fact
3that it was offered to and accepted by a Tier 1 employee under
4the condition set forth in subsection (c) of Section 16-122.9.
5The term "future increase in income" does not include an
6increase in income in any form that is paid to a Tier 1
7employee under an employment contract or a collective
8bargaining agreement that is in effect on the effective date of
9this Section, but does include an increase in income in any
10form pursuant to an extension, amendment, or renewal of any
11such employment contract or collective bargaining agreement on
12or after the effective date of this Section.
13 (40 ILCS 5/16-122.9 new)
14 Sec. 16-122.9. Election by Tier 1 employees.
15 (a) Each active Tier 1 employee shall make an irrevocable
16election either:
17 (1) to agree to delay his or her eligibility for
18 automatic annual increases in retirement annuity as
19 provided in subsection (a-1) of Section 16-133.1 or
20 subsection (b-1) of Section 16-136.1, whichever is
21 applicable, and to have the amount of the automatic annual
22 increases in his or her retirement annuity that are
23 otherwise provided for in this Article calculated,
24 instead, as provided in subsection (a-1) of Section
25 16-133.1 or subsection (b-1) of Section 16-136.1,

SB0011- 103 -LRB100 06001 RPS 16030 b
1 whichever is applicable; or
2 (2) to not agree to paragraph (1) of this subsection.
3 The election required under this subsection (a) shall be
4made by each active Tier 1 employee no earlier than January 1,
52018 and no later than March 31, 2018, except that:
6 (i) a person who becomes a Tier 1 employee under this
7 Article on or after February 1, 2018 must make the election
8 under this subsection (a) within 60 days after becoming a
9 Tier 1 employee; and
10 (ii) a person who returns to active service as a Tier 1
11 employee under this Article on or after February 1, 2018
12 and has not yet made an election under this Section must
13 make the election under this subsection (a) within 60 days
14 after returning to active service as a Tier 1 employee.
15 If a Tier 1 employee fails for any reason to make a
16required election under this subsection within the time
17specified, then the employee shall be deemed to have made the
18election under paragraph (2) of this subsection.
19 (a-5) If this Section is enjoined or stayed by an Illinois
20court or a court of competent jurisdiction pending the entry of
21a final and unappealable decision, and this Section is
22determined to be constitutional or otherwise valid by a final
23unappealable decision of an Illinois court or a court of
24competent jurisdiction, then the election procedure set forth
25in subsection (a) of this Section shall commence on the 180th
26calendar day after the date of the issuance of the final

SB0011- 104 -LRB100 06001 RPS 16030 b
1unappealable decision and shall conclude at the end of the
2270th calendar day after that date.
3 (a-10) All elections under subsection (a) that are made or
4deemed to be made before July 1, 2018 shall take effect on July
51, 2018. Elections that are made or deemed to be made on or
6after July 1, 2018 shall take effect on the first day of the
7month following the month in which the election is made or
8deemed to be made.
9 (b) As adequate and legal consideration provided under this
10amendatory Act of the 100th General Assembly for making an
11election under paragraph (1) of subsection (a) of this Section,
12an employer shall be expressly and irrevocably prohibited from
13offering any future increases in income to a Tier 1 employee
14who has made an election under paragraph (1) of subsection (a)
15of this Section on the condition of not constituting salary
16under Section 16-121.
17 As adequate and legal consideration provided under this
18amendatory Act of the 100th General Assembly for making an
19election under paragraph (1) of subsection (a) of this Section,
20each Tier 1 employee who has made an election under paragraph
21(1) of subsection (a) of this Section shall receive a
22consideration payment equal to 10% of the contributions made by
23or on behalf of the employee under paragraphs (1), (2), and (3)
24of subsection (a) of Section 16-152 before the effective date
25of that election. The State Comptroller shall pay the
26consideration payment to the Tier 1 employee out of funds

SB0011- 105 -LRB100 06001 RPS 16030 b
1appropriated for that purpose under Section 1.9 of the State
2Pension Funds Continuing Appropriation Act. The System shall
3calculate the amount of each consideration payment and shall
4certify to the State Comptroller the amount of the
5consideration payment, together with the name, address, and any
6other available payment information of the Tier 1 employee as
7found in the records of the System.
8 (c) A Tier 1 employee who makes the election under
9paragraph (2) of subsection (a) of this Section shall not be
10subject to paragraph (1) of subsection (a) of this Section.
11However, any future increases in income offered by an employer
12under this Article to a Tier 1 employee who has made the
13election under paragraph (2) of subsection (a) of this Section
14shall be offered by the employer expressly and irrevocably on
15the condition of not constituting salary under Section 16-121,
16and the employee may not accept any future increase in income
17that is offered without this condition.
18 (d) The System shall make a good faith effort to contact
19each Tier 1 employee subject to this Section. The System shall
20mail information describing the required election to each Tier
211 employee by United States Postal Service mail to his or her
22last known address on file with the System. If the Tier 1
23employee is not responsive to other means of contact, it is
24sufficient for the System to publish the details of any
25required elections on its website or to publish those details
26in a regularly published newsletter or other existing public

SB0011- 106 -LRB100 06001 RPS 16030 b
1forum.
2 Tier 1 employees who are subject to this Section shall be
3provided with an election packet containing information
4regarding their options, as well as the forms necessary to make
5the required election. Upon request, the System shall offer
6Tier 1 employees an opportunity to receive information from the
7System before making the required election. The information may
8consist of video materials, group presentations, individual
9consultation with a member or authorized representative of the
10System in person or by telephone or other electronic means, or
11any combination of those methods. The System shall not provide
12advice or counseling with respect to which election a Tier 1
13employee should make or specific to the legal or tax
14circumstances of or consequences to the Tier 1 employee.
15 The System shall inform Tier 1 employees in the election
16packet required under this subsection that the Tier 1 employee
17may also wish to obtain information and counsel relating to the
18election required under this Section from any other available
19source, including, but not limited to, labor organizations and
20private counsel.
21 In no event shall the System, its staff, or the Board be
22held liable for any information given to a member regarding the
23elections under this Section. The System shall coordinate with
24the Illinois Department of Central Management Services and each
25other retirement system administering an election in
26accordance with this amendatory Act of the 100th General

SB0011- 107 -LRB100 06001 RPS 16030 b
1Assembly to provide information concerning the impact of the
2election set forth in this Section.
3 (e) Notwithstanding any other provision of law, an employer
4under this Article is required to offer any future increases in
5income expressly and irrevocably on the condition of not
6constituting "salary" under Section 16-121 to any Tier 1
7employee who has made an election under paragraph (2) of
8subsection (a) of this Section. A Tier 1 employee who has made
9an election under paragraph (2) of subsection (a) of this
10Section shall not accept any future increase in income that is
11offered by an employer under this Article without the condition
12set forth in this subsection.
13 For purposes of legislative intent, the condition set forth
14in this subsection shall be construed in a manner that ensures
15that the condition is not violated or circumvented through any
16contrivance of any kind.
17 (f) A member's election under this Section is not a
18prohibited election under subdivision (j)(1) of Section 1-119
19of this Code.
20 (g) No provision of this Section shall be interpreted in a
21way that would cause the System to cease to be a qualified plan
22under Section 401(a) of the Internal Revenue Code of 1986.
23 (h) If an election created by this amendatory Act in any
24other Article of this Code or any change deriving from that
25election is determined to be unconstitutional or otherwise
26invalid by a final unappealable decision of an Illinois court

SB0011- 108 -LRB100 06001 RPS 16030 b
1or a court of competent jurisdiction, the invalidity of that
2provision shall not in any way affect the validity of this
3Section or the changes deriving from the election required
4under this Section.
5 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
6 (Text of Section WITHOUT the changes made by P.A. 98-599,
7which has been held unconstitutional)
8 Sec. 16-133.1. Automatic annual increase in annuity.
9 (a) Each member with creditable service and retiring on or
10after August 26, 1969 is entitled to the automatic annual
11increases in annuity provided under this Section while
12receiving a retirement annuity or disability retirement
13annuity from the system.
14 Except as otherwise provided in subsection (a-1), an An
15annuitant shall first be entitled to an initial increase under
16this Section on the January 1 next following the first
17anniversary of retirement, or January 1 of the year next
18following attainment of age 61, whichever is later. At such
19time, the system shall pay an initial increase determined as
20follows:
21 (1) 1.5% of the originally granted retirement annuity
22 or disability retirement annuity multiplied by the number
23 of years elapsed, if any, from the date of retirement until
24 January 1, 1972, plus
25 (2) 2% of the originally granted annuity multiplied by

SB0011- 109 -LRB100 06001 RPS 16030 b
1 the number of years elapsed, if any, from the date of
2 retirement or January 1, 1972, whichever is later, until
3 January 1, 1978, plus
4 (3) 3% of the originally granted annuity multiplied by
5 the number of years elapsed from the date of retirement or
6 January 1, 1978, whichever is later, until the effective
7 date of the initial increase.
8However, the initial annual increase calculated under this
9Section for the recipient of a disability retirement annuity
10granted under Section 16-149.2 shall be reduced by an amount
11equal to the total of all increases in that annuity received
12under Section 16-149.5 (but not exceeding 100% of the amount of
13the initial increase otherwise provided under this Section).
14 Except as otherwise provided in subsection (a-1),
15following Following the initial increase, automatic annual
16increases in annuity shall be payable on each January 1
17thereafter during the lifetime of the annuitant, determined as
18a percentage of the originally granted retirement annuity or
19disability retirement annuity for increases granted prior to
20January 1, 1990, and calculated as a percentage of the total
21amount of annuity, including previous increases under this
22Section, for increases granted on or after January 1, 1990, as
23follows: 1.5% for periods prior to January 1, 1972, 2% for
24periods after December 31, 1971 and prior to January 1, 1978,
25and 3% for periods after December 31, 1977.
26 (a-1) Notwithstanding any other provision of this Article,

SB0011- 110 -LRB100 06001 RPS 16030 b
1for a Tier 1 employee who made the election under paragraph (1)
2of subsection (a) of Section 16-122.9:
3 (1) The initial increase in retirement annuity under
4 this Section shall occur on the January 1 occurring either
5 on or after the attainment of age 67 or the fifth
6 anniversary of the annuity start date, whichever is
7 earlier.
8 (2) The amount of each automatic annual increase in
9 retirement annuity occurring on or after the effective date
10 of that election shall be calculated as a percentage of the
11 originally granted retirement annuity, equal to 3% or
12 one-half the annual unadjusted percentage increase (but
13 not less than zero) in the consumer price index-u for the
14 12 months ending with the September preceding each November
15 1, whichever is less. If the annual unadjusted percentage
16 change in the consumer price index-u for the 12 months
17 ending with the September preceding each November 1 is zero
18 or there is a decrease, then the annuity shall not be
19 increased.
20 For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the average
23change in prices of goods and services purchased by all urban
24consumers, United States city average, all items, 1982-84 =
25100. The new amount resulting from each annual adjustment shall
26be determined by the Public Pension Division of the Department

SB0011- 111 -LRB100 06001 RPS 16030 b
1of Insurance and made available to the board of the retirement
2system by November 1 of each year.
3 (b) The automatic annual increases in annuity provided
4under this Section shall not be applicable unless a member has
5made contributions toward such increases for a period
6equivalent to one full year of creditable service. If a member
7contributes for service performed after August 26, 1969 but the
8member becomes an annuitant before such contributions amount to
9one full year's contributions based on the salary at the date
10of retirement, he or she may pay the necessary balance of the
11contributions to the system and be eligible for the automatic
12annual increases in annuity provided under this Section.
13 (c) Each member shall make contributions toward the cost of
14the automatic annual increases in annuity as provided under
15Section 16-152.
16 (d) An annuitant receiving a retirement annuity or
17disability retirement annuity on July 1, 1969, who subsequently
18re-enters service as a teacher is eligible for the automatic
19annual increases in annuity provided under this Section if he
20or she renders at least one year of creditable service
21following the latest re-entry.
22 (e) In addition to the automatic annual increases in
23annuity provided under this Section, an annuitant who meets the
24service requirements of this Section and whose retirement
25annuity or disability retirement annuity began on or before
26January 1, 1971 shall receive, on January 1, 1981, an increase

SB0011- 112 -LRB100 06001 RPS 16030 b
1in the annuity then being paid of one dollar per month for each
2year of creditable service. On January 1, 1982, an annuitant
3whose retirement annuity or disability retirement annuity
4began on or before January 1, 1977 shall receive an increase in
5the annuity then being paid of one dollar per month for each
6year of creditable service.
7 On January 1, 1987, any annuitant whose retirement annuity
8began on or before January 1, 1977, shall receive an increase
9in the monthly retirement annuity equal to 8 per year of
10creditable service times the number of years that have elapsed
11since the annuity began.
12(Source: P.A. 91-927, eff. 12-14-00.)
13 (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16 Sec. 16-136.1. Annual increase for certain annuitants.
17 (a) Any annuitant receiving a retirement annuity on June
1830, 1969 and any member retiring after June 30, 1969 shall be
19eligible for the annual increases provided under this Section
20provided the annuitant is ineligible for the automatic annual
21increase in annuity provided under Section 16-133.1, and
22provided further that (1) retirement occurred at age 55 or over
23and was based on 5 or more years of creditable service or (2)
24if retirement occurred prior to age 55, the retirement annuity
25was based on 20 or more years of creditable service.

SB0011- 113 -LRB100 06001 RPS 16030 b
1 (b) Except as otherwise provided in subsection (b-1), an An
2annuitant entitled to increases under this Section shall be
3entitled to the initial increase as of the later of: (1)
4January 1 following attainment of age 65, (2) January 1
5following the first anniversary of retirement, or (3) the first
6day of the month following receipt of the required qualifying
7contribution from the annuitant. The initial monthly increase
8shall be computed on the basis of the period elapsed between
9the later of the date of last retirement or attainment of age
1050 and the date of qualification for the initial increase, at
11the rate of 1 1/2% of the original monthly retirement annuity
12per year for periods prior to September 1, 1971, and at the
13rate of 2% per year for periods between September 1, 1971 and
14September 1, 1978, and at the rate of 3% per year for periods
15thereafter.
16 Except as otherwise provided in subsection (b-1), if
17applicable, an An annuitant who has received an initial
18increase under this Section, shall be entitled, on each January
191 following the granting of the initial increase, to an
20increase of 3% of the original monthly retirement annuity for
21increases granted prior to January 1, 1990, and equal to 3% of
22the total annuity, including previous increases under this
23Section, for increases granted on or after January 1, 1990. The
24original monthly retirement annuity for computations under
25this subsection (b) shall be considered to be $83.34 for any
26annuitant entitled to benefits under Section 16-134. The

SB0011- 114 -LRB100 06001 RPS 16030 b
1minimum original disability retirement annuity for
2computations under this subsection (b) shall be considered to
3be $33.34 per month for any annuitant retired on account of
4disability.
5 (b-1) Notwithstanding any other provision of this Article,
6for a Tier 1 employee who made the election under paragraph (1)
7of subsection (a) of Section 16-122.9:
8 (1) The initial increase in retirement annuity under
9 this Section shall occur on the January 1 occurring either
10 on or after the attainment of age 67 or the fifth
11 anniversary of the annuity start date, whichever is
12 earlier.
13 (2) The amount of each automatic annual increase in
14 retirement annuity occurring on or after the effective date
15 of that election shall be calculated as a percentage of the
16 originally granted retirement annuity, equal to 3% or
17 one-half the annual unadjusted percentage increase (but
18 not less than zero) in the consumer price index-u for the
19 12 months ending with the September preceding each November
20 1, whichever is less. If the annual unadjusted percentage
21 change in the consumer price index-u for the 12 months
22 ending with the September preceding each November 1 is zero
23 or there is a decrease, then the annuity shall not be
24 increased.
25 For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

SB0011- 115 -LRB100 06001 RPS 16030 b
1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100. The new amount resulting from each annual adjustment shall
5be determined by the Public Pension Division of the Department
6of Insurance and made available to the board of the retirement
7system by November 1 of each year.
8 (c) An annuitant who otherwise qualifies for annual
9increases under this Section must make a one-time payment of 1%
10of the monthly final average salary for each full year of the
11creditable service forming the basis of the retirement annuity
12or, if the retirement annuity was not computed using final
13average salary, 1% of the original monthly retirement annuity
14for each full year of service forming the basis of the
15retirement annuity.
16 (d) In addition to other increases which may be provided by
17this Section, regardless of creditable service, annuitants not
18meeting the service requirements of Section 16-133.1 and whose
19retirement annuity began on or before January 1, 1971 shall
20receive, on January 1, 1981, an increase in the retirement
21annuity then being paid of one dollar per month for each year
22of creditable service forming the basis of the retirement
23allowance. On January 1, 1982, annuitants whose retirement
24annuity began on or before January 1, 1977, shall receive an
25increase in the retirement annuity then being paid of one
26dollar per month for each year of creditable service.

SB0011- 116 -LRB100 06001 RPS 16030 b
1 On January 1, 1987, any annuitant whose retirement annuity
2began on or before January 1, 1977, shall receive an increase
3in the monthly retirement annuity equal to 8 per year of
4creditable service times the number of years that have elapsed
5since the annuity began.
6(Source: P.A. 86-273.)
7 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
8 (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10 Sec. 16-152. Contributions by members.
11 (a) Except as otherwise provided in subsection (a-5), each
12Each member shall make contributions for membership service to
13this System as follows:
14 (1) Effective July 1, 1998, contributions of 7.50% of
15 salary towards the cost of the retirement annuity. Such
16 contributions shall be deemed "normal contributions".
17 (2) Effective July 1, 1969, contributions of 1/2 of 1%
18 of salary toward the cost of the automatic annual increase
19 in retirement annuity provided under Section 16-133.1.
20 (3) Effective July 24, 1959, contributions of 1% of
21 salary towards the cost of survivor benefits. Such
22 contributions shall not be credited to the individual
23 account of the member and shall not be subject to refund
24 except as provided under Section 16-143.2.
25 (4) Effective July 1, 2005, contributions of 0.40% of

SB0011- 117 -LRB100 06001 RPS 16030 b
1 salary toward the cost of the early retirement without
2 discount option provided under Section 16-133.2. This
3 contribution shall cease upon termination of the early
4 retirement without discount option as provided in Section
5 16-133.2.
6 (a-5) Beginning July 1, 2018 or the effective date of the
7Tier 1 employee's election under paragraph (1) of subsection
8(a) of Section 16-122.9, whichever is later, in lieu of the
9contributions otherwise required under subsection (a), each
10Tier 1 employee who made the election under paragraph (1) of
11subsection (a) of Section 16-122.9 shall make contributions as
12follows:
13 (1) Contributions of 7.50% of salary towards the cost
14 of the retirement annuity. Such contributions shall be
15 deemed "normal contributions".
16 (2) Contributions of 0.60% towards the cost of survivor
17 benefits. Such contributions shall not be credited to the
18 individual account of the member and shall not be subject
19 to refund except as provided in Section 16-143.2.
20 (3) Contributions of 0.40% of salary toward the cost of
21 the early retirement without discount option provided
22 under Section 16-133.2. This contribution shall cease upon
23 termination of the early retirement without discount
24 option as provided in Section 16-133.2.
25 (b) The minimum required contribution for any year of
26full-time teaching service shall be $192.

SB0011- 118 -LRB100 06001 RPS 16030 b
1 (c) Contributions shall not be required of any annuitant
2receiving a retirement annuity who is given employment as
3permitted under Section 16-118 or 16-150.1.
4 (d) A person who (i) was a member before July 1, 1998, (ii)
5retires with more than 34 years of creditable service, and
6(iii) does not elect to qualify for the augmented rate under
7Section 16-129.1 shall be entitled, at the time of retirement,
8to receive a partial refund of contributions made under this
9Section for service occurring after the later of June 30, 1998
10or attainment of 34 years of creditable service, in an amount
11equal to 1.00% of the salary upon which those contributions
12were based.
13 (e) A member's contributions toward the cost of early
14retirement without discount made under item (a)(4) of this
15Section shall not be refunded if the member has elected early
16retirement without discount under Section 16-133.2 and has
17begun to receive a retirement annuity under this Article
18calculated in accordance with that election. Otherwise, a
19member's contributions toward the cost of early retirement
20without discount made under item (a)(4) of this Section shall
21be refunded according to whichever one of the following
22circumstances occurs first:
23 (1) The contributions shall be refunded to the member,
24 without interest, within 120 days after the member's
25 retirement annuity commences, if the member does not elect
26 early retirement without discount under Section 16-133.2.

SB0011- 119 -LRB100 06001 RPS 16030 b
1 (2) The contributions shall be included, without
2 interest, in any refund claimed by the member under Section
3 16-151.
4 (3) The contributions shall be refunded to the member's
5 designated beneficiary (or if there is no beneficiary, to
6 the member's estate), without interest, if the member dies
7 without having begun to receive a retirement annuity under
8 this Article.
9 (4) The contributions shall be refunded to the member,
10 without interest, if the early retirement without discount
11 option provided under subsection (d) of Section 16-133.2 is
12 terminated. In that event, the System shall provide to the
13 member, within 120 days after the option is terminated, an
14 application for a refund of those contributions.
15(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642,
16eff. 7-28-16.)
17 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
18 (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20 Sec. 16-158. Contributions by State and other employing
21units.
22 (a) The State shall make contributions to the System by
23means of appropriations from the Common School Fund and other
24State funds of amounts which, together with other employer
25contributions, employee contributions, investment income, and

SB0011- 120 -LRB100 06001 RPS 16030 b
1other income, will be sufficient to meet the cost of
2maintaining and administering the System on a 90% funded basis
3in accordance with actuarial recommendations.
4 The Board shall determine the amount of State contributions
5required for each fiscal year on the basis of the actuarial
6tables and other assumptions adopted by the Board and the
7recommendations of the actuary, using the formula in subsection
8(b-3).
9 (a-1) Annually, on or before November 15 until November 15,
102011, the Board shall certify to the Governor the amount of the
11required State contribution for the coming fiscal year. The
12certification under this subsection (a-1) shall include a copy
13of the actuarial recommendations upon which it is based and
14shall specifically identify the System's projected State
15normal cost for that fiscal year.
16 On or before May 1, 2004, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2005, taking
19into account the amounts appropriated to and received by the
20System under subsection (d) of Section 7.2 of the General
21Obligation Bond Act.
22 On or before July 1, 2005, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2006, taking
25into account the changes in required State contributions made
26by this amendatory Act of the 94th General Assembly.

SB0011- 121 -LRB100 06001 RPS 16030 b
1 On or before April 1, 2011, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2011, applying
4the changes made by Public Act 96-889 to the System's assets
5and liabilities as of June 30, 2009 as though Public Act 96-889
6was approved on that date.
7 (a-5) On or before November 1 of each year, beginning
8November 1, 2012, the Board shall submit to the State Actuary,
9the Governor, and the General Assembly a proposed certification
10of the amount of the required State contribution to the System
11for the next fiscal year, along with all of the actuarial
12assumptions, calculations, and data upon which that proposed
13certification is based. On or before January 1 of each year,
14beginning January 1, 2013, the State Actuary shall issue a
15preliminary report concerning the proposed certification and
16identifying, if necessary, recommended changes in actuarial
17assumptions that the Board must consider before finalizing its
18certification of the required State contributions. On or before
19January 15, 2013 and each January 15 thereafter, the Board
20shall certify to the Governor and the General Assembly the
21amount of the required State contribution for the next fiscal
22year. The Board's certification must note any deviations from
23the State Actuary's recommended changes, the reason or reasons
24for not following the State Actuary's recommended changes, and
25the fiscal impact of not following the State Actuary's
26recommended changes on the required State contribution.

SB0011- 122 -LRB100 06001 RPS 16030 b
1 (a-10) As soon as practical after the effective date of
2this amendatory Act of the 100th General Assembly, the State
3Actuary and the Board shall recalculate and recertify to the
4Governor and the General Assembly the amount of the State
5contribution to the System for State fiscal year 2018, taking
6into account the changes in required State contributions made
7by this amendatory Act of the 100th General Assembly.
8 (a-15) On or before May 1, 2018, the Board shall
9recalculate and recertify to the Governor and the General
10Assembly the amount of the required State contribution to the
11System for State fiscal year 2019, taking into account the
12effect on the System's liabilities of the elections made under
13Section 16-122.9.
14 On or before October 1, 2018, the Board shall recalculate
15and recertify to the Governor and the General Assembly the
16amount of the required State contribution to the System for
17State fiscal year 2019, taking into account the reduction
18specified under item (3) of subsection (b-3) of this Section.
19 (b) Through State fiscal year 1995, the State contributions
20shall be paid to the System in accordance with Section 18-7 of
21the School Code.
22 (b-1) Beginning in State fiscal year 1996, on the 15th day
23of each month, or as soon thereafter as may be practicable, the
24Board shall submit vouchers for payment of State contributions
25to the System, in a total monthly amount of one-twelfth of the
26required annual State contribution certified under subsection

SB0011- 123 -LRB100 06001 RPS 16030 b
1(a-1). From the effective date of this amendatory Act of the
293rd General Assembly through June 30, 2004, the Board shall
3not submit vouchers for the remainder of fiscal year 2004 in
4excess of the fiscal year 2004 certified contribution amount
5determined under this Section after taking into consideration
6the transfer to the System under subsection (a) of Section
76z-61 of the State Finance Act. These vouchers shall be paid by
8the State Comptroller and Treasurer by warrants drawn on the
9funds appropriated to the System for that fiscal year.
10 If in any month the amount remaining unexpended from all
11other appropriations to the System for the applicable fiscal
12year (including the appropriations to the System under Section
138.12 of the State Finance Act and Section 1 of the State
14Pension Funds Continuing Appropriation Act) is less than the
15amount lawfully vouchered under this subsection, the
16difference shall be paid from the Common School Fund under the
17continuing appropriation authority provided in Section 1.1 of
18the State Pension Funds Continuing Appropriation Act.
19 (b-2) Allocations from the Common School Fund apportioned
20to school districts not coming under this System shall not be
21diminished or affected by the provisions of this Article.
22 (b-3) For State fiscal years 2018 through 2045 (except as
23otherwise provided for fiscal year 2019), the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26sufficient to bring the total assets of the System up to 90% of

SB0011- 124 -LRB100 06001 RPS 16030 b
1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of total payroll, including payroll that is
5not deemed pensionable, over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8 For State fiscal year 2019:
9 (1) The initial calculation and certification shall be
10 based on the amount determined above.
11 (2) For purposes of the recertification due on or
12 before May 1, 2018, the recalculation of the required State
13 contribution for fiscal year 2019 shall take into account
14 the effect on the System's liabilities of the elections
15 made under Section 16-122.9.
16 (3) For purposes of the recertification due on or
17 before October 1, 2018, the total required State
18 contribution for fiscal year 2019 shall be reduced by the
19 amount of the consideration payments made to Tier 1
20 employees who made the election under paragraph (1) of
21 subsection (a) of Section 16-122.9.
22 Beginning in State fiscal year 2018, any increase or
23decrease in State contribution over the prior fiscal year due
24exclusively to changes in actuarial or investment assumptions
25adopted by the Board shall be included in the State
26contribution to the System, as a percentage of the applicable

SB0011- 125 -LRB100 06001 RPS 16030 b
1employee payroll, and shall be increased in equal annual
2increments so that by the State fiscal year occurring 5 years
3after the adoption of the actuarial or investment assumptions,
4the State is contributing at the rate otherwise required under
5this Section.
6 For State fiscal years 2012 through 2017 2045, the minimum
7contribution to the System to be made by the State for each
8fiscal year shall be an amount determined by the System to be
9sufficient to bring the total assets of the System up to 90% of
10the total actuarial liabilities of the System by the end of
11State fiscal year 2045. In making these determinations, the
12required State contribution shall be calculated each year as a
13level percentage of payroll over the years remaining to and
14including fiscal year 2045 and shall be determined under the
15projected unit credit actuarial cost method.
16 For State fiscal years 1996 through 2005, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19so that by State fiscal year 2011, the State is contributing at
20the rate required under this Section; except that in the
21following specified State fiscal years, the State contribution
22to the System shall not be less than the following indicated
23percentages of the applicable employee payroll, even if the
24indicated percentage will produce a State contribution in
25excess of the amount otherwise required under this subsection
26and subsection (a), and notwithstanding any contrary

SB0011- 126 -LRB100 06001 RPS 16030 b
1certification made under subsection (a-1) before the effective
2date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
3in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
42003; and 13.56% in FY 2004.
5 Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2006 is
7$534,627,700.
8 Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2007 is
10$738,014,500.
11 For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17 Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2010 is
19$2,089,268,000 and shall be made from the proceeds of bonds
20sold in fiscal year 2010 pursuant to Section 7.2 of the General
21Obligation Bond Act, less (i) the pro rata share of bond sale
22expenses determined by the System's share of total bond
23proceeds, (ii) any amounts received from the Common School Fund
24in fiscal year 2010, and (iii) any reduction in bond proceeds
25due to the issuance of discounted bonds, if applicable.
26 Notwithstanding any other provision of this Article, the

SB0011- 127 -LRB100 06001 RPS 16030 b
1total required State contribution for State fiscal year 2011 is
2the amount recertified by the System on or before April 1, 2011
3pursuant to subsection (a-1) of this Section and shall be made
4from the proceeds of bonds sold in fiscal year 2011 pursuant to
5Section 7.2 of the General Obligation Bond Act, less (i) the
6pro rata share of bond sale expenses determined by the System's
7share of total bond proceeds, (ii) any amounts received from
8the Common School Fund in fiscal year 2011, and (iii) any
9reduction in bond proceeds due to the issuance of discounted
10bonds, if applicable. This amount shall include, in addition to
11the amount certified by the System, an amount necessary to meet
12employer contributions required by the State as an employer
13under paragraph (e) of this Section, which may also be used by
14the System for contributions required by paragraph (a) of
15Section 16-127.
16 Beginning in State fiscal year 2046, the minimum State
17contribution for each fiscal year shall be the amount needed to
18maintain the total assets of the System at 90% of the total
19actuarial liabilities of the System.
20 Amounts received by the System pursuant to Section 25 of
21the Budget Stabilization Act or Section 8.12 of the State
22Finance Act in any fiscal year do not reduce and do not
23constitute payment of any portion of the minimum State
24contribution required under this Article in that fiscal year.
25Such amounts shall not reduce, and shall not be included in the
26calculation of, the required State contributions under this

SB0011- 128 -LRB100 06001 RPS 16030 b
1Article in any future year until the System has reached a
2funding ratio of at least 90%. A reference in this Article to
3the "required State contribution" or any substantially similar
4term does not include or apply to any amounts payable to the
5System under Section 25 of the Budget Stabilization Act.
6 Notwithstanding any other provision of this Section, the
7required State contribution for State fiscal year 2005 and for
8fiscal year 2008 and each fiscal year thereafter, as calculated
9under this Section and certified under subsection (a-1), shall
10not exceed an amount equal to (i) the amount of the required
11State contribution that would have been calculated under this
12Section for that fiscal year if the System had not received any
13payments under subsection (d) of Section 7.2 of the General
14Obligation Bond Act, minus (ii) the portion of the State's
15total debt service payments for that fiscal year on the bonds
16issued in fiscal year 2003 for the purposes of that Section
177.2, as determined and certified by the Comptroller, that is
18the same as the System's portion of the total moneys
19distributed under subsection (d) of Section 7.2 of the General
20Obligation Bond Act. In determining this maximum for State
21fiscal years 2008 through 2010, however, the amount referred to
22in item (i) shall be increased, as a percentage of the
23applicable employee payroll, in equal increments calculated
24from the sum of the required State contribution for State
25fiscal year 2007 plus the applicable portion of the State's
26total debt service payments for fiscal year 2007 on the bonds

SB0011- 129 -LRB100 06001 RPS 16030 b
1issued in fiscal year 2003 for the purposes of Section 7.2 of
2the General Obligation Bond Act, so that, by State fiscal year
32011, the State is contributing at the rate otherwise required
4under this Section.
5 (c) Payment of the required State contributions and of all
6pensions, retirement annuities, death benefits, refunds, and
7other benefits granted under or assumed by this System, and all
8expenses in connection with the administration and operation
9thereof, are obligations of the State.
10 If members are paid from special trust or federal funds
11which are administered by the employing unit, whether school
12district or other unit, the employing unit shall pay to the
13System from such funds the full accruing retirement costs based
14upon that service, which, beginning July 1, 2014, shall be at a
15rate, expressed as a percentage of salary, equal to the total
16minimum contribution to the System to be made by the State for
17that fiscal year, including both normal cost and unfunded
18liability components, expressed as a percentage of payroll, as
19determined by the System under subsection (b-3) of this
20Section. Employer contributions, based on salary paid to
21members from federal funds, may be forwarded by the
22distributing agency of the State of Illinois to the System
23prior to allocation, in an amount determined in accordance with
24guidelines established by such agency and the System. Any
25contribution for fiscal year 2015 collected as a result of the
26change made by this amendatory Act of the 98th General Assembly

SB0011- 130 -LRB100 06001 RPS 16030 b
1shall be considered a State contribution under subsection (b-3)
2of this Section.
3 (d) Effective July 1, 1986, any employer of a teacher as
4defined in paragraph (8) of Section 16-106 shall pay the
5employer's normal cost of benefits based upon the teacher's
6service, in addition to employee contributions, as determined
7by the System. Such employer contributions shall be forwarded
8monthly in accordance with guidelines established by the
9System.
10 However, with respect to benefits granted under Section
1116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
12of Section 16-106, the employer's contribution shall be 12%
13(rather than 20%) of the member's highest annual salary rate
14for each year of creditable service granted, and the employer
15shall also pay the required employee contribution on behalf of
16the teacher. For the purposes of Sections 16-133.4 and
1716-133.5, a teacher as defined in paragraph (8) of Section
1816-106 who is serving in that capacity while on leave of
19absence from another employer under this Article shall not be
20considered an employee of the employer from which the teacher
21is on leave.
22 (e) Beginning July 1, 1998, every employer of a teacher
23shall pay to the System an employer contribution computed as
24follows:
25 (1) Beginning July 1, 1998 through June 30, 1999, the
26 employer contribution shall be equal to 0.3% of each

SB0011- 131 -LRB100 06001 RPS 16030 b
1 teacher's salary.
2 (2) Beginning July 1, 1999 and thereafter, the employer
3 contribution shall be equal to 0.58% of each teacher's
4 salary.
5The school district or other employing unit may pay these
6employer contributions out of any source of funding available
7for that purpose and shall forward the contributions to the
8System on the schedule established for the payment of member
9contributions.
10 These employer contributions are intended to offset a
11portion of the cost to the System of the increases in
12retirement benefits resulting from this amendatory Act of 1998.
13 Each employer of teachers is entitled to a credit against
14the contributions required under this subsection (e) with
15respect to salaries paid to teachers for the period January 1,
162002 through June 30, 2003, equal to the amount paid by that
17employer under subsection (a-5) of Section 6.6 of the State
18Employees Group Insurance Act of 1971 with respect to salaries
19paid to teachers for that period.
20 The additional 1% employee contribution required under
21Section 16-152 by this amendatory Act of 1998 is the
22responsibility of the teacher and not the teacher's employer,
23unless the employer agrees, through collective bargaining or
24otherwise, to make the contribution on behalf of the teacher.
25 If an employer is required by a contract in effect on May
261, 1998 between the employer and an employee organization to

SB0011- 132 -LRB100 06001 RPS 16030 b
1pay, on behalf of all its full-time employees covered by this
2Article, all mandatory employee contributions required under
3this Article, then the employer shall be excused from paying
4the employer contribution required under this subsection (e)
5for the balance of the term of that contract. The employer and
6the employee organization shall jointly certify to the System
7the existence of the contractual requirement, in such form as
8the System may prescribe. This exclusion shall cease upon the
9termination, extension, or renewal of the contract at any time
10after May 1, 1998.
11 (f) For school years beginning on or after June 1, 2005 and
12before July 1, 2018, if If the amount of a teacher's salary for
13any school year used to determine final average salary exceeds
14the member's annual full-time salary rate with the same
15employer for the previous school year by more than 6%, the
16teacher's employer shall pay to the System, in addition to all
17other payments required under this Section and in accordance
18with guidelines established by the System, the present value of
19the increase in benefits resulting from the portion of the
20increase in salary that is in excess of 6%. This present value
21shall be computed by the System on the basis of the actuarial
22assumptions and tables used in the most recent actuarial
23valuation of the System that is available at the time of the
24computation. If a teacher's salary for the 2005-2006 school
25year is used to determine final average salary under this
26subsection (f), then the changes made to this subsection (f) by

SB0011- 133 -LRB100 06001 RPS 16030 b
1Public Act 94-1057 shall apply in calculating whether the
2increase in his or her salary is in excess of 6%. For the
3purposes of this Section, change in employment under Section
410-21.12 of the School Code on or after June 1, 2005 shall
5constitute a change in employer. The System may require the
6employer to provide any pertinent information or
7documentation. The changes made to this subsection (f) by this
8amendatory Act of the 94th General Assembly apply without
9regard to whether the teacher was in service on or after its
10effective date.
11 Whenever it determines that a payment is or may be required
12under this subsection, the System shall calculate the amount of
13the payment and bill the employer for that amount. The bill
14shall specify the calculations used to determine the amount
15due. If the employer disputes the amount of the bill, it may,
16within 30 days after receipt of the bill, apply to the System
17in writing for a recalculation. The application must specify in
18detail the grounds of the dispute and, if the employer asserts
19that the calculation is subject to subsection (g) or (h) of
20this Section, must include an affidavit setting forth and
21attesting to all facts within the employer's knowledge that are
22pertinent to the applicability of that subsection. Upon
23receiving a timely application for recalculation, the System
24shall review the application and, if appropriate, recalculate
25the amount due.
26 The employer contributions required under this subsection

SB0011- 134 -LRB100 06001 RPS 16030 b
1(f) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9 (f-1) For school years beginning on or after July 1, 2018,
10if the amount of a teacher's salary for any school year used to
11determine final average salary exceeds the member's annual
12full-time salary rate with the same employer for the previous
13school year by more than the unadjusted percentage increase in
14the consumer price index-u for the calendar year ending on the
15December 31 immediately preceding the beginning of the school
16year, then the teacher's employer shall pay to the System, in
17addition to all other payments required under this Section and
18in accordance with guidelines established by the System, the
19present value of the increase in benefits resulting from the
20portion of the increase in salary that is in excess of the
21unadjusted percentage increase in the consumer price index-u
22for the applicable calendar year. This present value shall be
23computed by the System on the basis of the actuarial
24assumptions and tables used in the most recent actuarial
25valuation of the System that is available at the time of the
26computation. The System may require the employer to provide any

SB0011- 135 -LRB100 06001 RPS 16030 b
1pertinent information or documentation.
2 Whenever it determines that a payment is or may be required
3under this subsection (f-1), the System shall calculate the
4amount of the payment and bill the employer for that amount.
5The bill shall specify the calculations used to determine the
6amount due. If the employer disputes the amount of the bill, it
7may, within 30 days after receipt of the bill, apply to the
8System in writing for a recalculation. The application must
9specify in detail the grounds of the dispute and, if the
10employer asserts that the calculation is subject to subsection
11(h-1) of this Section, must include an affidavit setting forth
12and attesting to all facts within the employer's knowledge that
13are pertinent to the applicability of subsection (h-1). Upon
14receiving a timely application for recalculation, the System
15shall review the application and, if appropriate, recalculate
16the amount due.
17 The employer contributions required under this subsection
18(f-1) may be paid in the form of a lump sum within 90 days after
19receipt of the bill. If the employer contributions are not paid
20within 90 days after receipt of the bill, then interest shall
21be charged at a rate equal to the System's annual actuarially
22assumed rate of return on investment compounded annually from
23the 91st day after receipt of the bill. Payments must be
24concluded within 3 years after the employer's receipt of the
25bill.
26 For the purposes of this Section, "consumer price index-u"

SB0011- 136 -LRB100 06001 RPS 16030 b
1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the average
3change in prices of goods and services purchased by all urban
4consumers, United States city average, all items, 1982-84 =
5100. The new amount resulting from each annual adjustment shall
6be determined by the Public Pension Division of the Department
7of Insurance and made available to the boards of the retirement
8systems and pension funds by November 1 of each year.
9 (g) This subsection (g) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14 When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases paid to teachers
16under contracts or collective bargaining agreements entered
17into, amended, or renewed before June 1, 2005.
18 When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to a
20teacher at a time when the teacher is 10 or more years from
21retirement eligibility under Section 16-132 or 16-133.2.
22 When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases resulting from
24overload work, including summer school, when the school
25district has certified to the System, and the System has
26approved the certification, that (i) the overload work is for

SB0011- 137 -LRB100 06001 RPS 16030 b
1the sole purpose of classroom instruction in excess of the
2standard number of classes for a full-time teacher in a school
3district during a school year and (ii) the salary increases are
4equal to or less than the rate of pay for classroom instruction
5computed on the teacher's current salary and work schedule.
6 When assessing payment for any amount due under subsection
7(f), the System shall exclude a salary increase resulting from
8a promotion (i) for which the employee is required to hold a
9certificate or supervisory endorsement issued by the State
10Teacher Certification Board that is a different certification
11or supervisory endorsement than is required for the teacher's
12previous position and (ii) to a position that has existed and
13been filled by a member for no less than one complete academic
14year and the salary increase from the promotion is an increase
15that results in an amount no greater than the lesser of the
16average salary paid for other similar positions in the district
17requiring the same certification or the amount stipulated in
18the collective bargaining agreement for a similar position
19requiring the same certification.
20 When assessing payment for any amount due under subsection
21(f), the System shall exclude any payment to the teacher from
22the State of Illinois or the State Board of Education over
23which the employer does not have discretion, notwithstanding
24that the payment is included in the computation of final
25average salary.
26 (h) When assessing payment for any amount due under

SB0011- 138 -LRB100 06001 RPS 16030 b
1subsection (f), the System shall exclude any salary increase
2described in subsection (g) of this Section given on or after
3July 1, 2011 but before July 1, 2014 under a contract or
4collective bargaining agreement entered into, amended, or
5renewed on or after June 1, 2005 but before July 1, 2011.
6Notwithstanding any other provision of this Section, any
7payments made or salary increases given after June 30, 2014
8shall be used in assessing payment for any amount due under
9subsection (f) of this Section.
10 (h-1) When assessing payment for any amount due under
11subsection (f-1), the System shall exclude earnings increases
12paid to participants under contracts or collective bargaining
13agreements entered into, amended, or renewed before the
14effective date of this amendatory Act of the 100th General
15Assembly.
16 (i) The System shall prepare a report and file copies of
17the report with the Governor and the General Assembly by
18January 1, 2007 that contains all of the following information:
19 (1) The number of recalculations required by the
20 changes made to this Section by Public Act 94-1057 for each
21 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

SB0011- 139 -LRB100 06001 RPS 16030 b
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, 2018,
6if the amount of a participant's salary for any school year,
7determined on a full-time equivalent basis, exceeds the amount
8of the salary set for the Governor, the participant's employer
9shall pay to the System, in addition to all other payments
10required under this Section and in accordance with guidelines
11established by the System, the amount of earnings that exceed
12the salary set for the Governor multiplied by the level
13percentage of payroll used in that fiscal year as determined by
14the System to be sufficient to bring the total assets of the
15System up to 90% of the total actuarial liabilities of the
16System by the end of State fiscal year 2045. This amount shall
17be computed by the System on the basis of the actuarial
18assumptions and tables used in the most recent actuarial
19valuation of the System that is available at the time of the
20computation. The System may require the employer to provide any
21pertinent information or documentation.
22 Whenever it determines that a payment is or may be required
23under this subsection, the System shall calculate the amount of
24the payment and bill the employer for that amount. The bill
25shall specify the calculations used to determine the amount
26due. If the employer disputes the amount of the bill, it may,

SB0011- 140 -LRB100 06001 RPS 16030 b
1within 30 days after receipt of the bill, apply to the System
2in writing for a recalculation. The application must specify in
3detail the grounds of the dispute. Upon receiving a timely
4application for recalculation, the System shall review the
5application and, if appropriate, recalculate the amount due.
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 paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
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

SB0011- 141 -LRB100 06001 RPS 16030 b
1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4 (l) If Section 16-122.9 is determined to be
5unconstitutional or otherwise invalid by a final unappealable
6decision of an Illinois court or a court of competent
7jurisdiction, then the changes made to this Section by this
8amendatory Act of the 100th General Assembly shall not take
9effect and are repealed by operation of law.
10(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
126-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
13 (40 ILCS 5/16-203)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16 Sec. 16-203. Application and expiration of new benefit
17increases.
18 (a) As used in this Section, "new benefit increase" means
19an increase in the amount of any benefit provided under this
20Article, or an expansion of the conditions of eligibility for
21any benefit under this Article, that results from an amendment
22to this Code that takes effect after June 1, 2005 (the
23effective date of Public Act 94-4). "New benefit increase",
24however, does not include any benefit increase resulting from
25the changes made to this Article by Public Act 95-910 or this

SB0011- 142 -LRB100 06001 RPS 16030 b
1amendatory Act of the 100th 95th General Assembly.
2 (b) Notwithstanding any other provision of this Code or any
3subsequent amendment to this Code, every new benefit increase
4is subject to this Section and shall be deemed to be granted
5only in conformance with and contingent upon compliance with
6the provisions of this Section.
7 (c) The Public Act enacting a new benefit increase must
8identify and provide for payment to the System of additional
9funding at least sufficient to fund the resulting annual
10increase in cost to the System as it accrues.
11 Every new benefit increase is contingent upon the General
12Assembly providing the additional funding required under this
13subsection. The Commission on Government Forecasting and
14Accountability shall analyze whether adequate additional
15funding has been provided for the new benefit increase and
16shall report its analysis to the Public Pension Division of the
17Department of Insurance Financial and Professional Regulation.
18A new benefit increase created by a Public Act that does not
19include the additional funding required under this subsection
20is null and void. If the Public Pension Division determines
21that the additional funding provided for a new benefit increase
22under this subsection is or has become inadequate, it may so
23certify to the Governor and the State Comptroller and, in the
24absence of corrective action by the General Assembly, the new
25benefit increase shall expire at the end of the fiscal year in
26which the certification is made.

SB0011- 143 -LRB100 06001 RPS 16030 b
1 (d) Every new benefit increase shall expire 5 years after
2its effective date or on such earlier date as may be specified
3in the language enacting the new benefit increase or provided
4under subsection (c). This does not prevent the General
5Assembly from extending or re-creating a new benefit increase
6by law.
7 (e) Except as otherwise provided in the language creating
8the new benefit increase, a new benefit increase that expires
9under this Section continues to apply to persons who applied
10and qualified for the affected benefit while the new benefit
11increase was in effect and to the affected beneficiaries and
12alternate payees of such persons, but does not apply to any
13other person, including without limitation a person who
14continues in service after the expiration date and did not
15apply and qualify for the affected benefit while the new
16benefit increase was in effect.
17(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
18 (40 ILCS 5/16-205.1 new)
19 Sec. 16-205.1. Defined contribution plan.
20 (a) By July 1, 2018, the System shall prepare and implement
21a voluntary defined contribution plan for up to 5% of eligible
22active Tier 1 employees. The System shall determine the 5% cap
23by the number of active Tier 1 employees on the effective date
24of this Section. The defined contribution plan developed under
25this Section shall be a plan that aggregates employer and

SB0011- 144 -LRB100 06001 RPS 16030 b
1employee contributions in individual participant accounts
2which, after meeting any other requirements, are used for
3payouts after retirement in accordance with this Section and
4any other applicable laws.
5 As used in this Section, "defined benefit plan" means the
6retirement plan available under this Article to Tier 1
7employees who have not made the election authorized under this
8Section.
9 (1) Under the defined contribution plan, an active Tier
10 1 employee of this System could elect to cease accruing
11 benefits in the defined benefit plan under this Article and
12 begin accruing benefits for future service in the defined
13 contribution plan. Service credit under the defined
14 contribution plan may be used for determining retirement
15 eligibility under the defined benefit plan. An active Tier
16 1 employee who elects to cease accruing benefits in his or
17 her defined benefit plan shall be prohibited from
18 purchasing service credit on or after the date of his or
19 her election. A Tier 1 employee making the irrevocable
20 election provided under this Section shall not receive
21 interest accruals to his or her benefit under paragraph (A)
22 of subsection (a) of Section 16-133 on or after the date of
23 his or her election.
24 (2) Participants in the defined contribution plan
25 shall pay employee contributions at the same rate as Tier 1
26 employees in this System who do not participate in the

SB0011- 145 -LRB100 06001 RPS 16030 b
1 defined contribution plan.
2 (3) State contributions shall be paid into the accounts
3 of all participants in the defined contribution plan at a
4 uniform rate, expressed as a percentage of salary and
5 determined for each year. This rate shall be no higher than
6 the employer's normal cost for Tier 1 employees in the
7 defined benefit plan for that year, as determined by the
8 System and expressed as a percentage of salary, and shall
9 be no lower than 0% of salary. The State shall adjust this
10 rate annually.
11 (4) The defined contribution plan shall require 5 years
12 of participation in the defined contribution plan before
13 vesting in State contributions. If the participant fails to
14 vest in them, the State contributions, and the earnings
15 thereon, shall be forfeited.
16 (5) The defined contribution plan may provide for
17 participants in the plan to be eligible for the defined
18 disability benefits available to other participants under
19 this Article. If it does, the System shall reduce the
20 employee contributions credited to the member's defined
21 contribution plan account by an amount determined by the
22 System to cover the cost of offering such benefits.
23 (6) The defined contribution plan shall provide a
24 variety of options for investments. These options shall
25 include investments in a fund created by the System and
26 managed in accordance with legal and fiduciary standards,

SB0011- 146 -LRB100 06001 RPS 16030 b
1 as well as investment options otherwise available.
2 (7) The defined contribution plan shall provide a
3 variety of options for payouts to retirees and their
4 survivors.
5 (8) To the extent authorized under federal law and as
6 authorized by the System, the plan shall allow former
7 participants in the plan to transfer or roll over employee
8 and vested State contributions, and the earnings thereon,
9 into other qualified retirement plans.
10 (9) The System shall reduce the employee contributions
11 credited to the member's defined contribution plan account
12 by an amount determined by the System to cover the cost of
13 offering these benefits and any applicable administrative
14 fees.
15 (b) Only persons who are active Tier 1 employees of the
16System on the effective date of this Section are eligible to
17participate in the defined contribution plan. Participation in
18the defined contribution plan shall be limited to the first 5%
19of eligible persons who elect to participate. The election to
20participate in the defined contribution plan is voluntary and
21irrevocable.
22 (c) An eligible Tier 1 employee may irrevocably elect to
23participate in the defined contribution plan by filing with the
24System a written application to participate that is received by
25the System prior to its determination that 5% of eligible
26persons have elected to participate in the defined contribution

SB0011- 147 -LRB100 06001 RPS 16030 b
1plan.
2 When the System first determines that 5% of eligible
3persons have elected to participate in the defined contribution
4plan, the System shall provide notice to previously eligible
5employees that the plan is no longer available and shall cease
6accepting applications to participate.
7 (d) The System shall make a good faith effort to contact
8each active Tier 1 employee who is eligible to participate in
9the defined contribution plan. The System shall mail
10information describing the option to join the defined
11contribution plan to each of these employees to his or her last
12known address on file with the System. If the employee is not
13responsive to other means of contact, it is sufficient for the
14System to publish the details of the option on its website.
15 Upon request for further information describing the
16option, the System shall provide employees with information
17from the System before exercising the option to join the plan,
18including information on the impact to their vested benefits or
19non-vested service. The individual consultation shall include
20projections of the member's defined benefits at retirement or
21earlier termination of service and the value of the member's
22account at retirement or earlier termination of service. The
23System shall not provide advice or counseling with respect to
24whether the employee should exercise the option. The System
25shall inform Tier 1 employees who are eligible to participate
26in the defined contribution plan that they may also wish to

SB0011- 148 -LRB100 06001 RPS 16030 b
1obtain information and counsel relating to their option from
2any other available source, including but not limited to labor
3organizations, private counsel, and financial advisors.
4 (e) In no event shall the System, its staff, its authorized
5representatives, or the Board be liable for any information
6given to an employee under this Section. The System may
7coordinate with the Illinois Department of Central Management
8Services and other retirement systems administering a defined
9contribution plan in accordance with this amendatory Act of the
10100th General Assembly to provide information concerning the
11impact of the option set forth in this Section.
12 (f) Notwithstanding any other provision of this Section, no
13person shall begin participating in the defined contribution
14plan until it has attained qualified plan status and received
15all necessary approvals from the U.S. Internal Revenue Service.
16 (g) The System shall report on its progress under this
17Section, including the available details of the defined
18contribution plan and the System's plans for informing eligible
19Tier 1 employees about the plan, to the Governor and the
20General Assembly on or before January 15, 2018.
21 (h) The intent of this amendatory Act of the 100th General
22Assembly is to ensure that the State's normal cost of
23participation in the defined contribution plan is similar, and
24if possible equal, to the State's normal cost of participation
25in the defined benefit plan, unless a lower State's normal cost
26is necessary to ensure cost neutrality.

SB0011- 149 -LRB100 06001 RPS 16030 b
1 (i) If Section 16-122.9 is determined to be
2unconstitutional or otherwise invalid by a final unappealable
3decision of an Illinois court or a court of competent
4jurisdiction, then this Section shall not take effect and is
5repealed by operation of law.
6 (40 ILCS 5/16-206.1 new)
7 Sec. 16-206.1. Defined contribution plan; termination. If
8the defined contribution plan is terminated or becomes
9inoperative pursuant to law, then each participant in the plan
10shall automatically be deemed to have been a contributing Tier
111 employee in the System's defined benefit plan during the time
12in which he or she participated in the defined contribution
13plan, and for that purpose the System shall be entitled to
14recover the amounts in the participant's defined contribution
15accounts.
16 (40 ILCS 5/17-106.05 new)
17 Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
18teacher under this Article who first became a member or
19participant before January 1, 2011 under any reciprocal
20retirement system or pension fund established under this Code
21other than a retirement system or pension fund established
22under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
23the purposes of the election under Section 17-115.5, "Tier 1
24employee" does not include a teacher under this Article who

SB0011- 150 -LRB100 06001 RPS 16030 b
1would qualify as a Tier 1 employee but who has made an
2irrevocable election on or before June 1, 2017 to retire from
3service pursuant to the terms of a collective bargaining
4agreement in effect on June 1, 2017, excluding any extension,
5amendment, or renewal of that agreement on or after that date,
6and has notified the Fund of that election.
7 (40 ILCS 5/17-113.4 new)
8 Sec. 17-113.4. Salary. "Salary" means any income in any
9form that qualifies as "average salary" or "annual rate of
10salary" for purposes of paragraph (1) of subsection (c) of
11Section 17-116 and "salary" for payroll deduction purposes
12under Sections 17-130, 17-131, and 17-132.
13 Notwithstanding any other provision of this Section,
14"salary" does not include any future increase in income that is
15offered by an employer for service as a Tier 1 employee under
16this Article pursuant to the condition set forth in subsection
17(c) of Section 17-115.5 and accepted under that condition by a
18Tier 1 employee who has made the election under paragraph (2)
19of subsection (a) of Section 17-115.5.
20 (40 ILCS 5/17-113.5 new)
21 Sec. 17-113.5. Future increase in income. "Future increase
22in income" means an increase in income in any form offered by
23an employer to a Tier 1 employee for service under this Article
24after June 30, 2018 that qualifies as "salary", as defined in

SB0011- 151 -LRB100 06001 RPS 16030 b
1Section 17-113.4, or would qualify as "salary" but for the fact
2that it was offered to and accepted by a Tier 1 employee under
3the condition set forth in subsection (c) of Section 17-115.5.
4The term "future increase in income" does not include an
5increase in income in any form that is paid to a Tier 1
6employee under an employment contract or a collective
7bargaining agreement that is in effect on the effective date of
8this Section, but does include an increase in income in any
9form pursuant to an extension, amendment, or renewal of any
10such employment contract or collective bargaining agreement on
11or after the effective date of this Section.
12 (40 ILCS 5/17-115.5 new)
13 Sec. 17-115.5. Election by Tier 1 employees.
14 (a) Each active Tier 1 employee shall make an irrevocable
15election either:
16 (1) to agree to delay his or her eligibility for
17 automatic annual increases in service retirement pension
18 as provided in Section 17-119.2 and to have the amount of
19 the automatic annual increases in his or her service
20 retirement pension that are otherwise provided for in this
21 Article calculated, instead, as provided in Section
22 17-119.2; or
23 (2) to not agree to paragraph (1) of this subsection.
24 The election required under this subsection (a) shall be
25made by each active Tier 1 employee no earlier than January 1,

SB0011- 152 -LRB100 06001 RPS 16030 b
12018 and no later than March 31, 2018, except that:
2 (i) a person who becomes a Tier 1 employee under this
3 Article on or after January 1, 2018 must make the election
4 under this subsection (a) within 60 days after becoming a
5 Tier 1 employee; and
6 (ii) a person who returns to active service as a Tier 1
7 employee under this Article on or after January 1, 2018 and
8 has not yet made an election under this Section must make
9 the election under this subsection (a) within 60 days after
10 returning to active service as a Tier 1 employee.
11 If a Tier 1 employee fails for any reason to make a
12required election under this subsection within the time
13specified, then the employee shall be deemed to have made the
14election under paragraph (2) of this subsection.
15 (a-5) If this Section is enjoined or stayed by an Illinois
16court or a court of competent jurisdiction pending the entry of
17a final and unappealable decision, and this Section is
18determined to be constitutional or otherwise valid by a final
19unappealable decision of an Illinois court or a court of
20competent jurisdiction, then the election procedure set forth
21in subsection (a) of this Section shall commence on the 180th
22calendar day after the date of the issuance of the final
23unappealable decision and shall conclude at the end of the
24270th calendar day after that date.
25 (a-10) All elections under subsection (a) that are made or
26deemed to be made before July 1, 2018 shall take effect on July

SB0011- 153 -LRB100 06001 RPS 16030 b
11, 2018. Elections that are made or deemed to be made on or
2after July 1, 2018 shall take effect on the first day of the
3month following the month in which the election is made or
4deemed to be made.
5 (b) As adequate and legal consideration provided under this
6amendatory Act of the 100th General Assembly for making an
7election under paragraph (1) of subsection (a) of this Section,
8an employer shall be expressly and irrevocably prohibited from
9offering any future increases in income to a Tier 1 employee
10who has made an election under paragraph (1) of subsection (a)
11of this Section on the condition of not constituting salary
12under Section 17-113.4.
13 As adequate and legal consideration provided under this
14amendatory Act of the 100th General Assembly for making an
15election under paragraph (1) of subsection (a) of this Section,
16each Tier 1 employee who has made an election under paragraph
17(1) of subsection (a) of this Section shall receive a
18consideration payment equal to 10% of the contributions made by
19or on behalf of the employee under Section 17-130 before the
20effective date of that election. The Fund shall timely make the
21consideration payment to the Tier 1 employee.
22 (c) A Tier 1 employee who makes the election under
23paragraph (2) of subsection (a) of this Section shall not be
24subject to paragraph (1) of subsection (a) of this Section.
25However, any future increases in income offered by an employer
26under this Article to a Tier 1 employee who has made the

SB0011- 154 -LRB100 06001 RPS 16030 b
1election under paragraph (2) of subsection (a) of this Section
2shall be offered by the employer expressly and irrevocably on
3the condition of not constituting salary under Section
417-113.4, and the employee may not accept any future increase
5in income that is offered without this condition.
6 (d) The Fund shall make a good faith effort to contact each
7Tier 1 employee subject to this Section. The Fund shall mail
8information describing the required election to each Tier 1
9employee by United States Postal Service mail to his or her
10last known address on file with the Fund. If the Tier 1
11employee is not responsive to other means of contact, it is
12sufficient for the Fund to publish the details of any required
13elections on its website or to publish those details in a
14regularly published newsletter or other existing public forum.
15 Tier 1 employees who are subject to this Section shall be
16provided with an election packet containing information
17regarding their options, as well as the forms necessary to make
18the required election. Upon request, the Fund shall offer Tier
191 employees an opportunity to receive information from the Fund
20before making the required election. The information may
21consist of video materials, group presentations, individual
22consultation with a member or authorized representative of the
23Fund in person or by telephone or other electronic means, or
24any combination of those methods. The Fund shall not provide
25advice or counseling with respect to which election a Tier 1
26employee should make or specific to the legal or tax

SB0011- 155 -LRB100 06001 RPS 16030 b
1circumstances of or consequences to the Tier 1 employee.
2 The Fund shall inform Tier 1 employees in the election
3packet required under this subsection that the Tier 1 employee
4may also wish to obtain information and counsel relating to the
5election required under this Section from any other available
6source, including, but not limited to, labor organizations and
7private counsel.
8 In no event shall the Fund, its staff, or the Board be held
9liable for any information given to a member regarding the
10elections under this Section. The Fund shall coordinate with
11the Illinois Department of Central Management Services and each
12other retirement system administering an election in
13accordance with this amendatory Act of the 100th General
14Assembly to provide information concerning the impact of the
15election set forth in this Section.
16 (e) Notwithstanding any other provision of law, an employer
17under this Article is required to offer any future increases in
18income expressly and irrevocably on the condition of not
19constituting "salary" under Section 17-113.4 to any Tier 1
20employee who has made an election under paragraph (2) of
21subsection (a) of this Section. A Tier 1 employee who has made
22an election under paragraph (2) of subsection (a) of this
23Section shall not accept any future increase in income that is
24offered by an employer under this Article without the condition
25set forth in this subsection.
26 For purposes of legislative intent, the condition set forth

SB0011- 156 -LRB100 06001 RPS 16030 b
1in this subsection shall be construed in a manner that ensures
2that the condition is not violated or circumvented through any
3contrivance of any kind.
4 (f) A member's election under this Section is not a
5prohibited election under subdivision (j)(1) of Section 1-119
6of this Code.
7 (g) No provision of this Section shall be interpreted in a
8way that would cause the Fund to cease to be a qualified plan
9under Section 401(a) of the Internal Revenue Code of 1986.
10 (h) If an election created by this amendatory Act in any
11other Article of this Code or any change deriving from that
12election is determined to be unconstitutional or otherwise
13invalid by a final unappealable decision of an Illinois court
14or a court of competent jurisdiction, the invalidity of that
15provision shall not in any way affect the validity of this
16Section or the changes deriving from the election required
17under this Section.
18 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
19 Sec. 17-116. Service retirement pension.
20 (a) Each teacher having 20 years of service upon attainment
21of age 55, or who thereafter attains age 55 shall be entitled
22to a service retirement pension upon or after attainment of age
2355; and each teacher in service on or after July 1, 1971, with
245 or more but less than 20 years of service shall be entitled
25to receive a service retirement pension upon or after

SB0011- 157 -LRB100 06001 RPS 16030 b
1attainment of age 62.
2 (b) The service retirement pension for a teacher who
3retires on or after June 25, 1971, at age 60 or over, shall be
4calculated as follows:
5 (1) For creditable service earned before July 1, 1998
6 that has not been augmented under Section 17-119.1: 1.67%
7 for each of the first 10 years of service; 1.90% for each
8 of the next 10 years of service; 2.10% for each year of
9 service in excess of 20 but not exceeding 30; and 2.30% for
10 each year of service in excess of 30, based upon average
11 salary as herein defined.
12 (2) For creditable service earned on or after July 1,
13 1998 by a member who has at least 30 years of creditable
14 service on July 1, 1998 and who does not elect to augment
15 service under Section 17-119.1: 2.3% of average salary for
16 each year of creditable service earned on or after July 1,
17 1998.
18 (3) For all other creditable service: 2.2% of average
19 salary for each year of creditable service.
20 (c) When computing such service retirement pensions, the
21following conditions shall apply:
22 1. Average salary shall consist of the average annual
23 rate of salary for the 4 consecutive years of validated
24 service within the last 10 years of service when such
25 average annual rate was highest. In the determination of
26 average salary for retirement allowance purposes, for

SB0011- 158 -LRB100 06001 RPS 16030 b
1 members who commenced employment after August 31, 1979,
2 that part of the salary for any year shall be excluded
3 which exceeds the annual full-time salary rate for the
4 preceding year by more than 20%. In the case of a member
5 who commenced employment before August 31, 1979 and who
6 receives salary during any year after September 1, 1983
7 which exceeds the annual full time salary rate for the
8 preceding year by more than 20%, an Employer and other
9 employers of eligible contributors as defined in Section
10 17-106 shall pay to the Fund an amount equal to the present
11 value of the additional service retirement pension
12 resulting from such excess salary. The present value of the
13 additional service retirement pension shall be computed by
14 the Board on the basis of actuarial tables adopted by the
15 Board. If a member elects to receive a pension from this
16 Fund provided by Section 20-121, his salary under the State
17 Universities Retirement System and the Teachers'
18 Retirement System of the State of Illinois shall be
19 considered in determining such average salary. Amounts
20 paid after the effective date of this amendatory Act of
21 1991 for unused vacation time earned after that effective
22 date shall not under any circumstances be included in the
23 calculation of average salary or the annual rate of salary
24 for the purposes of this Article.
25 2. Proportionate credit shall be given for validated
26 service of less than one year.

SB0011- 159 -LRB100 06001 RPS 16030 b
1 3. For retirement at age 60 or over the pension shall
2 be payable at the full rate.
3 4. For separation from service below age 60 to a
4 minimum age of 55, the pension shall be discounted at the
5 rate of 1/2 of one per cent for each month that the age of
6 the contributor is less than 60, but a teacher may elect to
7 defer the effective date of pension in order to eliminate
8 or reduce this discount. This discount shall not be
9 applicable to any participant who has at least 34 years of
10 service or a retirement pension of at least 74.6% of
11 average salary on the date the retirement annuity begins.
12 5. No additional pension shall be granted for service
13 exceeding 45 years. Beginning June 26, 1971 no pension
14 shall exceed the greater of $1,500 per month or 75% of
15 average salary as herein defined.
16 6. Service retirement pensions shall begin on the
17 effective date of resignation, retirement, the day
18 following the close of the payroll period for which service
19 credit was validated, or the time the person resigning or
20 retiring attains age 55, or on a date elected by the
21 teacher, whichever shall be latest; provided that, for a
22 person who first becomes a member after the effective date
23 of this amendatory Act of the 99th General Assembly, the
24 benefit shall not commence more than one year prior to the
25 date of the Fund's receipt of an application for the
26 benefit.

SB0011- 160 -LRB100 06001 RPS 16030 b
1 7. A member who is eligible to receive a retirement
2 pension of at least 74.6% of average salary and will attain
3 age 55 on or before December 31 during the year which
4 commences on July 1 shall be deemed to attain age 55 on the
5 preceding June 1.
6 8. A member retiring after the effective date of this
7 amendatory Act of 1998 shall receive a pension equal to 75%
8 of average salary if the member is qualified to receive a
9 retirement pension equal to at least 74.6% of average
10 salary under this Article or as proportional annuities
11 under Article 20 of this Code.
12 (d) Notwithstanding any other provision of this Section,
13annual salary does not include any future increase in income
14that is offered for service to a Tier 1 employee under this
15Article pursuant to the condition set forth in subsection (c)
16of Section 17-115.5 and accepted under that condition by a Tier
171 employee who has made the election under paragraph (2) of
18subsection (a) of Section 17-115.5.
19 Notwithstanding any other provision of this Section,
20annual salary does not include any consideration payment made
21to a Tier 1 employee.
22(Source: P.A. 99-702, eff. 7-29-16.)
23 (40 ILCS 5/17-119.2 new)
24 Sec. 17-119.2. Automatic annual increases in service
25retirement pension for certain Tier 1 employees.

SB0011- 161 -LRB100 06001 RPS 16030 b
1Notwithstanding any other provision of this Article, for a Tier
21 employee who made the election under paragraph (1) of
3subsection (a) of Section 17-115.5:
4 (1) The initial increase in service retirement pension
5 shall occur on the January 1 occurring either on or after
6 the attainment of age 67 or the fifth anniversary of the
7 pension start date, whichever is earlier.
8 (2) The amount of each automatic annual increase in
9 service retirement pension occurring on or after the
10 effective date of that election shall be calculated as a
11 percentage of the originally granted service retirement
12 pension, equal to 3% or one-half the annual unadjusted
13 percentage increase (but not less than zero) in the
14 consumer price index-u for the 12 months ending with the
15 September preceding each November 1, whichever is less. If
16 the annual unadjusted percentage change in the consumer
17 price index-u for the 12 months ending with the September
18 preceding each November 1 is zero or there is a decrease,
19 then the annuity shall not be increased.
20 For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the average
23change in prices of goods and services purchased by all urban
24consumers, United States city average, all items, 1982-84 =
25100. The new amount resulting from each annual adjustment shall
26be determined by the Public Pension Division of the Department

SB0011- 162 -LRB100 06001 RPS 16030 b
1of Insurance and made available to the Board by November 1 of
2each year.
3 (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
4 Sec. 17-129. Employer contributions; deficiency in Fund.
5 (a) If in any fiscal year of the Board of Education ending
6prior to 1997 the total amounts paid to the Fund from the Board
7of Education (other than under this subsection, and other than
8amounts used for making or "picking up" contributions on behalf
9of teachers) and from the State do not equal the total
10contributions made by or on behalf of the teachers for such
11year, or if the total income of the Fund in any such fiscal
12year of the Board of Education from all sources is less than
13the total such expenditures by the Fund for such year, the
14Board of Education shall, in the next succeeding year, in
15addition to any other payment to the Fund set apart and
16appropriate from moneys from its tax levy for educational
17purposes, a sum sufficient to remove such deficiency or
18deficiencies, and promptly pay such sum into the Fund in order
19to restore any of the reserves of the Fund that may have been
20so temporarily applied. Any amounts received by the Fund after
21December 4, 1997 from State appropriations, including under
22Section 17-127, shall be a credit against and shall fully
23satisfy any obligation that may have arisen, or be claimed to
24have arisen, under this subsection (a) as a result of any
25deficiency or deficiencies in the fiscal year of the Board of

SB0011- 163 -LRB100 06001 RPS 16030 b
1Education ending in calendar year 1997.
2 (b) (i) Notwithstanding any other provision of this
3Section, and notwithstanding any prior certification by the
4Board under subsection (c) for fiscal year 2011, the Board of
5Education's total required contribution to the Fund for fiscal
6year 2011 under this Section is $187,000,000.
7 (ii) Notwithstanding any other provision of this Section,
8the Board of Education's total required contribution to the
9Fund for fiscal year 2012 under this Section is $192,000,000.
10 (iii) Notwithstanding any other provision of this Section,
11the Board of Education's total required contribution to the
12Fund for fiscal year 2013 under this Section is $196,000,000.
13 (iv) For fiscal years 2014 through 2059, the minimum
14contribution to the Fund to be made by the Board of Education
15in each fiscal year shall be an amount determined by the Fund
16to be sufficient to bring the total assets of the Fund up to
1790% of the total actuarial liabilities of the Fund by the end
18of fiscal year 2059. In making these determinations, the
19required Board of Education contribution shall be calculated
20each year as a level percentage of the applicable employee
21payrolls over the years remaining to and including fiscal year
222059 and shall be determined under the projected unit credit
23actuarial cost method.
24 (v) Beginning in fiscal year 2060, the minimum Board of
25Education contribution for each fiscal year shall be the amount
26needed to maintain the total assets of the Fund at 90% of the

SB0011- 164 -LRB100 06001 RPS 16030 b
1total actuarial liabilities of the Fund.
2 (vi) Notwithstanding any other provision of this
3subsection (b), for any fiscal year, the contribution to the
4Fund from the Board of Education shall not be required to be in
5excess of the amount calculated as needed to maintain the
6assets (or cause the assets to be) at the 90% level by the end
7of the fiscal year.
8 (vii) Any contribution by the State to or for the benefit
9of the Fund, including, without limitation, as referred to
10under Section 17-127, shall be a credit against any
11contribution required to be made by the Board of Education
12under this subsection (b).
13 (c) The Board shall determine the amount of Board of
14Education contributions required for each fiscal year on the
15basis of the actuarial tables and other assumptions adopted by
16the Board and the recommendations of the actuary, in order to
17meet the minimum contribution requirements of subsections (a)
18and (b). Annually, on or before February 28, the Board shall
19certify to the Board of Education the amount of the required
20Board of Education contribution for the coming fiscal year. The
21certification shall include a copy of the actuarial
22recommendations upon which it is based.
23 (d) On or before May 1, 2018, the Board shall recalculate
24and recertify to the Board of Education the amount of the
25required Board of Education contribution to the Fund for State
26fiscal year 2019, taking into account the effect on the Fund's

SB0011- 165 -LRB100 06001 RPS 16030 b
1liabilities of the elections made under Section 17-115.5.
2(Source: P.A. 96-889, eff. 4-14-10.)
3 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
4 Sec. 17-130. Participants' contributions by payroll
5deductions.
6 (a) Except as provided in subsection (a-5), there There
7shall be deducted from the salary of each teacher 7.50% of his
8salary for service or disability retirement pension and 0.5% of
9salary for the annual increase in base pension.
10 In addition, there shall be deducted from the salary of
11each teacher 1% of his salary for survivors' and children's
12pensions.
13 (a-5) Beginning on July 1, 2018 or the effective date of
14the Tier 1 employee's election under paragraph (1) of Section
1517-115.5, whichever is later, in lieu of the contributions
16otherwise required under subsection (a), each Tier 1 employee
17who made the election under paragraph (1) of Section 17-115.5
18shall make contributions of 7.50% of salary for service or
19disability retirement pension and 0.6% of salary for survivors'
20and children's pensions.
21 (b) An Employer and any employer of eligible contributors
22as defined in Section 17-106 is authorized to make the
23necessary deductions from the salaries of its teachers. Such
24amounts shall be included as a part of the Fund. An Employer
25and any employer of eligible contributors as defined in Section

SB0011- 166 -LRB100 06001 RPS 16030 b
117-106 shall formulate such rules and regulations as may be
2necessary to give effect to the provisions of this Section.
3 (c) All persons employed as teachers shall, by such
4employment, accept the provisions of this Article and of
5Sections 34-83 to 34-85, inclusive, of "The School Code",
6approved March 18, 1961, as amended, and thereupon become
7contributors to the Fund in accordance with the terms thereof.
8The provisions of this Article and of those Sections shall
9become a part of the contract of employment.
10 (d) A person who (i) was a member before July 1, 1998, (ii)
11retires with more than 34 years of creditable service, and
12(iii) does not elect to qualify for the augmented rate under
13Section 17-119.1 shall be entitled, at the time of retirement,
14to receive a partial refund of contributions made under this
15Section for service occurring after the later of June 30, 1998
16or attainment of 34 years of creditable service, in an amount
17equal to 1.00% of the salary upon which those contributions
18were based.
19(Source: P.A. 97-8, eff. 6-13-11.)
20 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
21 Sec. 18-131. Financing; employer contributions.
22 (a) The State of Illinois shall make contributions to this
23System by appropriations of the amounts which, together with
24the contributions of participants, net earnings on
25investments, and other income, will meet the costs of

SB0011- 167 -LRB100 06001 RPS 16030 b
1maintaining and administering this System on a 90% funded basis
2in accordance with actuarial recommendations.
3 (b) The Board shall determine the amount of State
4contributions required for each fiscal year on the basis of the
5actuarial tables and other assumptions adopted by the Board and
6the prescribed rate of interest, using the formula in
7subsection (c).
8 (c) For State fiscal years 2018 through 2045, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 90% of
12the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of total payroll, including payroll that is
16not deemed pensionable, over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19 Beginning in State fiscal year 2018, any increase or
20decrease in State contribution over the prior fiscal year due
21exclusively to changes in actuarial or investment assumptions
22adopted by the Board shall be included in the State
23contribution to the System, as a percentage of the applicable
24employee payroll, and shall be increased in equal annual
25increments so that by the State fiscal year occurring 5 years
26after the adoption of the actuarial or investment assumptions,

SB0011- 168 -LRB100 06001 RPS 16030 b
1the State is contributing at the rate otherwise required under
2this Section.
3 If Section 2-110.3, 15-132.9, 16-122.9, or 17-115.5 is
4determined to be unconstitutional or otherwise invalid by a
5final unappealable decision of an Illinois court or a court of
6competent jurisdiction, then the changes made to this Section
7by this amendatory Act of the 100th General Assembly shall not
8take effect and are repealed by operation of law.
9 For State fiscal years 2012 through 2017 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19 For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section.
24 Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2006 is
26$29,189,400.

SB0011- 169 -LRB100 06001 RPS 16030 b
1 Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2007 is
3$35,236,800.
4 For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10 Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2010 is
12$78,832,000 and shall be made from the proceeds of bonds sold
13in fiscal year 2010 pursuant to Section 7.2 of the General
14Obligation Bond Act, less (i) the pro rata share of bond sale
15expenses determined by the System's share of total bond
16proceeds, (ii) any amounts received from the General Revenue
17Fund in fiscal year 2010, and (iii) any reduction in bond
18proceeds due to the issuance of discounted bonds, if
19applicable.
20 Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2011 is
22the amount recertified by the System on or before April 1, 2011
23pursuant to Section 18-140 and shall be made from the proceeds
24of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
25the General Obligation Bond Act, less (i) the pro rata share of
26bond sale expenses determined by the System's share of total

SB0011- 170 -LRB100 06001 RPS 16030 b
1bond proceeds, (ii) any amounts received from the General
2Revenue Fund in fiscal year 2011, and (iii) any reduction in
3bond proceeds due to the issuance of discounted bonds, if
4applicable.
5 Beginning in State fiscal year 2046, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 90% of the total
8actuarial liabilities of the System.
9 Amounts received by the System pursuant to Section 25 of
10the Budget Stabilization Act or Section 8.12 of the State
11Finance Act in any fiscal year do not reduce and do not
12constitute payment of any portion of the minimum State
13contribution required under this Article in that fiscal year.
14Such amounts shall not reduce, and shall not be included in the
15calculation of, the required State contributions under this
16Article in any future year until the System has reached a
17funding ratio of at least 90%. A reference in this Article to
18the "required State contribution" or any substantially similar
19term does not include or apply to any amounts payable to the
20System under Section 25 of the Budget Stabilization Act.
21 Notwithstanding any other provision of this Section, the
22required State contribution for State fiscal year 2005 and for
23fiscal year 2008 and each fiscal year thereafter, as calculated
24under this Section and certified under Section 18-140, shall
25not exceed an amount equal to (i) the amount of the required
26State contribution that would have been calculated under this

SB0011- 171 -LRB100 06001 RPS 16030 b
1Section for that fiscal year if the System had not received any
2payments under subsection (d) of Section 7.2 of the General
3Obligation Bond Act, minus (ii) the portion of the State's
4total debt service payments for that fiscal year on the bonds
5issued in fiscal year 2003 for the purposes of that Section
67.2, as determined and certified by the Comptroller, that is
7the same as the System's portion of the total moneys
8distributed under subsection (d) of Section 7.2 of the General
9Obligation Bond Act. In determining this maximum for State
10fiscal years 2008 through 2010, however, the amount referred to
11in item (i) shall be increased, as a percentage of the
12applicable employee payroll, in equal increments calculated
13from the sum of the required State contribution for State
14fiscal year 2007 plus the applicable portion of the State's
15total debt service payments for fiscal year 2007 on the bonds
16issued in fiscal year 2003 for the purposes of Section 7.2 of
17the General Obligation Bond Act, so that, by State fiscal year
182011, the State is contributing at the rate otherwise required
19under this Section.
20 (d) For purposes of determining the required State
21contribution to the System, the value of the System's assets
22shall be equal to the actuarial value of the System's assets,
23which shall be calculated as follows:
24 As of June 30, 2008, the actuarial value of the System's
25assets shall be equal to the market value of the assets as of
26that date. In determining the actuarial value of the System's

SB0011- 172 -LRB100 06001 RPS 16030 b
1assets for fiscal years after June 30, 2008, any actuarial
2gains or losses from investment return incurred in a fiscal
3year shall be recognized in equal annual amounts over the
45-year period following that fiscal year.
5 (e) For purposes of determining the required State
6contribution to the system for a particular year, the actuarial
7value of assets shall be assumed to earn a rate of return equal
8to the system's actuarially assumed rate of return.
9(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1096-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
117-13-12.)
12 (40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
13 Sec. 18-140. To certify required State contributions and
14submit vouchers.
15 (a) The Board shall certify to the Governor, on or before
16November 15 of each year until November 15, 2011, the amount of
17the required State contribution to the System for the following
18fiscal year and shall specifically identify the System's
19projected State normal cost for that fiscal year. The
20certification shall include a copy of the actuarial
21recommendations upon which it is based and shall specifically
22identify the System's projected State normal cost for that
23fiscal year.
24 On or before November 1 of each year, beginning November 1,
252012, the Board shall submit to the State Actuary, the

SB0011- 173 -LRB100 06001 RPS 16030 b
1Governor, and the General Assembly a proposed certification of
2the amount of the required State contribution to the System for
3the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions. On or before
11January 15, 2013 and every January 15 thereafter, the Board
12shall certify to the Governor and the General Assembly the
13amount of the required State contribution for the next fiscal
14year. The Board's certification must note any deviations from
15the State Actuary's recommended changes, the reason or reasons
16for not following the State Actuary's recommended changes, and
17the fiscal impact of not following the State Actuary's
18recommended changes on the required State contribution.
19 On or before May 1, 2004, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2005, taking
22into account the amounts appropriated to and received by the
23System under subsection (d) of Section 7.2 of the General
24Obligation Bond Act.
25 On or before July 1, 2005, the Board shall recalculate and
26recertify to the Governor the amount of the required State

SB0011- 174 -LRB100 06001 RPS 16030 b
1contribution to the System for State fiscal year 2006, taking
2into account the changes in required State contributions made
3by this amendatory Act of the 94th General Assembly.
4 On or before April 1, 2011, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2011, applying
7the changes made by Public Act 96-889 to the System's assets
8and liabilities as of June 30, 2009 as though Public Act 96-889
9was approved on that date.
10 As soon as practical after the effective date of this
11amendatory Act of the 100th General Assembly, the State Actuary
12and the Board shall recalculate and recertify to the Governor
13and the General Assembly the amount of the State contribution
14to the System for State fiscal year 2017, taking into account
15the changes in required State contributions made by this
16amendatory Act of the 100th General Assembly.
17 (b) Beginning in State fiscal year 1996, on or as soon as
18possible after the 15th day of each month the Board shall
19submit vouchers for payment of State contributions to the
20System, in a total monthly amount of one-twelfth of the
21required annual State contribution certified under subsection
22(a). From the effective date of this amendatory Act of the 93rd
23General Assembly through June 30, 2004, the Board shall not
24submit vouchers for the remainder of fiscal year 2004 in excess
25of the fiscal year 2004 certified contribution amount
26determined under this Section after taking into consideration

SB0011- 175 -LRB100 06001 RPS 16030 b
1the transfer to the System under subsection (c) of Section
26z-61 of the State Finance Act. These vouchers shall be paid by
3the State Comptroller and Treasurer by warrants drawn on the
4funds appropriated to the System for that fiscal year.
5 If in any month the amount remaining unexpended from all
6other appropriations to the System for the applicable fiscal
7year (including the appropriations to the System under Section
88.12 of the State Finance Act and Section 1 of the State
9Pension Funds Continuing Appropriation Act) is less than the
10amount lawfully vouchered under this Section, the difference
11shall be paid from the General Revenue Fund under the
12continuing appropriation authority provided in Section 1.1 of
13the State Pension Funds Continuing Appropriation Act.
14(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1597-694, eff. 6-18-12.)
16 (40 ILCS 5/2-165 rep.)
17 (40 ILCS 5/2-166 rep.)
18 (40 ILCS 5/15-200 rep.)
19 (40 ILCS 5/15-201 rep.)
20 (40 ILCS 5/16-205 rep.)
21 (40 ILCS 5/16-206 rep.)
22 Section 20. The Illinois Pension Code is amended by
23repealing Sections 2-165, 2-166, 15-200, 15-201, 16-205, and
2416-206.

SB0011- 176 -LRB100 06001 RPS 16030 b
1 Section 25. The State Pension Funds Continuing
2Appropriation Act is amended by adding Section 1.9 as follows:
3 (40 ILCS 15/1.9 new)
4 Sec. 1.9. Appropriation for consideration payment. There
5is hereby appropriated from the General Revenue Fund to the
6State Comptroller, on a continuing basis, all amounts necessary
7for the payment of consideration payments under subsection (b)
8of Sections 2-110.3, 15-132.9, and 16-122.9 of the Illinois
9Pension Code, in the amounts certified to the State Comptroller
10by the respective retirement system or pension fund.
11 Section 30. The School Code is amended by changing Sections
1224-1, 24-8, and 34-18.53 as follows:
13 (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
14 Sec. 24-1. Appointment-Salaries-Payment-School
15month-School term.) School boards shall appoint all teachers,
16determine qualifications of employment and fix the amount of
17their salaries subject to any limitation set forth in this Act
18and subject to any applicable restrictions in Section 16-122.9
19of the Illinois Pension Code. They shall pay the wages of
20teachers monthly, subject, however, to the provisions of
21Section 24-21. The school month shall be the same as the
22calendar month but by resolution the school board may adopt for
23its use a month of 20 days, including holidays. The school term

SB0011- 177 -LRB100 06001 RPS 16030 b
1shall consist of at least the minimum number of pupil
2attendance days required by Section 10-19, any additional legal
3school holidays, days of teachers' institutes, or equivalent
4professional educational experiences, and one or two days at
5the beginning of the school term when used as a teachers'
6workshop.
7(Source: P.A. 80-249.)
8 (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
9 Sec. 24-8. Minimum salary. In fixing the salaries of
10teachers, school boards shall pay those who serve on a
11full-time basis not less than a rate for the school year that
12is based upon training completed in a recognized institution of
13higher learning, as follows: for the school year beginning July
141, 1980 and thereafter, less than a bachelor's degree, $9,000;
15120 semester hours or more and a bachelor's degree, $10,000;
16150 semester hours or more and a master's degree, $11,000.
17 Based upon previous public school experience in this State
18or any other State, territory, dependency or possession of the
19United States, or in schools operated by or under the auspices
20of the United States, teachers who serve on a full-time basis
21shall have their salaries increased to at least the following
22amounts above the starting salary for a teacher in such
23district in the same classification: with less than a
24bachelor's degree, $750 after 5 years; with 120 semester hours
25or more and a bachelor's degree, $1,000 after 5 years and

SB0011- 178 -LRB100 06001 RPS 16030 b
1$1,600 after 8 years; with 150 semester hours or more and a
2master's degree, $1,250 after 5 years, $2,000 after 8 years and
3$2,750 after 13 years. However, any salary increase is subject
4to any applicable restrictions in Section 16-122.9 of the
5Illinois Pension Code.
6 For the purpose of this Section a teacher's salary shall
7include any amount paid by the school district on behalf of the
8teacher, as teacher contributions, to the Teachers' Retirement
9System of the State of Illinois.
10 If a school board establishes a schedule for teachers'
11salaries based on education and experience, not inconsistent
12with this Section, all certificated nurses employed by that
13board shall be paid in accordance with the provisions of such
14schedule (subject to any applicable restrictions in Section
1516-122.9 of the Illinois Pension Code).
16 For purposes of this Section, a teacher who submits a
17certificate of completion to the school office prior to the
18first day of the school term shall be considered to have the
19degree stated in such certificate.
20(Source: P.A. 83-913.)
21 (105 ILCS 5/34-18.53 new)
22 Sec. 34-18.53. Future increase in income. The Board of
23Education must not pay, offer, or agree to pay any future
24increase in income, as that term is defined in Section 17-113.5
25of the Illinois Pension Code, to any person in a manner that

SB0011- 179 -LRB100 06001 RPS 16030 b
1violates Section 17-115.5 of the Illinois Pension Code.
2 Section 35. The State Universities Civil Service Act is
3amended by changing Section 36d as follows:
4 (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
5 Sec. 36d. Powers and duties of the Merit Board. The Merit
6Board shall have the power and duty-
7 (1) To approve a classification plan prepared under its
8 direction, assigning to each class positions of
9 substantially similar duties. The Merit Board shall have
10 power to delegate to its Director the duty of assigning
11 each position in the classified service to the appropriate
12 class in the classification plan approved by the Merit
13 Board.
14 (2) To prescribe the duties of each class of positions
15 and the qualifications required by employment in that
16 class.
17 (3) To prescribe the range of compensation for each
18 class or to fix a single rate of compensation for employees
19 in a particular class; and to establish other conditions of
20 employment which an employer and employee representatives
21 have agreed upon as fair and equitable. The Merit Board
22 shall direct the payment of the "prevailing rate of wages"
23 in those classifications in which, on January 1, 1952, any
24 employer is paying such prevailing rate and in such other

SB0011- 180 -LRB100 06001 RPS 16030 b
1 classes as the Merit Board may thereafter determine.
2 "Prevailing rate of wages" as used herein shall be the
3 wages paid generally in the locality in which the work is
4 being performed to employees engaged in work of a similar
5 character. Subject to any applicable restrictions in
6 Section 15-132.9 or 16-122.9 of the Illinois Pension Code,
7 each Each employer covered by the University System shall
8 be authorized to negotiate with representatives of
9 employees to determine appropriate ranges or rates of
10 compensation or other conditions of employment and may
11 recommend to the Merit Board for establishment the rates or
12 ranges or other conditions of employment which the employer
13 and employee representatives have agreed upon as fair and
14 equitable, but excluding the changes, the impact of
15 changes, and the implementation of the changes set forth in
16 this amendatory Act of the 100th General Assembly. Any
17 rates or ranges established prior to January 1, 1952, and
18 hereafter, shall not be changed except in accordance with
19 the procedures herein provided.
20 (4) To recommend to the institutions and agencies
21 specified in Section 36e standards for hours of work,
22 holidays, sick leave, overtime compensation and vacation
23 for the purpose of improving conditions of employment
24 covered therein and for the purpose of insuring conformity
25 with the prevailing rate principal.
26 (5) To prescribe standards of examination for each

SB0011- 181 -LRB100 06001 RPS 16030 b
1 class, the examinations to be related to the duties of such
2 class. The Merit Board shall have power to delegate to the
3 Director and his staff the preparation, conduct and grading
4 of examinations. Examinations may be written, oral, by
5 statement of training and experience, in the form of tests
6 of knowledge, skill, capacity, intellect, aptitude; or, by
7 any other method, which in the judgment of the Merit Board
8 is reasonable and practical for any particular
9 classification. Different examining procedures may be
10 determined for the examinations in different
11 classifications but all examinations in the same
12 classification shall be uniform.
13 (6) To authorize the continuous recruitment of
14 personnel and to that end, to delegate to the Director and
15 his staff the power and the duty to conduct open and
16 continuous competitive examinations for all
17 classifications of employment.
18 (7) To cause to be established from the results of
19 examinations registers for each class of positions in the
20 classified service of the State Universities Civil Service
21 System, of the persons who shall attain the minimum mark
22 fixed by the Merit Board for the examination; and such
23 persons shall take rank upon the registers as candidates in
24 the order of their relative excellence as determined by
25 examination, without reference to priority of time of
26 examination.

SB0011- 182 -LRB100 06001 RPS 16030 b
1 (8) To provide by its rules for promotions in the
2 classified service. Vacancies shall be filled by promotion
3 whenever practicable. For the purpose of this paragraph, an
4 advancement in class shall constitute a promotion.
5 (9) To set a probationary period of employment of no
6 less than 6 months and no longer than 12 months for each
7 class of positions in the classification plan, the length
8 of the probationary period for each class to be determined
9 by the Director.
10 (10) To provide by its rules for employment at regular
11 rates of compensation of persons with physical
12 disabilities in positions in which the disability does not
13 prevent the individual from furnishing satisfactory
14 service.
15 (11) To make and publish rules, to carry out the
16 purpose of the State Universities Civil Service System and
17 for examination, appointments, transfers and removals and
18 for maintaining and keeping records of the efficiency of
19 officers and employees and groups of officers and employees
20 in accordance with the provisions of Sections 36b to 36q,
21 inclusive, and said Merit Board may from time to time make
22 changes in such rules.
23 (12) To appoint a Director and such assistants and
24 other clerical and technical help as may be necessary
25 efficiently to administer Sections 36b to 36q, inclusive.
26 To authorize the Director to appoint an assistant resident

SB0011- 183 -LRB100 06001 RPS 16030 b
1 at the place of employment of each employer specified in
2 Section 36e and this assistant may be authorized to give
3 examinations and to certify names from the regional
4 registers provided in Section 36k.
5 (13) To submit to the Governor of this state on or
6 before November 1 of each year prior to the regular session
7 of the General Assembly a report of the University System's
8 business and an estimate of the amount of appropriation
9 from state funds required for the purpose of administering
10 the University System.
11(Source: P.A. 99-143, eff. 7-27-15.)
12 Section 40. The University of Illinois Act is amended by
13adding Section 100 as follows:
14 (110 ILCS 305/100 new)
15 Sec. 100. Future increases in income. The University of
16Illinois must not pay, offer, or agree to pay any future
17increase in income, as that term is defined in Section 15-112.1
18or 16-121.1 of the Illinois Pension Code, to any person in a
19manner that violates Section 15-132.9 or 16-122.9 of the
20Illinois Pension Code.
21 Section 45. The Southern Illinois University Management
22Act is amended by adding Section 85 as follows:

SB0011- 184 -LRB100 06001 RPS 16030 b
1 (110 ILCS 520/85 new)
2 Sec. 85. Future increases in income. Southern Illinois
3University must not pay, offer, or agree to pay any future
4increase in income, as that term is defined in Section 15-112.1
5or 16-121.1 of the Illinois Pension Code, to any person in a
6manner that violates Section 15-132.9 or 16-122.9 of the
7Illinois Pension Code.
8 Section 50. The Chicago State University Law is amended by
9adding Section 5-195 as follows:
10 (110 ILCS 660/5-195 new)
11 Sec. 5-195. Future increases in income. Chicago State
12University must not pay, offer, or agree to pay any future
13increase in income, as that term is defined in Section 15-112.1
14or 16-121.1 of the Illinois Pension Code, to any person in a
15manner that violates Section 15-132.9 or 16-122.9 of the
16Illinois Pension Code.
17 Section 55. The Eastern Illinois University Law is amended
18by adding Section 10-195 as follows:
19 (110 ILCS 665/10-195 new)
20 Sec. 10-195. Future increases in income. Eastern Illinois
21University must not pay, offer, or agree to pay any future
22increase in income, as that term is defined in Section 15-112.1

SB0011- 185 -LRB100 06001 RPS 16030 b
1or 16-121.1 of the Illinois Pension Code, to any person in a
2manner that violates Section 15-132.9 or 16-122.9 of the
3Illinois Pension Code.
4 Section 60. The Governors State University Law is amended
5by adding Section 15-195 as follows:
6 (110 ILCS 670/15-195 new)
7 Sec. 15-195. Future increases in income. Governors State
8University must not pay, offer, or agree to pay any future
9increase in income, as that term is defined in Section 15-112.1
10or 16-121.1 of the Illinois Pension Code, to any person in a
11manner that violates Section 15-132.9 or 16-122.9 of the
12Illinois Pension Code.
13 Section 65. The Illinois State University Law is amended by
14adding Section 20-200 as follows:
15 (110 ILCS 675/20-200 new)
16 Sec. 20-200. Future increases in income. Illinois State
17University must not pay, offer, or agree to pay any future
18increase in income, as that term is defined in Section 15-112.1
19or 16-121.1 of the Illinois Pension Code, to any person in a
20manner that violates Section 15-132.9 or 16-122.9 of the
21Illinois Pension Code.

SB0011- 186 -LRB100 06001 RPS 16030 b
1 Section 70. The Northeastern Illinois University Law is
2amended by adding Section 25-195 as follows:
3 (110 ILCS 680/25-195 new)
4 Sec. 25-195. Future increases in income. Northeastern
5Illinois University must not pay, offer, or agree to pay any
6future increase in income, as that term is defined in Section
715-112.1 or 16-121.1 of the Illinois Pension Code, to any
8person in a manner that violates Section 15-132.9 or 16-122.9
9of the Illinois Pension Code.
10 Section 75. The Northern Illinois University Law is amended
11by adding Section 30-205 as follows:
12 (110 ILCS 685/30-205 new)
13 Sec. 30-205. Future increases in income. Northern Illinois
14University must not pay, offer, or agree to pay any future
15increase in income, as that term is defined in Section 15-112.1
16or 16-121.1 of the Illinois Pension Code, to any person in a
17manner that violates Section 15-132.9 or 16-122.9 of the
18Illinois Pension Code.
19 Section 80. The Western Illinois University Law is amended
20by adding Section 35-200 as follows:
21 (110 ILCS 690/35-200 new)

SB0011- 187 -LRB100 06001 RPS 16030 b
1 Sec. 35-200. Future increases in income. Western Illinois
2University must not pay, offer, or agree to pay any future
3increase in income, as that term is defined in Section 15-112.1
4or 16-121.1 of the Illinois Pension Code, to any person in a
5manner that violates Section 15-132.9 or 16-122.9 of the
6Illinois Pension Code.
7 Section 85. The Public Community College Act is amended by
8changing Sections 3-26 and 3-42 as follows:
9 (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
10 Sec. 3-26. (a) To make appointments and fix the salaries of
11a chief administrative officer, who shall be the executive
12officer of the board, other administrative personnel, and all
13teachers, but subject to any applicable restrictions in Section
1415-132.9 or 16-122.9 of the Illinois Pension Code. In making
15these appointments and fixing the salaries, the board may make
16no discrimination on account of sex, race, creed, color or
17national origin.
18 (b) Upon the written request of an employee, to withhold
19from the compensation of that employee the membership dues of
20such employee payable to any specified labor organization as
21defined in the Illinois Educational Labor Relations Act. Under
22such arrangement, an amount shall be withheld for each regular
23payroll period which is equal to the prorata share of the
24annual membership dues plus any payments or contributions and

SB0011- 188 -LRB100 06001 RPS 16030 b
1the board shall pay such withholding to the specified labor
2organization within 10 working days from the time of the
3withholding.
4(Source: P.A. 83-1014.)
5 (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
6 Sec. 3-42. To employ such personnel as may be needed, to
7establish policies governing their employment and dismissal,
8and to fix the amount of their compensation, subject to any
9applicable restrictions in Section 15-132.9 or 16-122.9 of the
10Illinois Pension Code. In the employment, establishment of
11policies and fixing of compensation the board may make no
12discrimination on account of sex, race, creed, color or
13national origin.
14 Residence within any community college district or outside
15any community college district shall not be considered:
16 (a) in determining whether to retain or not retain any
17 employee of a community college employed prior to July 1,
18 1977 or prior to the adoption by the community college
19 board of a resolution making residency within the community
20 college district of some or all employees a condition of
21 employment, whichever is later;
22 (b) in assigning, promoting or transferring any
23 employee of a community college to an office or position
24 employed prior to July 1, 1977 or prior to the adoption by
25 the community college board of a resolution making

SB0011- 189 -LRB100 06001 RPS 16030 b
1 residency within the community college district of some or
2 all employees a condition of employment, whichever is
3 later; or
4 (c) in determining the salary or other compensation of
5 any employee of a community college.
6(Source: P.A. 80-248.)
7 Section 90. The Illinois Educational Labor Relations Act is
8amended by changing Sections 4, 14, and 17 and by adding
9Section 10.6 as follows:
10 (115 ILCS 5/4) (from Ch. 48, par. 1704)
11 Sec. 4. Employer rights. Employers shall not be required to
12bargain over matters of inherent managerial policy, which shall
13include such areas of discretion or policy as the functions of
14the employer, standards of services, its overall budget, the
15organizational structure and selection of new employees and
16direction of employees. Employers, however, shall be required
17to bargain collectively with regard to policy matters directly
18affecting wages (but subject to any applicable restrictions in
19Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois Pension
20Code), hours and terms and conditions of employment as well as
21the impact thereon upon request by employee representatives,
22but excluding the changes, the impact of changes, and the
23implementation of the changes set forth in this amendatory Act
24of the 100th General Assembly. To preserve the rights of

SB0011- 190 -LRB100 06001 RPS 16030 b
1employers and exclusive representatives which have established
2collective bargaining relationships or negotiated collective
3bargaining agreements prior to the effective date of this Act,
4employers shall be required to bargain collectively with regard
5to any matter concerning wages (but subject to any applicable
6restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the
7Illinois Pension Code), hours or conditions of employment about
8which they have bargained for and agreed to in a collective
9bargaining agreement prior to the effective date of this Act,
10but excluding the changes, the impact of changes, and the
11implementation of the changes set forth in this amendatory Act
12of the 100th General Assembly.
13(Source: P.A. 83-1014.)
14 (115 ILCS 5/10.6 new)
15 Sec. 10.6. No collective bargaining or interest
16arbitration regarding certain changes to the Illinois Pension
17Code.
18 (a) Notwithstanding any other provision of this Act,
19employers shall not be required to bargain over matters
20affected by the changes, the impact of the changes, and the
21implementation of the changes to Article 15, 16, or 17 of the
22Illinois Pension Code made by this amendatory Act of the 100th
23General Assembly, which are deemed to be prohibited subjects of
24bargaining. Notwithstanding any provision of this Act, the
25changes, impact of the changes, or implementation of the

SB0011- 191 -LRB100 06001 RPS 16030 b
1changes to Article 15, 16, or 17 of the Illinois Pension Code
2made by this amendatory Act of the 100th General Assembly shall
3not be subject to interest arbitration or any award issued
4pursuant to interest arbitration. The provisions of this
5Section shall not apply to an employment contract or collective
6bargaining agreement that is in effect on the effective date of
7this amendatory Act of the 100th General Assembly. However, any
8such contract or agreement that is modified, amended, renewed,
9or superseded after the effective date of this amendatory Act
10of the 100th General Assembly shall be subject to the
11provisions of this Section. The provisions of this Section
12shall not apply to the ability of any employer and employee
13representative to bargain collectively with regard to the pick
14up of employee contributions pursuant to Section 15-157.1,
1516-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
16 (b) Nothing in this Section shall be construed as otherwise
17limiting any of the obligations and requirements applicable to
18employers under any of the provisions of this Act, including,
19but not limited to, the requirement to bargain collectively
20with regard to policy matters directly affecting wages, hours,
21and terms and conditions of employment as well as the impact
22thereon upon request by employee representatives, except for
23the matters set forth in subsection (a) of this Section that
24are deemed prohibited subjects of bargaining. Nothing in this
25Section shall be construed as otherwise limiting any of the
26rights of employees or employee representatives under the

SB0011- 192 -LRB100 06001 RPS 16030 b
1provisions of this Act, except for the matters set forth in
2subsection (a) of this Section that are deemed prohibited
3subjects of bargaining.
4 (c) In case of any conflict between this Section and any
5other provisions of this Act or any other law, the provisions
6of this Section shall control.
7 (115 ILCS 5/14) (from Ch. 48, par. 1714)
8 Sec. 14. Unfair labor practices.
9 (a) Educational employers, their agents or representatives
10are prohibited from:
11 (1) Interfering, restraining or coercing employees in
12 the exercise of the rights guaranteed under this Act.
13 (2) Dominating or interfering with the formation,
14 existence or administration of any employee organization.
15 (3) Discriminating in regard to hire or tenure of
16 employment or any term or condition of employment to
17 encourage or discourage membership in any employee
18 organization.
19 (4) Discharging or otherwise discriminating against an
20 employee because he or she has signed or filed an
21 affidavit, authorization card, petition or complaint or
22 given any information or testimony under this Act.
23 (5) Subject to and except as provided in Section 10.6,
24 refusing Refusing to bargain collectively in good faith
25 with an employee representative which is the exclusive

SB0011- 193 -LRB100 06001 RPS 16030 b
1 representative of employees in an appropriate unit,
2 including but not limited to the discussing of grievances
3 with the exclusive representative; provided, however, that
4 if an alleged unfair labor practice involves
5 interpretation or application of the terms of a collective
6 bargaining agreement and said agreement contains a
7 grievance and arbitration procedure, the Board may defer
8 the resolution of such dispute to the grievance and
9 arbitration procedure contained in said agreement.
10 However, no actions of the employer taken to implement or
11 otherwise comply with the provisions of subsection (a) of
12 Section 10.6 shall constitute or give rise to an unfair
13 labor practice under this Act.
14 (6) Refusing to reduce a collective bargaining
15 agreement to writing and signing such agreement.
16 (7) Violating any of the rules and regulations
17 promulgated by the Board regulating the conduct of
18 representation elections.
19 (8) Refusing to comply with the provisions of a binding
20 arbitration award.
21 (9) Expending or causing the expenditure of public
22 funds to any external agent, individual, firm, agency,
23 partnership or association in any attempt to influence the
24 outcome of representational elections held pursuant to
25 paragraph (c) of Section 7 of this Act; provided, that
26 nothing in this subsection shall be construed to limit an

SB0011- 194 -LRB100 06001 RPS 16030 b
1 employer's right to be represented on any matter pertaining
2 to unit determinations, unfair labor practice charges or
3 pre-election conferences in any formal or informal
4 proceeding before the Board, or to seek or obtain advice
5 from legal counsel. Nothing in this paragraph shall be
6 construed to prohibit an employer from expending or causing
7 the expenditure of public funds on, or seeking or obtaining
8 services or advice from, any organization, group or
9 association established by, and including educational or
10 public employers, whether or not covered by this Act, the
11 Illinois Public Labor Relations Act or the public
12 employment labor relations law of any other state or the
13 federal government, provided that such services or advice
14 are generally available to the membership of the
15 organization, group, or association, and are not offered
16 solely in an attempt to influence the outcome of a
17 particular representational election.
18 (b) Employee organizations, their agents or
19representatives or educational employees are prohibited from:
20 (1) Restraining or coercing employees in the exercise
21 of the rights guaranteed under this Act, provided that a
22 labor organization or its agents shall commit an unfair
23 labor practice under this paragraph in duty of fair
24 representation cases only by intentional misconduct in
25 representing employees under this Act.
26 (2) Restraining or coercing an educational employer in

SB0011- 195 -LRB100 06001 RPS 16030 b
1 the selection of his representative for the purposes of
2 collective bargaining or the adjustment of grievances.
3 (3) Refusing to bargain collectively in good faith with
4 an educational employer, if they have been designated in
5 accordance with the provisions of this Act as the exclusive
6 representative of employees in an appropriate unit.
7 (4) Violating any of the rules and regulations
8 promulgated by the Board regulating the conduct of
9 representation elections.
10 (5) Refusing to reduce a collective bargaining
11 agreement to writing and signing such agreement.
12 (6) Refusing to comply with the provisions of a binding
13 arbitration award.
14 (c) The expressing of any views, argument, opinion or the
15dissemination thereof, whether in written, printed, graphic or
16visual form, shall not constitute or be evidence of an unfair
17labor practice under any of the provisions of this Act, if such
18expression contains no threat of reprisal or force or promise
19of benefit.
20 (d) The actions of a Financial Oversight Panel created
21pursuant to Section 1A-8 of the School Code due to a district
22violating a financial plan shall not constitute or be evidence
23of an unfair labor practice under any of the provisions of this
24Act. Such actions include, but are not limited to, reviewing,
25approving, or rejecting a school district budget or a
26collective bargaining agreement.

SB0011- 196 -LRB100 06001 RPS 16030 b
1(Source: P.A. 89-572, eff. 7-30-96.)
2 (115 ILCS 5/17) (from Ch. 48, par. 1717)
3 Sec. 17. Effect on other laws. In case of any conflict
4between the provisions of this Act and any other law (other
5than Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois
6Pension Code), executive order or administrative regulation,
7the provisions of this Act shall prevail and control. The
8provisions of this Act are subject to any applicable
9restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the
10Illinois Pension Code, as well as the changes, impact of
11changes, and implementation of changes set forth in this
12amendatory Act of the 100th General Assembly. Nothing in this
13Act shall be construed to replace or diminish the rights of
14employees established by Section 36d of "An Act to create the
15State Universities Civil Service System", approved May 11,
161905, as amended or modified.
17(Source: P.A. 83-1014.)
18 Section 900. The State Mandates Act is amended by adding
19Section 8.41 as follows:
20 (30 ILCS 805/8.41 new)
21 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of

SB0011- 197 -LRB100 06001 RPS 16030 b
1the 100th General Assembly.
2 Section 970. Severability. Except as otherwise provided in
3this Act, the provisions of this Act are severable under
4Section 1.31 of the Statute on Statutes.
5 Section 999. Effective date. This Act takes effect upon
6becoming law, but this Act does not take effect at all unless
7Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the
8100th General Assembly become law.

SB0011- 198 -LRB100 06001 RPS 16030 b
1 INDEX
2 Statutes amended in order of appearance
3 5 ILCS 315/7.6 new
4 5 ILCS 315/10from Ch. 48, par. 1610
5 5 ILCS 315/15from Ch. 48, par. 1615
6 20 ILCS 5/5-647 new
7 40 ILCS 5/2-101from Ch. 108 1/2, par. 2-101
8 40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
9 40 ILCS 5/2-105.3 new
10 40 ILCS 5/2-107from Ch. 108 1/2, par. 2-107
11 40 ILCS 5/2-107.9 new
12 40 ILCS 5/2-108from Ch. 108 1/2, par. 2-108
13 40 ILCS 5/2-110.3 new
14 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
15 40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
16 40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
17 40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
18 40 ILCS 5/2-162
19 40 ILCS 5/2-165.1 new
20 40 ILCS 5/2-166.1 new
21 40 ILCS 5/15-108.1
22 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
23 40 ILCS 5/15-112.1 new
24 40 ILCS 5/15-132.9 new
25 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136

SB0011- 199 -LRB100 06001 RPS 16030 b
1 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
2 40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
3 40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
4 40 ILCS 5/15-198
5 40 ILCS 5/15-200.1 new
6 40 ILCS 5/15-201.1 new
7 40 ILCS 5/16-107.1 new
8 40 ILCS 5/16-121from Ch. 108 1/2, par. 16-121
9 40 ILCS 5/16-121.1 new
10 40 ILCS 5/16-122.9 new
11 40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
12 40 ILCS 5/16-136.1from Ch. 108 1/2, par. 16-136.1
13 40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
14 40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
15 40 ILCS 5/16-203
16 40 ILCS 5/16-205.1 new
17 40 ILCS 5/16-206.1 new
18 40 ILCS 5/17-106.05 new
19 40 ILCS 5/17-113.4 new
20 40 ILCS 5/17-113.5 new
21 40 ILCS 5/17-115.5 new
22 40 ILCS 5/17-116from Ch. 108 1/2, par. 17-116
23 40 ILCS 5/17-119.2 new
24 40 ILCS 5/17-129from Ch. 108 1/2, par. 17-129
25 40 ILCS 5/17-130from Ch. 108 1/2, par. 17-130
26 40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131

SB0011- 200 -LRB100 06001 RPS 16030 b
1 40 ILCS 5/18-140from Ch. 108 1/2, par. 18-140
2 40 ILCS 5/2-165 rep.
3 40 ILCS 5/2-166 rep.
4 40 ILCS 5/15-200 rep.
5 40 ILCS 5/15-201 rep.
6 40 ILCS 5/16-205 rep.
7 40 ILCS 5/16-206 rep.
8 40 ILCS 15/1.9 new
9 105 ILCS 5/24-1from Ch. 122, par. 24-1
10 105 ILCS 5/24-8from Ch. 122, par. 24-8
11 105 ILCS 5/34-18.53 new
12 110 ILCS 70/36dfrom Ch. 24 1/2, par. 38b3
13 110 ILCS 305/100 new
14 110 ILCS 520/85 new
15 110 ILCS 660/5-195 new
16 110 ILCS 665/10-195 new
17 110 ILCS 670/15-195 new
18 110 ILCS 675/20-200 new
19 110 ILCS 680/25-195 new
20 110 ILCS 685/30-205 new
21 110 ILCS 690/35-200 new
22 110 ILCS 805/3-26from Ch. 122, par. 103-26
23 110 ILCS 805/3-42from Ch. 122, par. 103-42
24 115 ILCS 5/4from Ch. 48, par. 1704
25 115 ILCS 5/10.6 new
26 115 ILCS 5/14from Ch. 48, par. 1714

SB0011- 201 -LRB100 06001 RPS 16030 b