Bill Text: IL SB1946 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the State Employee Article of the Illinois Pension Code. In provisions concerning final average compensation, provides that for a member on leave of absence without pay who purchases service credit for that period of leave, earnings are assumed to be equal to the rate of compensation in effect immediately prior to the leave. Provides that, if no contributions are required to establish service credit for the period of leave, the member may elect to establish earnings credit for the leave period within 48 months after returning to work by making the employee and employer contributions, plus interest at the actuarially assumed rate. Effective immediately.

Sponsorship: Strong Partisan Bill (Democrat 10-1)

Status: (Passed) 2010-04-14 - Public Act . . . . . . . . . 96-0889 [SB1946 Detail]

Download: Illinois-2009-SB1946-Enrolled.html

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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Public Labor Relations Act is
amended by changing Section 15 as follows:
(5 ILCS 315/15) (from Ch. 48, par. 1615)
Sec. 15. Act Takes Precedence.
(a) In case of any conflict between the provisions of this
Act and any other law (other than Section 5 of the State
Employees Group Insurance Act of 1971 and other than the
changes made to the Illinois Pension Code by this amendatory
Act of the 96th General Assembly), executive order or
administrative regulation relating to wages, hours and
conditions of employment and employment relations, the
provisions of this Act or any collective bargaining agreement
negotiated thereunder shall prevail and control. Nothing in
this Act shall be construed to replace or diminish the rights
of employees established by Sections 28 and 28a of the
Metropolitan Transit Authority Act, Sections 2.15 through 2.19
of the Regional Transportation Authority Act. The provisions of
this Act are subject to Section 5 of the State Employees Group
Insurance Act of 1971. Nothing in this Act shall be construed
to replace the necessity of complaints against a sworn peace

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officer, as defined in Section 2(a) of the Uniform Peace
Officer Disciplinary Act, from having a complaint supported by
a sworn affidavit.
(b) Except as provided in subsection (a) above, any
collective bargaining contract between a public employer and a
labor organization executed pursuant to this Act shall
supersede any contrary statutes, charters, ordinances, rules
or regulations relating to wages, hours and conditions of
employment and employment relations adopted by the public
employer or its agents. Any collective bargaining agreement
entered into prior to the effective date of this Act shall
remain in full force during its duration.
(c) It is the public policy of this State, pursuant to
paragraphs (h) and (i) of Section 6 of Article VII of the
Illinois Constitution, that the provisions of this Act are the
exclusive exercise by the State of powers and functions which
might otherwise be exercised by home rule units. Such powers
and functions may not be exercised concurrently, either
directly or indirectly, by any unit of local government,
including any home rule unit, except as otherwise authorized by
this Act.
(Source: P.A. 95-331, eff. 8-21-07.)
Section 10. The Illinois Pension Code is amended by adding
Section 1-160 and by amending Sections 2-108.1, 2-119,
2-119.01, 2-119.1, 2-121.1, 2-122, 17-129, 18-124, 18-125,

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18-125.1, 18-127, and 18-128.01 as follows:
(40 ILCS 5/1-160 new)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who
first becomes an employee and a participant under any
retirement system or pension fund under this Code, other than a
retirement system or pension fund established under Article 2,
3, 4, 5, 6, or 18 of this Code, on or after the effective date
of this amendatory Act of the 96th General Assembly
notwithstanding any other provision of this Code to the
contrary, but do not apply to any self-managed plan established
under this Code, to any person with respect to service as a
sheriff's law enforcement employee under Article 7, or to any
participant of the retirement plan established under Section
22-101.
(b) "Final average salary" means the average monthly salary
obtained by dividing the total salary of the participant during
the 96 consecutive months of service within the last 120 months
of service in which the total salary was the highest by the
number of months of service in that period; however, the annual
final average salary may not exceed $106,800, as automatically
increased by the lesser of 3% or one-half of the annual
increase in the consumer price index-u during the preceding
12-month calendar year. For the purposes of a person who first
becomes an employee of any retirement system or pension fund to

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which this Section applies on or after the effective date of
this amendatory Act of the 96th General Assembly, in this Code,
"final average salary" shall be substituted for the following:
(1) In Articles 7 (except for service as sheriff's law
enforcement employees) and 15, "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds.
(c) A participant is entitled to a retirement annuity
beginning on the date specified by the participant in a written
application only if, on that specified date, he or she has

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attained age 67 and has at least 10 years of service credit.
A participant who has attained age 62 and has at least 10
years of service credit may elect to receive the lower
retirement annuity provided in subsection (d) of this Section.
(d) The retirement annuity of a participant who is retiring
after attaining age 62 with at least 10 years of service credit
shall be reduced by one-half of 1% for each month that the
member's age is under age 67.
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases upon (1) attainment of age 67 or
(2) the first anniversary of the commencement of the annuity,
whichever occurs later. Each annual increase shall be
calculated at 3% or one-half the annual increase in the
consumer price index-u for the preceding calendar year,
whichever is less, of the originally granted retirement
annuity. If the increase in the consumer price index-u for the
preceding calendar year is zero or there is a decrease, then
the annuity shall not be increased.
(f) The initial survivor's annuity of an otherwise eligible
survivor of a participant who first becomes a participant on or
after the effective date of this amendatory Act of the 96th
General Assembly shall be in the amount of 66 2/3% of the
participant's earned retirement annuity at the date of death
and 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

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cases, on each January 1 occurring after the first anniversary
of the commencement of the annuity. Each annual increase shall
be calculated at 3% or one-half the annual increase in the
consumer price index-u for the preceding calendar year,
whichever is less, of the originally granted survivor's
annuity. If the increase in the consumer price index-u for the
preceding calendar year is zero or there is a decrease, then
the annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after the
effective date of this amendatory Act of the 96th General
Assembly is receiving a retirement annuity or retirement
pension under that system or fund and accepts employment in a

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position covered under the same Article or any other Article of
this Code on a full-time basis, then the person's retirement
annuity or retirement pension under that system or fund shall
be suspended during that employment. Upon termination of that
employment, the person's retirement annuity or retirement
pension payments shall resume and, if appropriate, be
recalculated under the applicable provisions of this Code.
(i) Notwithstanding any other provision of this Section, a
person who first becomes a participant of the retirement system
established under Article 15 on or after the effective date of
this amendatory Act of the 96th General Assembly shall have the
option to enroll in the self-managed plan created under Section
15-158.2 of this Code.
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever
of the following is applicable to the participant:
For a participant who first becomes a participant of this
System before August 10, 2009 (the effective date of Public Act
96-207) this amendatory Act of the 96th General Assembly:
(1) For a participant who is a member of the General
Assembly on his or her last day of service: the highest

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salary that is prescribed by law, on the participant's last
day of service, for a member of the General Assembly who is
not an officer; plus, if the participant was elected or
appointed to serve as an officer of the General Assembly
for 2 or more years and has made contributions as required
under subsection (d) of Section 2-126, the highest
additional amount of compensation prescribed by law, at the
time of the participant's service as an officer, for
members of the General Assembly who serve in that office.
(2) For a participant who holds one of the State
executive offices specified in Section 2-105 on his or her
last day of service: the highest salary prescribed by law
for service in that office on the participant's last day of
service.
(3) For a participant who is Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate on his or her last day of service:
the salary received for service in that capacity on the
last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
(4) For a participant who is a continuing participant
under Section 2-117.1 on his or her last day of service:
the salary received for service in that capacity on the

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last day of service, but not to exceed the highest salary
(including additional compensation for service as an
officer) that is prescribed by law on the participant's
last day of service for the highest paid officer of the
General Assembly.
For a participant who first becomes a participant of this
System on or after August 10, 2009 (the effective date of
Public Act 96-207) and before the effective date of this
amendatory Act of the 96th General Assembly this amendatory Act
of the 96th General Assembly, the average monthly salary
obtained by dividing the total salary of the participant during
the period of: (1) the 48 consecutive months of service within
the last 120 months of service in which the total compensation
was the highest, or (2) the total period of service, if less
than 48 months, by the number of months of service in that
period.
For a participant who first becomes a participant of this
System on or after the effective date of this amendatory Act of
the 96th General Assembly, the average monthly salary obtained
by dividing the total salary of the participant during the 96
consecutive months of service within the last 120 months of
service in which the total compensation was the highest by the
number of months of service in that period; however, the
highest salary for annuity purposes may not exceed the Social
Security Covered Wage Base for 2010, and shall automatically be
increased or decreased, as applicable, by a percentage equal to

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the percentage change in the consumer price index-u during the
preceding 12-month calendar year. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the Board.
(b) The earnings limitations of subsection (a) apply to
earnings under any other participating system under the
Retirement Systems Reciprocal Act that are considered in
calculating a proportional annuity under this Article, except
in the case of a person who first became a member of this
System before August 22, 1994.
(c) In calculating the subsection (a) earnings limitation
to be applied to earnings under any other participating system
under the Retirement Systems Reciprocal Act for the purpose of
calculating a proportional annuity under this Article, the
participant's last day of service shall be deemed to mean the
last day of service in any participating system from which the
person has applied for a proportional annuity under the
Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09.)
(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)

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Sec. 2-119. Retirement annuity - conditions for
eligibility.
(a) A participant whose service as a member is terminated,
regardless of age or cause, is entitled to a retirement annuity
beginning on the date specified by the participant in a written
application subject to the following conditions:
1. The date the annuity begins does not precede the
date of final termination of service, or is not more than
30 days before the receipt of the application by the board
in the case of annuities based on disability or one year
before the receipt of the application in the case of
annuities based on attained age;
2. The participant meets one of the following
eligibility requirements:
For a participant who first becomes a participant of
this System before the effective date of this amendatory
Act of the 96th General Assembly:
(A) He or she has attained age 55 and has at least
8 years of service credit;
(B) He or she has attained age 62 and terminated
service after July 1, 1971 with at least 4 years of
service credit; or
(C) He or she has completed 8 years of service and
has become permanently disabled and as a consequence,
is unable to perform the duties of his or her office.
For a participant who first becomes a participant of

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this System on or after the effective date of this
amendatory Act of the 96th General Assembly, he or she has
attained age 67 and has at least 8 years of service credit.
(a-5) A participant who first becomes a participant of this
System on or after the effective date of this amendatory Act of
the 96th General Assembly who has attained age 62 and has at
least 8 years of service credit may elect to receive the lower
retirement annuity provided in paragraph (c) of Section
2-119.01 of this Code.
(b) A participant shall be considered permanently disabled
only if: (1) disability occurs while in service and is of such
a nature as to prevent him or her from reasonably performing
the duties of his or her office at the time; and (2) the board
has received a written certificate by at least 2 licensed
physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(Source: P.A. 83-1440.)
(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

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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
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) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
the effective date of this amendatory Act of the 96th General
Assembly, the annual retirement annuity is 3% of the
participant's highest salary for annuity purposes for each year
of service. The maximum retirement annuity payable shall be 60%
of the participant's highest salary for annuity purposes.
(d) Notwithstanding any other provision of this Article,
for a participant who first becomes a participant on or after
the effective date of this amendatory Act of the 96th General
Assembly and who is retiring after attaining age 62 with at
least 8 years of service credit, the retirement annuity shall
be reduced by one-half of 1% for each month that the member's
age is under age 67.

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(Source: P.A. 86-1488.)
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who
has not received an initial increase under this Section before
the effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary of

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retirement. For any person who has service credit in the System
for the entire period from January 15, 1969 through December
31, 1992, regardless of the date of termination of service, the
reference to age 55 in clause (1) of this subsection (b) shall
be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after the effective date of this
amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after the
effective date of this amendatory Act of the 96th General
Assembly shall, in January or July next following the first
anniversary of retirement, whichever occurs first, and in the
same month of each year thereafter, but in no event prior to
age 67, have the amount of the retirement annuity then being
paid increased by 3% or the annual change in the Consumer Price
Index for All Urban Consumers, whichever is less.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her

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last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) 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, including previous increases granted under this
Article.
(Source: P.A. 93-494, eff. 8-8-03.)
(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

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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
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

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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
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.

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(d-5) Notwithstanding any other provision of this Article,
the initial survivor's annuity of a survivor of a participant
who first becomes a participant on or after the effective date
of this amendatory Act of the 96th General Assembly shall be in
the amount of 66 2/3% of the amount of the retirement annuity
to which the participant or annuitant was entitled on the date
of death and 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% or the annual change in the Consumer Price Index
for All Urban Consumers, whichever is less, of the survivor's
annuity then being paid.
(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.
(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.

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(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/2-122) (from Ch. 108 1/2, par. 2-122)
Sec. 2-122. Re-entry after retirement. An annuitant who
re-enters service as a member shall become a participant on the
date of re-entry and retirement annuity payments shall cease at
that time. The participant shall resume contributions to the
system on the date of re-entry at the rates then in effect and
shall begin to accrue additional service credit. He or she
shall be entitled to all rights and privileges in the system,
including death and disability benefits, subject to the
limitations herein provided, except refund of retirement
annuity contributions.
Upon subsequent retirement, the participant shall be
entitled to a retirement annuity consisting of: (1) the amount
of retirement annuity previously granted and terminated by
re-entry into service; and (2) the amount of additional
retirement annuity earned during the additional service based
on the provisions in effect at the date of such subsequent
retirement. However, the total retirement annuity shall not
exceed the maximum retirement annuity applicable at the date of
the participant's last retirement. If the salary of the
participant following the latest re-entry into service is
higher than that in effect at the date of the previous
retirement and the participant restores to the system all
amounts previously received as retirement annuity payments,

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upon subsequent retirement, the retirement annuity shall be
recalculated for all service credited under the system as
though the participant had not previously retired.
The repayment of retirement annuity payments must be made
by the participant in a single sum or by a withholding from
salary within a period of 6 years from date of re-entry and in
any event before subsequent retirement. If previous annuity
payments have not been repaid to the system at the date of
death of the participant, any remaining balance must be fully
repaid to the system before any further annuity shall be
payable.
Such member, if unmarried at date of his last retirement,
shall also be entitled to a refund of widow's and widower's
annuity contributions, without interest, covering the period
from the date of re-entry into service to the date of last
retirement.
Notwithstanding any other provision of this Article, if a
person who first becomes a participant under this System on or
after the effective date of this amendatory Act of the 96th
General Assembly is receiving a retirement annuity under this
Article and accepts employment in a position covered under this
Article or any other Article of this Code on a full-time basis,
then the person's retirement annuity under this System shall be
suspended during that employment. Upon termination of that
employment, the person's retirement annuity shall resume and,
if appropriate, be recalculated under the applicable

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provisions of this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
Sec. 17-129. Employer contributions; deficiency in Fund.
(a) If in any fiscal year of the Board of Education ending
prior to 1997 the total amounts paid to the Fund from the Board
of Education (other than under this subsection, and other than
amounts used for making or "picking up" contributions on behalf
of teachers) and from the State do not equal the total
contributions made by or on behalf of the teachers for such
year, or if the total income of the Fund in any such fiscal
year of the Board of Education from all sources is less than
the total such expenditures by the Fund for such year, the
Board of Education shall, in the next succeeding year, in
addition to any other payment to the Fund set apart and
appropriate from moneys from its tax levy for educational
purposes, a sum sufficient to remove such deficiency or
deficiencies, and promptly pay such sum into the Fund in order
to restore any of the reserves of the Fund that may have been
so temporarily applied. Any amounts received by the Fund after
December 4, 1997 from State appropriations, including under
Section 17-127, shall be a credit against and shall fully
satisfy any obligation that may have arisen, or be claimed to
have arisen, under this subsection (a) as a result of any
deficiency or deficiencies in the fiscal year of the Board of

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Education ending in calendar year 1997.
(b) (i) Notwithstanding any other provision of this
Section, and notwithstanding any prior certification by the
Board under subsection (c) for fiscal year 2011, the Board of
Education's total required contribution to the Fund for fiscal
year 2011 under this Section is $187,000,000.
(ii) Notwithstanding any other provision of this Section,
the Board of Education's total required contribution to the
Fund for fiscal year 2012 under this Section is $192,000,000.
(iii) Notwithstanding any other provision of this Section,
the Board of Education's total required contribution to the
Fund for fiscal year 2013 under this Section is $196,000,000.
(iv) For fiscal years 2014 through 2059, the minimum
contribution to the Fund to be made by the Board of Education
in each fiscal year shall be an amount determined by the Fund
to be sufficient to bring the total assets of the Fund up to
90% of the total actuarial liabilities of the Fund by the end
of fiscal year 2059. In making these determinations, the
required Board of Education contribution shall be calculated
each year as a level percentage of the applicable employee
payrolls over the years remaining to and including fiscal year
2059 and shall be determined under the projected unit credit
actuarial cost method.
(v) Beginning in fiscal year 2060, the minimum Board of
Education contribution for each fiscal year shall be the amount
needed to maintain the total assets of the Fund at 90% of the

SB1946 Enrolled - 24 - LRB096 08984 AMC 19123 b
total actuarial liabilities of the Fund.
(vi) Notwithstanding any other provision of this
subsection (b), for any fiscal year, the contribution to the
Fund from the Board of Education shall not be required to be in
excess of the amount calculated as needed to maintain the
assets (or cause the assets to be) at the 90% level by the end
of the fiscal year.
(vii) Any contribution by the State to or for the benefit
of the Fund, including, without limitation, as referred to
under Section 17-127, shall be a credit against any
contribution required to be made by the Board of Education
under this subsection (b).
(b) (i) For fiscal years 2011 through 2045, the minimum
contribution to the Fund to be made by the Board of Education
in each fiscal year shall be an amount determined by the Fund
to be sufficient to bring the total assets of the Fund up to
90% of the total actuarial liabilities of the Fund by the end
of fiscal year 2045. In making these determinations, the
required Board of Education contribution shall be calculated
each year as a level percentage of the applicable employee
payrolls over the years remaining to and including fiscal year
2045 and shall be determined under the projected unit credit
actuarial cost method.
(ii) For fiscal years 1999 through 2010, the Board of
Education's contribution to the Fund, as a percentage of the
applicable employee payroll, shall be increased in equal annual

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increments so that by fiscal year 2011, the Board of Education
is contributing at the rate required under this subsection.
(iii) Beginning in fiscal year 2046, the minimum Board of
Education contribution for each fiscal year shall be the amount
needed to maintain the total assets of the Fund at 90% of the
total actuarial liabilities of the Fund.
(iv) Notwithstanding the provisions of paragraphs (i),
(ii), and (iii) of this subsection (b), for any fiscal year the
contribution to the Fund from the Board of Education shall not
be required to be in excess of the amount calculated as needed
to maintain the assets (or cause the assets to be) at the 90%
level by the end of the fiscal year.
(v) Any contribution by the State to or for the benefit of
the Fund, including, without limitation, as referred to under
Section 17-127, shall be a credit against any contribution
required to be made by the Board of Education under this
subsection (b).
(c) The Board shall determine the amount of Board of
Education 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, in order to
meet the minimum contribution requirements of subsections (a)
and (b). Annually, on or before February 28, the Board shall
certify to the Board of Education the amount of the required
Board of Education contribution for the coming fiscal year. The
certification shall include a copy of the actuarial

SB1946 Enrolled - 26 - LRB096 08984 AMC 19123 b
recommendations upon which it is based.
(Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97;
90-566, eff. 1-2-98; 90-655, eff. 7-30-98.)
(40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
Sec. 18-124. Retirement annuities - conditions for
eligibility.
(a) This subsection (a) applies to a participant who first
serves as a judge before the effective date of this amendatory
Act of the 96th General Assembly.
A participant whose employment as a judge is terminated,
regardless of age or cause is entitled to a retirement annuity
beginning on the date specified in a written application
subject to the following:
(1) the date the annuity begins is subsequent to the
date of final termination of employment, or the date 30
days prior to the receipt of the application by the board
for annuities based on disability, or one year before the
receipt of the application by the board for annuities based
on attained age;
(2) the participant is at least age 55, or has become
permanently disabled and as a consequence is unable to
perform the duties of his or her office;
(3) the participant has at least 10 years of service
credit except that a participant terminating service after
June 30 1975, with at least 6 years of service credit,

SB1946 Enrolled - 27 - LRB096 08984 AMC 19123 b
shall be entitled to a retirement annuity at age 62 or
over;
(4) the participant is not receiving or entitled to
receive, at the date of retirement, any salary from an
employer for service currently performed.
(b) This subsection (b) applies to a participant who first
serves as a judge on or after the effective date of this
amendatory Act of the 96th General Assembly.
A participant who has at least 8 years of creditable
service is entitled to a retirement annuity when he or she has
attained age 67.
A member who has attained age 62 and has at least 8 years
of service credit may elect to receive the lower retirement
annuity provided in subsection (d) of Section 18-125 of this
Code.
(Source: P.A. 83-1440.)
(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
service.
(b) Except as provided in subsection (b-5), effective
Effective July 1, 1971, the retirement annuity for any
participant in service on or after such date shall be 3 1/2% of

SB1946 Enrolled - 28 - LRB096 08984 AMC 19123 b
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 for a
participant who first serves as a judge before August 10, 2009
(the effective date of Public Act 96-207) this amendatory Act
of the 96th General Assembly 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
least 4 consecutive years, whichever is greater.

SB1946 Enrolled - 29 - LRB096 08984 AMC 19123 b
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.
For a participant who first serves as a judge on or after
August 10, 2009 (the effective date of Public Act 96-207) and
before the effective date of this amendatory Act of the 96th
General Assembly this amendatory Act of the 96th General
Assembly, final average salary shall be the average monthly
salary obtained by dividing the total salary of the participant
during the period of: (1) the 48 consecutive months of service
within the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in that period.
The maximum retirement annuity for any participant shall be
85% of final average salary.
(b-5) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after the
effective date of this amendatory Act of the 96th General
Assembly, the annual retirement annuity is 3% of the
participant's final average salary for each year of service.
The maximum retirement annuity payable shall be 60% of the
participant's final average salary.
For a participant who first serves as a judge on or after

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the effective date of this amendatory Act of the 96th General
Assembly, final average salary shall be the average monthly
salary obtained by dividing the total salary of the judge
during the 96 consecutive months of service within the last 120
months of service in which the total salary was the highest by
the number of months of service in that period; however, the
final average salary may not exceed the Social Security Covered
Wage Base for 2010, and shall automatically be increased or
decreased, as applicable, by a percentage equal to the
percentage change in the consumer price index-u during the
preceding 12-month calendar year. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the Board.
(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%

SB1946 Enrolled - 31 - LRB096 08984 AMC 19123 b
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) Notwithstanding any other provision of this Article,
for a participant who first serves as a judge on or after the
effective date of this amendatory Act of the 96th General
Assembly and who is retiring after attaining age 62, the
retirement annuity shall be reduced by 1/2 of 1% for each month
that the participant's age is under age 67 at the time the
annuity commences.
(Source: P.A. 96-207, eff. 8-10-09; revised 10-30-09.)
(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A
participant who retires from service after June 30, 1969,
shall, in January of the year next following the year in which
the first anniversary of retirement occurs, and in January of
each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year
up to and including 1971, 1 1/2%; for each year from 1972
through 1979 inclusive, 2%; and for 1980 and each year
thereafter, 3%.

SB1946 Enrolled - 32 - LRB096 08984 AMC 19123 b
Notwithstanding any other provision of this Article, a
retirement annuity for a participant who first serves as a
judge on or after the effective date of this amendatory Act of
the 96th General Assembly shall be increased in January of the
year next following the year in which the first anniversary of
retirement occurs, and in January of each year thereafter, by
an amount equal to 3% or the annual change in the Consumer
Price Index for All Urban Consumers, whichever is less, of the
retirement annuity then being paid.
This Section is not applicable to a participant who retires
before he or she has made contributions at the rate prescribed
in Section 18-133 for automatic increases for not less than the
equivalent of one full year, unless such a participant arranges
to pay the system the amount required to bring the total
contributions for the automatic increase to the equivalent of
one year's contribution based upon his or her last year's
salary.
This Section is applicable to all participants in service
after June 30, 1969 unless a participant has elected, prior to
September 1, 1969, in a written direction filed with the board
not to be subject to the provisions of this Section. Any
participant in service on or after July 1, 1992 shall have the
option of electing prior to April 1, 1993, in a written
direction filed with the board, to be covered by the provisions
of the 1969 amendatory Act. Such participant shall be required
to make the aforesaid additional contributions with compound

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interest at 4% per annum.
Any participant who has become eligible to receive the
maximum rate of annuity and who resumes service as a judge
after receiving a retirement annuity under this Article shall
have the amount of his or her retirement annuity increased by
3% of the originally granted annuity amount for each year of
such resumed service, beginning in January of the year next
following the date of such resumed service, upon subsequent
termination of such resumed service.
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,
including previous increases granted under this Article.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
Sec. 18-127. Retirement annuity - suspension on
reemployment.
(a) A participant receiving a retirement annuity who is
regularly employed for compensation by an employer other than a
county, in any capacity, shall have his or her retirement
annuity payments suspended during such employment. Upon
termination of such employment, retirement annuity payments at
the previous rate shall be resumed.
If such a participant resumes service as a judge, he or she
shall receive credit for any additional service. Upon

SB1946 Enrolled - 34 - LRB096 08984 AMC 19123 b
subsequent retirement, his or her retirement annuity shall be
the amount previously granted, plus the amount earned by the
additional judicial service under the provisions in effect
during the period of such additional service. However, if the
participant was receiving the maximum rate of annuity at the
time of re-employment, he or she may elect, in a written
direction filed with the board, not to receive any additional
service credit during the period of re-employment. In such
case, contributions shall not be required during the period of
re-employment. Any such election shall be irrevocable.
(b) Beginning January 1, 1991, any participant receiving a
retirement annuity who accepts temporary employment from an
employer other than a county for a period not exceeding 75
working days in any calendar year shall not be deemed to be
regularly employed for compensation or to have resumed service
as a judge for the purposes of this Article. A day shall be
considered a working day if the annuitant performs on it any of
his duties under the temporary employment agreement.
(c) Except as provided in subsection (a), beginning January
1, 1993, retirement annuities shall not be subject to
suspension upon resumption of employment for an employer, and
any retirement annuity that is then so suspended shall be
reinstated on that date.
(d) The changes made in this Section by this amendatory Act
of 1993 shall apply to judges no longer in service on its
effective date, as well as to judges serving on or after that

SB1946 Enrolled - 35 - LRB096 08984 AMC 19123 b
date.
(e) A participant receiving a retirement annuity under this
Article who serves as a part-time employee in any of the
following positions: Legislative Inspector General, Special
Legislative Inspector General, employee of the Office of the
Legislative Inspector General, Executive Director of the
Legislative Ethics Commission, or staff of the Legislative
Ethics Commission, but has not elected to participate in the
Article 14 System with respect to that service, shall not be
deemed to be regularly employed for compensation by an employer
other than a county, nor to have resumed service as a judge, on
the basis of that service, and the retirement annuity payments
and other benefits of that person under this Code shall not be
suspended, diminished, or otherwise impaired solely as a
consequence of that service. This subsection (e) applies
without regard to whether the person is in service as a judge
under this Article on or after the effective date of this
amendatory Act of the 93rd General Assembly. In this
subsection, a "part-time employee" is a person who is not
required to work at least 35 hours per week.
(f) A participant receiving a retirement annuity under this
Article who has made an election under Section 1-123 and who is
serving either as legal counsel in the Office of the Governor
or as Chief Deputy Attorney General shall not be deemed to be
regularly employed for compensation by an employer other than a
county, nor to have resumed service as a judge, on the basis of

SB1946 Enrolled - 36 - LRB096 08984 AMC 19123 b
that service, and the retirement annuity payments and other
benefits of that person under this Code shall not be suspended,
diminished, or otherwise impaired solely as a consequence of
that service. This subsection (f) applies without regard to
whether the person is in service as a judge under this Article
on or after the effective date of this amendatory Act of the
93rd General Assembly.
(g) Notwithstanding any other provision of this Article, if
a person who first becomes a participant under this System on
or after the effective date of this amendatory Act of the 96th
General Assembly is receiving a retirement annuity under this
Article and accepts employment in a position covered under this
Article or any other Article of this Code on a full-time basis,
then the person's retirement annuity under this System shall be
suspended during that employment. Upon termination of that
employment, the person's retirement annuity shall resume and,
if appropriate, be recalculated under the applicable
provisions of this Article.
(Source: P.A. 93-685, eff. 7-8-04; 93-1069, eff. 1-15-05.)
(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

SB1946 Enrolled - 37 - LRB096 08984 AMC 19123 b
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
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

SB1946 Enrolled - 38 - LRB096 08984 AMC 19123 b
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) Notwithstanding any other provision of this Article,
the initial survivor's annuity for a survivor of a participant
who first serves as a judge after the effective date of this
amendatory Act of the 96th General Assembly shall be in the
amount of 66 2/3% of the annuity received or earned by the
decedent, and shall be increased (1) on each January 1
occurring on or after the commencement of the annuity if the
deceased participant 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% or the annual change in the
Consumer Price Index for All Urban Consumers, whichever is
less, of the survivor's annuity then being paid.
(Source: P.A. 86-273; 86-1488.)

SB1946 Enrolled - 39 - LRB096 08984 AMC 19123 b
Section 90. The State Mandates Act is amended by adding
Section 8.34 as follows:
(30 ILCS 805/8.34 new)
Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 96th General Assembly.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Section and the changes to
Section 17-129 of the Illinois Pension Code take effect upon