Bill Text: IL SB1056 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. In provisions amending the State Universities Retirement System Article of the Illinois Pension Code, removes language that changes references to the "optional defined contribution benefit" to "optional defined contribution plan". Amends the State Employees Group Insurance Act of 1971. Deletes language providing that if in any case an error is made in billing a TRS benefit recipient under a provision concerning health benefits for TRS benefit recipients and TRS dependent beneficiaries, the Department shall identify the error and refund the overpaid amount as soon as practicable; and providing that a TRS benefit recipient who has overpaid shall be entitled to a refund of overpayments for up to 7 years of past payments. Provides that if, for any month beginning on or after January 1, 2013, a TRS benefit recipient or TRS dependent beneficiary was enrolled in Medicare Parts A and B and such Medicare coverage was primary to coverage under certain provisions of the Act but payment for that coverage was made at a rate greater than the Medicare primary rate published by the Department of Central Management Services, the TRS benefit recipient or TRS dependent beneficiary shall be eligible for a refund equal to the difference between the amount paid by the TRS benefit recipient or TRS dependent beneficiary and the published Medicare primary rate. Provides that to receive a refund, the TRS benefit recipient or TRS dependent beneficiary must provide documentation to the Department of Central Management Services evidencing the TRS benefit recipient's or TRS dependent beneficiary's Medicare coverage and the amount paid by the TRS benefit recipient or TRS dependent beneficiary during the applicable time period. Certain changes to the Illinois Pension Code and the changes to the State Mandates Act are effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2021-07-30 - Public Act . . . . . . . . . 102-0210 [SB1056 Detail]

Download: Illinois-2021-SB1056-Chaptered.html

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Public Act 102-0210
SB1056 Enrolled LRB102 04871 RPS 14890 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 5.
Section 5-5. The Illinois Pension Code is amended by
changing Sections 2-121.3, 7-141, 14-121.1, 15-135, 16-142.3,
and 18-128.3 as follows:
(40 ILCS 5/2-121.3) (from Ch. 108 1/2, par. 2-121.3)
Sec. 2-121.3. Required distributions.
(a) A person who would be eligible to receive a survivor's
annuity under this Article but for the fact that the person has
not yet attained age 50, shall be eligible for a monthly
distribution under this subsection (a), provided that the
payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987,
(ii) December 1 of the calendar year immediately following the
calendar year in which the deceased spouse died, or (iii)
December 1 of the calendar year in which the deceased spouse
would have attained age 72 70 1/2, whichever occurs last, and
shall remain payable until the first of the following to
occur: (1) the person becomes eligible to receive a survivor's
annuity under this Article; (2) the end of the month in which

the person ceases to be eligible to receive a survivor's
annuity upon attainment of age 50, due to remarriage or death;
or (3) the end of the month in which such distribution ceases
to be required by federal law.
The amount of the distribution shall be fixed at the time
the distribution first becomes payable, and shall be
calculated in the same manner as a survivor's annuity under
Sections 2-121, 2-121.1 and 2-121.2, but excluding: (A) any
requirement for an application for the distribution; (B) any
automatic annual increases, supplemental increases, or
one-time increases that may be provided by law for survivor's
annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall
be deemed to be required by federal law if: (1) directly
mandated by federal statute, rule, or administrative or court
decision; or (2) indirectly mandated through imposition of
substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member
need not be in service on or after the effective date of this
amendatory Act of 1989 for the member's surviving spouse to be
eligible for a distribution under this Section.
(Source: P.A. 86-273.)
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities; conditions 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, 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, he has at least 8 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 the required age of distribution
under Section 401(a)(9) of the Internal Revenue Code of
1986, as amended, age 70 1/2 if the member (i) is no longer
in service, and (ii) is otherwise entitled to an annuity
under this Article;
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 5/14-121.1) (from Ch. 108 1/2, par. 14-121.1)
Sec. 14-121.1. Required distributions.
(a) A person who would be eligible to receive a widow's or
survivor's annuity under this Article but for the fact that
the person has not yet attained age 50, shall be eligible for a
monthly distribution under this subsection (a), provided that
the payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987,
(ii) December 1 of the calendar year immediately following the
calendar year in which the deceased spouse died, or (iii)
December 1 of the calendar year in which the deceased spouse
would have attained age 72 70 1/2, whichever occurs last, and
shall remain payable until the first of the following to
occur: (1) the person becomes eligible to receive a widow's or
survivor's annuity under this Article; (2) the end of the
month in which the person ceases to be eligible to receive a
widow's or survivor's annuity upon attainment of age 50, due

to remarriage or death; or (3) the end of the month in which
such distribution ceases to be required by federal law.
The amount of the distribution shall be fixed at the time
the distribution first becomes payable, and shall be
calculated in the same manner as a survivor's annuity under
Sections 14-120, 14-121 and 14-122 (or, in the case of a person
who has elected to receive a widow's annuity instead of a
survivor's annuity, in the same manner as the widow's annuity
under Sections 14-118 and 14-119), but excluding: (A) any
requirement for an application for the distribution; (B) any
automatic annual increases, supplemental increases, or
one-time increases that may be provided by law for survivor's
or widow's annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall
be deemed to be required by federal law if: (1) directly
mandated by federal statute, rule, or administrative or court
decision; or (2) indirectly mandated through imposition of
substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member
need not be in service on or after the effective date of this
amendatory Act of 1989 for the member's surviving spouse to be
eligible for a distribution under this Section.
(Source: P.A. 86-273.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions annuities -

Conditions.
(a) This subsection (a) applies only to a Tier 1 member. A
participant who retires in one of the following specified
years with the specified amount of service is entitled to a
retirement annuity at any age under the retirement program
applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in this
system as a police officer or firefighter is entitled to a
retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(a-5) A Tier 2 member is entitled to a retirement annuity
upon written application if he or she has attained age 67 and
has at least 10 years of service credit and is otherwise
eligible under the requirements of this Article. A Tier 2

member who has attained age 62 and has at least 10 years of
service credit and is otherwise eligible under the
requirements of this Article may elect to receive the lower
retirement annuity provided in subsection (b-5) of Section
15-136 of this Article.
(a-10) A Tier 2 member who has at least 20 years of service
in this system as a police officer or firefighter is entitled
to a retirement annuity upon written application on or after
the attainment of age 60 if Rule 4 of Section 15-136 is
applicable to the participant. The changes made to this
subsection by this amendatory Act of the 101st General
Assembly apply retroactively to January 1, 2011.
(b) The annuity payment period shall begin on the date
specified by the participant or the recipient of a disability
retirement annuity submitting a written application. For a
participant, the date on which the annuity payment period
begins shall not be prior to termination of employment or more
than one year before the application is received by the board;
however, if the participant is not an employee of an employer
participating in this System or in a participating system as
defined in Article 20 of this Code on April 1 of the calendar
year next following the calendar year in which the participant
attains the age specified under Section 401(a)(9) of the
Internal Revenue Code of 1986, as amended 70 1/2, the annuity
payment period shall begin on that date regardless of whether
an application has been filed. For a recipient of a disability

retirement annuity, the date on which the annuity payment
period begins shall not be prior to the discontinuation of the
disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under
Section 15-136 is less than $10 per month.
(Source: P.A. 100-556, eff. 12-8-17; 101-610, eff. 1-1-20.)
(40 ILCS 5/16-142.3) (from Ch. 108 1/2, par. 16-142.3)
Sec. 16-142.3. Required distributions.
(a) A person who would be eligible to receive a monthly
survivor benefit under this Article but for the fact that the
person has not yet attained age 50, and who has not elected to
receive a lump sum distribution under subsection (a) of
Section 16-141, shall be eligible for a monthly distribution
under this subsection (a), provided that the payment of such
distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987,
(ii) December 1 of the calendar year immediately following the
calendar year in which the member or annuitant died, or (iii)
December 1 of the calendar year in which the deceased member or
annuitant would have attained age 72 70 1/2, whichever occurs
latest, and shall remain payable until the first of the
following to occur: (1) the person becomes eligible to receive
a monthly survivor benefit under this Article; (2) the day
following the date on which the member ceases to be eligible to
receive a monthly survivor benefit upon attainment of age 50,

due to remarriage or death; or (3) the day on which such
distribution ceases to be required by federal law.
The amount of the distribution shall be fixed at the time
the distribution first becomes payable, and shall be
calculated in the same manner as the monthly survivor benefit
under Sections 16-141, 16-142, 16-142.1 and 16-142.2, but
excluding any automatic annual increases, supplemental
increases, or one-time increases that may be provided by law
for monthly survivor benefits.
(b) For the purpose of this Section, a distribution shall
be deemed to be required by federal law if: (1) directly
mandated by federal statute, rule, or administrative or court
decision; or (2) indirectly mandated through imposition of
substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member
need not be in service on or after the effective date of this
amendatory Act of 1989 for the member's surviving spouse to be
eligible for a distribution under this Section.
(Source: P.A. 86-273.)
(40 ILCS 5/18-128.3) (from Ch. 108 1/2, par. 18-128.3)
Sec. 18-128.3. Required distributions.
(a) A person who would be eligible to receive a survivor's
annuity under this Article but for the fact that the person has
not yet attained age 50, shall be eligible for a monthly
distribution under this subsection (a), provided that the

payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987,
(ii) December 1 of the calendar year immediately following the
calendar year in which the deceased spouse died, or (iii)
December 1 of the calendar year in which the deceased spouse
would have attained age 72 70 1/2, whichever occurs last, and
shall remain payable until the first of the following to
occur: (1) the person becomes eligible to receive a survivor's
annuity under this Article; (2) the end of the month in which
the person ceases to be eligible to receive a survivor's
annuity upon attainment of age 50, due to remarriage or death;
or (3) the end of the month in which such distribution ceases
to be required by federal law.
The amount of the distribution shall be fixed at the time
the distribution first becomes payable, and shall be
calculated in the same manner as a survivor's annuity under
Sections 18-128 through 18-128.2, but excluding: (A) any
requirement for an application for the distribution; (B) any
automatic annual increases, supplemental increases, or
one-time increases that may be provided by law for survivor's
annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall
be deemed to be required by federal law if: (1) directly
mandated by federal statute, rule, or administrative or court
decision; or (2) indirectly mandated through imposition of
substantial tax or other penalties for noncompliance.

(c) Notwithstanding Section 1-103.1 of this Code, a member
need not be in service on or after the effective date of this
amendatory Act of 1989 for the member's surviving spouse to be
eligible for a distribution under this Section.
(Source: P.A. 86-273.)
Article 10.
Section 10-5. 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
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.
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
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
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
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
(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
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
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
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
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
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)
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
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
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,
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
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
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
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;
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.
(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
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
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
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).
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
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
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%
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
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
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
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
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,
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
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
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
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
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.
(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
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
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
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
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.)
Article 15.
Section 15-5. The Illinois Pension Code is amended by
changing Section 13-310 as follows:
(40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
Sec. 13-310. Ordinary disability benefit.
(a) Any employee who becomes disabled as the result of any
cause other than injury or illness incurred in the performance
of duty for the employer or any other employer, or while
engaged in self-employment activities, shall be entitled to an
ordinary disability benefit. The eligible period for this

benefit shall be 25% of the employee's total actual service
prior to the date of disability with a cumulative maximum
period of 5 years.
(b) The benefit shall be allowed only if the employee
files an application in writing with the Board, and a medical
report is submitted by at least one licensed and practicing
physician as part of the employee's application.
The benefit is not payable for any disability which begins
during any period of unpaid leave of absence. No benefit shall
be allowed for any period of disability prior to 30 days before
application is made, unless the Board finds good cause for the
delay in filing the application. The benefit shall not be paid
during any period for which the employee receives or is
entitled to receive any part of salary.
The benefit is not payable for any disability which begins
during any period of absence from duty other than allowable
vacation time in any calendar year. An employee whose
disability begins during any such ineligible period of absence
from service may not receive benefits until the employee
recovers from the disability and is in service for at least 15
consecutive working days after such recovery.
In the case of an employee who first enters service on or
after June 13, 1997, an ordinary disability benefit is not
payable for the first 3 days of disability that would
otherwise be payable under this Section if the disability does
not continue for at least 11 additional days.

Beginning on the effective date of this amendatory Act of
the 94th General Assembly, an employee who first entered
service on or after June 13, 1997 is also eligible for ordinary
disability benefits on the 31st day after the last day worked,
provided all sick leave is exhausted.
(c) The benefit shall be 50% of the employee's salary at
the date of disability, and shall terminate when the earliest
of the following occurs:
(1) The employee returns to work or receives a
retirement annuity paid wholly or in part under this
Article;
(2) The disability ceases;
(3) The employee willfully and continuously refuses to
follow medical advice and treatment to enable the employee
to return to work. However this provision does not apply
to an employee who relies in good faith on treatment by
prayer through spiritual means alone in accordance with
the tenets and practice of a recognized church or
religious denomination, by a duly accredited practitioner
thereof;
(4) The employee (i) refuses to submit to a reasonable
physical examination within 30 days of application by a
physician appointed by the Board, (ii) in the case of
chronic alcoholism, the employee refuses to join a
rehabilitation program licensed by the Department of
Public Health of the State of Illinois and certified by

the Joint Commission on the Accreditation of Hospitals,
(iii) fails or refuses to consent to and sign an
authorization allowing the Board to receive copies of or
to examine the employee's medical and hospital records, or
(iv) fails or refuses to provide complete information
regarding any other employment for compensation he or she
has received since becoming disabled; or
(5) The eligible period for this benefit has been
exhausted.
The first payment of the benefit shall be made not later
than one month after the same has been granted, and subsequent
payments shall be made at least monthly intervals of not more
than 30 days.
(Source: P.A. 94-621, eff. 8-18-05.)
Article 20.
Section 20-5. The Illinois Pension Code is amended by
changing Sections 17-140 and 17-151.1 as follows:
(40 ILCS 5/17-140) (from Ch. 108 1/2, par. 17-140)
Sec. 17-140. Board officers. The president, recording
secretary and other officers of the Board shall be elected by
and from the members of the Board board at the first meeting of
the Board after the election of trustees.
In case any officer whose signature appears upon any check

or draft, issued pursuant to this Article, ceases (after
attaching his signature) to hold his office, the before the
delivery thereof to the payee, his signature nevertheless
shall be valid and sufficient for all purposes with the same
effect as if he had remained in office until delivery thereof.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-151.1)
Sec. 17-151.1. Recovery of amount paid in error.
(a) The Board may retain out of any annuity or benefit
payable to any person any amount that the Board determines is
owing to the Fund because (i) required employee contributions
were not made in whole or in part, (ii) employee or member
obligations to return refunds were not met, or (iii) money was
paid to any employee, member, or annuitant through
misrepresentation, fraud, or error.
If the Fund mistakenly sets any benefit at an incorrect
amount, the Fund shall recalculate the benefit as soon as may
be practicable after the mistake is discovered. The Fund shall
provide the recipient, or the survivor or beneficiary of the
recipient, as the case may be, with at least 60 days' notice of
the corrected amount.
If the benefit was mistakenly set too low, the Fund shall
make a lump sum payment to the recipient, or the survivor or
beneficiary of the recipient, as the case may be, of an amount
equal to the difference between the benefits that should have

been paid and those actually paid, plus interest at the rate of
3% from the date the unpaid amounts accrued to the date of
payment.
If the benefit was mistakenly set too high, the Fund may
recover the amount overpaid from the recipient, or the
survivor or beneficiary of the recipient, as the case may be,
plus interest at 3% from the date of overpayment to the date of
recovery. The recipient, or the survivor or beneficiary of the
recipient, as the case may be, may elect to repay the sum owed
either directly by a lump sum payment, in agreed-upon monthly
payments over a period not to exceed 5 years, or through an
actuarial equivalent reduction of the corrected benefit.
However, if (1) the amount of the benefit was mistakenly set
too high, (2) the error was undiscovered for 3 years or longer
from the date of the first mistaken benefit payment, and (3)
the error was not the result of incorrect information supplied
by the affected member, then upon discovery of the mistake the
benefit shall be adjusted to the correct level, but the
recipient of the benefit shall not be required to repay to the
Fund the excess amounts received in error.
(b) The Board and the Fund shall be held free from any
liability for any money retained or paid in accordance with
this Section, and the employee, member, or pensioner shall be
assumed to have assented and agreed to the disposition of
money due.
(c) The changes made by this amendatory Act of the 94th

General Assembly are not limited to persons in service on or
after the effective date of this amendatory Act.
(Source: P.A. 94-425, eff. 8-2-05.)
Article 25.
Section 25-5. The Illinois Pension Code is amended by
changing Section 17-106.1 as follows:
(40 ILCS 5/17-106.1)
Sec. 17-106.1. Administrator. Administrator means a member
who (i) is employed in a position that requires him or her to
hold a professional educator license with an administrative
endorsement Type 75 Certificate issued by the State Board of
Education State Teacher Certification Board, (ii) is not on
the Chicago teachers' or the Chicago charter school teachers'
salary schedule, or (iii) is paid on an administrative
payroll.
(Source: P.A. 94-514, eff. 8-10-05; 94-912, eff. 6-23-06.)
Article 30.
Section 30-5. The Illinois Pension Code is amended by
changing Section 17-131 as follows:
(40 ILCS 5/17-131) (from Ch. 108 1/2, par. 17-131)

Sec. 17-131. Administration of payroll deductions.
(a) An Employer or the Board shall make pension deductions
in each pay period on the basis of the salary earned in that
period, exclusive of salaries for overtime, extracurricular
activities, or any employment on an optional basis, such as in
summer school.
(b) If a salary paid in a pay period includes adjustments
on account of errors or omissions in prior pay periods, then
salary amounts and related pension deductions shall be
separately identified as to the adjusted pay period and
deductions by the Employer or the Board shall be at rates in
force during the applicable adjusted pay period.
(c) If members earn salaries for the school year, as
established by an Employer, or if they earn annual salaries
over more than a 10-calendar month period, or if they earn
annual salaries over more than 170 calendar days, the required
contribution amount shall be deducted by the Employer in
installments on the basis of salary earned in each pay period.
The total amounts for each pay period shall be deducted
whenever salary payments represent a partial or whole day's
pay.
(d) If an Employer or the Board pays a salary to a member
for vacation periods, then the salary shall be considered part
of the member's pensionable salary, shall be subject to the
standard deductions for pension contributions, and shall be
considered to represent pay for the number of whole days of

vacation.
(e) If deductions from salaries result in amounts of less
than one cent, the fractional sums shall be increased to the
next higher cent. Any excess of these fractional increases
over the prescribed annual contributions shall be credited to
the members' accounts.
(f) In the event that, pursuant to Section 17-130.1,
employee contributions are picked up or made by the Employer
or the Board of Education on behalf of its employees, then the
amount of the employee contributions which are picked up or
made in that manner shall not be deducted from the salaries of
such employees.
(Source: P.A. 101-261, eff. 8-9-19.)
Article 35.
Section 35-5. The Illinois Pension Code is amended by
changing Section 15-159 as follows:
(40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
Sec. 15-159. Board created.
(a) A board of trustees constituted as provided in this
Section shall administer this System. The board shall be known
as the Board of Trustees of the State Universities Retirement
System.
(b) (Blank).

(c) (Blank).
(d) Beginning on the 90th day after April 3, 2009 (the
effective date of Public Act 96-6), the Board of Trustees
shall be constituted as follows:
(1) The Chairperson of the Board of Higher Education.
(2) Four trustees appointed by the Governor with the
advice and consent of the Senate who may not be members of
the system or hold an elective State office and who shall
serve for a term of 6 years, except that the terms of the
initial appointees under this subsection (d) shall be as
follows: 2 for a term of 3 years and 2 for a term of 6
years. The term of an appointed trustee shall terminate
immediately upon becoming a member of the system or being
sworn into an elective State office, and the position
shall be considered to be vacant and shall be filled
pursuant to subsection (f) of this Section.
(3) Four participating employees active participants
of the system to be elected from the contributing
membership of the system by the contributing members, no
more than 2 of which may be from any of the University of
Illinois campuses, who shall serve for a term of 6 years,
except that the terms of the initial electees shall be as
follows: 2 for a term of 3 years and 2 for a term of 6
years.
(4) Two annuitants of the system who have been
annuitants for at least one full year, to be elected from

and by the annuitants of the system, no more than one of
which may be from any of the University of Illinois
campuses, who shall serve for a term of 6 years, except
that the terms of the initial electees shall be as
follows: one for a term of 3 years and one for a term of 6
years.
The chairperson of the Board shall be appointed by the
Governor from among the trustees.
For the purposes of this Section, the Governor may make a
nomination and the Senate may confirm the nominee in advance
of the commencement of the nominee's term of office.
(e) The 6 elected trustees shall be elected within 90 days
after April 3, 2009 (the effective date of Public Act 96-6) for
a term beginning on the 90th day after that effective date.
Trustees shall be elected thereafter as terms expire for a
6-year term beginning July 15 next following their election,
and such election shall be held on May 1, or on May 2 when May
1 falls on a Sunday. The board may establish rules for the
election of trustees to implement the provisions of Public Act
96-6 and for future elections. Candidates for the
participating trustee shall be nominated by petitions in
writing, signed by not less than 400 participants with their
addresses shown opposite their names. Candidates for the
annuitant trustee shall be nominated by petitions in writing,
signed by not less than 100 annuitants with their addresses
shown opposite their names. If there is more than one

qualified nominee for each elected trustee, then the board
shall conduct a secret ballot election by mail for that
trustee, in accordance with rules as established by the board.
If there is only one qualified person nominated by petition
for each elected trustee, then the election as required by
this Section shall not be conducted for that trustee and the
board shall declare such nominee duly elected. A vacancy
occurring in the elective membership of the board shall be
filled for the unexpired term by the elected trustees serving
on the board for the remainder of the term. Nothing in this
subsection shall preclude the adoption of rules providing for
internet or phone balloting in addition, or as an alternative,
to election by mail.
(f) A vacancy in the appointed membership on the board of
trustees caused by resignation, death, expiration of term of
office, or other reason shall be filled by a qualified person
appointed by the Governor for the remainder of the unexpired
term.
(g) Trustees (other than the trustees incumbent on June
30, 1995 or as provided in subsection (c) of this Section)
shall continue in office until their respective successors are
appointed and have qualified, except that a trustee elected
appointed to one of the participating employee participant
positions after the effective date of this amendatory Act of
the 102nd General Assembly shall be disqualified immediately
upon the termination of his or her status as a participating

employee participant and a trustee elected appointed to one of
the annuitant positions after the effective date of this
amendatory Act of the 102nd General Assembly shall be
disqualified immediately upon the termination of his or her
status as an annuitant receiving a retirement annuity.
An elected trustee who is incumbent on the effective date
of this amendatory Act of the 102nd General Assembly whose
status as a participating employee or annuitant has terminated
after having been elected shall continue to serve in the
participating employee or annuitant position to which he or
she was elected for the remainder of the term.
(h) Each trustee must take an oath of office before a
notary public of this State and shall qualify as a trustee upon
the presentation to the board of a certified copy of the oath.
The oath must state that the person will diligently and
honestly administer the affairs of the retirement system, and
will not knowingly violate or willfully permit to be violated
any provisions of this Article.
Each trustee shall serve without compensation but shall be
reimbursed for expenses necessarily incurred in attending
board meetings and carrying out his or her duties as a trustee
or officer of the system.
(Source: P.A. 101-610, eff. 1-1-20.)
Article 40.

Section 40-5. The Illinois Pension Code is amended by
changing Section 10-107 as follows:
(40 ILCS 5/10-107) (from Ch. 108 1/2, par. 10-107)
Sec. 10-107. Financing - Tax levy. The forest preserve
district may levy an annual tax on the value, as equalized or
assessed by the Department of Revenue, of all taxable property
in the district for the purpose of providing revenue for the
fund. The rate of such tax in any year may not exceed the rate
herein specified for that year or the rate which will produce,
when extended, the sum herein stated for that year, whichever
is higher: for any year prior to 1970, .00103% or $195,000; for
the year 1970, .00111% or $210,000; for the year 1971, .00116%
or $220,000. For the year 1972 and each year thereafter, the
Forest Preserve District shall levy a tax annually at a rate on
the dollar of the value, as equalized or assessed by the
Department of Revenue upon all taxable property in the county,
when extended, not to exceed an amount equal to the total
amount of contributions by the employees to the fund made in
the calendar year 2 years prior to the year for which the
annual applicable tax is levied, multiplied by 1.25 for the
year 1972; and by 1.30 for the year 1973 and for each year
thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the district and shall be in addition to
the maximum of all other tax rates which the district may levy

upon the aggregate valuation of all taxable property and shall
be exclusive of and in addition to the maximum amount and rate
of taxes the district may levy for general purposes or under
and by virtue of any laws which limit the amount of tax which
the district may levy for general purposes. The county clerk
of the county in which the forest preserve district is located
in reducing tax levies under the provisions of "An Act
concerning the levy and extension of taxes", approved May 9,
1901, as amended, shall not consider any such tax as a part of
the general tax levy for forest preserve purposes, and shall
not include the same in the limitation of 1% of the assessed
valuation upon which taxes are required to be extended, and
shall not reduce the same under the provisions of that Act. The
proceeds of the tax herein authorized shall be kept as a
separate fund.
The forest preserve district may use other lawfully
available funds in lieu of all or part of the levy.
The Board may establish a manpower program reserve, or a
special forest preserve district contribution rate, with
respect to employees whose wages are funded as program
participants under the Comprehensive Employment and Training
Act of 1973 in the manner provided in subsection (d) or (e),
respectively, of Section 9-169.
(Source: P.A. 81-1509.)
Article 45.

Section 45-5. The Illinois Pension Code is amended by
changing Section 9-158 as follows:
(40 ILCS 5/9-158) (from Ch. 108 1/2, par. 9-158)
Sec. 9-158. Proof of disability, duty and ordinary. Proof
of duty or ordinary disability shall be furnished to the board
by at least one licensed and practicing physician appointed by
or acceptable to the board, except that this requirement may
be waived by the board for proof of duty disability if the
employee has been compensated by the county for such
disability or specific loss under the Workers' Compensation
Act or Workers' Occupational Diseases Act. The physician
requirement may also be waived by the board for ordinary
disability maternity claims of up to 8 weeks. With respect to
duty disability, satisfactory proof must be provided to the
board that the final adjudication of the claim required under
subsection (d) of Section 9-159 established that the
disability or death resulted from an injury incurred in the
performance of an act or acts of duty. The board may require
other evidence of disability. Each disabled employee who
receives duty or ordinary disability benefit shall be examined
at least once a year or a longer period of time as determined
by the board, by one or more licensed and practicing
physicians appointed by the board. When the disability ceases,
the board shall discontinue payment of the benefit.

(Source: P.A. 99-578, eff. 7-15-16.)
Article 50.
Section 50-5. The Illinois Pension Code is amended by
adding Section 14-148.5 as follows:
(40 ILCS 5/14-148.5 new)
Sec. 14-148.5. Indemnification of financial institution
for recovery of overpayment. The System may indemnify a bank,
savings and loan association, or other financial institution
insured by an agency of the federal government as necessary to
recover for the System any benefit overpayment that the System
has made to the financial institution on behalf of a member.
(40 ILCS 5/21-120 rep.)
Section 50-10. The Illinois Pension Code is amended by
repealing Section 21-120.
Article 55.
Section 55-5. The Illinois Pension Code is amended by
adding Section 4-108.8 and by changing Sections 7-139.8,
14-110, and 14-152.1 as follows:
(40 ILCS 5/4-108.8 new)

Sec. 4-108.8. Transfer of creditable service to the State
Employees' Retirement System.
(a) Any active member of the State Employees' Retirement
System who is an arson investigator may apply for transfer of
some or all of his or her credits and creditable service
accumulated in any firefighters' pension fund under this
Article to the State Employees' Retirement System in
accordance with Section 14-110. The creditable service shall
be transferred only upon payment by the firefighters' pension
fund to the State Employees' Retirement System of an amount
equal to:
(1) the amounts accumulated to the credit of the
applicant for the service to be transferred on file with
the fund on the date of transfer;
(2) employer contributions in an amount equal to the
amount determined under paragraph (1); and
(3) any interest paid by the applicant in order to
reinstate service to be transferred.
Participation in the firefighters' pension fund with
respect to the service to be transferred shall terminate on
the date of transfer.
(b) Any person applying to transfer service under this
Section may reinstate service that was terminated by receipt
of a refund, by paying to the firefighters' pension fund the
amount of the refund with interest thereon at the actuarially
assumed rate of interest, compounded annually, from the date

of refund to the date of payment.
(40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
Sec. 7-139.8. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement
System who is a State policeman, an investigator for the
Secretary of State, a conservation police officer, an
investigator for the Office of the Attorney General, an
investigator for the Department of Revenue, a Commerce
Commission police officer, an investigator for the Office of
the State's Attorneys Appellate Prosecutor, or a controlled
substance inspector may apply for transfer of some or all of
his or her credits and creditable service accumulated in this
Fund for service as a sheriff's law enforcement employee,
person employed by a participating municipality to perform
police duties, or law enforcement officer employed on a
full-time basis by a forest preserve district to the State
Employees' Retirement System in accordance with Section
14-110. The creditable service shall be transferred only upon
payment by this Fund to the State Employees' Retirement System
of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant for the service to be transferred, including
interest; and
(2) municipality credits based on such service,
including interest; and

(3) any interest paid by the applicant to reinstate
such service.
Participation in this Fund as to any credits transferred under
this Section shall terminate on the date of transfer.
(b) Any person applying to transfer service under this
Section may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by paying to
the Fund the amount of the separation benefit plus interest
thereon at the actuarially assumed rate of interest to the
date of payment.
(Source: P.A. 95-530, eff. 8-28-07; 96-745, eff. 8-25-09.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable

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

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

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

(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
this amendatory Act of 1983 shall not operate to exclude
any noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,
the Bureau of Investigation or, after July 1, 1977, the
Division of Criminal Investigation, the Division of
Internal Investigation, the Division of Operations, or any
other Division or organizational entity in the Department
of State Police is vested by law with duties to maintain
public order, investigate violations of the criminal law
of this State, enforce the laws of this State, make
arrests and recover property. The term "special agent"
includes any title or position in the Department of State
Police that is held by an individual employed under the
State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative duties as

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

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

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

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

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

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

form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
security employee of the Department of Corrections or the
Department of Juvenile Justice, was transferred to the
Department of Innovation and Technology pursuant to
Executive Order 2016-01, and continues to perform similar
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation

and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible

creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Juvenile Justice, or the
Department of Human Services in a position requiring
certification as a teacher may count such service toward
establishing their eligibility under the service requirements
of this Section; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(e) If a member enters military service while working in a
position in which eligible creditable service may be earned,
and returns to State service in the same or another such
position, and fulfills in all other respects the conditions
prescribed in this Article for credit for military service,
such military service shall be credited as eligible creditable
service for the purposes of the retirement annuity prescribed
in this Section.
(f) For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before October 1, 1975 as a covered employee in the
position of special agent, conservation police officer, mental
health police officer, or investigator for the Secretary of
State, shall be deemed to have been service as a noncovered
employee, provided that the employee pays to the System prior

to retirement an amount equal to (1) the difference between
the employee contributions that would have been required for
such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made after
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.5,

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

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

officer under Article 15 by filing a written election with the
Board and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General, or an
investigator for the Department of Revenue, may elect to
establish eligible creditable service for up to 5 years of
service as a police officer under Article 3, a policeman under
Article 5, a sheriff's law enforcement employee under Article
7, or a member of the county police department under Article 9
by filing a written election with the Board within 6 months
after August 25, 2009 (the effective date of Public Act
96-745) and paying to the System an amount to be determined by
the Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the actuarially

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

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

been contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the actuarially assumed rate for each year, compounded
annually, from the date of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State
policeman or conservation police officer may elect to convert
service credit earned under this Article to eligible
creditable service, as defined by this Section, by filing a
written election with the board within 6 months after the
effective date of this amendatory Act of the 102nd General
Assembly and paying to the System an amount to be determined by
the Board equal to (i) the difference between the amount of
employee contributions originally paid for that service and
the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) the difference between the employer's
normal cost of the credit prior to the conversion authorized
by this amendatory Act of the 102nd General Assembly and the
employer's normal cost of the credit converted in accordance
with this amendatory Act of the 102nd General Assembly, plus
(iii) interest thereon at the actuarially assumed rate for
each year, compounded annually, from the date of service to
the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o) of this Section shall not exceed 12

years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys Appellate
Prosecutor or a controlled substance inspector may elect to
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
enforcement employee under Article 7, by filing a written
election with the Board, accompanied by payment of an amount
to be determined by the Board, equal to (1) the difference
between the amount of employee and employer contributions
transferred to the System under Section 3-110.6 or 7-139.8,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (2) interest thereon at the effective rate for
each year, compounded annually, from the date of service to
the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. To obtain this credit, the applicant must
file a written application with the Board by March 31, 1998,
accompanied by evidence of eligibility acceptable to the Board

and payment of an amount to be determined by the Board, equal
to (1) employee contributions for the credit being
established, based upon the applicant's salary on the first
day as an alternative formula employee after the employment
for which credit is being established and the rates then
applicable to alternative formula employees, plus (2) an
amount determined by the Board to be the employer's normal
cost of the benefits accrued for the credit being established,
plus (3) regular interest on the amounts in items (1) and (2)
from the first day as an alternative formula employee after
the employment for which credit is being established to the
date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a policeman
under Article 3, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to security employees of the Department of
Corrections, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.

(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or
by a state or local government located outside of Illinois for
which credit is not held in any other public employee pension
fund or retirement system. To obtain this credit, the
applicant must file a written application with the Board no
later than 3 years after the effective date of this amendatory
Act of the 101st General Assembly, accompanied by evidence of
eligibility acceptable to the Board and payment of an amount
to be determined by the Board, equal to (1) employee
contributions for the credit being established, based upon the
applicant's salary on the first day as an alternative formula
employee after the employment for which credit is being
established and the rates then applicable to alternative
formula employees, plus (2) an amount determined by the Board
to be the employer's normal cost of the benefits accrued for
the credit being established, plus (3) regular interest on the
amounts in items (1) and (2) from the first day as an
alternative formula employee after the employment for which
credit is being established to the date of payment.
(m) The amendatory changes to this Section made by this
amendatory Act of the 94th General Assembly apply only to: (1)
security employees of the Department of Juvenile Justice
employed by the Department of Corrections before the effective

date of this amendatory Act of the 94th General Assembly and
transferred to the Department of Juvenile Justice by this
amendatory Act of the 94th General Assembly; and (2) persons
employed by the Department of Juvenile Justice on or after the
effective date of this amendatory Act of the 94th General
Assembly who are required by subsection (b) of Section
3-2.5-15 of the Unified Code of Corrections to have any
bachelor's or advanced degree from an accredited college or
university or, in the case of persons who provide vocational
training, who are required to have adequate knowledge in the
skill for which they are providing the vocational training.
(n) A person employed in a position under subsection (b)
of this Section who has purchased service credit under
subsection (j) of Section 14-104 or subsection (b) of Section
14-105 in any other capacity under this Article may convert up
to 5 years of that service credit into service credit covered
under this Section by paying to the Fund an amount equal to (1)
the additional employee contribution required under Section
14-133, plus (2) the additional employer contribution required
under Section 14-131, plus (3) interest on items (1) and (2) at
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or

arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before the effective date of this amendatory Act
of the 101st General Assembly as a conservation police
officer, investigator for the Secretary of State, Commerce
Commission police officer, investigator for the Department of
Revenue or the Illinois Gaming Board, or arson investigator
under this Article into eligible creditable service by filing
a written election with the Board no later than one year after
the effective date of this amendatory Act of the 101st General
Assembly, accompanied by payment of an amount to be determined
by the Board equal to (i) the difference between the amount of
the employee contributions actually paid for that service and
the amount of the employee contributions that would have been
paid had the employee contributions been made as a noncovered
employee serving in a position in which eligible creditable
service, as defined in this Section, may be earned, plus (ii)
interest thereon at the effective rate for each year,
compounded annually, from the date of service to the date of
payment.
(Source: P.A. 100-19, eff. 1-1-18; 100-611, eff. 7-20-18;
101-610, eff. 1-1-20.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.

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

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

benefit increase was in effect.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-611, eff. 7-20-18; 101-10, eff. 6-5-19; 101-81, eff.
7-12-19; 101-610, eff. 1-1-20.)
Article 65.
Section 65-5. The Illinois Pension Code is amended by
changing Section 17-147 as follows:
(40 ILCS 5/17-147) (from Ch. 108 1/2, par. 17-147)
Sec. 17-147. Custody of Fund; bonds; legal Fund - Bonds -
Legal proceedings. The city treasurer, ex officio ex-officio,
shall be the custodian of the Fund, and shall secure and safely
keep it, subject to the control and direction of the Board. The
city treasurer He shall keep the his books and accounts
concerning the Fund in the manner prescribed by the Board. The
books and accounts shall always be subject to the inspection
of the Board or any member thereof. The city treasurer shall be
liable on the city treasurer's his official bond for the
proper performance of his duties and the conservation of the
Fund.
Payments from the Fund shall be made upon checks or
through direct deposit transmittals authorized warrants signed
by the president and the secretary of the Board of Education,
the president of the Board, and countersigned by the executive

director or by such person as the Board may designate from time
to time by appropriate resolution.
Neither the treasurer nor any other officer having the
custody of the Fund is entitled to retain any interest
accruing thereon, but such interest shall accrue and inure to
the benefit of such Fund, become a part thereof, subject to the
purposes of this Article.
Any legal proceedings necessary for the enforcement of the
provisions of this Article shall be brought by and in the name
of the Board of the Fund.
(Source: P.A. 90-566, eff. 1-2-98.)
Article 70.
Section 70-5. The Illinois Pension Code is amended by
changing Section 16-106 as follows:
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position
in which services are expected to be rendered for at least one
school term:
(1) Any educational, administrative, professional or
other staff employed in the public common schools included

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

operating in compliance with Article 23 of the School Code
who is certificated under the law governing the
certification of teachers, provided that he or she becomes
such an employee before the effective date of this
amendatory Act of the 99th General Assembly;
(5) Any person employed by the retirement system who:
(i) was an employee of and a participant in the
system on August 17, 2001 (the effective date of
Public Act 92-416), or
(ii) becomes an employee of the system on or after
August 17, 2001;
(6) Any educational, administrative, professional or
other staff employed by and under the supervision and
control of a regional superintendent of schools or the
chief administrative officer of the education service
centers established under Section 2-3.62 of the School
Code and serving that portion of a Class II county outside
a city of 500,000 or more inhabitants, provided such
employment position requires the person to be certificated
under the law governing the certification of teachers and
is in an educational program serving 2 or more districts
in accordance with a joint agreement authorized by the
School Code or by federal legislation;
(7) Any educational, administrative, professional or
other staff employed in an educational program serving 2
or more school districts in accordance with a joint

agreement authorized by the School Code or by federal
legislation and in a position requiring certification
under the laws governing the certification of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher organization
who is certified under the law governing certification of
teachers, provided: (i) the individual had previously
established creditable service under this Article, (ii)
the individual files with the system an irrevocable
election to become a member before the effective date of
this amendatory Act of the 97th General Assembly, (iii)
the individual does not receive credit for such service
under any other Article of this Code, and (iv) the
individual first became an officer or employee of the
teacher organization and becomes a member before the
effective date of this amendatory Act of the 97th General
Assembly;
(9) Any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is
certificated under the law governing the certification of
teachers;
(10) Any person employed, on the effective date of
this amendatory Act of the 94th General Assembly, by the
Macon-Piatt Regional Office of Education in a
birth-through-age-three pilot program receiving funds

under Section 2-389 of the School Code who is required by
the Macon-Piatt Regional Office of Education to hold a
teaching certificate, provided that the Macon-Piatt
Regional Office of Education makes an election, within 6
months after the effective date of this amendatory Act of
the 94th General Assembly, to have the person participate
in the system. Any service established prior to the
effective date of this amendatory Act of the 94th General
Assembly for service as an employee of the Macon-Piatt
Regional Office of Education in a birth-through-age-three
pilot program receiving funds under Section 2-389 of the
School Code shall be considered service as a teacher if
employee and employer contributions have been received by
the system and the system has not refunded those
contributions.
An annuitant receiving a retirement annuity under this
Article who is employed by a board of education or other
employer as permitted under Section 16-118 or 16-150.1 is not
a "teacher" for purposes of this Article. A person who has
received a single-sum retirement benefit under Section
16-136.4 of this Article is not a "teacher" for purposes of
this Article. For purposes of this Article, "teacher" does not
include a person employed by an entity that provides
substitute teaching services under Section 2-3.173 of the
School Code and is not a school district.
(Source: P.A. 100-813, eff. 8-13-18; 101-502, eff. 8-23-19.)

Article 75.
Section 75-5. The State Employees Group Insurance Act of
1971 is amended by changing Section 6.5 as follows:
(5 ILCS 375/6.5)
Sec. 6.5. Health benefits for TRS benefit recipients and
TRS dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act of
1995 to transfer the administration of the program of health
benefits established for benefit recipients and their
dependent beneficiaries under Article 16 of the Illinois
Pension Code to the Department of Central Management Services.
(b) Transition provisions. The Board of Trustees of the
Teachers' Retirement System shall continue to administer the
health benefit program established under Article 16 of the
Illinois Pension Code through December 31, 1995. Beginning
January 1, 1996, the Department of Central Management Services
shall be responsible for administering a program of health
benefits for TRS benefit recipients and TRS dependent
beneficiaries under this Section. The Department of Central
Management Services and the Teachers' Retirement System shall
cooperate in this endeavor and shall coordinate their
activities so as to ensure a smooth transition and
uninterrupted health benefit coverage.

(c) Eligibility. All persons who were enrolled in the
Article 16 program at the time of the transfer shall be
eligible to participate in the program established under this
Section without any interruption or delay in coverage or
limitation as to pre-existing medical conditions. Eligibility
to participate shall be determined by the Teachers' Retirement
System. Eligibility information shall be communicated to the
Department of Central Management Services in a format
acceptable to the Department.
Eligible TRS benefit recipients may enroll or re-enroll in
the program of health benefits established under this Section
during any applicable annual open enrollment period and as
otherwise permitted by the Department of Central Management
Services. A TRS benefit recipient shall not be deemed
ineligible to participate solely by reason of the TRS benefit
recipient having made a previous election to disenroll or
otherwise not participate in the program of health benefits.
A TRS dependent beneficiary who is a child age 19 or over
and mentally or physically disabled does not become ineligible
to participate by reason of (i) becoming ineligible to be
claimed as a dependent for Illinois or federal income tax
purposes or (ii) receiving earned income, so long as those
earnings are insufficient for the child to be fully
self-sufficient.
(d) Coverage. The level of health benefits provided under
this Section shall be similar to the level of benefits

provided by the program previously established under Article
16 of the Illinois Pension Code.
Group life insurance benefits are not included in the
benefits to be provided to TRS benefit recipients and TRS
dependent beneficiaries under this Act.
The program of health benefits under this Section may
include any or all of the benefit limitations, including but
not limited to a reduction in benefits based on eligibility
for federal Medicare benefits, that are provided under
subsection (a) of Section 6 of this Act for other health
benefit programs under this Act.
(e) Insurance rates and premiums. The Director shall
determine the insurance rates and premiums for TRS benefit
recipients and TRS dependent beneficiaries, and shall present
to the Teachers' Retirement System of the State of Illinois,
by April 15 of each calendar year, the rate-setting
methodology (including but not limited to utilization levels
and costs) used to determine the amount of the health care
premiums.
For Fiscal Year 1996, the premium shall be equal to
the premium actually charged in Fiscal Year 1995; in
subsequent years, the premium shall never be lower than
the premium charged in Fiscal Year 1995.
For Fiscal Year 2003, the premium shall not exceed
110% of the premium actually charged in Fiscal Year 2002.
For Fiscal Year 2004, the premium shall not exceed

112% of the premium actually charged in Fiscal Year 2003.
For Fiscal Year 2005, the premium shall not exceed a
weighted average of 106.6% of the premium actually charged
in Fiscal Year 2004.
For Fiscal Year 2006, the premium shall not exceed a
weighted average of 109.1% of the premium actually charged
in Fiscal Year 2005.
For Fiscal Year 2007, the premium shall not exceed a
weighted average of 103.9% of the premium actually charged
in Fiscal Year 2006.
For Fiscal Year 2008 and thereafter, the premium in
each fiscal year shall not exceed 105% of the premium
actually charged in the previous fiscal year.
Rates and premiums may be based in part on age and
eligibility for federal medicare coverage. However, the cost
of participation for a TRS dependent beneficiary who is an
unmarried child age 19 or over and mentally or physically
disabled shall not exceed the cost for a TRS dependent
beneficiary who is an unmarried child under age 19 and
participates in the same major medical or managed care
program.
The cost of health benefits under the program shall be
paid as follows:
(1) For a TRS benefit recipient selecting a managed
care program, up to 75% of the total insurance rate shall
be paid from the Teacher Health Insurance Security Fund.

Effective with Fiscal Year 2007 and thereafter, for a TRS
benefit recipient selecting a managed care program, 75% of
the total insurance rate shall be paid from the Teacher
Health Insurance Security Fund.
(2) For a TRS benefit recipient selecting the major
medical coverage program, up to 50% of the total insurance
rate shall be paid from the Teacher Health Insurance
Security Fund if a managed care program is accessible, as
determined by the Teachers' Retirement System. Effective
with Fiscal Year 2007 and thereafter, for a TRS benefit
recipient selecting the major medical coverage program,
50% of the total insurance rate shall be paid from the
Teacher Health Insurance Security Fund if a managed care
program is accessible, as determined by the Department of
Central Management Services.
(3) For a TRS benefit recipient selecting the major
medical coverage program, up to 75% of the total insurance
rate shall be paid from the Teacher Health Insurance
Security Fund if a managed care program is not accessible,
as determined by the Teachers' Retirement System.
Effective with Fiscal Year 2007 and thereafter, for a TRS
benefit recipient selecting the major medical coverage
program, 75% of the total insurance rate shall be paid
from the Teacher Health Insurance Security Fund if a
managed care program is not accessible, as determined by
the Department of Central Management Services.

(3.1) For a TRS dependent beneficiary who is Medicare
primary and enrolled in a managed care plan, or the major
medical coverage program if a managed care plan is not
available, 25% of the total insurance rate shall be paid
from the Teacher Health Security Fund as determined by the
Department of Central Management Services. For the purpose
of this item (3.1), the term "TRS dependent beneficiary
who is Medicare primary" means a TRS dependent beneficiary
who is participating in Medicare Parts A and B.
(4) Except as otherwise provided in item (3.1), the
balance of the rate of insurance, including the entire
premium of any coverage for TRS dependent beneficiaries
that has been elected, shall be paid by deductions
authorized by the TRS benefit recipient to be withheld
from his or her monthly annuity or benefit payment from
the Teachers' Retirement System; except that (i) if the
balance of the cost of coverage exceeds the amount of the
monthly annuity or benefit payment, the difference shall
be paid directly to the Teachers' Retirement System by the
TRS benefit recipient, and (ii) all or part of the balance
of the cost of coverage may, at the school board's option,
be paid to the Teachers' Retirement System by the school
board of the school district from which the TRS benefit
recipient retired, in accordance with Section 10-22.3b of
the School Code. The Teachers' Retirement System shall
promptly deposit all moneys withheld by or paid to it

under this subdivision (e)(4) into the Teacher Health
Insurance Security Fund. These moneys shall not be
considered assets of the Retirement System.
(5) If, for any month beginning on or after January 1,
2013, a TRS benefit recipient or TRS dependent beneficiary
was enrolled in Medicare Parts A and B and such Medicare
coverage was primary to coverage under this Section but
payment for coverage under this Section was made at a rate
greater than the Medicare primary rate published by the
Department of Central Management Services, the TRS benefit
recipient or TRS dependent beneficiary shall be eligible
for a refund equal to the difference between the amount
paid by the TRS benefit recipient or TRS dependent
beneficiary and the published Medicare primary rate. To
receive a refund pursuant to this subsection, the TRS
benefit recipient or TRS dependent beneficiary must
provide documentation to the Department of Central
Management Services evidencing the TRS benefit recipient's
or TRS dependent beneficiary's Medicare coverage and the
amount paid by the TRS benefit recipient or TRS dependent
beneficiary during the applicable time period. If in any
case an error is made in billing a TRS benefit recipient
under this Section, the Department shall identify the
error and refund the overpaid amount as soon as
practicable. A TRS benefit recipient who has overpaid
under this Section shall be entitled to a refund of

overpayments for up to 7 years of past payments.
(f) Financing. Beginning July 1, 1995, all revenues
arising from the administration of the health benefit programs
established under Article 16 of the Illinois Pension Code or
this Section shall be deposited into the Teacher Health
Insurance Security Fund, which is hereby created as a
nonappropriated trust fund to be held outside the State
Treasury, with the State Treasurer as custodian. Any interest
earned on moneys in the Teacher Health Insurance Security Fund
shall be deposited into the Fund.
Moneys in the Teacher Health Insurance Security Fund shall
be used only to pay the costs of the health benefit program
established under this Section, including associated
administrative costs, and the costs associated with the health
benefit program established under Article 16 of the Illinois
Pension Code, as authorized in this Section. Beginning July 1,
1995, the Department of Central Management Services may make
expenditures from the Teacher Health Insurance Security Fund
for those costs.
After other funds authorized for the payment of the costs
of the health benefit program established under Article 16 of
the Illinois Pension Code are exhausted and until January 1,
1996 (or such later date as may be agreed upon by the Director
of Central Management Services and the Secretary of the
Teachers' Retirement System), the Secretary of the Teachers'
Retirement System may make expenditures from the Teacher

Health Insurance Security Fund as necessary to pay up to 75% of
the cost of providing health coverage to eligible benefit
recipients (as defined in Sections 16-153.1 and 16-153.3 of
the Illinois Pension Code) who are enrolled in the Article 16
health benefit program and to facilitate the transfer of
administration of the health benefit program to the Department
of Central Management Services.
The Department of Central Management Services, or any
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,
separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the Teacher Health
Insurance Security Fund. The Department may promulgate rules
further defining the methodology for the transfers. Any
interest earned by moneys in the funds or accounts shall inure
to the Teacher Health Insurance Security Fund. The transferred
moneys, and interest accrued thereon, shall be used
exclusively for transfers to administrative service
organizations or their financial institutions for payments of
claims to claimants and providers under the self-insurance
health plan. The transferred moneys, and interest accrued
thereon, shall not be used for any other purpose including,

but not limited to, reimbursement of administration fees due
the administrative service organization pursuant to its
contract or contracts with the Department.
(g) Contract for benefits. The Director shall by contract,
self-insurance, or otherwise make available the program of
health benefits for TRS benefit recipients and their TRS
dependent beneficiaries that is provided for in this Section.
The contract or other arrangement for the provision of these
health benefits shall be on terms deemed by the Director to be
in the best interest of the State of Illinois and the TRS
benefit recipients based on, but not limited to, such criteria
as administrative cost, service capabilities of the carrier or
other contractor, and the costs of the benefits.
(g-5) Committee. A Teacher Retirement Insurance Program
Committee shall be established, to consist of 10 persons
appointed by the Governor.
The Committee shall convene at least 4 times each year,
and shall consider and make recommendations on issues
affecting the program of health benefits provided under this
Section. Recommendations of the Committee shall be based on a
consensus of the members of the Committee.
If the Teacher Health Insurance Security Fund experiences
a deficit balance based upon the contribution and subsidy
rates established in this Section and Section 6.6 for Fiscal
Year 2008 or thereafter, the Committee shall make
recommendations for adjustments to the funding sources

established under these Sections.
In addition, the Committee shall identify proposed
solutions to the funding shortfalls that are affecting the
Teacher Health Insurance Security Fund, and it shall report
those solutions to the Governor and the General Assembly
within 6 months after August 15, 2011 (the effective date of
Public Act 97-386).
(h) Continuation of program. It is the intention of the
General Assembly that the program of health benefits provided
under this Section be maintained on an ongoing, affordable
basis.
The program of health benefits provided under this Section
may be amended by the State and is not intended to be a pension
or retirement benefit subject to protection under Article
XIII, Section 5 of the Illinois Constitution.
(i) Repeal. (Blank).
(Source: P.A. 100-1017, eff. 8-21-18; 101-483, eff. 1-1-20.)
Article 99.
Section 99-90. 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.
Section 99-99. Effective date. This Article and Articles
5, 15, 35, 50, 55, and 75 take effect upon becoming law.