Bill Text: IL SB1561 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Declares it to be the public policy of this State and the intention of the General Assembly to protect annuitants against significant decreases in the purchasing power of retirement and survivor's annuities. Directs the Systems to review and report on significant changes in purchasing power. Provides for a one-time increase in certain retirement and survivor's annuities. Includes language exempting the changes from provisions concerning new benefit increases. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2009-03-13 - Rule 3-9(a) / Re-referred to Assignments [SB1561 Detail]

Download: Illinois-2009-SB1561-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB1561 Introduced 2/18/2009, by Sen. Gary Forby SYNOPSIS AS INTRODUCED:
See Index
Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Declares it to be the public policy of this State and the intention of the General Assembly to protect annuitants against significant decreases in the purchasing power of retirement and survivor's annuities. Directs the Systems to review and report on significant changes in purchasing power. Provides for a one-time increase in certain retirement and survivor's annuities. Includes language exempting the changes from provisions concerning new benefit increases. Effective immediately.
LRB096 09108 AMC 19251 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB1561 LRB096 09108 AMC 19251 b
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Sections 2-119.01, 2-121.1, 2-124, 2-162, 14-108, 14-109,
14-121, 14-131, 14-152.1, 15-136, 15-136.3, 15-145, 15-155,
15-198, 16-133, 16-136.2, 16-143.1, 16-158, 16-203, 18-125,
18-128.01, 18-131, and 18-169 and adding Sections 2-119.2,
14-109.1, 15-137.1, 16-136.5, and 18-125.2 as follows:
(40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
Sec. 2-119.01. Retirement annuities - Amount.
(a) For a participant in service after June 30, 1977 who
has not made contributions to this System after January 1,
1982, the annual retirement annuity is 3% for each of the first
8 years of service, plus 4% for each of the next 4 years of
service, plus 5% for each year of service in excess of 12
years, based on the participant's highest salary for annuity
purposes. The maximum retirement annuity payable shall be 80%
of the participant's highest salary for annuity purposes.
(b) For a participant in service after June 30, 1977 who
has made contributions to this System on or after January 1,
1982, the annual retirement annuity is 3% for each of the first
4 years of service, plus 3 1/2% for each of the next 2 years of

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service, plus 4% for each of the next 2 years of service, plus
4 1/2% for each of the next 4 years of service, plus 5% for each
year of service in excess of 12 years, of the participant's
highest salary for annuity purposes. The maximum retirement
annuity payable shall be 85% of the participant's highest
salary for annuity purposes.
(c) On July 1, 2009, every annuitant who began receiving a
retirement annuity before January 1, 1980 shall have the
monthly retirement annuity increased by whichever of the
following percentages is applicable:
5% if the annuity began in 1979;
10% if the annuity began in 1978;
14% if the annuity began in 1977;
14% if the annuity began in 1976;
18% if the annuity began in 1975;
23% if the annuity began in 1974;
32% if the annuity began in 1973 or before.
The increase under this subsection shall be calculated as a
percentage of the amount of the retirement annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under Section 2-119.1.
(Source: P.A. 86-1488.)
(40 ILCS 5/2-119.2 new)
Sec. 2-119.2. Reduction of purchasing power; policy;

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report; increase.
(a) The General Assembly finds and declares that:
(1) The purchasing power of a fixed annuity can be
eroded over time by the effects of inflation and increases
in the general cost of living.
(2) For a person whose income consists primarily of a
fixed annuity, the reduction in purchasing power resulting
from increases in the cost of living can become
catastrophic over time, transforming a once-comfortable
retirement into a time of poverty and need.
(3) The State of Illinois is concerned about the
effects that a significant reduction in purchasing power
can have on the quality of life of retired employees and
their survivors.
(4) The General Assembly has previously addressed this
concern by providing for automatic annual increases in
retirement and survivor's annuities under this Article.
Recognizing that these automatic annual increases, by
themselves, are not a complete answer in times of high
inflation, the General Assembly has also, from time to
time, provided specific one-time increases in annuities
for certain categories of annuitants.
(b) It is the public policy of this State and the intention
of the General Assembly to protect annuitants against
significant decreases in the purchasing power of the retirement
and survivor's annuities granted under this Article.

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(c) The System shall regularly review the changes that have
occurred in the purchasing power of the retirement and
survivor's annuities being paid under this Article, and it
shall report to the General Assembly, the Governor, and the
Commission on Government Forecasting and Accountability
whenever it determines that the original purchasing power of
those annuities has been reduced by 20% or more for any
category or group of annuitants. The System may include in the
report its recommendations, if any, for legislative action to
address its findings.
(d) As used in this Section, the term "retirement and
survivor's annuities" means all retirement annuities and those
survivors insurance benefits payable in the form of an annuity.
(40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
Sec. 2-121.1. Survivor's annuity - amount.
(a) A surviving spouse shall be entitled to 66 2/3% of the
amount of retirement annuity to which the participant or
annuitant was entitled on the date of death, without regard to
whether the participant had attained age 55 prior to his or her
death, subject to a minimum payment of 10% of salary. If a
surviving spouse, regardless of age, has in his or her care at
the date of death any eligible child or children of the
participant, the survivor's annuity shall be the greater of the
following: (1) 66 2/3% of the amount of retirement annuity to
which the participant or annuitant was entitled on the date of

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death, or (2) 30% of the participant's salary increased by 10%
of salary on account of each such child, subject to a total
payment for the surviving spouse and children of 50% of salary.
If eligible children survive but there is no surviving spouse,
or if the surviving spouse dies or becomes disqualified by
remarriage while eligible children survive, each eligible
child shall be entitled to an annuity of 20% of salary, subject
to a maximum total payment for all such children of 50% of
salary.
However, the survivor's annuity payable under this Section
shall not be less than 100% of the amount of retirement annuity
to which the participant or annuitant was entitled on the date
of death, if he or she is survived by a dependent disabled
child.
The salary to be used for determining these benefits shall
be the salary used for determining the amount of retirement
annuity as provided in Section 2-119.01.
(b) Upon the death of a participant after the termination
of service or upon death of an annuitant, the maximum total
payment to a surviving spouse and eligible children, or to
eligible children alone if there is no surviving spouse, shall
be 75% of the retirement annuity to which the participant or
annuitant was entitled, unless there is a dependent disabled
child among the survivors.
(c) When a child ceases to be an eligible child, the
annuity to that child, or to the surviving spouse on account of

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that child, shall thereupon cease, and the annuity payable to
the surviving spouse or other eligible children shall be
recalculated if necessary.
Upon the ineligibility of the last eligible child, the
annuity shall immediately revert to the amount payable upon
death of a participant or annuitant who leaves no eligible
children. If the surviving spouse is then under age 50, the
annuity as revised shall be deferred until the attainment of
age 50.
(d) Beginning January 1, 1990, every survivor'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 on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service on
or after the effective date of this amendatory Act of 1991, but
shall not accrue for any period prior to January 1, 1990.
(e) Notwithstanding any other provision of this Article,
beginning January 1, 1990, the minimum survivor's annuity
payable to any person who is entitled to receive a survivor's
annuity under this Article shall be $300 per month, without
regard to whether or not the deceased participant was in
service on the effective date of this amendatory Act of 1989.

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(f) In the case of a proportional survivor's annuity
arising under the Retirement Systems Reciprocal Act where the
amount payable by the System on January 1, 1993 is less than
$300 per month, the amount payable by the System shall be
increased beginning on that date by a monthly amount equal to
$2 for each full year that has expired since the annuity began.
(g) On July 1, 2009, every recipient of a survivor's
annuity whose original annuity began before January 1, 1980
shall have the monthly survivor's annuity increased by
whichever of the following percentages is applicable:
5% if the original annuity began in 1979;
10% if the original annuity began in 1978;
14% if the original annuity began in 1977;
14% if the original annuity began in 1976;
18% if the original annuity began in 1975;
23% if the original annuity began in 1974;
32% if the original annuity began in 1973 or before.
In the case of the survivor of a deceased annuitant who
died while receiving a retirement annuity, "original annuity"
means the deceased annuitant's retirement annuity; in all other
cases, "original annuity" means the survivor's annuity.
The increase under this subsection shall be calculated as a
percentage of the amount of the survivor's annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (d).

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(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the
contributions of participants, interest earned on investments,
and other income will meet the cost of maintaining and
administering the System on a 90% funded basis in accordance
with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the prescribed rate of interest, using the formula in
subsection (c). The minimum contribution to the System to be
made by the State for each fiscal year shall be the sum of the
amount determined under subsection (c).
(c) For State fiscal years 2011 through 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the

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projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$4,157,000.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$5,220,300.
For each of State fiscal years 2008 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State

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contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 2-134, shall not
exceed an amount equal to (i) the amount of the required State
contribution that would have been calculated under this Section
for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued for the purposes of that Section 7.2, as determined and
certified by the Comptroller, that is the same as the System's
portion of the total moneys distributed under subsection (d) of
Section 7.2 of the General Obligation Bond Act. In determining
this maximum for State fiscal years 2008 through 2010, however,
the amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State

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contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued for the purposes of Section 7.2
of the General Obligation Bond Act, so that, by State fiscal
year 2011, the State is contributing at the rate otherwise
required under this Section.
(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
eff. 8-29-08.)
(40 ILCS 5/2-162)
Sec. 2-162. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4) this amendatory Act of the
94th General Assembly. "New benefit increase", however, does
not include any benefit increase resulting from the changes
made to this Article by this amendatory Act of the 96th 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

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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 Financial and Professional Regulation. 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

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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. 94-4, eff. 6-1-05.)
(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
Sec. 14-108. Amount of retirement annuity. A member who has
contributed to the System for at least 12 months shall be
entitled to a prior service annuity for each year of certified
prior service credited to him, except that a member shall
receive 1/3 of the prior service annuity for each year of
service for which contributions have been made and all of such
annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall include

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service credited in the Teachers' Retirement System of the
State of Illinois and the State Universities Retirement System
for which contributions have been made by the member to such
systems; provided that at least 1 year of the total period of 3
years prescribed for the allowance of a full measure of prior
service annuity shall consist of membership service in this
system for which credit has been granted.
(a) In the case of a member who retires on or after January
1, 1998 and is a noncovered employee, the retirement annuity
for membership service and prior service shall be 2.2% of final
average compensation for each year of service. Any service
credit established as a covered employee shall be computed as
stated in paragraph (b).
(b) In the case of a member who retires on or after January
1, 1998 and is a covered employee, the retirement annuity for
membership service and prior service shall be computed as
stated in paragraph (a) for all service credit established as a
noncovered employee; for service credit established as a
covered employee it shall be 1.67% of final average
compensation for each year of service.
(c) For a member retiring after attaining age 55 but before
age 60 with at least 30 but less than 35 years of creditable
service if retirement is before January 1, 2001, or with at
least 25 but less than 30 years of creditable service if
retirement is on or after January 1, 2001, the retirement
annuity shall be reduced by 1/2 of 1% for each month that the

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member's age is under age 60 at the time of retirement.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered employee
who is a member of the System and in service on January 1,
1969, or in service thereafter in 1969 as a result of
legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties of
3,000,000 or more population, under a plan of coordination with
the Old Age, Survivors and Disability provisions thereof, if
not fully insured for Old Age Insurance payments under the
Federal Old Age, Survivors and Disability Insurance provisions
at the date of acceptance of a retirement annuity, shall not be
less than the amount for which the member would have been
eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered employee
who is a member of the System and in service on January 1,
1969, or in service thereafter in 1969 as a result of the
legislation designated in the immediately preceding paragraph,
if fully insured for Old Age Insurance payments under the
Federal Social Security Act at the date of acceptance of a
retirement annuity, shall not be less than an amount which when
added to the Primary Insurance Benefit payable to the member
upon attainment of age 65 under such Federal Act, will equal

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the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.
(g) In the case of a member who is a noncovered employee,
the retirement annuity for membership service as a security
employee of the Department of Corrections or security employee
of the Department of Human Services shall be: if retirement
occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if
retirement occurs before January 1, 2001, 1.9% of final average
compensation for each of the first 10 years of service, 2.1%
for each of the next 10 years of service, 2.25% for each year
of service in excess of 20 but not exceeding 30, and 2.5% for
each year in excess of 30; except that the annuity may be
calculated under subsection (a) rather than this subsection (g)
if the resulting annuity is greater.
(h) In the case of a member who is a covered employee, the
retirement annuity for membership service as a security
employee of the Department of Corrections or security employee
of the Department of Human Services shall be: 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 service, 1.90%
for each of the next 10 years of service, 2.10% for each year
of service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.

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(i) For the purposes of this Section and Section 14-133 of
this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the Department
of Human Services" shall have the meanings ascribed to them in
subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to paragraphs
(g) or (h) shall be applicable only to those security employees
of the Department of Corrections and security employees of the
Department of Human Services who have at least 20 years of
membership service and who are not eligible for the alternative
retirement annuity provided under Section 14-110. However,
persons transferring to this System under Section 14-108.2 or
14-108.2c who have service credit under Article 16 of this Code
may count such service toward establishing their eligibility
under the 20-year service requirement of this subsection; but
such service may be used only for establishing such
eligibility, and not for the purpose of increasing or
calculating any benefit.
(k) (Blank).
(l) The changes to this Section made by this amendatory Act
of 1997 (changing certain retirement annuity formulas from a
stepped rate to a flat rate) apply to members who retire on or
after January 1, 1998, without regard to whether employment
terminated before the effective date of this amendatory Act of
1997. An annuity shall not be calculated in steps by using the
new flat rate for some steps and the superseded stepped rate

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for other steps of the same type of service.
(m) On July 1, 2009, every annuitant who began receiving a
retirement annuity before January 1, 1980 shall have the
monthly retirement annuity increased by whichever of the
following percentages is applicable:
5% if the annuity began in 1979;
10% if the annuity began in 1978;
14% if the annuity began in 1977;
14% if the annuity began in 1976;
18% if the annuity began in 1975;
23% if the annuity began in 1974;
32% if the annuity began in 1973 or before.
The increase under this subsection shall be calculated as a
percentage of the amount of the retirement annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under Section 14-114.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
(40 ILCS 5/14-109) (from Ch. 108 1/2, par. 14-109)
Sec. 14-109. Minimum retirement annuity.
(a) Beginning January 1, 1987, any person who is receiving
a monthly retirement annuity under this Article which, after
inclusion of (1) all one-time and automatic annual increases to
which the person is entitled, (2) any supplemental annuity
payable under Section 14-115, and (3) any amount deducted under

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Section 14-113 to provide a reversionary annuity, is less than
the minimum monthly retirement benefit amount specified in
subsection (b) of this Section, shall be entitled to a monthly
supplemental payment equal to the difference.
(b) For purposes of the calculation in subsection (a):
(1) Until January 1, 1997, the minimum monthly
retirement benefit amount is the sum of $15 for each year
of service as a noncovered employee, plus $7.50 for each
year of service as a covered employee, up to a maximum of
30 years of service.
(2) Beginning January 1, 1997, the minimum monthly
retirement benefit amount is the sum of $25 for each year
of service as a noncovered employee, plus $15 for each year
of service as a covered employee, up to a maximum of 30
years of service, plus the amount of the increase received
by the annuitant under subsection (m) of Section 14-108, if
any.
(c) This Section applies to all persons receiving a
retirement annuity under this Article, without regard to
whether or not employment terminated prior to the effective
date of this amendatory Act of 1996.
(Source: P.A. 89-616, eff. 8-9-96.)
(40 ILCS 5/14-109.1 new)
Sec. 14-109.1. Reduction of purchasing power; policy;
report; increase.

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(a) The General Assembly finds and declares that:
(1) The purchasing power of a fixed annuity can be
eroded over time by the effects of inflation and increases
in the general cost of living.
(2) For a person whose income consists primarily of a
fixed annuity, the reduction in purchasing power resulting
from increases in the cost of living can become
catastrophic over time, transforming a once-comfortable
retirement into a time of poverty and need.
(3) The State of Illinois is concerned about the
effects that a significant reduction in purchasing power
can have on the quality of life of retired employees and
their survivors.
(4) The General Assembly has previously addressed this
concern by providing for automatic annual increases in
retirement and survivor's annuities under this Article.
Recognizing that these automatic annual increases, by
themselves, are not a complete answer in times of high
inflation, the General Assembly has also, from time to
time, provided specific one-time increases in annuities
for certain categories of annuitants.
(b) It is the public policy of this State and the intention
of the General Assembly to protect annuitants against
significant decreases in the purchasing power of the retirement
and survivor's annuities granted under this Article.
(c) The System shall regularly review the changes that have

SB1561 - 21 - LRB096 09108 AMC 19251 b
occurred in the purchasing power of the retirement and
survivor's annuities being paid under this Article, and it
shall report to the General Assembly, the Governor, and the
Commission on Government Forecasting and Accountability
whenever it determines that the original purchasing power of
those annuities has been reduced by 20% or more for any
category or group of annuitants. The System may include in the
report its recommendations, if any, for legislative action to
address its findings.
(d) As used in this Section, the term "retirement and
survivor's annuities" means all retirement annuities and those
survivors insurance benefits payable in the form of an annuity.
(40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
Sec. 14-121. Amount of survivors annuity. A survivors
annuity beneficiary shall be entitled upon death of the member
to a single sum payment of $1,000, payable pro rata among all
persons entitled thereto, together with a survivors annuity
payable at the rates and under the conditions specified in this
Article.
(a) If the survivors annuity beneficiary is a spouse, the
survivors annuity shall be 30% of final average compensation
subject to a maximum payment of $400 per month.
(b) If an eligible child or children under the care of a
spouse also survives the member, such spouse as natural
guardian of the child or children shall receive, in addition to

SB1561 - 22 - LRB096 09108 AMC 19251 b
the foregoing annuity, 20% of final average compensation on
account of each such child and 10% of final average
compensation divided pro rata among such children, subject to a
maximum payment on account of all survivor annuity
beneficiaries of $600 per month, or 80% of the member's final
average compensation, whichever is the lesser.
(c) If the survivors annuity beneficiary or beneficiaries
consists of an unmarried child or children, the amount of
survivors annuity shall be 20% of final average compensation to
each child, and 10% of final average compensation divided pro
rata among all such children entitled to such annuity, subject
to a maximum payment to all children combined of $600 per month
or 80% of the member's final average compensation, whichever is
the lesser.
(d) If the survivors annuity beneficiary is one or more
dependent parents, the annuity shall be 20% of final average
compensation to each parent and 10% of final average
compensation divided pro rata among the parents who qualify for
this annuity, subject to a maximum payment to both dependent
parents of $400 per month.
(e) The survivors annuity to the spouse, children or
dependent parents of a member whose death occurs after the date
of last withdrawal, or after retirement, or while in service
following reentry into service after retirement but before
completing 1 1/2 years of additional creditable service, shall
not exceed the lesser of 80% of the member's earned retirement

SB1561 - 23 - LRB096 09108 AMC 19251 b
annuity at the date of death or the maximum previously
established in this Section.
(f) In applying the limitation prescribed on the combined
payments to 2 or more survivors annuity beneficiaries, the
annuity on account of each beneficiary shall be reduced pro
rata until such time as the number of beneficiaries makes the
reduction no longer applicable.
(g) A survivors annuity payable on account of any covered
employee who shall have been a covered employee for at least 18
months at date of death or last withdrawal, whichever is the
later, shall be reduced by 1/2 of the survivors benefits to
which his beneficiaries are eligible under the federal Social
Security Act, except that (1) the survivors annuity payable
under this Article shall not be reduced by any increase under
that Act which occurs after the offset required by this
subsection is first applied to that annuity, and (2) for
benefits granted on or after January 1, 1992, the offset under
this subsection (g) shall not exceed 50% of the amount of
survivors annuity otherwise payable.
(h) The minimum payment to a beneficiary hereunder shall be
$60 per month, which shall be reduced in accordance with the
limitation prescribed on the combined payments to all
beneficiaries of a member.
(i) Subject to the conditions set forth in Section 14-120,
the minimum total survivors annuity benefit payable to the
survivors annuity beneficiaries of a deceased member or

SB1561 - 24 - LRB096 09108 AMC 19251 b
annuitant whose death occurs on or after January 1, 1984, shall
be 50% of the amount of retirement annuity that was or would
have been payable to the deceased on the date of death,
regardless of the age of the deceased on such date. If the
minimum total benefit provided by this subsection exceeds the
maximum otherwise imposed by this Section, the minimum total
benefit shall nevertheless be payable. Any increase in the
total survivors annuity benefit resulting from the operation of
this subsection shall be divided among the survivors annuity
beneficiaries of the deceased in proportion to their shares of
the total survivors annuity benefit otherwise payable under
this Section.
(j) Any survivors annuity beneficiary whose annuity
terminates due to any condition specified in this Article other
than death shall be entitled to a refund of the excess, if any,
of the accumulated contributions of the member plus credited
interest over all payments to the member and beneficiary or
beneficiaries, exclusive of the single sum payment of $1,000,
provided no future survivors or reversionary annuity benefits
are payable.
(k) Upon the death of the last eligible recipient of a
survivors annuity the excess, if any, of the member's
accumulated contributions plus credited interest over all
annuity payments to the member and survivors exclusive of the
single sum payment of $1000, shall be paid to the named
beneficiary of the last eligible survivor, or if none has been

SB1561 - 25 - LRB096 09108 AMC 19251 b
named, to the estate of the last eligible survivor, provided no
reversionary annuity is payable.
(l) On January 1, 1981, any survivor who was receiving a
survivors annuity on or before January 1, 1971, shall have his
survivors annuity then being paid increased by 1% for each full
year which has elapsed from the date the annuity began. On
January 1, 1982, any survivor who began receiving a survivor's
annuity after January 1, 1971, but before January 1, 1981,
shall have his survivor's annuity then being paid increased by
1% for each full year that has elapsed from the date the
annuity began. On January 1, 1987, any survivor who began
receiving a survivor's annuity on or before January 1, 1977,
shall have the monthly survivor's annuity increased by $1 for
each full year which has elapsed since the date the survivor's
annuity began.
(m) Beginning January 1, 1990, every survivor'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 on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service on
or after the effective date of Public Act 86-1488, but shall
not accrue for any period prior to January 1, 1990.

SB1561 - 26 - LRB096 09108 AMC 19251 b
(n) On July 1, 2009, every recipient of a survivor's
annuity whose original annuity began before January 1, 1980
shall have the monthly survivor's annuity increased by
whichever of the following percentages is applicable:
5% if the original annuity began in 1979;
10% if the original annuity began in 1978;
14% if the original annuity began in 1977;
14% if the original annuity began in 1976;
18% if the original annuity began in 1975;
23% if the original annuity began in 1974;
32% if the original annuity began in 1973 or before.
In the case of the survivor of a deceased annuitant who
died while receiving a retirement annuity, "original annuity"
means the deceased annuitant's retirement annuity; in all other
cases, "original annuity" means the survivor's annuity.
The increase under this subsection shall be calculated as a
percentage of the amount of the survivor's annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (m).
(Source: P.A. 86-273; 86-1488; 87-794.)
(40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer

SB1561 - 27 - LRB096 09108 AMC 19251 b
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 90% funded basis in accordance with actuarial
recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department on
behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board,
using the formula in subsection (e). The minimum contribution
to the System to be made by the State for each fiscal year
shall be the sum of the amount determined under subsection (e).
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that fiscal
year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act and
Section 1 of the State Pension Funds Continuing Appropriation
Act, if any, for the fiscal year ending on the June 30
immediately preceding the applicable November 15 certification
deadline), the estimated payroll (including all forms of
compensation) for personal services rendered by eligible

SB1561 - 28 - LRB096 09108 AMC 19251 b
employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may elect
to participate in the System but have not so elected, persons
who are serving a qualifying period that is required for
participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several departments
for each pay period by warrants drawn by the State Comptroller
against their respective funds or appropriations based upon
vouchers stating the amount to be so contributed. These amounts
shall be based on the full rate certified by the Board under
Section 14-135.08 for that fiscal year. From the effective date
of this amendatory Act of the 93rd General Assembly through the
payment of the final payroll from fiscal year 2004
appropriations, the several departments shall not make
contributions for the remainder of fiscal year 2004 but shall
instead make payments as required under subsection (a-1) of
Section 14.1 of the State Finance Act. The several departments
shall resume those contributions at the commencement of fiscal
year 2005.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State

SB1561 - 29 - LRB096 09108 AMC 19251 b
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid by
the State. From the effective date of this amendatory Act of
the 93rd General Assembly through the payment of the final
payroll from fiscal year 2004 appropriations, the department or
other employer shall not pay contributions for the remainder of
fiscal year 2004 but shall instead make payments as required
under subsection (a-1) of Section 14.1 of the State Finance
Act. The department or other employer shall resume payment of
contributions at the commencement of fiscal year 2005.
(e) For State fiscal years 2011 through 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section; except that (i) for State
fiscal year 1998, for all purposes of this Code and any other

SB1561 - 30 - LRB096 09108 AMC 19251 b
law of this State, the certified percentage of the applicable
employee payroll shall be 5.052% for employees earning eligible
creditable service under Section 14-110 and 6.500% for all
other employees, notwithstanding any contrary certification
made under Section 14-135.08 before the effective date of this
amendatory Act of 1997, and (ii) in the following specified
State fiscal years, the State contribution to the System shall
not be less than the following indicated percentages of the
applicable employee payroll, even if the indicated percentage
will produce a State contribution in excess of the amount
otherwise required under this subsection and subsection (a):
9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
2002; 10.6% in FY 2003; and 10.8% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution to the System for State
fiscal year 2006 is $203,783,900.
Notwithstanding any other provision of this Article, the
total required State contribution to the System for State
fiscal year 2007 is $344,164,400.
For each of State fiscal years 2008 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Beginning in State fiscal year 2046, the minimum State

SB1561 - 31 - LRB096 09108 AMC 19251 b
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 14-135.08, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued for the purposes of that Section 7.2, as determined and

SB1561 - 32 - LRB096 09108 AMC 19251 b
certified by the Comptroller, that is the same as the System's
portion of the total moneys distributed under subsection (d) of
Section 7.2 of the General Obligation Bond Act. In determining
this maximum for State fiscal years 2008 through 2010, however,
the amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued for the purposes of Section 7.2
of the General Obligation Bond Act, so that, by State fiscal
year 2011, the State is contributing at the rate otherwise
required under this Section.
(f) After the submission of all payments for eligible
employees from personal services line items in fiscal year 2004
have been made, the Comptroller shall provide to the System a
certification of the sum of all fiscal year 2004 expenditures
for personal services that would have been covered by payments
to the System under this Section if the provisions of this
amendatory Act of the 93rd General Assembly had not been
enacted. Upon receipt of the certification, the System shall
determine the amount due to the System based on the full rate
certified by the Board under Section 14-135.08 for fiscal year
2004 in order to meet the State's obligation under this
Section. The System shall compare this amount due to the amount
received by the System in fiscal year 2004 through payments

SB1561 - 33 - LRB096 09108 AMC 19251 b
under this Section and under Section 6z-61 of the State Finance
Act. If the amount due is more than the amount received, the
difference shall be termed the "Fiscal Year 2004 Shortfall" for
purposes of this Section, and the Fiscal Year 2004 Shortfall
shall be satisfied under Section 1.2 of the State Pension Funds
Continuing Appropriation Act. If the amount due is less than
the amount received, the difference shall be termed the "Fiscal
Year 2004 Overpayment" for purposes of this Section, and the
Fiscal Year 2004 Overpayment shall be repaid by the System to
the Pension Contribution Fund as soon as practicable after the
certification.
(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
eff. 8-29-08.)
(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) this amendatory Act of the
94th General Assembly. "New benefit increase", however, does
not include any benefit increase resulting from the changes
made to this Article by this amendatory Act of the 96th General

SB1561 - 34 - LRB096 09108 AMC 19251 b
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 Financial and Professional Regulation. 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.

SB1561 - 35 - LRB096 09108 AMC 19251 b
(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. 94-4, eff. 6-1-05.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount. The provisions
of this Section 15-136 apply only to those participants who are
participating in the traditional benefit package or the
portable benefit package and do not apply to participants who
are participating in the self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be

SB1561 - 36 - LRB096 09108 AMC 19251 b
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final rate
of earnings for each of the first 10 years of service, 1.90%
for each of the next 10 years of service, 2.10% for each year
of service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the prescribed rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution

SB1561 - 37 - LRB096 09108 AMC 19251 b
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who retires
on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an employee
or employer contribution for early retirement under Section
15-136.2 nor any other employer contribution shall be used in
the calculation of the amount of a retirement annuity under
this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less

SB1561 - 38 - LRB096 09108 AMC 19251 b
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:

SB1561 - 39 - LRB096 09108 AMC 19251 b
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee of
the University of Illinois in a position other than police
officer or firefighter, from the date of that transfer
until the employee's next termination of service with the
University of Illinois.
Rule 5: The retirement annuity of a participant who elected
early retirement under the provisions of Section 15-136.2 and
who, on or before February 16, 1995, brought administrative
proceedings pursuant to the administrative rules adopted by the
System to challenge the calculation of his or her retirement
annuity shall be the sum of the following, determined from
amounts credited to the participant in accordance with the
actuarial tables and the prescribed rate of interest in effect
at the time the retirement annuity begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins; and
(ii) an annuity from employer contributions of an

SB1561 - 40 - LRB096 09108 AMC 19251 b
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) an annuity which can be provided on an
actuarially equivalent basis from the employee
contribution for early retirement under Section 15-136.2,
and an annuity from employer contributions of an amount
equal to that which can be provided on an actuarially
equivalent basis from the employee contribution for early
retirement under Section 15-136.2.
In no event shall a retirement annuity under this Rule 5 be
lower than the amount obtained by adding (1) the monthly amount
obtained by dividing the combined employee and employer
contributions made under Section 15-136.2 by the System's
annuity factor for the age of the participant at the beginning
of the annuity payment period and (2) the amount equal to the
participant's annuity if calculated under Rule 1, reduced under
Section 15-136(b) as if no contributions had been made under
Section 15-136.2.
With respect to a participant who is qualified for a
retirement annuity under this Rule 5 whose retirement annuity
began before the effective date of this amendatory Act of the
91st General Assembly, and for whom an employee contribution

SB1561 - 41 - LRB096 09108 AMC 19251 b
was made under Section 15-136.2, the System shall recalculate
the retirement annuity under this Rule 5 and shall pay any
additional amounts due in the manner provided in Section
15-186.1 for benefits mistakenly set too low.
The amount of a retirement annuity calculated under this
Rule 5 shall be computed solely on the basis of those
contributions specifically set forth in this Rule 5. Except as
provided in clause (iii) of this Rule 5, neither an employee
nor employer contribution for early retirement under Section
15-136.2, nor any other employer contribution, shall be used in
the calculation of the amount of a retirement annuity under
this Rule 5.
The General Assembly has adopted the changes set forth in
Section 25 of this amendatory Act of the 91st General Assembly
in recognition that the decision of the Appellate Court for the
Fourth District in Mattis v. State Universities Retirement
System et al. might be deemed to give some right to the
plaintiff in that case. The changes made by Section 25 of this
amendatory Act of the 91st General Assembly are a legislative
implementation of the decision of the Appellate Court for the
Fourth District in Mattis v. State Universities Retirement
System et al. with respect to that plaintiff.
The changes made by Section 25 of this amendatory Act of
the 91st General Assembly apply without regard to whether the
person is in service as an employee on or after its effective
date.

SB1561 - 42 - LRB096 09108 AMC 19251 b
(b) The retirement annuity provided under Rules 1 and 3
above shall be reduced by 1/2 of 1% for each month the
participant is under age 60 at the time of retirement. However,
this reduction shall not apply in the following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
date the retirement annuity is to begin.
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) An annuitant whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in his

SB1561 - 43 - LRB096 09108 AMC 19251 b
or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, Rule 4, or Rule 5, contained in this Section,
multiplied by the number of full months which elapsed from the
date the retirement annuity payments began to January 1, 1972,
plus 0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
this Section. The change made under this subsection by P.A.
81-970 is effective January 1, 1980 and applies to each
annuitant whose status as an employee terminates before or
after that date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,

SB1561 - 44 - LRB096 09108 AMC 19251 b
including all increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard to
whether status as an employee terminated before that date.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the
retirement annuity shall be increased as of January 1, 1987, or
the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity as
may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this

SB1561 - 45 - LRB096 09108 AMC 19251 b
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in whole
or in part to an employer, and (2) a participant transfers
employment from such governmental unit to such employer within
6 months after the transfer of the function, and (3) the sum of
(A) the annuity payable to the participant under Rule 1, 2, or
3 of this Section (B) all proportional annuities payable to the
participant by all other retirement systems covered by Article
20, and (C) the initial primary insurance amount to which the
participant is entitled under the Social Security Act, is less
than the retirement annuity which would have been payable if
all of the participant's pension credits validated under
Section 20-109 had been validated under this system, a
supplemental annuity equal to the difference in such amounts
shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement

SB1561 - 46 - LRB096 09108 AMC 19251 b
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8�
per year of creditable service times the number of years that
have elapsed since the annuity began.
(j) On July 1, 2009, every annuitant who began receiving a
retirement annuity before January 1, 1980 shall have the
monthly retirement annuity increased by whichever of the
following percentages is applicable:
5% if the annuity began in 1979;
10% if the annuity began in 1978;
14% if the annuity began in 1977;
14% if the annuity began in 1976;
18% if the annuity began in 1975;
23% if the annuity began in 1974;
32% if the annuity began in 1973 or before.
The increase under this subsection shall be calculated as a
percentage of the amount of the retirement annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (d).
(Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
(40 ILCS 5/15-136.3)
Sec. 15-136.3. Minimum retirement annuity.
(a) Beginning January 1, 1997, any person who is receiving
a monthly retirement annuity under this Article which, after

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inclusion of (1) all one-time and automatic annual increases to
which the person is entitled, (2) any supplemental annuity
payable under Section 15-136.1, and (3) any amount deducted
under Section 15-138 or 15-140 to provide a reversionary
annuity, is less than the minimum monthly retirement benefit
amount specified in subsection (b) of this Section, shall be
entitled to a monthly supplemental payment equal to the
difference.
(b) For purposes of the calculation in subsection (a), the
minimum monthly retirement benefit amount is the sum of $25 for
each year of service credit, up to a maximum of 30 years of
service, plus the amount of the increase received by the
annuitant under subsection (j) of Section 15-136, if any.
(c) This Section applies to all persons receiving a
retirement annuity under this Article, without regard to
whether or not employment terminated prior to the effective
date of this Section.
(Source: P.A. 89-616, eff. 8-9-96.)
(40 ILCS 5/15-137.1 new)
Sec. 15-137.1. Reduction of purchasing power; policy;
report; increase.
(a) The General Assembly finds and declares that:
(1) The purchasing power of a fixed annuity can be
eroded over time by the effects of inflation and increases
in the general cost of living.

SB1561 - 48 - LRB096 09108 AMC 19251 b
(2) For a person whose income consists primarily of a
fixed annuity, the reduction in purchasing power resulting
from increases in the cost of living can become
catastrophic over time, transforming a once-comfortable
retirement into a time of poverty and need.
(3) The State of Illinois is concerned about the
effects that a significant reduction in purchasing power
can have on the quality of life of retired employees and
their survivors.
(4) The General Assembly has previously addressed this
concern by providing for automatic annual increases in
retirement and survivor's annuities under this Article.
Recognizing that these automatic annual increases, by
themselves, are not a complete answer in times of high
inflation, the General Assembly has also, from time to
time, provided specific one-time increases in annuities
for certain categories of annuitants.
(b) It is the public policy of this State and the intention
of the General Assembly to protect annuitants against
significant decreases in the purchasing power of the retirement
and survivor's annuities granted under this Article.
(c) The System shall regularly review the changes that have
occurred in the purchasing power of the retirement and
survivor's annuities being paid under this Article, and it
shall report to the General Assembly, the Governor, and the
Commission on Government Forecasting and Accountability

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whenever it determines that the original purchasing power of
those annuities has been reduced by 20% or more for any
category or group of annuitants. The System may include in the
report its recommendations, if any, for legislative action to
address its findings.
(d) As used in this Section, the term "retirement and
survivor's annuities" means all retirement annuities and those
survivors insurance benefits payable in the form of an annuity.
(e) This Section does not apply to any benefits under the
self-managed plan.
(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; conditions and
amounts.
(a) The survivors insurance benefits provided under this
Section shall be payable to the eligible survivors of a
participant covered under the traditional benefit package upon
the death of (1) a participating employee with at least 1 1/2
years of service, (2) a participant who terminated employment
with at least 10 years of service, and (3) an annuitant in
receipt of a retirement annuity or disability retirement
annuity under this Article.
Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Pension and Retirement
Fund of Chicago shall be considered in determining eligibility

SB1561 - 50 - LRB096 09108 AMC 19251 b
for survivors benefits under this Section.
If by law, a function of a governmental unit, as defined by
Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of a
deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions, shall receive a survivors annuity of 30% of the
final rate of earnings. Payments shall begin on the day
following the participant's or annuitant's death or the date
the surviving spouse attains age 50, whichever is later, and
continue until the death of the surviving spouse. The annuity
shall be payable to the surviving spouse prior to attainment of
age 50 if the surviving spouse has in his or her care a
deceased participant's or annuitant's dependent unmarried
child under age 18 (under age 22 if a full-time student) who is
eligible for a survivors annuity.
Remarriage of a surviving spouse prior to attainment of age
55 that occurs before the effective date of this amendatory Act
of the 91st General Assembly shall disqualify him or her for

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the receipt of a survivors annuity until July 6, 2000.
A surviving spouse whose survivors annuity has been
terminated due to remarriage may apply for reinstatement of
that annuity. The reinstated annuity shall begin to accrue on
July 6, 2000, except that if, on July 6, 2000, the annuity is
payable to an eligible surviving child or parent, payment of
the annuity to the surviving spouse shall not be reinstated
until the annuity is no longer payable to any eligible
surviving child or parent. The reinstated annuity shall include
any one-time or annual increases received prior to the date of
termination, as well as any increases that would otherwise have
accrued from the date of termination to the date of
reinstatement. An eligible surviving spouse whose expectation
of receiving a survivors annuity was lost due to remarriage
before attainment of age 50 shall also be entitled to
reinstatement under this subsection, but the resulting
survivors annuity shall not begin to accrue sooner than upon
the surviving spouse's attainment of age 50.
The changes made to this subsection by this amendatory Act
of the 92nd General Assembly (pertaining to remarriage prior to
age 55 or 50) apply without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act.
(c) Each dependent unmarried child under age 18 (under age
22 if a full-time student) of a deceased participant, or of a
deceased annuitant who did not take a refund or additional

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annuity consisting of accumulated survivors insurance
contributions, shall receive a survivors annuity equal to the
sum of (1) 20% of the final rate of earnings, and (2) 10% of the
final rate of earnings divided by the number of children
entitled to this benefit. Payments shall begin on the day
following the participant's or annuitant's death and continue
until the child marries, dies, or attains age 18 (age 22 if a
full-time student). If the child is in the care of a surviving
spouse who is eligible for survivors insurance benefits, the
child's benefit shall be paid to the surviving spouse.
Each unmarried child over age 18 of a deceased participant
or of a deceased annuitant who had a survivor's insurance
beneficiary at the time of his or her retirement, and who was
dependent upon the participant or annuitant by reason of a
physical or mental disability which began prior to the date the
child attained age 18 (age 22 if a full-time student), shall
receive a survivor's annuity equal to the sum of (1) 20% of the
final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to
survivors benefits. Payments shall begin on the day following
the participant's or annuitant's death and continue until the
child marries, dies, or is no longer disabled. If the child is
in the care of a surviving spouse who is eligible for survivors
insurance benefits, the child's benefit may be paid to the
surviving spouse. For the purposes of this Section, disability
means inability to engage in any substantial gainful activity

SB1561 - 53 - LRB096 09108 AMC 19251 b
by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that has
lasted or can be expected to last for a continuous period of at
least one year.
(d) Each dependent parent of a deceased participant, or of
a deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions, shall receive a survivors annuity equal to the
sum of (1) 20% of final rate of earnings, and (2) 10% of final
rate of earnings divided by the number of parents who qualify
for the benefit. Payments shall begin when the parent reaches
age 55 or the day following the participant's or annuitant's
death, whichever is later, and continue until the parent dies.
Remarriage of a parent prior to attainment of age 55 shall
disqualify the parent for the receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of $1,000
divided by the number of such beneficiaries.
(f) The changes made in this Section by Public Act 81-712
pertaining to survivors annuities in cases of remarriage prior
to age 55 shall apply to each survivors insurance beneficiary
who remarries after June 30, 1979, regardless of the date that
the participant or annuitant terminated his employment or died.
The change made to this Section by this amendatory Act of
the 91st General Assembly, pertaining to remarriage prior to

SB1561 - 54 - LRB096 09108 AMC 19251 b
age 55, applies without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
(g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each full
year which has elapsed from the date the annuity began. On
January 1, 1982, any survivor whose annuity began after January
1, 1971, but before January 1, 1981, shall have the survivor's
annuity then being paid increased by 1% for each year which has
elapsed from the date the survivor's annuity began. On January
1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's
annuity increased by $1 for each full year which has elapsed
since the date the survivor's annuity began.
(g-1) On July 1, 2009, every recipient of a survivor's
annuity whose original annuity began before January 1, 1980
shall have the monthly survivor's annuity increased by
whichever of the following percentages is applicable:
5% if the original annuity began in 1979;
10% if the original annuity began in 1978;
14% if the original annuity began in 1977;
14% if the original annuity began in 1976;
18% if the original annuity began in 1975;
23% if the original annuity began in 1974;

SB1561 - 55 - LRB096 09108 AMC 19251 b
32% if the original annuity began in 1973 or before.
In the case of the survivor of a deceased annuitant who
died while receiving a retirement annuity, "original annuity"
means the deceased annuitant's retirement annuity; in all other
cases, "original annuity" means the survivor's annuity.
The increase under this subsection shall be calculated as a
percentage of the amount of the survivor's annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (j).
(h) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of a
participant amounts to less than the sum of the death benefits
payable under items (2) and (3) of Section 15-141, the
difference shall be paid in a lump sum to the beneficiary of
the participant who is living on the date that this additional
amount becomes payable.
(i) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of an
annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date that
this additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or (2)
the January 1 on or next after the date on which the survivor

SB1561 - 56 - LRB096 09108 AMC 19251 b
annuity begins, if the deceased member died while receiving a
retirement annuity, or in all other cases the January 1 nearest
the first anniversary of the date the survivor annuity payments
begin, every survivors insurance beneficiary shall receive an
increase in his or her monthly survivors annuity of 3%. On each
January 1 after the initial increase, the monthly survivors
annuity shall be increased by 3% of the total survivors annuity
provided under this Article, including previous increases
provided by this subsection. Such increases shall apply to the
survivors insurance beneficiaries of each participant and
annuitant, whether or not the employment status of the
participant or annuitant terminates before the effective date
of this amendatory Act of 1990. This subsection (j) also
applies to persons receiving a survivor annuity under the
portable benefit package.
(k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits shall
begin at the earlier age, in which event, the survivor's
beneficiary shall be entitled only to that amount which is
equal to the actuarial equivalent of the benefits provided by
this Section.
(l) The changes made to this Section and Section 15-131 by
this amendatory Act of 1997, relating to benefits for certain
unmarried children who are full-time students under age 22,
apply without regard to whether the deceased member was in

SB1561 - 57 - LRB096 09108 AMC 19251 b
service on or after the effective date of this amendatory Act
of 1997. These changes do not authorize the repayment of a
refund or a re-election of benefits, and any benefit or
increase in benefits resulting from these changes is not
payable retroactively for any period before the effective date
of this amendatory Act of 1997.
(Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State contributions
required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the
recommendations of the actuary, using the formula in subsection
(a-1). The minimum contribution to the System to be made by the
State for each fiscal year shall be the sum of the amount
determined under subsection (a-1).
(a-1) For State fiscal years 2011 through 2045, the minimum
contribution to the System to be made by the State for each

SB1561 - 58 - LRB096 09108 AMC 19251 b
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$252,064,100.
For each of State fiscal years 2008 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Beginning in State fiscal year 2046, the minimum State

SB1561 - 59 - LRB096 09108 AMC 19251 b
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 15-165, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued for the purposes of that Section 7.2, as determined and

SB1561 - 60 - LRB096 09108 AMC 19251 b
certified by the Comptroller, that is the same as the System's
portion of the total moneys distributed under subsection (d) of
Section 7.2 of the General Obligation Bond Act. In determining
this maximum for State fiscal years 2008 through 2010, however,
the amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued for the purposes of Section 7.2
of the General Obligation Bond Act, so that, by State fiscal
year 2011, the State is contributing at the rate otherwise
required under this Section.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income funds,
or service enterprise funds are not required to pay such
contributions on behalf of those employees. The local auxiliary
funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations

SB1561 - 61 - LRB096 09108 AMC 19251 b
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of the
actuary, and shall be expressed as a percentage of salary for
each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or other
funds, in accordance with actuarial procedures approved by the
Board. State of Illinois contributions for employers receiving
State appropriations for personal services shall be payable
from appropriations made to the employers or to the System. The
contributions for Class I community colleges covering earnings
other than those paid from trust and federal funds, shall be
payable solely from appropriations to the Illinois Community
College Board or the System for employer contributions.

SB1561 - 62 - LRB096 09108 AMC 19251 b
(d) Beginning in State fiscal year 1996, the required State
contributions to the System shall be appropriated directly to
the System and shall be payable through vouchers issued in
accordance with subsection (c) of Section 15-165, except as
provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System because
of the credits earned for service rendered by the participants
during the fiscal year and expenses of administering the
System, but shall not include the principal of or any
redemption premium or interest on any bonds issued by the Board
or any expenses incurred or deposits required in connection
therewith.
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the
System, the present value of the increase in benefits resulting

SB1561 - 63 - LRB096 09108 AMC 19251 b
from the portion of the increase in earnings that is in excess
of 6%. This present value shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is available
at the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be required
under this subsection (g), the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(h) or (i) of this Section, must include an affidavit setting
forth and attesting to all facts within the employer's
knowledge that are pertinent to the applicability of subsection
(h) or (i). Upon receiving a timely application for
recalculation, the System shall review the application and, if
appropriate, recalculate the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not paid
within 90 days after receipt of the bill, then interest will be

SB1561 - 64 - LRB096 09108 AMC 19251 b
charged at a rate equal to the System's annual actuarially
assumed rate of return on investment compounded annually from
the 91st day after receipt of the bill. Payments must be
concluded within 3 years after the employer's receipt of the
bill.
(h) This subsection (h) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting from
overload work, including a contract for summer teaching, or
overtime when the employer has certified to the System, and the
System has approved the certification, that: (i) in the case of
overloads (A) the overload work is for the sole purpose of
academic instruction in excess of the standard number of

SB1561 - 65 - LRB096 09108 AMC 19251 b
instruction hours for a full-time employee occurring during the
academic year that the overload is paid and (B) the earnings
increases are equal to or less than the rate of pay for
academic instruction computed using the participant's current
salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in academic
rank for a tenured or tenure-track faculty position, or (iii) a
promotion that the Illinois Community College Board has
recommended in accordance with subsection (k) of this Section.
These earnings increases shall be excluded only if the
promotion is to a position that has existed and been filled by
a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(i) When assessing payment for any amount due under
subsection (g), the System shall exclude any salary increase
described in subsection (h) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or

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renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (g) of this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for each
employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(k) The Illinois Community College Board shall adopt rules
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for State

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universities by the State Universities Civil Service System.
The Illinois Community College Board shall file a copy of its
findings with the System. The System shall consider the
findings of the Illinois Community College Board when making
determinations under this Section. The System shall not exclude
any earnings increases resulting from a promotion when the
promotion was not submitted by a community college. Nothing in
this subsection (k) shall require any community college to
submit any information to the Community College Board.
(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
eff. 7-31-06; 95-331, eff. 8-21-07; 95-950, eff. 8-29-08.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4) this amendatory Act of the
94th General Assembly. "New benefit increase", however, does
not include any benefit increase resulting from the changes
made to this Article by this amendatory Act of the 96th General
Assembly.
(b) Notwithstanding any other provision of this Code or any

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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 Financial and Professional Regulation. 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

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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. 94-4, eff. 6-1-05.)
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
Sec. 16-133. Retirement annuity; amount.
(a) The amount of the retirement annuity shall be (i) in
the case of a person who first became a teacher under this
Article before July 1, 2005, the larger of the amounts
determined under paragraphs (A) and (B) below, or (ii) in the
case of a person who first becomes a teacher under this Article
on or after July 1, 2005, the amount determined under the
applicable provisions of paragraph (B):
(A) An amount consisting of the sum of the following:

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(1) An amount that can be provided on an
actuarially equivalent basis by the member's
accumulated contributions at the time of retirement;
and
(2) The sum of (i) the amount that can be provided
on an actuarially equivalent basis by the member's
accumulated contributions representing service prior
to July 1, 1947, and (ii) the amount that can be
provided on an actuarially equivalent basis by the
amount obtained by multiplying 1.4 times the member's
accumulated contributions covering service subsequent
to June 30, 1947; and
(3) If there is prior service, 2 times the amount
that would have been determined under subparagraph (2)
of paragraph (A) above on account of contributions
which would have been made during the period of prior
service creditable to the member had the System been in
operation and had the member made contributions at the
contribution rate in effect prior to July 1, 1947.
This paragraph (A) does not apply to a person who first
becomes a teacher under this Article on or after July 1,
2005.
(B) An amount consisting of the greater of the
following:
(1) For creditable service earned before July 1,
1998 that has not been augmented under Section

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16-129.1: 1.67% of final average salary for each of the
first 10 years of creditable service, 1.90% of final
average salary for each year in excess of 10 but not
exceeding 20, 2.10% of final average salary for each
year in excess of 20 but not exceeding 30, and 2.30% of
final average salary for each year in excess of 30; and
For creditable service earned on or after July 1,
1998 by a member who has at least 24 years of
creditable service on July 1, 1998 and who does not
elect to augment service under Section 16-129.1: 2.2%
of final average salary for each year of creditable
service earned on or after July 1, 1998 but before the
member reaches a total of 30 years of creditable
service and 2.3% of final average salary for each year
of creditable service earned on or after July 1, 1998
and after the member reaches a total of 30 years of
creditable service; and
For all other creditable service: 2.2% of final
average salary for each year of creditable service; or
(2) 1.5% of final average salary for each year of
creditable service plus the sum $7.50 for each of the
first 20 years of creditable service.
The amount of the retirement annuity determined under this
paragraph (B) shall be reduced by 1/2 of 1% for each month
that the member is less than age 60 at the time the
retirement annuity begins. However, this reduction shall

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not apply (i) if the member has at least 35 years of
creditable service, or (ii) if the member retires on
account of disability under Section 16-149.2 of this
Article with at least 20 years of creditable service, or
(iii) if the member (1) has earned during the period
immediately preceding the last day of service at least one
year of contributing creditable service as an employee of a
department as defined in Section 14-103.04, (2) has earned
at least 5 years of contributing creditable service as an
employee of a department as defined in Section 14-103.04,
(3) retires on or after January 1, 2001, and (4) retires
having attained an age which, when added to the number of
years of his or her total creditable service, equals at
least 85. Portions of years shall be counted as decimal
equivalents.
(b) For purposes of this Section, final average salary
shall be the average salary for the highest 4 consecutive years
within the last 10 years of creditable service as determined
under rules of the board. The minimum final average salary
shall be considered to be $2,400 per year.
In the determination of final average salary for members
other than elected officials and their appointees when such
appointees are allowed by statute, that part of a member's
salary for any year beginning after June 30, 1979 which exceeds
the member's annual full-time salary rate with the same
employer for the preceding year by more than 20% shall be

SB1561 - 73 - LRB096 09108 AMC 19251 b
excluded. The exclusion shall not apply in any year in which
the member's creditable earnings are less than 50% of the
preceding year's mean salary for downstate teachers as
determined by the survey of school district salaries provided
in Section 2-3.103 of the School Code.
(c) In determining the amount of the retirement annuity
under paragraph (B) of this Section, a fractional year shall be
granted proportional credit.
(d) The retirement annuity determined under paragraph (B)
of this Section shall be available only to members who render
teaching service after July 1, 1947 for which member
contributions are required, and to annuitants who re-enter
under the provisions of Section 16-150.
(e) The maximum retirement annuity provided under
paragraph (B) of this Section shall be 75% of final average
salary.
(f) A member retiring after the effective date of this
amendatory Act of 1998 shall receive a pension equal to 75% of
final average salary if the member is qualified to receive a
retirement annuity equal to at least 74.6% of final average
salary under this Article or as proportional annuities under
Article 20 of this Code.
(g) On July 1, 2009, every annuitant who began receiving a
retirement annuity before January 1, 1980 shall have the
monthly retirement annuity increased by whichever of the
following percentages is applicable:

SB1561 - 74 - LRB096 09108 AMC 19251 b
5% if the annuity began in 1979;
10% if the annuity began in 1978;
14% if the annuity began in 1977;
14% if the annuity began in 1976;
18% if the annuity began in 1975;
23% if the annuity began in 1974;
32% if the annuity began in 1973 or before.
The increase under this subsection shall be calculated as a
percentage of the amount of the retirement annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under Section 16-133.1.
(Source: P.A. 94-4, eff. 6-1-05.)
(40 ILCS 5/16-136.2) (from Ch. 108 1/2, par. 16-136.2)
Sec. 16-136.2. Minimum retirement annuity.
(a) Any annuitant receiving a retirement annuity under this
Article is entitled to such additional amount of retirement
annuity under this Section, if necessary, that is sufficient to
provide a minimum retirement annuity of $10 per month for each
year of creditable service forming the basis of the retirement
annuity, up to $300 per month for 30 or more years of
creditable service. Effective January 1, 1984, the minimum
retirement annuity under this Section is $15 per month per year
of service up to $450 per month. Beginning January 1, 1996, the
minimum retirement annuity payable under this Section shall be

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$25 per month for each year of creditable service, up to a
maximum of $750 per month for 30 or more years of creditable
service, plus the amount of the increase received by the
annuitant under subsection (g) of Section 16-133, if any.
An annuitant entitled to an increase in retirement annuity
under this Section shall be entitled to such increase in
retirement annuity effective the later of (1) September 1
following attainment of age 60; (2) September 1 following the
first anniversary in retirement; or (3) the first of the month
following receipt of the required qualifying contribution from
the annuitant.
(b) An annuitant who qualifies for an additional amount of
retirement annuity under subsection (a) of this Section must
make a one-time payment of 1% of the monthly average salary for
each full year of the creditable service forming the basis of
the retirement annuity or, if the retirement annuity was not
computed using average salary, 1% of the original monthly
retirement annuity for each full year of service forming the
basis of the retirement annuity.
(c) The minimum retirement annuity provided under this
Section shall continue to be paid only to the extent that funds
are available in the minimum retirement annuity reserve
established under Section 16-186.3.
(d) The annual increase provided on and after September 1,
1977 under Section 16-136.1 and on and after January 1, 1978
under Section 16-133.1 shall be paid in addition to the minimum

SB1561 - 76 - LRB096 09108 AMC 19251 b
retirement annuity. Where an initial increase is first payable
on or after September 1, 1977, only that portion of the
increase based on the period in retirement after August 31,
1976, under Section 16-136.1 and after December 31, 1976, under
Section 16-133.1 may be added to the minimum retirement
annuity.
(Source: P.A. 89-21, eff. 6-6-95; 89-25, eff. 6-21-95.)
(40 ILCS 5/16-136.5 new)
Sec. 16-136.5. Reduction of purchasing power; policy;
report; increase.
(a) The General Assembly finds and declares that:
(1) The purchasing power of a fixed annuity can be
eroded over time by the effects of inflation and increases
in the general cost of living.
(2) For a person whose income consists primarily of a
fixed annuity, the reduction in purchasing power resulting
from increases in the cost of living can become
catastrophic over time, transforming a once-comfortable
retirement into a time of poverty and need.
(3) The State of Illinois is concerned about the
effects that a significant reduction in purchasing power
can have on the quality of life of retired employees and
their survivors.
(4) The General Assembly has previously addressed this
concern by providing for automatic annual increases in

SB1561 - 77 - LRB096 09108 AMC 19251 b
retirement and survivor's annuities under this Article.
Recognizing that these automatic annual increases, by
themselves, are not a complete answer in times of high
inflation, the General Assembly has also, from time to
time, provided specific one-time increases in annuities
for certain categories of annuitants.
(b) It is the public policy of this State and the intention
of the General Assembly to protect annuitants against
significant decreases in the purchasing power of the retirement
and survivor's annuities granted under this Article.
(c) The System shall regularly review the changes that have
occurred in the purchasing power of the retirement and
survivor's annuities being paid under this Article, and it
shall report to the General Assembly, the Governor, and the
Commission on Government Forecasting and Accountability
whenever it determines that the original purchasing power of
those annuities has been reduced by 20% or more for any
category or group of annuitants. The System may include in the
report its recommendations, if any, for legislative action to
address its findings.
(d) As used in this Section, the term "retirement and
survivor's annuities" means all retirement annuities and those
survivors insurance benefits payable in the form of an annuity.
(40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
Sec. 16-143.1. Increase in survivor benefits.

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(a) Beginning January 1, 1990, each survivor's benefit and
each reversionary annuity payable under Section 16-136 shall be
increased by 3% of the currently payable amount thereof (1) on
each January 1 occurring on or after the commencement of the
annuity if the deceased teacher died while receiving a
retirement or disability retirement annuity, or (2) in other
cases, on each January 1 occurring on or after the first
anniversary of the granting of the benefit, without regard to
whether the deceased teacher was in service on or after the
effective date of this amendatory Act of 1991, but such
increases shall not accrue for any period prior to January 1,
1990.
(b) On January 1, 1981, any beneficiary who was receiving a
survivor's monthly benefit on or before January 1, 1971, shall
have the benefit then being paid increased by 1% for each full
year elapsed from the date the survivor's benefit began. On
January 1, 1982, any beneficiary who began receiving a
survivor's monthly benefit after January 1, 1971, but before
January 1, 1981 shall have the benefit then being paid
increased by 1% for each year elapsed from the date the
survivor's benefit began.
On January 1, 1987, any beneficiary whose monthly
survivor's benefit began on or before January 1, 1977, shall
have the monthly survivor's benefit increased by $1 for each
full year which has elapsed since the date the survivor's
benefit began.

SB1561 - 79 - LRB096 09108 AMC 19251 b
(c) On July 1, 2009, every recipient of a survivor's
annuity whose original annuity began before January 1, 1980
shall have the monthly survivor's annuity increased by
whichever of the following percentages is applicable:
5% if the original annuity began in 1979;
10% if the original annuity began in 1978;
14% if the original annuity began in 1977;
14% if the original annuity began in 1976;
18% if the original annuity began in 1975;
23% if the original annuity began in 1974;
32% if the original annuity began in 1973 or before.
In the case of the survivor of a deceased annuitant who
died while receiving a retirement annuity, "original annuity"
means the deceased annuitant's retirement annuity; in all other
cases, "original annuity" means the survivor's annuity.
The increase under this subsection shall be calculated as a
percentage of the amount of the survivor's annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (a).
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by

SB1561 - 80 - LRB096 09108 AMC 19251 b
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State contributions
required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the
recommendations of the actuary, using the formula in subsection
(b-3). The minimum contribution to the System to be made by the
State for each fiscal year shall be the sum of the amount
determined under subsection (b-3).
(a-1) Annually, on or before November 15, the Board shall
certify to the Governor the amount of the required State
contribution for the coming fiscal year. The certification
shall include a copy of the actuarial recommendations upon
which it is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State

SB1561 - 81 - LRB096 09108 AMC 19251 b
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by this amendatory Act of the 94th General Assembly.
(b) Through State fiscal year 1995, the State contributions
shall be paid to the System in accordance with Section 18-7 of
the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th day
of each month, or as soon thereafter as may be practicable, the
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a-1). From the effective date of this amendatory Act of the
93rd General Assembly through June 30, 2004, the Board shall
not submit vouchers for the remainder of fiscal year 2004 in
excess of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (a) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the

SB1561 - 82 - LRB096 09108 AMC 19251 b
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal years 2011 through 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section; except that in the
following specified State fiscal years, the State contribution
to the System shall not be less than the following indicated
percentages of the applicable employee payroll, even if the
indicated percentage will produce a State contribution in
excess of the amount otherwise required under this subsection

SB1561 - 83 - LRB096 09108 AMC 19251 b
and subsection (a), and notwithstanding any contrary
certification made under subsection (a-1) before the effective
date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$738,014,500.
For each of State fiscal years 2008 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.

SB1561 - 84 - LRB096 09108 AMC 19251 b
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under subsection (a-1), shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued for the purposes of that Section 7.2, as determined and
certified by the Comptroller, that is the same as the System's
portion of the total moneys distributed under subsection (d) of
Section 7.2 of the General Obligation Bond Act. In determining
this maximum for State fiscal years 2008 through 2010, however,
the amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable

SB1561 - 85 - LRB096 09108 AMC 19251 b
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued for the purposes of Section 7.2
of the General Obligation Bond Act, so that, by State fiscal
year 2011, the State is contributing at the rate otherwise
required under this Section.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and all
expenses in connection with the administration and operation
thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs based
upon that service, as determined by the System. Employer
contributions, based on salary paid to members from federal
funds, may be forwarded by the distributing agency of the State
of Illinois to the System prior to allocation, in an amount
determined in accordance with guidelines established by such
agency and the System.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the

SB1561 - 86 - LRB096 09108 AMC 19251 b
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the employer
contribution shall be equal to 0.58% of each teacher's
salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member

SB1561 - 87 - LRB096 09108 AMC 19251 b
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from this amendatory Act of 1998.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by this amendatory Act of 1998 is the
responsibility of the teacher and not the teacher's employer,
unless the employer agrees, through collective bargaining or
otherwise, to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the

SB1561 - 88 - LRB096 09108 AMC 19251 b
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines
established by the System, the present value of the increase in
benefits resulting from the portion of the increase in salary
that is in excess of 6%. This present value shall be computed
by the System on the basis of the actuarial assumptions and
tables used in the most recent actuarial valuation of the
System that is available at the time of the computation. If a
teacher's salary for the 2005-2006 school year is used to
determine final average salary under this subsection (f), then
the changes made to this subsection (f) by Public Act 94-1057
shall apply in calculating whether the increase in his or her
salary is in excess of 6%. For the purposes of this Section,
change in employment under Section 10-21.12 of the School Code
on or after June 1, 2005 shall constitute a change in employer.
The System may require the employer to provide any pertinent
information or documentation. The changes made to this
subsection (f) by this amendatory Act of the 94th General
Assembly apply without regard to whether the teacher was in
service on or after its effective date.

SB1561 - 89 - LRB096 09108 AMC 19251 b
Whenever it determines that a payment is or may be required
under this subsection, the System shall calculate the amount of
the payment and bill the employer for that amount. The bill
shall specify the calculations used to determine the amount
due. If the employer disputes the amount of the bill, it may,
within 30 days after receipt of the bill, apply to the System
in writing for a recalculation. The application must specify in
detail the grounds of the dispute and, if the employer asserts
that the calculation is subject to subsection (g) or (h) of
this Section, must include an affidavit setting forth and
attesting to all facts within the employer's knowledge that are
pertinent to the applicability of that subsection. Upon
receiving a timely application for recalculation, the System
shall review the application and, if appropriate, recalculate
the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not paid
within 90 days after receipt of the bill, then interest will be
charged at a rate equal to the System's annual actuarially
assumed rate of return on investment compounded annually from
the 91st day after receipt of the bill. Payments must be
concluded within 3 years after the employer's receipt of the
bill.
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July

SB1561 - 90 - LRB096 09108 AMC 19251 b
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to teachers
under contracts or collective bargaining agreements entered
into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases are
equal to or less than the rate of pay for classroom instruction
computed on the teacher's current salary and work schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification

SB1561 - 91 - LRB096 09108 AMC 19251 b
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the district
requiring the same certification or the amount stipulated in
the collective bargaining agreement for a similar position
requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final
average salary.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of

SB1561 - 92 - LRB096 09108 AMC 19251 b
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for each
employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07;
95-950, eff. 8-29-08.)
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the

SB1561 - 93 - LRB096 09108 AMC 19251 b
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to this Article by Public Act 95-910 or this
amendatory Act of the 96th 95th 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 Financial and Professional Regulation. 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

SB1561 - 94 - LRB096 09108 AMC 19251 b
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. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who
terminated service as a judge prior to July 1, 1971 shall be
based on the law in effect at the time of termination of

SB1561 - 95 - LRB096 09108 AMC 19251 b
service.
(b) Effective July 1, 1971, the retirement annuity for any
participant in service on or after such date shall be 3 1/2% of
final average salary, as defined in this Section, for each of
the first 10 years of service, and 5% of such final average
salary for each year of service on excess of 10.
For purposes of this Section, final average salary shall
be:
(1) the average salary for the last 4 years of credited
service as a judge for a participant who terminates service
before July 1, 1975.
(2) for a participant who terminates service after June
30, 1975 and before July 1, 1982, the salary on the last
day of employment as a judge.
(3) for any participant who terminates service after
June 30, 1982 and before January 1, 1990, the average
salary for the final year of service as a judge.
(4) for a participant who terminates service on or
after January 1, 1990 but before the effective date of this
amendatory Act of 1995, the salary on the last day of
employment as a judge.
(5) for a participant who terminates service on or
after the effective date of this amendatory Act of 1995,
the salary on the last day of employment as a judge, or the
highest salary received by the participant for employment
as a judge in a position held by the participant for at

SB1561 - 96 - LRB096 09108 AMC 19251 b
least 4 consecutive years, whichever is greater.
However, in the case of a participant who elects to
discontinue contributions as provided in subdivision (a)(2) of
Section 18-133, the time of such election shall be considered
the last day of employment in the determination of final
average salary under this subsection.
The maximum retirement annuity for any participant shall be
85% of final average salary.
(c) The retirement annuity for a participant who retires
prior to age 60 with less than 28 years of service in the
System shall be reduced 1/2 of 1% for each month that the
participant's age is under 60 years at the time the annuity
commences. However, for a participant who retires on or after
the effective date of this amendatory Act of the 91st General
Assembly, the percentage reduction in retirement annuity
imposed under this subsection shall be reduced by 5/12 of 1%
for every month of service in this System in excess of 20
years, and therefore a participant with at least 26 years of
service in this System may retire at age 55 without any
reduction in annuity.
The reduction in retirement annuity imposed by this
subsection shall not apply in the case of retirement on account
of disability.
(d) On July 1, 2009, every annuitant who began receiving a
retirement annuity before January 1, 1980 shall have the
monthly retirement annuity increased by whichever of the

SB1561 - 97 - LRB096 09108 AMC 19251 b
following percentages is applicable:
5% if the annuity began in 1979;
10% if the annuity began in 1978;
14% if the annuity began in 1977;
14% if the annuity began in 1976;
18% if the annuity began in 1975;
23% if the annuity began in 1974;
32% if the annuity began in 1973 or before.
The increase under this subsection shall be calculated as a
percentage of the amount of the retirement annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under Section 18-125.1.
(Source: P.A. 91-653, eff. 12-10-99.)
(40 ILCS 5/18-125.2 new)
Sec. 18-125.2. Reduction of purchasing power; policy;
report; increase.
(a) The General Assembly finds and declares that:
(1) The purchasing power of a fixed annuity can be
eroded over time by the effects of inflation and increases
in the general cost of living.
(2) For a person whose income consists primarily of a
fixed annuity, the reduction in purchasing power resulting
from increases in the cost of living can become
catastrophic over time, transforming a once-comfortable

SB1561 - 98 - LRB096 09108 AMC 19251 b
retirement into a time of poverty and need.
(3) The State of Illinois is concerned about the
effects that a significant reduction in purchasing power
can have on the quality of life of retired employees and
their survivors.
(4) The General Assembly has previously addressed this
concern by providing for automatic annual increases in
retirement and survivor's annuities under this Article.
Recognizing that these automatic annual increases, by
themselves, are not a complete answer in times of high
inflation, the General Assembly has also, from time to
time, provided specific one-time increases in annuities
for certain categories of annuitants.
(b) It is the public policy of this State and the intention
of the General Assembly to protect annuitants against
significant decreases in the purchasing power of the retirement
and survivor's annuities granted under this Article.
(c) The System shall regularly review the changes that have
occurred in the purchasing power of the retirement and
survivor's annuities being paid under this Article, and it
shall report to the General Assembly, the Governor, and the
Commission on Government Forecasting and Accountability
whenever it determines that the original purchasing power of
those annuities has been reduced by 20% or more for any
category or group of annuitants. The System may include in the
report its recommendations, if any, for legislative action to

SB1561 - 99 - LRB096 09108 AMC 19251 b
address its findings.
(d) As used in this Section, the term "retirement and
survivor's annuities" means all retirement annuities and those
survivors insurance benefits payable in the form of an annuity.
(40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
Sec. 18-128.01. Amount of survivor's annuity.
(a) Upon the death of an annuitant, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity the annuitant was receiving immediately prior to
his or her death, inclusive of annual increases in the
retirement annuity to the date of death.
(b) Upon the death of an active participant, his or her
surviving spouse shall receive a survivor's annuity of 66 2/3%
of the annuity earned by the participant as of the date of his
or her death, determined without regard to whether the
participant had attained age 60 as of that time, or 7 1/2% of
the last salary of the decedent, whichever is greater.
(c) Upon the death of a participant who had terminated
service with at least 10 years of service, his or her surviving
spouse shall be entitled to a survivor's annuity of 66 2/3% of
the annuity earned by the deceased participant at the date of
death.
(d) Upon the death of an annuitant, active participant, or
participant who had terminated service with at least 10 years
of service, each surviving child under the age of 18 or

SB1561 - 100 - LRB096 09108 AMC 19251 b
disabled as defined in Section 18-128 shall be entitled to a
child's annuity in an amount equal to 5% of the decedent's
final salary, not to exceed in total for all such children the
greater of 20% of the decedent's last salary or 66 2/3% of the
annuity received or earned by the decedent as provided under
subsections (a) and (b) of this Section. This child's annuity
shall be paid whether or not a survivor's annuity was elected
under Section 18-123.
(e) The changes made in the survivor's annuity provisions
by Public Act 82-306 shall apply to the survivors of a deceased
participant or annuitant whose death occurs on or after August
21, 1981.
(f) Beginning January 1, 1990, every survivor'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 on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of
the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply
without regard to whether the deceased member was in service on
or after the effective date of this amendatory Act of 1991, but
shall not accrue for any period prior to January 1, 1990.
(g) On July 1, 2009, every recipient of a survivor's
annuity whose original annuity began before January 1, 1980
shall have the monthly survivor's annuity increased by

SB1561 - 101 - LRB096 09108 AMC 19251 b
whichever of the following percentages is applicable:
5% if the original annuity began in 1979;
10% if the original annuity began in 1978;
14% if the original annuity began in 1977;
14% if the original annuity began in 1976;
18% if the original annuity began in 1975;
23% if the original annuity began in 1974;
32% if the original annuity began in 1973 or before.
In the case of the survivor of a deceased annuitant who
died while receiving a retirement annuity, "original annuity"
means the deceased annuitant's retirement annuity; in all other
cases, "original annuity" means the survivor's annuity.
The increase under this subsection shall be calculated as a
percentage of the amount of the survivor's annuity payable on
June 30, 2009, including any increases previously received
under this Article, and shall be included in the calculation of
increases granted thereafter under subsection (f).
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to this
System by appropriations of the amounts which, together with
the contributions of participants, net earnings on
investments, and other income, will meet the costs of
maintaining and administering this System on a 90% funded basis

SB1561 - 102 - LRB096 09108 AMC 19251 b
in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the prescribed rate of interest, using the formula in
subsection (c). The minimum contribution to the System to be
made by the State for each fiscal year shall be the sum of the
amount determined under subsection (c).
(c) For State fiscal years 2011 through 2045, the minimum
contribution to the System to be made by the State for each
fiscal year shall be an amount determined by the System to be
sufficient to bring the total assets of the System up to 90% of
the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$29,189,400.

SB1561 - 103 - LRB096 09108 AMC 19251 b
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$35,236,800.
For each of State fiscal years 2008 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the

SB1561 - 104 - LRB096 09108 AMC 19251 b
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 18-140, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued for the purposes of that Section 7.2, as determined and
certified by the Comptroller, that is the same as the System's
portion of the total moneys distributed under subsection (d) of
Section 7.2 of the General Obligation Bond Act. In determining
this maximum for State fiscal years 2008 through 2010, however,
the amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued for the purposes of Section 7.2
of the General Obligation Bond Act, so that, by State fiscal
year 2011, the State is contributing at the rate otherwise
required under this Section.
(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
eff. 8-29-08.)

SB1561 - 105 - LRB096 09108 AMC 19251 b
(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4) this amendatory Act of the
94th General Assembly. "New benefit increase", however, does
not include any benefit increase resulting from the changes
made to this Article by this amendatory Act of the 96th 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

SB1561 - 106 - LRB096 09108 AMC 19251 b
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. 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

SB1561 - 107 - LRB096 09108 AMC 19251 b
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
Section 99. Effective date. This Act takes effect upon
becoming law.
SB1561 - 108 - LRB096 09108 AMC 19251 b
INDEX
Statutes amended in order of appearance
40 ILCS 5/2-119.01 from Ch. 108 1/2, par. 2-119.01
40 ILCS 5/2-119.2 new
40 ILCS 5/2-121.1 from Ch. 108 1/2, par. 2-121.1
40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
40 ILCS 5/2-162
40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
40 ILCS 5/14-109 from Ch. 108 1/2, par. 14-109
40 ILCS 5/14-109.1 new
40 ILCS 5/14-121 from Ch. 108 1/2, par. 14-121
40 ILCS 5/14-131 from Ch. 108 1/2, par. 14-131
40 ILCS 5/14-152.1
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-136.3
40 ILCS 5/15-137.1 new
40 ILCS 5/15-145 from Ch. 108 1/2, par. 15-145
40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
40 ILCS 5/15-198
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-136.2 from Ch. 108 1/2, par. 16-136.2
40 ILCS 5/16-136.5 new
40 ILCS 5/16-143.1 from Ch. 108 1/2, par. 16-143.1
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/16-203
SB1561 - 109 - LRB096 09108 AMC 19251 b
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-125.2 new
40 ILCS 5/18-128.01 from Ch. 108 1/2, par. 18-128.01
40 ILCS 5/18-131 from Ch. 108 1/2, par. 18-131
40 ILCS 5/18-169