Bill Text: IL SB0053 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. In provisions giving the Board of Trustees of the Fund the power and duty to have the accounts of the fund audited annually by a certified public accountant, removes language requiring that the certified public accountant be approved by the Auditor General. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB0053 Detail]

Download: Illinois-2021-SB0053-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB0053 Introduced 1/29/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
See Index
Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. In provisions giving the Board of Trustees of the Fund the power and duty to have the accounts of the fund audited annually by a certified public accountant, removes language requiring that the certified public accountant be approved by the Auditor General. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.
LRB102 09993 RPS 15311 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB0053 LRB102 09993 RPS 15311 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 1-160, 7-114, 7-116, 7-141, 7-141.1, 7-142,
7-144, 7-156, and 7-191 and by adding Sections 7-109.4 and
7-109.5 as follows:
(40 ILCS 5/1-160)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code, to any person
with respect to service as a sheriff's law enforcement
employee under Article 7, or to any participant of the
retirement plan established under Section 22-101; except that
this Section applies to a person who elected to establish
alternative credits by electing in writing after January 1,
2011, but before August 8, 2011, under Section 7-145.1 of this

SB0053 - 2 - LRB102 09993 RPS 15311 b
Code. Notwithstanding anything to the contrary in this
Section, for purposes of this Section, a person who is a Tier 1
regular employee as defined in Section 7-109.4 of this Code or
who participated in a retirement system under Article 15 prior
to January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to January 1, 2011 (the effective date of Public
Act 96-889), notwithstanding the provisions of Section 1-103.1
of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.

SB0053 - 3 - LRB102 09993 RPS 15311 b
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or
10 years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank). In Article 7 (except for service as
sheriff's law enforcement employees), "final rate of
earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average

SB0053 - 4 - LRB102 09993 RPS 15311 b
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division

SB0053 - 5 - LRB102 09993 RPS 15311 b
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 12 of this Code that is subject to this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
12 of this Code that is subject to this Section) and has at
least 10 years of service credit and is otherwise eligible
under the requirements of the applicable Article may elect to
receive the lower retirement annuity provided in subsection
(d) of this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who

SB0053 - 6 - LRB102 09993 RPS 15311 b
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 12 of this Code
that is subject to this Section) with at least 10 years of
service credit shall be reduced by one-half of 1% for each full
month that the member's age is under age 67 (beginning January
1, 2015, age 65 with respect to service under Article 12 of
this Code that is subject to this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to the effective date of this
amendatory Act of the 100th General Assembly shall make an
irrevocable election either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

SB0053 - 7 - LRB102 09993 RPS 15311 b
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (beginning January
1, 2015, age 65 with respect to service under Article 12 of
this Code that is subject to this Section and beginning on the
effective date of this amendatory Act of the 100th General
Assembly, age 65 with respect to service under Article 8 or
Article 11 for eligible persons who: (i) are subject to
subsection (c-5) of this Section; or (ii) made the election
under item (i) of subsection (d-10) of this Section) or the
first anniversary of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or

SB0053 - 8 - LRB102 09993 RPS 15311 b
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by this amendatory Act of the
100th General Assembly are applicable without regard to
whether the employee was in active service on or after the
effective date of this amendatory Act of the 100th General
Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the

SB0053 - 9 - LRB102 09993 RPS 15311 b
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the

SB0053 - 10 - LRB102 09993 RPS 15311 b
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a

SB0053 - 11 - LRB102 09993 RPS 15311 b
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
1-4-19; 101-610, eff. 1-1-20.)
(40 ILCS 5/7-109.4 new)
Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular
employee" means a participant or an annuitant under this
Article who first became a participant or member before

SB0053 - 12 - LRB102 09993 RPS 15311 b
January 1, 2011 under any retirement system or pension fund
under this Code, other than a retirement system or pension
fund established under Articles 2, 3, 4, 5, 6, or 18 or in any
self-managed plan established under this Code, or the
retirement plan established under Section 22-101.
"Tier 1 regular employee" includes a person who received a
separation benefit but is otherwise qualified under this
Section and subsequently becomes a participating employee on
or after January 1, 2011.
"Tier 1 regular employee" includes a former participating
employee who received a separation benefit under Section 7-167
for service earned prior to January 1, 2011 who returns to a
qualifying position after January 1, 2011.
"Tier 1 regular employee" includes a participating
employee who has omitted service as defined in Section 7-111.5
that includes any period prior to January 1, 2011 only if he or
she establishes sufficient service credit under item (12) of
subsection (a) of Section 7-139 to include service prior to
January 1, 2011.
Notwithstanding anything contrary in this Section, "Tier 1
regular employee" does not include a participant or annuitant
who is eligible to have his or her annuity calculated under
Section 7-142.1 or a person who elected to establish
alternative credits under Section 7-145.1.
(40 ILCS 5/7-109.5 new)

SB0053 - 13 - LRB102 09993 RPS 15311 b
Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular
employee" means a person who first becomes a participant under
this Article on or after January 1, 2011 and is not a Tier 1
regular employee.
Notwithstanding anything contrary in this Section, "Tier 2
regular employee" does not include a participant or annuitant
who is eligible to have his or her annuity calculated under
Section 7-142.1 or a person who elected to establish
alternative credits by electing in writing after January 1,
2011, but before August 8, 2011, under Section 7-145.1 of this
Code.
(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
Sec. 7-114. Earnings. "Earnings":
(a) An amount to be determined by the board, equal to the
sum of:
1. The total amount of money paid to an employee for
personal services or official duties as an employee
(except those employed as independent contractors) paid
out of the general fund, or out of any special funds
controlled by the municipality, or by any instrumentality
thereof, or participating instrumentality, including
compensation, fees, allowances (but not including amounts
associated with a vehicle allowance payable to an employee
who first becomes a participating employee on or after the
effective date of this amendatory Act of the 100th General

SB0053 - 14 - LRB102 09993 RPS 15311 b
Assembly), or other emolument paid for official duties
(but not including automobile maintenance, travel expense,
or reimbursements for expenditures incurred in the
performance of duties) and, for fee offices, the fees or
earnings of the offices to the extent such fees are paid
out of funds controlled by the municipality, or
instrumentality or participating instrumentality; and
2. The money value, as determined by rules prescribed
by the governing body of the municipality, or
instrumentality thereof, of any board, lodging, fuel,
laundry, and other allowances provided an employee in lieu
of money.
(b) For purposes of determining benefits payable under
this fund payments to a person who is engaged in an
independently established trade, occupation, profession or
business and who is paid for his service on a basis other than
a monthly or other regular salary, are not earnings.
(c) If a disabled participating employee is eligible to
receive Workers' Compensation for an accidental injury and the
participating municipality or instrumentality which employed
the participating employee when injured continues to pay the
participating employee regular salary or other compensation or
pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the
total payments, including an amount equal to the Workers'
Compensation payments. These payments shall be subject to

SB0053 - 15 - LRB102 09993 RPS 15311 b
employee contributions and allocated as if paid to the
participating employee when the regular payroll amounts would
have been paid if the participating employee had continued
working, and creditable service shall be awarded for this
period.
(d) If an elected official who is a participating employee
becomes disabled but does not resign and is not removed from
office, then earnings shall include all salary payments made
for the remainder of that term of office and the official shall
be awarded creditable service for the term of office.
(e) If a participating employee is paid pursuant to "An
Act to provide for the continuation of compensation for law
enforcement officers, correctional officers and firemen who
suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed
earnings, and the participating employee shall be awarded
creditable service for this period.
(f) Additional compensation received by a person while
serving as a supervisor of assessments, assessor, deputy
assessor or member of a board of review from the State of
Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
Code shall not be earnings for purposes of this Article and
shall not be included in the contribution formula or
calculation of benefits for such person pursuant to this
Article.
(g) Notwithstanding any other provision of this Article,

SB0053 - 16 - LRB102 09993 RPS 15311 b
calendar year earnings for Tier 2 regular employees to whom
this Section applies shall not exceed the amount determined by
the Public Pension Division of the Department of Insurance as
required in this subsection; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the Fund
by November 1 of each year.
(Source: P.A. 100-411, eff. 8-25-17.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly

SB0053 - 17 - LRB102 09993 RPS 15311 b
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) for Tier 1 regular
employees, the 48 consecutive months of service within the
last 120 months of service in which his total earnings were the
highest, (2) for Tier 2 regular employees, the 96 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest, or (3) or (2) the
employee's total period of service, by the number of months of
service in such period.
(b) For death benefits, the higher of the rate determined
under paragraph (a) of this Section or total earnings received
in the last 12 months of service divided by twelve. If the
deceased employee has less than 12 months of service, the
monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service
is received under Section 7-139 or, if there is less than 3
years of creditable prior service, the average for the total
prior service period for which creditable service is received
under Section 7-139; (2) for out of state service and

SB0053 - 18 - LRB102 09993 RPS 15311 b
authorized leave, the earnings rate shall be the rate upon
which service credits are granted; (3) periods of military
leave shall not be considered; (4) the earnings rate for all
periods of disability shall be considered equal to the rate of
earnings upon which the employee's disability benefits are
computed for such periods; (5) the earnings to be considered
for each of the final three months of the final earnings period
for persons who first became participants before January 1,
2012 and the earnings to be considered for each of the final 24
months for participants who first become participants on or
after January 1, 2012 shall not exceed 125% of the highest
earnings of any other month in the final earnings period; and
(6) the annual amount of final rate of earnings shall be the
monthly amount multiplied by the number of months of service
normally required by the position in a year.
(Source: P.A. 97-609, eff. 1-1-12.)
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities - Conditions. Retirement
annuities shall be payable as hereinafter set forth:
(a) A participating employee who, regardless of cause, is
separated from the service of all participating municipalities
and instrumentalities thereof and participating
instrumentalities shall be entitled to a retirement annuity
provided:
1. He is at least age 55 if he is a Tier 1 regular

SB0053 - 19 - LRB102 09993 RPS 15311 b
employee, he is age 62 if he is a Tier 2 regular employee,
or, in the case of a person who is eligible to have his
annuity calculated under Section 7-142.1, he is at least
age 50;
2. He is not entitled to receive earnings for
employment in a position requiring him, or entitling him
to elect, to be a participating employee;
3. The amount of his annuity, before the application
of paragraph (b) of Section 7-142 is at least $10 per
month;
4. If he first became a participating employee after
December 31, 1961 and is a Tier 1 regular employee, he has
at least 8 years of service, or, if he is a Tier 2 regular
member, he has at least 10 years of service. This service
requirement shall not apply to any participating employee,
regardless of participation date, if the General Assembly
terminates the Fund.
(b) Retirement annuities shall be payable:
1. As provided in Section 7-119;
2. Except as provided in item 3, upon receipt by the
fund of a written application. The effective date may be
not more than one year prior to the date of the receipt by
the fund of the application;
3. Upon attainment of age 70 1/2 if the member (i) is
no longer in service, and (ii) is otherwise entitled to an
annuity under this Article;

SB0053 - 20 - LRB102 09993 RPS 15311 b
4. To the beneficiary of the deceased annuitant for
the unpaid amount accrued to date of death, if any.
(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on
additional sources of revenue and, when those sources are
not forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made
available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program of
early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.

SB0053 - 21 - LRB102 09993 RPS 15311 b
(7) A unit of local government adopting a program of
early retirement incentives under this Section is also
encouraged to replace as few of the participating
employees as possible and to hire replacement employees
for salaries totaling no more than 80% of the total
salaries formerly paid to the employees who participate in
the early retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in
their best interest, to implement an early retirement program.
(b) Until June 27, 1997 (the effective date of Public Act
90-32) this amendatory Act of 1997, this Section does not
apply to any employer that is a city, village, or incorporated
town, nor to the employees of any such employer. Beginning on
June 27, 1997 (the effective date of Public Act 90-32) this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or incorporated
town, may establish an early retirement incentive program for
its employees under this Section. The decision of a city,
village, or incorporated town to consider or establish an
early retirement program is at the sole discretion of that
city, village, or incorporated town, and nothing in Public Act
90-32 this amendatory Act of 1997 limits or otherwise
diminishes this discretion. Nothing contained in this Section
shall be construed to require a city, village, or incorporated

SB0053 - 22 - LRB102 09993 RPS 15311 b
town to establish an early retirement program and no city,
village, or incorporated town may be compelled to implement
such a program.
The benefits provided in this Section are available only
to members employed by a participating employer that has filed
with the Board of the Fund a resolution or ordinance expressly
providing for the creation of an early retirement incentive
program under this Section for its employees and specifying
the effective date of the early retirement incentive program.
Subject to the limitation in subsection (h), an employer may
adopt a resolution or ordinance providing a program of early
retirement incentives under this Section at any time.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by

SB0053 - 23 - LRB102 09993 RPS 15311 b
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in
the best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby adopt
the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive program
shall take effect on (date).
(2) In order to help achieve a true cost savings, a person
who retires under the early retirement incentive program shall
lose those incentives if he or she later accepts employment
with any IMRF employer in a position for which participation
in IMRF is required or is elected by the employee.
(3) In order to utilize an early retirement incentive as a
budgeting tool, the (name of participating employer) will use
its best efforts either to limit the number of employees who
replace the employees who retire under the early retirement
program or to limit the salaries paid to the employees who

SB0053 - 24 - LRB102 09993 RPS 15311 b
replace the employees who retire under the early retirement
program.
(4) The effective date of each employee's retirement under
this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the retirement
date set by the employer be no later than the June 30 next
occurring after the effective date of the program and no
earlier than the date upon which the employee qualifies for
retirement.
(5) To be eligible for the early retirement incentive
under this Section, the employee must have attained age 50 and
have at least 20 years of creditable service by his or her
retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board
of Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing is
a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened and
held on (date).

SB0053 - 25 - LRB102 09993 RPS 15311 b
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an
early retirement incentive program adopted under this Section,
a member must:
(1) be a participating employee of this Fund who, on
the effective date of the program, (i) is in active
payroll status as an employee of a participating employer
that has filed the required ordinance or resolution with
the Board, (ii) is on layoff status from such a position
with a right of re-employment or recall to service, (iii)
is on a leave of absence from such a position, or (iv) is
on disability but has not been receiving benefits under
Section 7-146 or 7-150 for a period of more than 2 years
from the date of application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement Systems
Reciprocal Act using service credit established under this
Article;
(3) (blank);
(4) have at least 20 years of creditable service in
the Fund by the date of retirement, without the use of any
creditable service established under this Section;
(5) have attained age 50 by the date of retirement if
he or she is a Tier 1 regular employee or age 57 if he or

SB0053 - 26 - LRB102 09993 RPS 15311 b
she is a Tier 2 regular employee, without the use of any
age enhancement received under this Section; and
(6) be eligible to receive a retirement annuity under
this Article by the date of retirement, for which purpose
the age enhancement and creditable service established
under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after the
effective date of the program and no earlier than the date upon
which the employee qualifies for retirement. The employer
shall give each employee participating in the early retirement
program at least 30 days written notice of the employee's
designated retirement date, unless the employee waives this
notice requirement.
(e) An eligible person may establish up to 5 years of
creditable service under this Section. In addition, for each
period of creditable service established under this Section, a
person shall have his or her age at retirement deemed enhanced
by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the Retirement

SB0053 - 27 - LRB102 09993 RPS 15311 b
Systems Reciprocal Act, except for the computation of final
rate of earnings and the determination of earnings, salary, or
compensation under this or any other Article of the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of the reduction imposed under subdivision
(a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any distributions
required because of age. The age enhancement established under
this Section may be used in calculating a proportionate
annuity payable by this Fund under the Retirement Systems
Reciprocal Act, but shall not be used in determining benefits
payable under other Articles of this Code under the Retirement
Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of the total employee contribution
rate in effect at the time the member purchases the service for
the plan in which the member was participating with the
employer at that time multiplied by the member's highest
annual salary rate used in the determination of the final rate
of earnings for retirement annuity purposes for each year of
creditable service granted under this Section. Contributions
for fractions of a year of service shall be prorated. Any
amounts that are disregarded in determining the final rate of
earnings under subdivision (d)(5) of Section 7-116 (the 125%

SB0053 - 28 - LRB102 09993 RPS 15311 b
rule) shall also be disregarded in determining the required
contribution under this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted
amount directly to the Fund. If there is no such lump sum
payment or the required employee contribution exceeds the net
amount of the lump sum payment, then the remaining amount due,
at the option of the employee, may either be paid to the Fund
before the annuity commences or deducted from the retirement
annuity in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service; except that this
restriction does not apply to (1) service in an elective
office, so long as the annuitant does not participate in this
Fund with respect to that office, (2) a person appointed as an
officer under subsection (f) of Section 3-109 of this Code,
and (3) a person appointed as an auxiliary police officer
pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A
person forfeiting early retirement incentives under this
subsection (i) must repay to the Fund that portion of the

SB0053 - 29 - LRB102 09993 RPS 15311 b
retirement annuity already received which is attributable to
the early retirement incentives that are being forfeited, (ii)
shall not be eligible to participate in any future early
retirement program adopted under this Section, and (iii) is
entitled to a refund of the employee contribution paid under
subsection (f). The Board shall deduct the required repayment
from the refund and may impose a reasonable payment schedule
for repaying the amount, if any, by which the required
repayment exceeds the refund amount.
(h) The additional unfunded liability accruing as a result
of the adoption of a program of early retirement incentives
under this Section by an employer shall be amortized over a
period of 10 years beginning on January 1 of the second
calendar year following the calendar year in which the latest
date for beginning to receive a retirement annuity under the
program (as determined by the employer under subsection (d) of
this Section) occurs; except that the employer may provide for
a shorter amortization period (of no less than 5 years) by
adopting an ordinance or resolution specifying the length of
the amortization period and submitting a certified copy of the
ordinance or resolution to the Fund no later than 6 months
after the effective date of the program. An employer, at its
discretion, may accelerate payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement

SB0053 - 30 - LRB102 09993 RPS 15311 b
incentive program for its employees under this Section may not
provide another early retirement incentive program under this
Section until the liability arising from the earlier program
has been fully paid to the Fund.
(Source: P.A. 99-382, eff. 8-17-15.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities - Amount.
(a) The amount of a retirement annuity shall be the sum of
the following, determined in accordance with the actuarial
tables in effect at the time of the grant of the annuity:
1. For Tier 1 regular employees with 8 or more years of
service or for Tier 2 regular employees, an annuity
computed pursuant to subparagraphs a or b of this
subparagraph 1, whichever is the higher, and for employees
with less than 8 or 10 years of service, respectively, the
annuity computed pursuant to subparagraph a:
a. The monthly annuity which can be provided from
the total accumulated normal, municipality and prior
service credits, as of the attained age of the
employee on the date the annuity begins provided that
such annuity shall not exceed 75% of the final rate of
earnings of the employee.
b. (i) The monthly annuity amount determined as
follows by multiplying (a) 1 2/3% for annuitants with
not more than 15 years or (b) 1 2/3% for the first 15

SB0053 - 31 - LRB102 09993 RPS 15311 b
years and 2% for each year in excess of 15 years for
annuitants with more than 15 years by the number of
years plus fractional years, prorated on a basis of
months, of creditable service and multiply the product
thereof by the employee's final rate of earnings.
(ii) For the sole purpose of computing the formula
(and not for the purposes of the limitations
hereinafter stated) $125 shall be considered the final
rate of earnings in all cases where the final rate of
earnings is less than such amount.
(iii) The monthly annuity computed in accordance
with this subparagraph b, shall not exceed an amount
equal to 75% of the final rate of earnings.
(iv) For employees who have less than 35 years of
service, the annuity computed in accordance with this
subparagraph b (as reduced by application of
subparagraph (iii) above) shall be reduced by 0.25%
thereof (0.5% if service was terminated before January
1, 1988 or if the employee is a Tier 2 regular
employee) for each month or fraction thereof (1) that
the employee's age is less than 60 years for Tier 1
regular employees, or (2) that the employee's age is
less than 67 years for Tier 2 regular employees, or (3)
if the employee has at least 30 years of service
credit, that the employee's service credit is less
than 35 years, whichever is less, on the date the

SB0053 - 32 - LRB102 09993 RPS 15311 b
annuity begins.
2. The annuity which can be provided from the total
accumulated additional credits as of the attained age of
the employee on the date the annuity begins.
(b) If payment of an annuity begins prior to the earliest
age at which the employee will become eligible for an old age
insurance benefit under the Federal Social Security Act, he
may elect that the annuity payments from this fund shall
exceed those payable after his attaining such age by an
amount, computed as determined by rules of the Board, but not
in excess of his estimated Social Security Benefit, determined
as of the effective date of the annuity, provided that in no
case shall the total annuity payments made by this fund exceed
in actuarial value the annuity which would have been payable
had no such election been made.
(c) The retirement annuity shall be increased each year by
2%, not compounded, of the monthly amount of annuity, taking
into consideration any adjustment under paragraph (b) of this
Section. This increase shall be effective each January 1 and
computed from the effective date of the retirement annuity,
the first increase being .167% of the monthly amount times the
number of months from the effective date to January 1.
Beginning January 1, 1984 and each January 1 thereafter, the
retirement annuity of a Tier 1 regular employee shall be
increased by 3% each year, not compounded. This increase shall
be computed from the effective date of the retirement annuity,

SB0053 - 33 - LRB102 09993 RPS 15311 b
the first increase being 0.25% of the monthly amount times the
number of months from the effective date to January 1. This
increase shall not be applicable to annuitants who are not in
service on or after September 8, 1971.
A retirement annuity of a Tier 2 regular employee shall
receive annual increases on the January 1 occurring either on
or after the attainment of age 67 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at the lesser of 3% or one-half
the annual unadjusted percentage increase (but not less than
zero) in the consumer price index-u for the 12 months ending
with the September preceding each November 1 of the originally
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for the 12
months ending with the September preceding each November 1 is
zero or there is a decrease, then the annuity shall not be
increased.
(d) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the

SB0053 - 34 - LRB102 09993 RPS 15311 b
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 96-961, eff. 7-2-10.)
(40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
Sec. 7-144. Retirement annuities - suspended during
employment.
(a) If any person receiving any annuity again becomes an
employee and receives earnings from employment in a position
requiring him, or entitling him to elect, to become a
participating employee, then the annuity payable to such
employee shall be suspended as of the 1st day of the month
coincidental with or next following the date upon which such
person becomes such an employee, unless the person is
authorized under subsection (b) of Section 7-137.1 of this
Code to continue receiving a retirement annuity during that
period. Upon proper qualification of the participating
employee payment of such annuity may be resumed on the 1st day
of the month following such qualification and upon proper
application therefor. The participating employee in such case
shall be entitled to a supplemental annuity arising from
service and credits earned subsequent to such re-entry as a
participating employee.
Notwithstanding any other provision of this Article, an
annuitant shall be considered a participating employee if he

SB0053 - 35 - LRB102 09993 RPS 15311 b
or she returns to work as an employee with a participating
employer and works more than 599 hours annually (or 999 hours
annually with a participating employer that has adopted a
resolution pursuant to subsection (e) of Section 7-137 of this
Code). Each of these annual periods shall commence on the
month and day upon which the annuitant is first employed with
the participating employer following the effective date of the
annuity.
(a-5) If any annuitant under this Article must be
considered a participating employee per the provisions of
subsection (a) of this Section, and the participating
municipality or participating instrumentality that employs or
re-employs that annuitant knowingly fails to notify the Board
to suspend the annuity, the participating municipality or
participating instrumentality may be required to reimburse the
Fund for an amount up to one-half of the total of any annuity
payments made to the annuitant after the date the annuity
should have been suspended, as determined by the Board. In no
case shall the total amount repaid by the annuitant plus any
amount reimbursed by the employer to the Fund be more than the
total of all annuity payments made to the annuitant after the
date the annuity should have been suspended. This subsection
shall not apply if the annuitant returned to work for the
employer for less than 12 months.
The Fund shall notify all annuitants that they must notify
the Fund immediately if they return to work for any

SB0053 - 36 - LRB102 09993 RPS 15311 b
participating employer. The notification by the Fund shall
occur upon retirement and no less than annually thereafter in
a format determined by the Fund. The Fund shall also develop
and maintain a system to track annuitants who have returned to
work and notify the participating employer and annuitant at
least annually of the limitations on returning to work under
this Section.
(b) Supplemental annuities to persons who return to
service for less than 48 months shall be computed under the
provisions of Sections 7-141, 7-142 and 7-143. In determining
whether an employee is eligible for an annuity which requires
a minimum period of service, his entire period of service
shall be taken into consideration but the supplemental annuity
shall be based on earnings and service in the supplemental
period only. The effective date of the suspended and
supplemental annuity for the purpose of increases after
retirement shall be considered to be the effective date of the
suspended annuity.
(c) Supplemental annuities to persons who return to
service for 48 months or more shall be a monthly amount
determined as follows:
(1) An amount shall be computed under subparagraph b
of paragraph (1) of subsection (a) of Section 7-142,
considering all of the service credits of the employee;
(2) The actuarial value in monthly payments for life
of the annuity payments made before suspension shall be

SB0053 - 37 - LRB102 09993 RPS 15311 b
determined and subtracted from the amount determined in
(1) above;
(3) The monthly amount of the suspended annuity, with
any applicable increases after retirement computed from
the effective date to the date of reinstatement, shall be
subtracted from the amount determined in (2) above and the
remainder shall be the amount of the supplemental annuity
provided that this amount shall not be less than the
amount computed under subsection (b) of this Section.
(4) The suspended annuity shall be reinstated at an
amount including any increases after retirement from the
effective date to date of reinstatement.
(5) The effective date of the combined suspended and
supplemental annuities for the purposes of increases after
retirement shall be considered to be the effective date of
the supplemental annuity.
(d) If a Tier 2 regular employee becomes a member or
participant under any other system or fund created by this
Code and is employed on a full-time basis, except for those
members or participants exempted from the provisions of
subsection (a) of Section 1-160 of this Code (other than a
participating employee under this Article), then the person's
retirement annuity shall be suspended during that employment.
Upon termination of that employment, the person's retirement
annuity shall resume and be recalculated as required by this
Section.

SB0053 - 38 - LRB102 09993 RPS 15311 b
(e) If a Tier 2 regular employee first began participation
on or after January 1, 2012 and is receiving a retirement
annuity and accepts on a contractual basis a position to
provide services to a governmental entity from which he or she
has retired, then that person's annuity or retirement pension
shall be suspended during that contractual service,
notwithstanding the provisions of any other Section in this
Article. Such annuitant shall notify the Fund, as well as his
or her contractual employer, of his or her retirement status
before accepting contractual employment. A person who fails to
submit such notification shall be guilty of a Class A
misdemeanor and required to pay a fine of $1,000. Upon
termination of that contractual employment, the person's
retirement annuity shall resume and be recalculated as
required by this Section.
(Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
(40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
Sec. 7-156. Surviving spouse annuities - amount.
(a) The amount of surviving spouse annuity shall be:
1. Upon the death of an employee annuitant or such person
entitled, upon application, to a retirement annuity at date of
death, (i) an amount equal to 1/2 50% for a Tier 1 regular
employee or 66 2/3% for a Tier 2 regular employee of the
retirement annuity which was or would have been payable
exclusive of the amount so payable which was provided from

SB0053 - 39 - LRB102 09993 RPS 15311 b
additional credits, and disregarding any election made under
paragraph (b) of Section 7-142, plus (ii) an annuity which
could be provided at the then attained age of the surviving
spouse and under actuarial tables then in effect, from the
excess of the additional credits, (excluding any such credits
used to create a reversionary annuity) used to provide the
annuity granted pursuant to paragraph (a) (2) of Section 7-142
of this article over the total annuity payments made pursuant
thereto.
2. Upon the death of a participating employee on or after
attainment of age 55, an amount equal to 1/2 50% for a Tier 1
regular employee or 66 2/3% for a Tier 2 regular employee of
the retirement annuity which he could have had as of the date
of death had he then retired and applied for annuity,
exclusive of the portion thereof which could have been
provided from additional credits, and disregarding paragraph
(b) of Section 7-142, plus an amount equal to the annuity which
could be provided from the total of his accumulated additional
credits at date of death, on the basis of the attained age of
the surviving spouse on such date.
3. Upon the death of a participating employee before age
55, an amount equal to 1/2 50% for a Tier 1 regular employee or
66 2/3% for a Tier 2 regular employee of the retirement annuity
which he could have had as of his attained age on the date of
death, had he then retired and applied for annuity, and the
provisions of this Article that no such annuity shall begin

SB0053 - 40 - LRB102 09993 RPS 15311 b
until the employee has attained at least age 55 were not
applicable, exclusive of the portion thereof which could have
been provided from additional credits and disregarding
paragraph (b) of Section 7-142, plus an amount equal to the
annuity which could be provided from the total of his
accumulated additional credits at date of death, on the basis
of the attained age of the surviving spouse on such date.
In the case of the surviving spouse of a person who dies
before June 1, 2006 (the effective date of Public Act 94-712)
this amendatory Act of the 94th General Assembly, if the
surviving spouse is more than 5 years younger than the
deceased, that portion of the annuity which is not based on
additional credits shall be reduced in the ratio of the value
of a life annuity of $1 per year at an age of 5 years less than
the attained age of the deceased, at the earlier of the date of
the death or the date his retirement annuity begins, to the
value of a life annuity of $1 per year at the attained age of
the surviving spouse on such date, according to actuarial
tables approved by the Board. This reduction does not apply to
the surviving spouse of a person who dies on or after June 1,
2006 (the effective date of Public Act 94-712) this amendatory
Act of the 94th General Assembly.
In computing the amount of a surviving spouse annuity,
incremental increases of retirement annuities to the date of
death of the employee annuitant shall be considered.
(b) If the employee was a Tier 1 regular employee, each

SB0053 - 41 - LRB102 09993 RPS 15311 b
Each surviving spouse annuity payable on January 1, 1988 shall
be increased on that date by 3% of the original amount of the
annuity. Each surviving spouse annuity that begins after
January 1, 1988 shall be increased on the January 1 next
occurring after the annuity begins, by an amount equal to (i)
3% of the original amount thereof if the deceased employee was
receiving a retirement annuity at the time of his death;
otherwise (ii) 0.25% 0.167% of the original amount thereof for
each complete month which has elapsed since the date the
annuity began.
On each January 1 after the date of the initial increase
under this subsection, each surviving spouse annuity shall be
increased by 3% of the originally granted amount of the
annuity.
(c) If the participating employee was a Tier 2 regular
employee, each surviving spouse annuity shall be increased (1)
on each January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Such annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted surviving spouse annuity.
If the annual unadjusted percentage change in the consumer

SB0053 - 42 - LRB102 09993 RPS 15311 b
price index-u for the 12 months ending with the September
preceding each November 1 is zero or there is a decrease, then
the annuity shall not be increased.
(Source: P.A. 94-712, eff. 6-1-06.)
(40 ILCS 5/7-191) (from Ch. 108 1/2, par. 7-191)
Sec. 7-191. To have accounts audited.
To have the accounts of the fund audited annually by a
certified public accountant approved by the Auditor General.
(Source: Laws 1963, p. 161.)
Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
(30 ILCS 805/8.45 new)
Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 102nd General Assembly.
SB0053 - 43 - LRB102 09993 RPS 15311 b
INDEX
Statutes amended in order of appearance