Bill Text: IL SB2173 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the General Assembly, State Employee, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) maintain their current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act and to provide that no action of the employer taken to implement that prohibition shall give rise to an unfair labor practice under those Acts; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced) 2017-04-07 - Rule 3-9(a) / Re-referred to Assignments [SB2173 Detail]

Download: Illinois-2017-SB2173-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2173

Introduced 3/15/2017, by Sen. Michael Connelly

SYNOPSIS AS INTRODUCED:
See Index

Amends the General Assembly, State Employee, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) maintain their current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act and to provide that no action of the employer taken to implement that prohibition shall give rise to an unfair labor practice under those Acts; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately.
LRB100 11899 RPS 23506 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB2173LRB100 11899 RPS 23506 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Public Labor Relations Act is
5amended by changing Sections 10 and 15 and by adding Section
67.6 as follows:
7 (5 ILCS 315/7.6 new)
8 Sec. 7.6. No collective bargaining or interest arbitration
9regarding certain changes to the Illinois Pension Code.
10 (a) Notwithstanding any other provision of this Act,
11employers shall not be required to bargain over matters
12affected by the changes, the impact of the changes, and the
13implementation of the changes to Article 14, 15, 16, or 17 of
14the Illinois Pension Code made by the addition of Section
1514-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
16Pension Code, which are deemed to be prohibited subjects of
17bargaining. Notwithstanding any provision of this Act, the
18changes, impact of the changes, or implementation of the
19changes to Article 14, 15, 16, or 17 of the Illinois Pension
20Code made by the addition of Section 14-106.5, 15-132.9,
2116-122.9, or 17-115.5 of the Illinois Pension Code shall not be
22subject to interest arbitration or any award issued pursuant to
23interest arbitration. The provisions of this Section shall not

SB2173- 2 -LRB100 11899 RPS 23506 b
1apply to an employment contract or collective bargaining
2agreement that is in effect on the effective date of this
3amendatory Act of the 100th General Assembly. However, any such
4contract or agreement that is modified, amended, renewed, or
5superseded after the effective date of this amendatory Act of
6the 100th General Assembly shall be subject to the provisions
7of this Section. Each employer with active employees
8participating in a retirement system or pension fund
9established under Article 14, 15, 16, or 17 of the Illinois
10Pension Code shall comply with and be subject to the provisions
11of this amendatory Act of the 100th General Assembly. The
12provisions of this Section shall not apply to the ability of
13any employer and employee representative to bargain
14collectively with regard to the pick up of employee
15contributions pursuant to Section 14-133.1, 15-157.1,
1616-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
17 (b) Subject to and except for the matters set forth in
18subsection (a) of this Section that are deemed prohibited
19subjects of bargaining, nothing in this Section shall be
20construed as otherwise limiting any of the obligations and
21requirements applicable to employers under any of the
22provisions of this Act, including, but not limited to, the
23requirement to bargain collectively with regard to policy
24matters directly affecting wages, hours, and terms and
25conditions of employment as well as the impact thereon upon
26request by employee representatives. Subject to and except for

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

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

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

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

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

SB2173- 8 -LRB100 11899 RPS 23506 b
1 this subparagraph shall be construed to prohibit any
2 picketing or other publicity for the purpose of
3 truthfully advising the public that an employer does
4 not employ members of, or have a contract with, a labor
5 organization unless an effect of such picketing is to
6 induce any individual employed by any other person in
7 the course of his employment, not to pick up, deliver,
8 or transport any goods or not to perform any services;
9 or
10 (8) to refuse to reduce a collective bargaining
11 agreement to writing or to refuse to sign such agreement.
12 (c) The expressing of any views, argument, or opinion or
13the dissemination thereof, whether in written, printed,
14graphic, or visual form, shall not constitute or be evidence of
15an unfair labor practice under any of the provisions of this
16Act, if such expression contains no threat of reprisal or force
17or promise of benefit.
18(Source: P.A. 86-412; 87-736.)
19 (5 ILCS 315/15) (from Ch. 48, par. 1615)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22 Sec. 15. Act Takes Precedence.
23 (a) In case of any conflict between the provisions of this
24Act and any other law (other than Section 5 of the State
25Employees Group Insurance Act of 1971 and other than the

SB2173- 9 -LRB100 11899 RPS 23506 b
1changes made to the Illinois Pension Code by this amendatory
2Act of the 96th General Assembly), executive order or
3administrative regulation relating to wages, hours and
4conditions of employment and employment relations, the
5provisions of this Act or any collective bargaining agreement
6negotiated thereunder shall prevail and control. Nothing in
7this Act shall be construed to replace or diminish the rights
8of employees established by Sections 28 and 28a of the
9Metropolitan Transit Authority Act, Sections 2.15 through 2.19
10of the Regional Transportation Authority Act. The provisions of
11this Act are subject to Section 5 of the State Employees Group
12Insurance Act of 1971. Nothing in this Act shall be construed
13to replace the necessity of complaints against a sworn peace
14officer, as defined in Section 2(a) of the Uniform Peace
15Officer Disciplinary Act, from having a complaint supported by
16a sworn affidavit.
17 (b) Except as provided in subsection (a) above, any
18collective bargaining contract between a public employer and a
19labor organization executed pursuant to this Act shall
20supersede any contrary statutes, charters, ordinances, rules
21or regulations relating to wages, hours and conditions of
22employment and employment relations adopted by the public
23employer or its agents. Any collective bargaining agreement
24entered into prior to the effective date of this Act shall
25remain in full force during its duration.
26 (c) It is the public policy of this State, pursuant to

SB2173- 10 -LRB100 11899 RPS 23506 b
1paragraphs (h) and (i) of Section 6 of Article VII of the
2Illinois Constitution, that the provisions of this Act are the
3exclusive exercise by the State of powers and functions which
4might otherwise be exercised by home rule units. Such powers
5and functions may not be exercised concurrently, either
6directly or indirectly, by any unit of local government,
7including any home rule unit, except as otherwise authorized by
8this Act.
9 (d) Notwithstanding any other provision of law, no
10collective bargaining agreement entered into, renewed, or
11extended after the effective date of this amendatory Act of the
12100th General Assembly or any arbitration award issued under
13such collective bargaining agreement may violate or conflict
14with the changes made by this amendatory Act of the 100th
15General Assembly.
16(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
17 Section 10. The Attorney General Act is amended by adding
18Section 5 as follows:
19 (15 ILCS 205/5 new)
20 Sec. 5. Future increases in income. The Office of the
21Attorney General must not pay, offer, or agree to pay any
22future increase in income, as that term is defined in Section
2314-103.42 of the Illinois Pension Code, to any person in a
24manner that violates Section 14-106.5 of the Illinois Pension

SB2173- 11 -LRB100 11899 RPS 23506 b
1Code.
2 Section 15. The Secretary of State Merit Employment Code is
3amended by adding Section 13a as follows:
4 (15 ILCS 310/13a new)
5 Sec. 13a. Future increases in income. The Office of the
6Secretary of State must not pay, offer, or agree to pay any
7future increase in income, as that term is defined in Section
814-103.42 of the Illinois Pension Code, to any person in a
9manner that violates Section 14-106.5 of the Illinois Pension
10Code.
11 Section 20. The Comptroller Merit Employment Code is
12amended by adding Section 13a as follows:
13 (15 ILCS 410/13a new)
14 Sec. 13a. Future increases in income. The Office of the
15Comptroller must not pay, offer, or agree to pay any future
16increase in income, as that term is defined in Section
1714-103.42 of the Illinois Pension Code, to any person in a
18manner that violates Section 14-106.5 of the Illinois Pension
19Code.
20 Section 25. The State Treasurer Employment Code is amended
21by adding Section 12a as follows:

SB2173- 12 -LRB100 11899 RPS 23506 b
1 (15 ILCS 510/12a new)
2 Sec. 12a. Future increases in income. The Office of the
3State Treasurer must not pay, offer, or agree to pay any future
4increase in income, as that term is defined in Section
514-103.42 of the Illinois Pension Code, to any person in a
6manner that violates Section 14-106.5 of the Illinois Pension
7Code.
8 Section 30. The Civil Administrative Code of Illinois is
9amended by adding Section 5-647 as follows:
10 (20 ILCS 5/5-647 new)
11 Sec. 5-647. Future increases in income. A Department must
12not pay, offer, or agree to pay any future increase in income,
13as that term is defined in Section 14-103.42, 15-112.1, or
1416-121.1 of the Illinois Pension Code, to any person in a
15manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of
16the Illinois Pension Code.
17 Section 35. The Illinois Pension Code is amended by
18changing Sections 2-108, 2-119.1, 2-124, 2-126, 2-134, 2-162,
1914-103.10, 14-114, 14-131, 14-133, 14-135.08, 14-152.1,
2015-108.1, 15-111, 15-136, 15-155, 15-157, 15-165, 15-198,
2116-121, 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116,
2217-129, and 17-130 and by adding 2-105.3, 2-107.9, 2-107.10,

SB2173- 13 -LRB100 11899 RPS 23506 b
12-110.3, 14-103.41, 14-103.42, 14-103.43, 14-106.5, 15-112.1,
215-112.2, 15-132.9, 16-107.1, 16-121.1, 16-121.2, 16-122.9,
317-106.05, 17-113.4, 17-113.5, 17-113.6, 17-115.5, and
417-119.2 as follows:
5 (40 ILCS 5/2-105.3 new)
6 Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
7participant who first became a participant before January 1,
82011.
9 (40 ILCS 5/2-107.9 new)
10 Sec. 2-107.9. Future increase in income. "Future increase
11in income" means an increase to a Tier 1 employee's base pay
12that is offered to the Tier 1 employee for service under this
13Article after June 30, 2018 that qualifies as "salary", as
14defined in Section 2-108, or would qualify as "salary" but for
15the fact that it was offered to and accepted by the Tier 1
16employee under the condition set forth in subsection (c) of
17Section 2-110.3.
18 (40 ILCS 5/2-107.10 new)
19 Sec. 2-107.10. Base pay. As used in Section 2-107.9 of
20this Code, "base pay" means the Tier 1 employee's annualized
21rate of salary as of June 30, 2018. For a person returning to
22active service as a Tier 1 employee after June 30, 2018,
23however, "base pay" means the employee's annualized rate of

SB2173- 14 -LRB100 11899 RPS 23506 b
1salary as of the employee's last date of service prior to July
21, 2018. The System shall calculate the base pay of each Tier 1
3employee pursuant to this Section.
4 (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
5 (Text of Section WITHOUT the changes made by P.A. 98-599,
6which has been held unconstitutional)
7 Sec. 2-108. Salary. "Salary":
8 (1) For members of the General Assembly, the total
9compensation paid to the member by the State for one year of
10service, including the additional amounts, if any, paid to the
11member as an officer pursuant to Section 1 of "An Act in
12relation to the compensation and emoluments of the members of
13the General Assembly", approved December 6, 1907, as now or
14hereafter amended.
15 (2) For the State executive officers specified in Section
162-105, the total compensation paid to the member for one year
17of service.
18 (3) For members of the System who are participants under
19Section 2-117.1, or who are serving as Clerk or Assistant Clerk
20of the House of Representatives or Secretary or Assistant
21Secretary of the Senate, the total compensation paid to the
22member for one year of service, but not to exceed the salary of
23the highest salaried officer of the General Assembly.
24 However, in the event that federal law results in any
25participant receiving imputed income based on the value of

SB2173- 15 -LRB100 11899 RPS 23506 b
1group term life insurance provided by the State, such imputed
2income shall not be included in salary for the purposes of this
3Article.
4 Notwithstanding any other provision of this Section,
5"salary" does not include any future increase in income that is
6offered for service to a Tier 1 employee under this Article
7pursuant to the condition set forth in subsection (c) of
8Section 2-110.3 and accepted under that condition by a Tier 1
9employee who has made the election under paragraph (2) of
10subsection (a) of Section 2-110.3.
11 Notwithstanding any other provision of this Section,
12"salary" does not include any consideration payment made to a
13Tier 1 employee.
14(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
15 (40 ILCS 5/2-110.3 new)
16 Sec. 2-110.3. Election by Tier 1 employees.
17 (a) Each active Tier 1 employee shall make an irrevocable
18election either:
19 (1) to agree to delay his or her eligibility for
20 automatic annual increases in retirement annuity as
21 provided in subsection (a-1) of Section 2-119.1 and to have
22 the amount of the automatic annual increases in his or her
23 retirement annuity and survivor's annuity that are
24 otherwise provided for in this Article calculated,
25 instead, as provided in subsection (a-1) of Section

SB2173- 16 -LRB100 11899 RPS 23506 b
1 2-119.1; or
2 (2) to not agree to paragraph (1) of this subsection.
3 The election required under this subsection (a) shall be
4made by each active Tier 1 employee no earlier than January 1,
52018 and no later than March 31, 2018, except that a person who
6returns to active service as a Tier 1 employee under this
7Article on or after January 1, 2018 and has not yet made an
8election under this Section must make the election under this
9subsection (a) within 60 days after returning to active service
10as a Tier 1 employee.
11 If a Tier 1 employee fails for any reason to make a
12required election under this subsection within the time
13specified, then the employee shall be deemed to have made the
14election under paragraph (2) of this subsection.
15 (a-5) If this Section is enjoined or stayed by an Illinois
16court or a court of competent jurisdiction pending the entry of
17a final and unappealable decision, and this Section is
18determined to be constitutional or otherwise valid by a final
19unappealable decision of an Illinois court or a court of
20competent jurisdiction, then the election procedure set forth
21in subsection (a) of this Section shall commence on the 180th
22calendar day after the date of the issuance of the final
23unappealable decision and shall conclude at the end of the
24270th calendar day after that date.
25 (a-10) All elections under subsection (a) that are made or
26deemed to be made before July 1, 2018 shall take effect on July

SB2173- 17 -LRB100 11899 RPS 23506 b
11, 2018. Elections that are made or deemed to be made on or
2after July 1, 2018 shall take effect on the first day of the
3month following the month in which the election is made or
4deemed to be made.
5 (b) As adequate and legal consideration provided under this
6amendatory Act of the 100th General Assembly for making an
7election under paragraph (1) of subsection (a) of this Section,
8the State of Illinois shall be expressly and irrevocably
9prohibited from offering any future increases in income to a
10Tier 1 employee who has made an election under paragraph (1) of
11subsection (a) of this Section on the condition of not
12constituting salary under Section 2-108.
13 As adequate and legal consideration provided under this
14amendatory Act of the 100th General Assembly for making an
15election under paragraph (1) of subsection (a) of this Section,
16each Tier 1 employee who has made an election under paragraph
17(1) of subsection (a) of this Section shall receive a
18consideration payment equal to 10% of the contributions made by
19or on behalf of the employee under Section 2-126 before the
20effective date of that election. The State Comptroller shall
21pay the consideration payment to the Tier 1 employee out of
22funds appropriated for that purpose under Section 1.9 of the
23State Pension Funds Continuing Appropriation Act. The System
24shall calculate the amount of each consideration payment and,
25by July 1, 2018, shall certify to the State Comptroller the
26amount of the consideration payment, together with the name,

SB2173- 18 -LRB100 11899 RPS 23506 b
1address, and any other available payment information of the
2Tier 1 employee as found in the records of the System. The
3System shall make additional calculations and certifications
4of consideration payments to the State Comptroller as the
5System deems necessary.
6 (c) A Tier 1 employee who makes the election under
7paragraph (2) of subsection (a) of this Section shall not be
8subject to paragraph (1) of subsection (a) of this Section.
9However, each future increase in income offered for service as
10a member under this Article to a Tier 1 employee who has made
11the election under paragraph (2) of subsection (a) of this
12Section shall be offered expressly and irrevocably on the
13condition of not constituting salary under Section 2-108 and
14that the Tier 1 employee's acceptance of the offered future
15increase in income shall constitute his or her agreement to
16that condition.
17 (d) The System shall make a good faith effort to contact
18each Tier 1 employee subject to this Section. The System shall
19mail information describing the required election to each Tier
201 employee by United States Postal Service mail to his or her
21last known address on file with the System. If the Tier 1
22employee is not responsive to other means of contact, it is
23sufficient for the System to publish the details of any
24required elections on its website or to publish those details
25in a regularly published newsletter or other existing public
26forum.

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

SB2173- 20 -LRB100 11899 RPS 23506 b
1Assembly to provide information concerning the impact of the
2election set forth in this Section.
3 (e) Notwithstanding any other provision of law, each future
4increase in income offered by the State of Illinois for service
5as a member must be offered expressly and irrevocably on the
6condition of not constituting "salary" under Section 2-108 to
7any Tier 1 employee who has made an election under paragraph
8(2) of subsection (a) of this Section. The offer shall also
9provide that the Tier 1 employee's acceptance of the offered
10future increase in income shall constitute his or her agreement
11to the condition set forth in this subsection.
12 For purposes of legislative intent, the condition set forth
13in this subsection shall be construed in a manner that ensures
14that the condition is not violated or circumvented through any
15contrivance of any kind.
16 (f) A member's election under this Section is not a
17prohibited election under subdivision (j)(1) of Section 1-119
18of this Code.
19 (g) No provision of this Section shall be interpreted in a
20way that would cause the System to cease to be a qualified plan
21under Section 401(a) of the Internal Revenue Code of 1986. The
22provisions of this Section shall be subject to and implemented
23in a manner that complies with Section 11 of Article IV of the
24Illinois Constitution.
25 (h) If an election created by this amendatory Act in any
26other Article of this Code or any change deriving from that

SB2173- 21 -LRB100 11899 RPS 23506 b
1election is determined to be unconstitutional or otherwise
2invalid by a final unappealable decision of an Illinois court
3or a court of competent jurisdiction, the invalidity of that
4provision shall not in any way affect the validity of this
5Section or the changes deriving from the election required
6under this Section.
7 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
8 (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10 Sec. 2-119.1. Automatic increase in retirement annuity.
11 (a) Except as provided in subsection (a-1), a A participant
12who retires after June 30, 1967, and who has not received an
13initial increase under this Section before the effective date
14of this amendatory Act of 1991, shall, in January or July next
15following the first anniversary of retirement, whichever
16occurs first, and in the same month of each year thereafter,
17but in no event prior to age 60, have the amount of the
18originally granted retirement annuity increased as follows:
19for each year through 1971, 1 1/2%; for each year from 1972
20through 1979, 2%; and for 1980 and each year thereafter, 3%.
21Annuitants who have received an initial increase under this
22subsection prior to the effective date of this amendatory Act
23of 1991 shall continue to receive their annual increases in the
24same month as the initial increase.
25 (a-1) Notwithstanding any other provision of this Article,

SB2173- 22 -LRB100 11899 RPS 23506 b
1for a Tier 1 employee who made the election under paragraph (1)
2of subsection (a) of Section 2-110.3:
3 (1) The initial increase in retirement annuity under
4 this Section shall occur on the January 1 occurring either
5 on or after the attainment of age 67 or the fifth
6 anniversary of the annuity start date, whichever is
7 earlier.
8 (2) The amount of each automatic annual increase in
9 retirement annuity or survivor's annuity occurring on or
10 after the effective date of that election shall be
11 calculated as a percentage of the originally granted
12 retirement annuity or survivor's annuity, equal to 3% or
13 one-half the annual unadjusted percentage increase (but
14 not less than zero) in the consumer price index-u for the
15 12 months ending with the September preceding each November
16 1, whichever is less. If the annual unadjusted percentage
17 change in the consumer price index-u for the 12 months
18 ending with the September preceding each November 1 is zero
19 or there is a decrease, then the annuity shall not be
20 increased.
21 For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

SB2173- 23 -LRB100 11899 RPS 23506 b
1be determined by the Public Pension Division of the Department
2of Insurance and made available to the board of the retirement
3system by November 1 of each year.
4 (b) Beginning January 1, 1990, for eligible participants
5who remain in service after attaining 20 years of creditable
6service, the 3% increases provided under subsection (a) shall
7begin to accrue on the January 1 next following the date upon
8which the participant (1) attains age 55, or (2) attains 20
9years of creditable service, whichever occurs later, and shall
10continue to accrue while the participant remains in service;
11such increases shall become payable on January 1 or July 1,
12whichever occurs first, next following the first anniversary of
13retirement. For any person who has service credit in the System
14for the entire period from January 15, 1969 through December
1531, 1992, regardless of the date of termination of service, the
16reference to age 55 in clause (1) of this subsection (b) shall
17be deemed to mean age 50.
18 This subsection (b) does not apply to any person who first
19becomes a member of the System after August 8, 2003 (the
20effective date of Public Act 93-494) this amendatory Act of the
2193rd General Assembly.
22 (b-5) Notwithstanding any other provision of this Article,
23a participant who first becomes a participant on or after
24January 1, 2011 (the effective date of Public Act 96-889)
25shall, in January or July next following the first anniversary
26of retirement, whichever occurs first, and in the same month of

SB2173- 24 -LRB100 11899 RPS 23506 b
1each year thereafter, but in no event prior to age 67, have the
2amount of the retirement annuity then being paid increased by
33% or the annual unadjusted percentage increase in the Consumer
4Price Index for All Urban Consumers as determined by the Public
5Pension Division of the Department of Insurance under
6subsection (a) of Section 2-108.1, whichever is less.
7 (c) The foregoing provisions relating to automatic
8increases are not applicable to a participant who retires
9before having made contributions (at the rate prescribed in
10Section 2-126) for automatic increases for less than the
11equivalent of one full year. However, in order to be eligible
12for the automatic increases, such a participant may make
13arrangements to pay to the system the amount required to bring
14the total contributions for the automatic increase to the
15equivalent of one year's contributions based upon his or her
16last salary.
17 (d) A participant who terminated service prior to July 1,
181967, with at least 14 years of service is entitled to an
19increase in retirement annuity beginning January, 1976, and to
20additional increases in January of each year thereafter.
21 The initial increase shall be 1 1/2% of the originally
22granted retirement annuity multiplied by the number of full
23years that the annuitant was in receipt of such annuity prior
24to January 1, 1972, plus 2% of the originally granted
25retirement annuity for each year after that date. The
26subsequent annual increases shall be at the rate of 2% of the

SB2173- 25 -LRB100 11899 RPS 23506 b
1originally granted retirement annuity for each year through
21979 and at the rate of 3% for 1980 and thereafter.
3 (e) Beginning January 1, 1990, and except as provided in
4subsection (a-1), all automatic annual increases payable under
5this Section shall be calculated as a percentage of the total
6annuity payable at the time of the increase, including previous
7increases granted under this Article.
8(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
9 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
10 (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12 Sec. 2-124. Contributions by State.
13 (a) The State shall make contributions to the System by
14appropriations of amounts which, together with the
15contributions of participants, interest earned on investments,
16and other income will meet the cost of maintaining and
17administering the System on a 90% funded basis in accordance
18with actuarial recommendations.
19 (b) The Board shall determine the amount of State
20contributions required for each fiscal year on the basis of the
21actuarial tables and other assumptions adopted by the Board and
22the prescribed rate of interest, using the formula in
23subsection (c).
24 (c) For State fiscal years 2012 through 2045 (except as
25otherwise provided for fiscal year 2019), the minimum

SB2173- 26 -LRB100 11899 RPS 23506 b
1contribution to the System to be made by the State for each
2fiscal year shall be an amount determined by the System to be
3sufficient to bring the total assets of the System up to 90% of
4the total actuarial liabilities of the System by the end of
5State fiscal year 2045. In making these determinations, the
6required State contribution shall be calculated each year as a
7level percentage of payroll over the years remaining to and
8including fiscal year 2045 and shall be determined under the
9projected unit credit actuarial cost method.
10 For State fiscal year 2019:
11 (1) The initial calculation and certification shall be
12 based on the amount determined above.
13 (2) For purposes of the recertification due on or
14 before May 1, 2018, the recalculation of the required State
15 contribution for fiscal year 2019 shall take into account
16 the effect on the System's liabilities of the elections
17 made under Section 2-110.3.
18 (3) For purposes of the recertification due on or
19 before October 1, 2018, the total required State
20 contribution for fiscal year 2019 shall be reduced by the
21 amount of the consideration payments made to Tier 1
22 employees who made the election under paragraph (1) of
23 subsection (a) of Section 2-110.3.
24 If Section 2-110.3 is determined to be unconstitutional or
25otherwise invalid by a final unappealable decision of an
26Illinois court or a court of competent jurisdiction, then the

SB2173- 27 -LRB100 11899 RPS 23506 b
1changes made to this Section by this amendatory Act of the
2100th General Assembly shall not take effect and are repealed
3by operation of law.
4 For State fiscal years 1996 through 2005, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7so that by State fiscal year 2011, the State is contributing at
8the rate required under this Section.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006 is
11$4,157,000.
12 Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007 is
14$5,220,300.
15 For each of State fiscal years 2008 through 2009, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18from the required State contribution for State fiscal year
192007, so that by State fiscal year 2011, the State is
20contributing at the rate otherwise required under this Section.
21 Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2010 is
23$10,454,000 and shall be made from the proceeds of bonds sold
24in fiscal year 2010 pursuant to Section 7.2 of the General
25Obligation Bond Act, less (i) the pro rata share of bond sale
26expenses determined by the System's share of total bond

SB2173- 28 -LRB100 11899 RPS 23506 b
1proceeds, (ii) any amounts received from the General Revenue
2Fund in fiscal year 2010, and (iii) any reduction in bond
3proceeds due to the issuance of discounted bonds, if
4applicable.
5 Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2011 is
7the amount recertified by the System on or before April 1, 2011
8pursuant to Section 2-134 and shall be made from the proceeds
9of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
10the General Obligation Bond Act, less (i) the pro rata share of
11bond sale expenses determined by the System's share of total
12bond proceeds, (ii) any amounts received from the General
13Revenue Fund in fiscal year 2011, and (iii) any reduction in
14bond proceeds due to the issuance of discounted bonds, if
15applicable.
16 Beginning in State fiscal year 2046, the minimum State
17contribution for each fiscal year shall be the amount needed to
18maintain the total assets of the System at 90% of the total
19actuarial liabilities of the System.
20 Amounts received by the System pursuant to Section 25 of
21the Budget Stabilization Act or Section 8.12 of the State
22Finance Act in any fiscal year do not reduce and do not
23constitute payment of any portion of the minimum State
24contribution required under this Article in that fiscal year.
25Such amounts shall not reduce, and shall not be included in the
26calculation of, the required State contributions under this

SB2173- 29 -LRB100 11899 RPS 23506 b
1Article in any future year until the System has reached a
2funding ratio of at least 90%. A reference in this Article to
3the "required State contribution" or any substantially similar
4term does not include or apply to any amounts payable to the
5System under Section 25 of the Budget Stabilization Act.
6 Notwithstanding any other provision of this Section, the
7required State contribution for State fiscal year 2005 and for
8fiscal year 2008 and each fiscal year thereafter, as calculated
9under this Section and certified under Section 2-134, shall not
10exceed an amount equal to (i) the amount of the required State
11contribution that would have been calculated under this Section
12for that fiscal year if the System had not received any
13payments under subsection (d) of Section 7.2 of the General
14Obligation Bond Act, minus (ii) the portion of the State's
15total debt service payments for that fiscal year on the bonds
16issued in fiscal year 2003 for the purposes of that Section
177.2, as determined and certified by the Comptroller, that is
18the same as the System's portion of the total moneys
19distributed under subsection (d) of Section 7.2 of the General
20Obligation Bond Act. In determining this maximum for State
21fiscal years 2008 through 2010, however, the amount referred to
22in item (i) shall be increased, as a percentage of the
23applicable employee payroll, in equal increments calculated
24from the sum of the required State contribution for State
25fiscal year 2007 plus the applicable portion of the State's
26total debt service payments for fiscal year 2007 on the bonds

SB2173- 30 -LRB100 11899 RPS 23506 b
1issued in fiscal year 2003 for the purposes of Section 7.2 of
2the General Obligation Bond Act, so that, by State fiscal year
32011, the State is contributing at the rate otherwise required
4under this Section.
5 (d) For purposes of determining the required State
6contribution to the System, the value of the System's assets
7shall be equal to the actuarial value of the System's assets,
8which shall be calculated as follows:
9 As of June 30, 2008, the actuarial value of the System's
10assets shall be equal to the market value of the assets as of
11that date. In determining the actuarial value of the System's
12assets for fiscal years after June 30, 2008, any actuarial
13gains or losses from investment return incurred in a fiscal
14year shall be recognized in equal annual amounts over the
155-year period following that fiscal year.
16 (e) For purposes of determining the required State
17contribution to the system for a particular year, the actuarial
18value of assets shall be assumed to earn a rate of return equal
19to the system's actuarially assumed rate of return.
20(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
227-13-12.)
23 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
24 (Text of Section WITHOUT the changes made by P.A. 98-599,
25which has been held unconstitutional)

SB2173- 31 -LRB100 11899 RPS 23506 b
1 Sec. 2-126. Contributions by participants.
2 (a) Each participant shall contribute toward the cost of
3his or her retirement annuity a percentage of each payment of
4salary received by him or her for service as a member as
5follows: for service between October 31, 1947 and January 1,
61959, 5%; for service between January 1, 1959 and June 30,
71969, 6%; for service between July 1, 1969 and January 10,
81973, 6 1/2%; for service after January 10, 1973, 7%; for
9service after December 31, 1981, 8 1/2%.
10 (b) Beginning August 2, 1949, each male participant, and
11from July 1, 1971, each female participant shall contribute
12towards the cost of the survivor's annuity 2% of salary.
13 A participant who has no eligible survivor's annuity
14beneficiary may elect to cease making contributions for
15survivor's annuity under this subsection. A survivor's annuity
16shall not be payable upon the death of a person who has made
17this election, unless prior to that death the election has been
18revoked and the amount of the contributions that would have
19been paid under this subsection in the absence of the election
20is paid to the System, together with interest at the rate of 4%
21per year from the date the contributions would have been made
22to the date of payment.
23 (c) Beginning July 1, 1967, each participant shall
24contribute 1% of salary towards the cost of automatic increase
25in annuity provided in Section 2-119.1. These contributions
26shall be made concurrently with contributions for retirement

SB2173- 32 -LRB100 11899 RPS 23506 b
1annuity purposes.
2 (d) In addition, each participant serving as an officer of
3the General Assembly shall contribute, for the same purposes
4and at the same rates as are required of a regular participant,
5on each additional payment received as an officer. If the
6participant serves as an officer for at least 2 but less than 4
7years, he or she shall contribute an amount equal to the amount
8that would have been contributed had the participant served as
9an officer for 4 years. Persons who serve as officers in the
1087th General Assembly but cannot receive the additional payment
11to officers because of the ban on increases in salary during
12their terms may nonetheless make contributions based on those
13additional payments for the purpose of having the additional
14payments included in their highest salary for annuity purposes;
15however, persons electing to make these additional
16contributions must also pay an amount representing the
17corresponding employer contributions, as calculated by the
18System.
19 (e) Notwithstanding any other provision of this Article,
20the required contribution of a participant who first becomes a
21participant on or after January 1, 2011 shall not exceed the
22contribution that would be due under this Article if that
23participant's highest salary for annuity purposes were
24$106,800, plus any increases in that amount under Section
252-108.1.
26 (f) Beginning July 1, 2018 or the effective date of the

SB2173- 33 -LRB100 11899 RPS 23506 b
1Tier 1 employee's election under paragraph (1) of subsection
2(a) of Section 2-110.3, whichever is later, in lieu of the
3contributions otherwise required under this Section, each Tier
41 employee who made the election under paragraph (1) of
5subsection (a) of Section 2-110.3 shall contribute 8.5% of each
6payment of salary toward the cost of his or her retirement
7annuity and 1.85% of each payment of salary toward the cost of
8the survivor's annuity.
9 (g) Notwithstanding subsection (f) of this Section,
10beginning July 1, 2018 or the effective date of the Tier 1
11employee's election under paragraph (1) of subsection (a) of
12Section 2-110.3, whichever is later, in lieu of the
13contributions otherwise required under this Section, each Tier
141 employee who made the election under paragraph (1) of
15subsection (a) of Section 2-110.3 and has elected to cease
16making contributions for survivor's annuity under subsection
17(b) of this Section, shall contribute 8.55% of each payment of
18salary toward the cost of his or her retirement annuity.
19(Source: P.A. 96-1490, eff. 1-1-11.)
20 (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
21 (Text of Section WITHOUT the changes made by P.A. 98-599,
22which has been held unconstitutional)
23 Sec. 2-134. To certify required State contributions and
24submit vouchers.
25 (a) The Board shall certify to the Governor on or before

SB2173- 34 -LRB100 11899 RPS 23506 b
1December 15 of each year until December 15, 2011 the amount of
2the required State contribution to the System for the next
3fiscal year and shall specifically identify the System's
4projected State normal cost for that fiscal year. The
5certification shall include a copy of the actuarial
6recommendations upon which it is based and shall specifically
7identify the System's projected State normal cost for that
8fiscal year.
9 On or before November 1 of each year, beginning November 1,
102012, the Board shall submit to the State Actuary, the
11Governor, and the General Assembly a proposed certification of
12the amount of the required State contribution to the System for
13the next fiscal year, along with all of the actuarial
14assumptions, calculations, and data upon which that proposed
15certification is based. On or before January 1 of each year
16beginning January 1, 2013, the State Actuary shall issue a
17preliminary report concerning the proposed certification and
18identifying, if necessary, recommended changes in actuarial
19assumptions that the Board must consider before finalizing its
20certification of the required State contributions. On or before
21January 15, 2013 and every January 15 thereafter, the Board
22shall certify to the Governor and the General Assembly the
23amount of the required State contribution for the next fiscal
24year. The Board's certification must note any deviations from
25the State Actuary's recommended changes, the reason or reasons
26for not following the State Actuary's recommended changes, and

SB2173- 35 -LRB100 11899 RPS 23506 b
1the fiscal impact of not following the State Actuary's
2recommended changes on the required State contribution.
3 On or before May 1, 2004, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2005, taking
6into account the amounts appropriated to and received by the
7System under subsection (d) of Section 7.2 of the General
8Obligation Bond Act.
9 On or before July 1, 2005, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2006, taking
12into account the changes in required State contributions made
13by this amendatory Act of the 94th General Assembly.
14 On or before April 1, 2011, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2011, applying
17the changes made by Public Act 96-889 to the System's assets
18and liabilities as of June 30, 2009 as though Public Act 96-889
19was approved on that date.
20 On or before May 1, 2018, the Board shall recalculate and
21recertify to the Governor and the General Assembly the amount
22of the required State contribution to the System for State
23fiscal year 2019, taking into account the effect on the
24System's liabilities of the elections made under Section
252-110.3.
26 On or before October 1, 2018, the Board shall recalculate

SB2173- 36 -LRB100 11899 RPS 23506 b
1and recertify to the Governor and the General Assembly the
2amount of the required State contribution to the System for
3State fiscal year 2019, taking into account the reduction
4specified under item (3) of subsection (c) of Section 2-124.
5 (b) Beginning in State fiscal year 1996, on or as soon as
6possible after the 15th day of each month the Board shall
7submit vouchers for payment of State contributions to the
8System, in a total monthly amount of one-twelfth of the
9required annual State contribution certified under subsection
10(a). From the effective date of this amendatory Act of the 93rd
11General Assembly through June 30, 2004, the Board shall not
12submit vouchers for the remainder of fiscal year 2004 in excess
13of the fiscal year 2004 certified contribution amount
14determined under this Section after taking into consideration
15the transfer to the System under subsection (d) of Section
166z-61 of the State Finance Act. These vouchers shall be paid by
17the State Comptroller and Treasurer by warrants drawn on the
18funds appropriated to the System for that fiscal year. If in
19any month the amount remaining unexpended from all other
20appropriations to the System for the applicable fiscal year
21(including the appropriations to the System under Section 8.12
22of the State Finance Act and Section 1 of the State Pension
23Funds Continuing Appropriation Act) is less than the amount
24lawfully vouchered under this Section, the difference shall be
25paid from the General Revenue Fund under the continuing
26appropriation authority provided in Section 1.1 of the State

SB2173- 37 -LRB100 11899 RPS 23506 b
1Pension Funds Continuing Appropriation Act.
2 (c) The full amount of any annual appropriation for the
3System for State fiscal year 1995 shall be transferred and made
4available to the System at the beginning of that fiscal year at
5the request of the Board. Any excess funds remaining at the end
6of any fiscal year from appropriations shall be retained by the
7System as a general reserve to meet the System's accrued
8liabilities.
9(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1097-694, eff. 6-18-12.)
11 (40 ILCS 5/2-162)
12 (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14 Sec. 2-162. Application and expiration of new benefit
15increases.
16 (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after the effective date of this
21amendatory Act of the 94th General Assembly. "New benefit
22increase", however, does not include any benefit increase
23resulting from the changes made to this Article by this
24amendatory Act of the 100th General Assembly.
25 (b) Notwithstanding any other provision of this Code or any

SB2173- 38 -LRB100 11899 RPS 23506 b
1subsequent amendment to this Code, every new benefit increase
2is subject to this Section and shall be deemed to be granted
3only in conformance with and contingent upon compliance with
4the provisions of this Section.
5 (c) The Public Act enacting a new benefit increase must
6identify and provide for payment to the System of additional
7funding at least sufficient to fund the resulting annual
8increase in cost to the System as it accrues.
9 Every new benefit increase is contingent upon the General
10Assembly providing the additional funding required under this
11subsection. The Commission on Government Forecasting and
12Accountability shall analyze whether adequate additional
13funding has been provided for the new benefit increase and
14shall report its analysis to the Public Pension Division of the
15Department of Insurance Financial and Professional Regulation.
16A new benefit increase created by a Public Act that does not
17include the additional funding required under this subsection
18is null and void. If the Public Pension Division determines
19that the additional funding provided for a new benefit increase
20under this subsection is or has become inadequate, it may so
21certify to the Governor and the State Comptroller and, in the
22absence of corrective action by the General Assembly, the new
23benefit increase shall expire at the end of the fiscal year in
24which the certification is made.
25 (d) Every new benefit increase shall expire 5 years after
26its effective date or on such earlier date as may be specified

SB2173- 39 -LRB100 11899 RPS 23506 b
1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5 (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including without limitation a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 94-4, eff. 6-1-05.)
16 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
17 (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19 Sec. 14-103.10. Compensation.
20 (a) For periods of service prior to January 1, 1978, the
21full rate of salary or wages payable to an employee for
22personal services performed if he worked the full normal
23working period for his position, subject to the following
24maximum amounts: (1) prior to July 1, 1951, $400 per month or
25$4,800 per year; (2) between July 1, 1951 and June 30, 1957

SB2173- 40 -LRB100 11899 RPS 23506 b
1inclusive, $625 per month or $7,500 per year; (3) beginning
2July 1, 1957, no limitation.
3 In the case of service of an employee in a position
4involving part-time employment, compensation shall be
5determined according to the employees' earnings record.
6 (b) For periods of service on and after January 1, 1978,
7all remuneration for personal services performed defined as
8"wages" under the Social Security Enabling Act, including that
9part of such remuneration which is in excess of any maximum
10limitation provided in such Act, and including any benefits
11received by an employee under a sick pay plan in effect before
12January 1, 1981, but excluding lump sum salary payments:
13 (1) for vacation,
14 (2) for accumulated unused sick leave,
15 (3) upon discharge or dismissal,
16 (4) for approved holidays.
17 (c) For periods of service on or after December 16, 1978,
18compensation also includes any benefits, other than lump sum
19salary payments made at termination of employment, which an
20employee receives or is eligible to receive under a sick pay
21plan authorized by law.
22 (d) For periods of service after September 30, 1985,
23compensation also includes any remuneration for personal
24services not included as "wages" under the Social Security
25Enabling Act, which is deducted for purposes of participation
26in a program established pursuant to Section 125 of the

SB2173- 41 -LRB100 11899 RPS 23506 b
1Internal Revenue Code or its successor laws.
2 (e) For members for which Section 1-160 applies for periods
3of service on and after January 1, 2011, all remuneration for
4personal services performed defined as "wages" under the Social
5Security Enabling Act, excluding remuneration that is in excess
6of the annual earnings, salary, or wages of a member or
7participant, as provided in subsection (b-5) of Section 1-160,
8but including any benefits received by an employee under a sick
9pay plan in effect before January 1, 1981. Compensation shall
10exclude lump sum salary payments:
11 (1) for vacation;
12 (2) for accumulated unused sick leave;
13 (3) upon discharge or dismissal; and
14 (4) for approved holidays.
15 (f) Notwithstanding the other provisions of this Section,
16for service on or after July 1, 2013, "compensation" does not
17include any stipend payable to an employee for service on a
18board or commission.
19 (g) Notwithstanding any other provision of this Section,
20"compensation" does not include any future increase in income
21that is offered for service by a department to a Tier 1
22employee under this Article pursuant to the condition set forth
23in subsection (c) of Section 14-106.5 and accepted under that
24condition by a Tier 1 employee who has made the election under
25paragraph (2) of subsection (a) of Section 14-106.5.
26 (h) Notwithstanding any other provision of this Section,

SB2173- 42 -LRB100 11899 RPS 23506 b
1"compensation" does not include any consideration payment made
2to a Tier 1 employee.
3(Source: P.A. 98-449, eff. 8-16-13.)
4 (40 ILCS 5/14-103.41 new)
5 Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An
6employee under this Article who first became a member or
7participant before January 1, 2011 under any reciprocal
8retirement system or pension fund established under this Code
9other than a retirement system or pension fund established
10under Article 2, 3, 4, 5, 6, or 18 of this Code.
11 (40 ILCS 5/14-103.42 new)
12 Sec. 14-103.42. Future increase in income. "Future
13increase in income" means an increase to a Tier 1 employee's
14base pay that is offered by a department to the Tier 1 employee
15for service under this Article after June 30, 2019 that
16qualifies as "compensation", as defined in Section 14-103.10,
17or would qualify as "compensation" but for the fact that it was
18offered to and accepted by the Tier 1 employee under the
19condition set forth in subsection (c) of Section 14-106.5. The
20term "future increase in income" includes an increase to a Tier
211 employee's base pay that is paid to the Tier 1 employee
22pursuant to an extension, amendment, or renewal of any
23employment contract or collective bargaining agreement after
24the effective date of this Section.

SB2173- 43 -LRB100 11899 RPS 23506 b
1 (40 ILCS 5/14-103.43 new)
2 Sec. 14-103.43. Base pay. As used in Section 14-103.42 of
3this Code, "base pay" means the greater of either (i) the Tier
41 employee's annualized rate of compensation as of June 30,
52019, or (ii) the Tier 1 employee's annualized rate of
6compensation immediately preceding the expiration, renewal, or
7amendment of an employment contract or collective bargaining
8agreement in effect on the effective date of this Section. For
9a person returning to active service as a Tier 1 employee after
10June 30, 2019, however, "base pay" means the employee's
11annualized rate of compensation as of the employee's last date
12of service prior to July 1, 2019. The System shall calculate
13the base pay of each Tier 1 employee pursuant to this Section.
14 (40 ILCS 5/14-106.5 new)
15 Sec. 14-106.5. Election by Tier 1 employees.
16 (a) Each active Tier 1 employee shall make an irrevocable
17election either:
18 (1) to agree to delay his or her eligibility for
19 automatic annual increases in retirement annuity as
20 provided in subsection (a-1) of Section 14-114 and to have
21 the amount of the automatic annual increases in his or her
22 retirement annuity and survivors or widow's annuity that
23 are otherwise provided for in this Article calculated,
24 instead, as provided in subsection (a-1) of Section 14-114;

SB2173- 44 -LRB100 11899 RPS 23506 b
1 or
2 (2) to not agree to paragraph (1) of this subsection.
3 The election required under this subsection (a) shall be
4made by each active Tier 1 employee no earlier than January 1,
52019 and no later than March 31, 2019, except that:
6 (i) a person who becomes a Tier 1 employee under this
7 Article on or after January 1, 2019 must make the election
8 under this subsection (a) within 60 days after becoming a
9 Tier 1 employee; and
10 (ii) a person who returns to active service as a Tier 1
11 employee under this Article on or after January 1, 2019 and
12 has not yet made an election under this Section must make
13 the election under this subsection (a) within 60 days after
14 returning to active service as a Tier 1 employee.
15 If a Tier 1 employee fails for any reason to make a
16required election under this subsection within the time
17specified, then the employee shall be deemed to have made the
18election under paragraph (2) of this subsection.
19 (a-5) If this Section is enjoined or stayed by an Illinois
20court or a court of competent jurisdiction pending the entry of
21a final and unappealable decision, and this Section is
22determined to be constitutional or otherwise valid by a final
23unappealable decision of an Illinois court or a court of
24competent jurisdiction, then the election procedure set forth
25in subsection (a) of this Section shall commence on the 180th
26calendar day after the date of the issuance of the final

SB2173- 45 -LRB100 11899 RPS 23506 b
1unappealable decision and shall conclude at the end of the
2270th calendar day after that date.
3 (a-10) All elections under subsection (a) that are made or
4deemed to be made before July 1, 2019 shall take effect on July
51, 2019. Elections that are made or deemed to be made on or
6after July 1, 2019 shall take effect on the first day of the
7month following the month in which the election is made or
8deemed to be made.
9 (b) As adequate and legal consideration provided under this
10amendatory Act of the 100th General Assembly for making an
11election under paragraph (1) of subsection (a) of this Section,
12the department shall be expressly and irrevocably prohibited
13from offering any future increases in income to a Tier 1
14employee who has made an election under paragraph (1) of
15subsection (a) of this Section on the condition of not
16constituting compensation under Section 14-103.10.
17 As adequate and legal consideration provided under this
18amendatory Act of the 100th General Assembly for making an
19election under paragraph (1) of subsection (a) of this Section,
20each Tier 1 employee who has made an election under paragraph
21(1) of subsection (a) of this Section shall receive a
22consideration payment equal to 10% of the contributions made by
23or on behalf of the employee before the effective date of that
24election. The State Comptroller shall pay the consideration
25payment to the Tier 1 employee out of funds appropriated for
26that purpose under Section 1.9 of the State Pension Funds

SB2173- 46 -LRB100 11899 RPS 23506 b
1Continuing Appropriation Act. The System shall calculate the
2amount of each consideration payment and, by July 1, 2019,
3shall certify to the State Comptroller the amount of the
4consideration payment, together with the name, address, and any
5other available payment information of the Tier 1 employee as
6found in the records of the System. The System shall make
7additional calculations and certifications of consideration
8payments to the State Comptroller as it deems necessary.
9 (c) A Tier 1 employee who makes the election under
10paragraph (2) of subsection (a) of this Section shall not be
11subject to paragraph (1) of subsection (a) of this Section.
12However, each future increase in income offered by a department
13under this Article to a Tier 1 employee who has made the
14election under paragraph (2) of subsection (a) of this Section
15shall be offered by the department expressly and irrevocably on
16the condition of not constituting compensation under Section
1714-103.10 and that the Tier 1 employee's acceptance of the
18offered future increase in income shall constitute his or her
19agreement to that condition.
20 (d) The System shall make a good faith effort to contact
21each Tier 1 employee subject to this Section. The System shall
22mail information describing the required election to each Tier
231 employee by United States Postal Service mail to his or her
24last known address on file with the System. If the Tier 1
25employee is not responsive to other means of contact, it is
26sufficient for the System to publish the details of any

SB2173- 47 -LRB100 11899 RPS 23506 b
1required elections on its website or to publish those details
2in a regularly published newsletter or other existing public
3forum.
4 Tier 1 employees who are subject to this Section shall be
5provided with an election packet containing information
6regarding their options, as well as the forms necessary to make
7the required election. Upon request, the System shall offer
8Tier 1 employees an opportunity to receive information from the
9System before making the required election. The information may
10consist of video materials, group presentations, individual
11consultation with a member or authorized representative of the
12System in person or by telephone or other electronic means, or
13any combination of those methods. The System shall not provide
14advice or counseling with respect to which election a Tier 1
15employee should make or specific to the legal or tax
16circumstances of or consequences to the Tier 1 employee.
17 The System shall inform Tier 1 employees in the election
18packet required under this subsection that the Tier 1 employee
19may also wish to obtain information and counsel relating to the
20election required under this Section from any other available
21source, including, but not limited to, labor organizations and
22private counsel.
23 In no event shall the System, its staff, or the Board be
24held liable for any information given to a member regarding the
25elections under this Section. The System shall coordinate with
26the Illinois Department of Central Management Services and each

SB2173- 48 -LRB100 11899 RPS 23506 b
1other retirement system administering an election in
2accordance with this amendatory Act of the 100th General
3Assembly to provide information concerning the impact of the
4election set forth in this Section.
5 (e) Notwithstanding any other provision of law, a
6department under this Article is required to offer each future
7increase in income expressly and irrevocably on the condition
8of not constituting "compensation" under Section 14-103.10 to
9any Tier 1 employee who has made an election under paragraph
10(2) of subsection (a) of this Section. The offer shall also
11provide that the Tier 1 employee's acceptance of the offered
12future increase in income shall constitute his or her agreement
13to the condition set forth in this subsection.
14 For purposes of legislative intent, the condition set forth
15in this subsection shall be construed in a manner that ensures
16that the condition is not violated or circumvented through any
17contrivance of any kind.
18 (f) A member's election under this Section is not a
19prohibited election under subdivision (j)(1) of Section 1-119
20of this Code.
21 (g) No provision of this Section shall be interpreted in a
22way that would cause the System to cease to be a qualified plan
23under Section 401(a) of the Internal Revenue Code of 1986. The
24provisions of this Section shall be subject to and implemented
25in a manner that complies with Section 21 of Article V of the
26Illinois Constitution.

SB2173- 49 -LRB100 11899 RPS 23506 b
1 (h) If an election created by this amendatory Act in any
2other Article of this Code or any change deriving from that
3election is determined to be unconstitutional or otherwise
4invalid by a final unappealable decision of an Illinois court
5or a court of competent jurisdiction, the invalidity of that
6provision shall not in any way affect the validity of this
7Section or the changes deriving from the election required
8under this Section.
9 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
10 (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12 Sec. 14-114. Automatic increase in retirement annuity.
13 (a) Subject to the provisions of subsections (a-1), any Any
14person receiving a retirement annuity under this Article who
15retires having attained age 60, or who retires before age 60
16having at least 35 years of creditable service, or who retires
17on or after January 1, 2001 at an age which, when added to the
18number of years of his or her creditable service, equals at
19least 85, shall, on January 1 next following the first full
20year of retirement, have the amount of the then fixed and
21payable monthly retirement annuity increased 3%. Any person
22receiving a retirement annuity under this Article who retires
23before attainment of age 60 and with less than (i) 35 years of
24creditable service if retirement is before January 1, 2001, or
25(ii) the number of years of creditable service which, when

SB2173- 50 -LRB100 11899 RPS 23506 b
1added to the member's age, would equal 85, if retirement is on
2or after January 1, 2001, shall have the amount of the fixed
3and payable retirement annuity increased by 3% on the January 1
4occurring on or next following (1) attainment of age 60, or (2)
5the first anniversary of retirement, whichever occurs later.
6However, for persons who receive the alternative retirement
7annuity under Section 14-110, references in this subsection (a)
8to attainment of age 60 shall be deemed to refer to attainment
9of age 55. For a person receiving early retirement incentives
10under Section 14-108.3 whose retirement annuity began after
11January 1, 1992 pursuant to an extension granted under
12subsection (e) of that Section, the first anniversary of
13retirement shall be deemed to be January 1, 1993. For a person
14who retires on or after June 28, 2001 and on or before October
151, 2001, and whose retirement annuity is calculated, in whole
16or in part, under Section 14-110 or subsection (g) or (h) of
17Section 14-108, the first anniversary of retirement shall be
18deemed to be January 1, 2002.
19 On each January 1 following the date of the initial
20increase under this subsection, the employee's monthly
21retirement annuity shall be increased by an additional 3%.
22 Beginning January 1, 1990, and except as provided in
23subsection (a-1), all automatic annual increases payable under
24this Section shall be calculated as a percentage of the total
25annuity payable at the time of the increase, including previous
26increases granted under this Article.

SB2173- 51 -LRB100 11899 RPS 23506 b
1 (a-1) Notwithstanding any other provision of this Article,
2for a Tier 1 employee who made the election under paragraph (1)
3of subsection (a) of Section 14-106.5:
4 (1) The initial increase in retirement annuity under
5 this Section shall occur on the January 1 occurring either
6 on or after the attainment of age 67 or the fifth
7 anniversary of the annuity start date, whichever is
8 earlier.
9 (2) The amount of each automatic annual increase in
10 retirement annuity or survivors or widow's annuity
11 occurring on or after the effective date of that election
12 shall be calculated as a percentage of the originally
13 granted retirement annuity or survivors or widow's
14 annuity, equal to 3% or one-half the annual unadjusted
15 percentage increase (but not less than zero) in the
16 consumer price index-u for the 12 months ending with the
17 September preceding each November 1, whichever is less. If
18 the annual unadjusted percentage change in the consumer
19 price index-u for the 12 months ending with the September
20 preceding each November 1 is zero or there is a decrease,
21 then the annuity shall not be increased.
22 For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

SB2173- 52 -LRB100 11899 RPS 23506 b
1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the board of the retirement
4system by November 1 of each year.
5 (b) The provisions of subsection (a) of this Section shall
6be applicable to an employee only if the employee makes the
7additional contributions required after December 31, 1969 for
8the purpose of the automatic increases for not less than the
9equivalent of one full year. If an employee becomes an
10annuitant before his additional contributions equal one full
11year's contributions based on his salary at the date of
12retirement, the employee may pay the necessary balance of the
13contributions to the system, without interest, and be eligible
14for the increasing annuity authorized by this Section.
15 (c) The provisions of subsection (a) of this Section shall
16not be applicable to any annuitant who is on retirement on
17December 31, 1969, and thereafter returns to State service,
18unless the member has established at least one year of
19additional creditable service following reentry into service.
20 (d) In addition to other increases which may be provided by
21this Section, on January 1, 1981 any annuitant who was
22receiving a retirement annuity on or before January 1, 1971
23shall have his retirement annuity then being paid increased $1
24per month for each year of creditable service. On January 1,
251982, any annuitant who began receiving a retirement annuity on
26or before January 1, 1977, shall have his retirement annuity

SB2173- 53 -LRB100 11899 RPS 23506 b
1then being paid increased $1 per month for each year of
2creditable service.
3 On January 1, 1987, any annuitant who began receiving a
4retirement annuity on or before January 1, 1977, shall have the
5monthly retirement annuity increased by an amount equal to 8
6per year of creditable service times the number of years that
7have elapsed since the annuity began.
8 (e) Every person who receives the alternative retirement
9annuity under Section 14-110 and who is eligible to receive the
103% increase under subsection (a) on January 1, 1986, shall also
11receive on that date a one-time increase in retirement annuity
12equal to the difference between (1) his actual retirement
13annuity on that date, including any increases received under
14subsection (a), and (2) the amount of retirement annuity he
15would have received on that date if the amendments to
16subsection (a) made by Public Act 84-162 had been in effect
17since the date of his retirement.
18(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
1992-651, eff. 7-11-02.)
20 (40 ILCS 5/14-131)
21 Sec. 14-131. Contributions by State.
22 (a) The State shall make contributions to the System by
23appropriations of amounts which, together with other employer
24contributions from trust, federal, and other funds, employee
25contributions, investment income, and other income, will be

SB2173- 54 -LRB100 11899 RPS 23506 b
1sufficient to meet the cost of maintaining and administering
2the System on a 90% funded basis in accordance with actuarial
3recommendations.
4 For the purposes of this Section and Section 14-135.08,
5references to State contributions refer only to employer
6contributions and do not include employee contributions that
7are picked up or otherwise paid by the State or a department on
8behalf of the employee.
9 (b) The Board shall determine the total amount of State
10contributions required for each fiscal year on the basis of the
11actuarial tables and other assumptions adopted by the Board,
12using the formula in subsection (e).
13 The Board shall also determine a State contribution rate
14for each fiscal year, expressed as a percentage of payroll,
15based on the total required State contribution for that fiscal
16year (less the amount received by the System from
17appropriations under Section 8.12 of the State Finance Act and
18Section 1 of the State Pension Funds Continuing Appropriation
19Act, if any, for the fiscal year ending on the June 30
20immediately preceding the applicable November 15 certification
21deadline), the estimated payroll (including all forms of
22compensation) for personal services rendered by eligible
23employees, and the recommendations of the actuary.
24 For the purposes of this Section and Section 14.1 of the
25State Finance Act, the term "eligible employees" includes
26employees who participate in the System, persons who may elect

SB2173- 55 -LRB100 11899 RPS 23506 b
1to participate in the System but have not so elected, persons
2who are serving a qualifying period that is required for
3participation, and annuitants employed by a department as
4described in subdivision (a)(1) or (a)(2) of Section 14-111.
5 (c) Contributions shall be made by the several departments
6for each pay period by warrants drawn by the State Comptroller
7against their respective funds or appropriations based upon
8vouchers stating the amount to be so contributed. These amounts
9shall be based on the full rate certified by the Board under
10Section 14-135.08 for that fiscal year. From the effective date
11of this amendatory Act of the 93rd General Assembly through the
12payment of the final payroll from fiscal year 2004
13appropriations, the several departments shall not make
14contributions for the remainder of fiscal year 2004 but shall
15instead make payments as required under subsection (a-1) of
16Section 14.1 of the State Finance Act. The several departments
17shall resume those contributions at the commencement of fiscal
18year 2005.
19 (c-1) Notwithstanding subsection (c) of this Section, for
20fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only,
21contributions by the several departments are not required to be
22made for General Revenue Funds payrolls processed by the
23Comptroller. Payrolls paid by the several departments from all
24other State funds must continue to be processed pursuant to
25subsection (c) of this Section.
26 (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015,

SB2173- 56 -LRB100 11899 RPS 23506 b
12016, and 2017 only, on or as soon as possible after the 15th
2day of each month, the Board shall submit vouchers for payment
3of State contributions to the System, in a total monthly amount
4of one-twelfth of the fiscal year General Revenue Fund
5contribution as certified by the System pursuant to Section
614-135.08 of the Illinois Pension Code.
7 (d) If an employee is paid from trust funds or federal
8funds, the department or other employer shall pay employer
9contributions from those funds to the System at the certified
10rate, unless the terms of the trust or the federal-State
11agreement preclude the use of the funds for that purpose, in
12which case the required employer contributions shall be paid by
13the State. From the effective date of this amendatory Act of
14the 93rd General Assembly through the payment of the final
15payroll from fiscal year 2004 appropriations, the department or
16other employer shall not pay contributions for the remainder of
17fiscal year 2004 but shall instead make payments as required
18under subsection (a-1) of Section 14.1 of the State Finance
19Act. The department or other employer shall resume payment of
20contributions at the commencement of fiscal year 2005.
21 (e) For State fiscal years 2012 through 2045 (except as
22otherwise provided for fiscal year 2020), the minimum
23contribution to the System to be made by the State for each
24fiscal year shall be an amount determined by the System to be
25sufficient to bring the total assets of the System up to 90% of
26the total actuarial liabilities of the System by the end of

SB2173- 57 -LRB100 11899 RPS 23506 b
1State fiscal year 2045. In making these determinations, the
2required State contribution shall be calculated each year as a
3level percentage of payroll over the years remaining to and
4including fiscal year 2045 and shall be determined under the
5projected unit credit actuarial cost method.
6 For State fiscal year 2020:
7 (1) The initial calculation and certification shall be
8 based on the amount determined above.
9 (2) For purposes of the recertification due on or
10 before May 1, 2019, the recalculation of the required State
11 contribution for fiscal year 2020 shall take into account
12 the effect on the System's liabilities of the elections
13 made under Section 14-106.5.
14 (3) For purposes of the recertification due on or
15 before October 1, 2019, the total required State
16 contribution for fiscal year 2020 shall be reduced by the
17 amount of the consideration payments made to Tier 1
18 employees who made the election under paragraph (1) of
19 subsection (a) of Section 14-106.5.
20 For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section; except that (i) for State
25fiscal year 1998, for all purposes of this Code and any other
26law of this State, the certified percentage of the applicable

SB2173- 58 -LRB100 11899 RPS 23506 b
1employee payroll shall be 5.052% for employees earning eligible
2creditable service under Section 14-110 and 6.500% for all
3other employees, notwithstanding any contrary certification
4made under Section 14-135.08 before the effective date of this
5amendatory Act of 1997, and (ii) in the following specified
6State fiscal years, the State contribution to the System shall
7not be less than the following indicated percentages of the
8applicable employee payroll, even if the indicated percentage
9will produce a State contribution in excess of the amount
10otherwise required under this subsection and subsection (a):
119.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
122002; 10.6% in FY 2003; and 10.8% in FY 2004.
13 Notwithstanding any other provision of this Article, the
14total required State contribution to the System for State
15fiscal year 2006 is $203,783,900.
16 Notwithstanding any other provision of this Article, the
17total required State contribution to the System for State
18fiscal year 2007 is $344,164,400.
19 For each of State fiscal years 2008 through 2009, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22from the required State contribution for State fiscal year
232007, so that by State fiscal year 2011, the State is
24contributing at the rate otherwise required under this Section.
25 Notwithstanding any other provision of this Article, the
26total required State General Revenue Fund contribution for

SB2173- 59 -LRB100 11899 RPS 23506 b
1State fiscal year 2010 is $723,703,100 and shall be made from
2the proceeds of bonds sold in fiscal year 2010 pursuant to
3Section 7.2 of the General Obligation Bond Act, less (i) the
4pro rata share of bond sale expenses determined by the System's
5share of total bond proceeds, (ii) any amounts received from
6the General Revenue Fund in fiscal year 2010, and (iii) any
7reduction in bond proceeds due to the issuance of discounted
8bonds, if applicable.
9 Notwithstanding any other provision of this Article, the
10total required State General Revenue Fund contribution for
11State fiscal year 2011 is the amount recertified by the System
12on or before April 1, 2011 pursuant to Section 14-135.08 and
13shall be made from the proceeds of bonds sold in fiscal year
142011 pursuant to Section 7.2 of the General Obligation Bond
15Act, less (i) the pro rata share of bond sale expenses
16determined by the System's share of total bond proceeds, (ii)
17any amounts received from the General Revenue Fund in fiscal
18year 2011, and (iii) any reduction in bond proceeds due to the
19issuance of discounted bonds, if applicable.
20 Beginning in State fiscal year 2046, the minimum State
21contribution for each fiscal year shall be the amount needed to
22maintain the total assets of the System at 90% of the total
23actuarial liabilities of the System.
24 Amounts received by the System pursuant to Section 25 of
25the Budget Stabilization Act or Section 8.12 of the State
26Finance Act in any fiscal year do not reduce and do not

SB2173- 60 -LRB100 11899 RPS 23506 b
1constitute payment of any portion of the minimum State
2contribution required under this Article in that fiscal year.
3Such amounts shall not reduce, and shall not be included in the
4calculation of, the required State contributions under this
5Article in any future year until the System has reached a
6funding ratio of at least 90%. A reference in this Article to
7the "required State contribution" or any substantially similar
8term does not include or apply to any amounts payable to the
9System under Section 25 of the Budget Stabilization Act.
10 Notwithstanding any other provision of this Section, the
11required State contribution for State fiscal year 2005 and for
12fiscal year 2008 and each fiscal year thereafter, as calculated
13under this Section and certified under Section 14-135.08, shall
14not exceed an amount equal to (i) the amount of the required
15State contribution that would have been calculated under this
16Section for that fiscal year if the System had not received any
17payments under subsection (d) of Section 7.2 of the General
18Obligation Bond Act, minus (ii) the portion of the State's
19total debt service payments for that fiscal year on the bonds
20issued in fiscal year 2003 for the purposes of that Section
217.2, as determined and certified by the Comptroller, that is
22the same as the System's portion of the total moneys
23distributed under subsection (d) of Section 7.2 of the General
24Obligation Bond Act. In determining this maximum for State
25fiscal years 2008 through 2010, however, the amount referred to
26in item (i) shall be increased, as a percentage of the

SB2173- 61 -LRB100 11899 RPS 23506 b
1applicable employee payroll, in equal increments calculated
2from the sum of the required State contribution for State
3fiscal year 2007 plus the applicable portion of the State's
4total debt service payments for fiscal year 2007 on the bonds
5issued in fiscal year 2003 for the purposes of Section 7.2 of
6the General Obligation Bond Act, so that, by State fiscal year
72011, the State is contributing at the rate otherwise required
8under this Section.
9 (f) After the submission of all payments for eligible
10employees from personal services line items in fiscal year 2004
11have been made, the Comptroller shall provide to the System a
12certification of the sum of all fiscal year 2004 expenditures
13for personal services that would have been covered by payments
14to the System under this Section if the provisions of this
15amendatory Act of the 93rd General Assembly had not been
16enacted. Upon receipt of the certification, the System shall
17determine the amount due to the System based on the full rate
18certified by the Board under Section 14-135.08 for fiscal year
192004 in order to meet the State's obligation under this
20Section. The System shall compare this amount due to the amount
21received by the System in fiscal year 2004 through payments
22under this Section and under Section 6z-61 of the State Finance
23Act. If the amount due is more than the amount received, the
24difference shall be termed the "Fiscal Year 2004 Shortfall" for
25purposes of this Section, and the Fiscal Year 2004 Shortfall
26shall be satisfied under Section 1.2 of the State Pension Funds

SB2173- 62 -LRB100 11899 RPS 23506 b
1Continuing Appropriation Act. If the amount due is less than
2the amount received, the difference shall be termed the "Fiscal
3Year 2004 Overpayment" for purposes of this Section, and the
4Fiscal Year 2004 Overpayment shall be repaid by the System to
5the Pension Contribution Fund as soon as practicable after the
6certification.
7 (g) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11 As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18 (h) For purposes of determining the required State
19contribution to the System for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the System's actuarially assumed rate of return.
22 (i) After the submission of all payments for eligible
23employees from personal services line items paid from the
24General Revenue Fund in fiscal year 2010 have been made, the
25Comptroller shall provide to the System a certification of the
26sum of all fiscal year 2010 expenditures for personal services

SB2173- 63 -LRB100 11899 RPS 23506 b
1that would have been covered by payments to the System under
2this Section if the provisions of this amendatory Act of the
396th General Assembly had not been enacted. Upon receipt of the
4certification, the System shall determine the amount due to the
5System based on the full rate certified by the Board under
6Section 14-135.08 for fiscal year 2010 in order to meet the
7State's obligation under this Section. The System shall compare
8this amount due to the amount received by the System in fiscal
9year 2010 through payments under this Section. If the amount
10due is more than the amount received, the difference shall be
11termed the "Fiscal Year 2010 Shortfall" for purposes of this
12Section, and the Fiscal Year 2010 Shortfall shall be satisfied
13under Section 1.2 of the State Pension Funds Continuing
14Appropriation Act. If the amount due is less than the amount
15received, the difference shall be termed the "Fiscal Year 2010
16Overpayment" for purposes of this Section, and the Fiscal Year
172010 Overpayment shall be repaid by the System to the General
18Revenue Fund as soon as practicable after the certification.
19 (j) After the submission of all payments for eligible
20employees from personal services line items paid from the
21General Revenue Fund in fiscal year 2011 have been made, the
22Comptroller shall provide to the System a certification of the
23sum of all fiscal year 2011 expenditures for personal services
24that would have been covered by payments to the System under
25this Section if the provisions of this amendatory Act of the
2696th General Assembly had not been enacted. Upon receipt of the

SB2173- 64 -LRB100 11899 RPS 23506 b
1certification, the System shall determine the amount due to the
2System based on the full rate certified by the Board under
3Section 14-135.08 for fiscal year 2011 in order to meet the
4State's obligation under this Section. The System shall compare
5this amount due to the amount received by the System in fiscal
6year 2011 through payments under this Section. If the amount
7due is more than the amount received, the difference shall be
8termed the "Fiscal Year 2011 Shortfall" for purposes of this
9Section, and the Fiscal Year 2011 Shortfall shall be satisfied
10under Section 1.2 of the State Pension Funds Continuing
11Appropriation Act. If the amount due is less than the amount
12received, the difference shall be termed the "Fiscal Year 2011
13Overpayment" for purposes of this Section, and the Fiscal Year
142011 Overpayment shall be repaid by the System to the General
15Revenue Fund as soon as practicable after the certification.
16 (k) For fiscal years 2012 through 2017 only, after the
17submission of all payments for eligible employees from personal
18services line items paid from the General Revenue Fund in the
19fiscal year have been made, the Comptroller shall provide to
20the System a certification of the sum of all expenditures in
21the fiscal year for personal services. Upon receipt of the
22certification, the System shall determine the amount due to the
23System based on the full rate certified by the Board under
24Section 14-135.08 for the fiscal year in order to meet the
25State's obligation under this Section. The System shall compare
26this amount due to the amount received by the System for the

SB2173- 65 -LRB100 11899 RPS 23506 b
1fiscal year. If the amount due is more than the amount
2received, the difference shall be termed the "Prior Fiscal Year
3Shortfall" for purposes of this Section, and the Prior Fiscal
4Year Shortfall shall be satisfied under Section 1.2 of the
5State Pension Funds Continuing Appropriation Act. If the amount
6due is less than the amount received, the difference shall be
7termed the "Prior Fiscal Year Overpayment" for purposes of this
8Section, and the Prior Fiscal Year Overpayment shall be repaid
9by the System to the General Revenue Fund as soon as
10practicable after the certification.
11(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8,
12eff. 7-9-15; 99-523, eff. 6-30-16.)
13 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16 Sec. 14-133. Contributions on behalf of members.
17 (a) Except as provided in subsection (a-5), each Each
18participating employee shall make contributions to the System,
19based on the employee's compensation, as follows:
20 (1) Covered employees, except as indicated below, 3.5%
21 for retirement annuity, and 0.5% for a widow or survivors
22 annuity;
23 (2) Noncovered employees, except as indicated below,
24 7% for retirement annuity and 1% for a widow or survivors
25 annuity;

SB2173- 66 -LRB100 11899 RPS 23506 b
1 (3) Noncovered employees serving in a position in which
2 "eligible creditable service" as defined in Section 14-110
3 may be earned, 1% for a widow or survivors annuity plus the
4 following amount for retirement annuity: 8.5% through
5 December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
6 in 2004 and thereafter;
7 (4) Covered employees serving in a position in which
8 "eligible creditable service" as defined in Section 14-110
9 may be earned, 0.5% for a widow or survivors annuity plus
10 the following amount for retirement annuity: 5% through
11 December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
12 and thereafter;
13 (5) Each security employee of the Department of
14 Corrections or of the Department of Human Services who is a
15 covered employee, 0.5% for a widow or survivors annuity
16 plus the following amount for retirement annuity: 5%
17 through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
18 in 2004 and thereafter;
19 (6) Each security employee of the Department of
20 Corrections or of the Department of Human Services who is
21 not a covered employee, 1% for a widow or survivors annuity
22 plus the following amount for retirement annuity: 8.5%
23 through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
24 11.5% in 2004 and thereafter.
25 (a-5) Beginning July 1, 2019 or the effective date of the
26Tier 1 employee's election under paragraph (1) of subsection

SB2173- 67 -LRB100 11899 RPS 23506 b
1(a) of Section 14-106.5, whichever is later, in lieu of the
2contributions otherwise required under subsection (a), each
3Tier 1 employee who made the election under paragraph (1) of
4subsection (a) of Section 14-106.5 who is a participating
5employee shall make contributions to the System, based on his
6or her compensation, as follows:
7 (1) Covered employees, except as indicated below,
8 3.15% for retirement annuity, and 0.45% for a widow or
9 survivors annuity;
10 (2) Noncovered employees, except as indicated below,
11 6.3% for retirement annuity and 0.9% for a widow or
12 survivors annuity;
13 (3) Noncovered employees serving in a position in which
14 "eligible creditable service" as defined in Section 14-110
15 may be earned, 10.35% for retirement annuity and 0.9% for a
16 widow or survivors annuity;
17 (4) Covered employees serving in a position in which
18 "eligible creditable service" as defined in Section 14-110
19 may be earned, 7.2% for retirement annuity and 0.45% for a
20 widow or survivors annuity;
21 (5) Each security employee of the Department of
22 Corrections or of the Department of Human Services who is a
23 covered employee, 10.8% for retirement annuity and 0.45%
24 for a widow or survivors annuity;
25 (6) Each security employee of the Department of
26 Corrections or of the Department of Human Services who is

SB2173- 68 -LRB100 11899 RPS 23506 b
1 not a covered employee, 10.35% for retirement annuity and
2 0.9% for a widow or survivors annuity.
3 (b) Contributions shall be in the form of a deduction from
4compensation and shall be made notwithstanding that the
5compensation paid in cash to the employee shall be reduced
6thereby below the minimum prescribed by law or regulation. Each
7member is deemed to consent and agree to the deductions from
8compensation provided for in this Article, and shall receipt in
9full for salary or compensation.
10(Source: P.A. 92-14, eff. 6-28-01.)
11 (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
12 (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14 Sec. 14-135.08. To certify required State contributions.
15 (a) To certify to the Governor and to each department, on
16or before November 15 of each year until November 15, 2011, the
17required rate for State contributions to the System for the
18next State fiscal year, as determined under subsection (b) of
19Section 14-131. The certification to the Governor under this
20subsection (a) shall include a copy of the actuarial
21recommendations upon which the rate is based and shall
22specifically identify the System's projected State normal cost
23for that fiscal year.
24 (a-5) On or before November 1 of each year, beginning
25November 1, 2012, the Board shall submit to the State Actuary,

SB2173- 69 -LRB100 11899 RPS 23506 b
1the Governor, and the General Assembly a proposed certification
2of the amount of the required State contribution to the System
3for the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions. On or before
11January 15, 2013 and each January 15 thereafter, the Board
12shall certify to the Governor and the General Assembly the
13amount of the required State contribution for the next fiscal
14year. The Board's certification must note any deviations from
15the State Actuary's recommended changes, the reason or reasons
16for not following the State Actuary's recommended changes, and
17the fiscal impact of not following the State Actuary's
18recommended changes on the required State contribution.
19 (b) The certifications under subsections (a) and (a-5)
20shall include an additional amount necessary to pay all
21principal of and interest on those general obligation bonds due
22the next fiscal year authorized by Section 7.2(a) of the
23General Obligation Bond Act and issued to provide the proceeds
24deposited by the State with the System in July 2003,
25representing deposits other than amounts reserved under
26Section 7.2(c) of the General Obligation Bond Act. For State

SB2173- 70 -LRB100 11899 RPS 23506 b
1fiscal year 2005, the Board shall make a supplemental
2certification of the additional amount necessary to pay all
3principal of and interest on those general obligation bonds due
4in State fiscal years 2004 and 2005 authorized by Section
57.2(a) of the General Obligation Bond Act and issued to provide
6the proceeds deposited by the State with the System in July
72003, representing deposits other than amounts reserved under
8Section 7.2(c) of the General Obligation Bond Act, as soon as
9practical after the effective date of this amendatory Act of
10the 93rd General Assembly.
11 On or before May 1, 2004, the Board shall recalculate and
12recertify to the Governor and to each department the amount of
13the required State contribution to the System and the required
14rates for State contributions to the System for State fiscal
15year 2005, taking into account the amounts appropriated to and
16received by the System under subsection (d) of Section 7.2 of
17the General Obligation Bond Act.
18 On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor and to each department the amount of
20the required State contribution to the System and the required
21rates for State contributions to the System for State fiscal
22year 2006, taking into account the changes in required State
23contributions made by this amendatory Act of the 94th General
24Assembly.
25 On or before April 1, 2011, the Board shall recalculate and
26recertify to the Governor and to each department the amount of

SB2173- 71 -LRB100 11899 RPS 23506 b
1the required State contribution to the System for State fiscal
2year 2011, applying the changes made by Public Act 96-889 to
3the System's assets and liabilities as of June 30, 2009 as
4though Public Act 96-889 was approved on that date.
5 On or before May 1, 2019, the Board shall recalculate and
6recertify to the Governor and the General Assembly the amount
7of the required State contribution to the System for State
8fiscal year 2020, taking into account the effect on the
9System's liabilities of the elections made under Section
1014-106.5.
11 On or before October 1, 2019, the Board shall recalculate
12and recertify to the Governor and the General Assembly the
13amount of the required State contribution to the System for
14State fiscal year 2020, taking into account the reduction
15specified under item (3) of subsection (e) of Section 14-131.
16(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1797-694, eff. 6-18-12.)
18 (40 ILCS 5/14-152.1)
19 (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21 Sec. 14-152.1. Application and expiration of new benefit
22increases.
23 (a) As used in this Section, "new benefit increase" means
24an increase in the amount of any benefit provided under this
25Article, or an expansion of the conditions of eligibility for

SB2173- 72 -LRB100 11899 RPS 23506 b
1any benefit under this Article, that results from an amendment
2to this Code that takes effect after June 1, 2005 (the
3effective date of Public Act 94-4). "New benefit increase",
4however, does not include any benefit increase resulting from
5the changes made to this Article by Public Act 96-37 or by this
6amendatory Act of the 100th General Assembly this amendatory
7Act of the 96th General Assembly.
8 (b) Notwithstanding any other provision of this Code or any
9subsequent amendment to this Code, every new benefit increase
10is subject to this Section and shall be deemed to be granted
11only in conformance with and contingent upon compliance with
12the provisions of this Section.
13 (c) The Public Act enacting a new benefit increase must
14identify and provide for payment to the System of additional
15funding at least sufficient to fund the resulting annual
16increase in cost to the System as it accrues.
17 Every new benefit increase is contingent upon the General
18Assembly providing the additional funding required under this
19subsection. The Commission on Government Forecasting and
20Accountability shall analyze whether adequate additional
21funding has been provided for the new benefit increase and
22shall report its analysis to the Public Pension Division of the
23Department of Insurance Financial and Professional Regulation.
24A new benefit increase created by a Public Act that does not
25include the additional funding required under this subsection
26is null and void. If the Public Pension Division determines

SB2173- 73 -LRB100 11899 RPS 23506 b
1that the additional funding provided for a new benefit increase
2under this subsection is or has become inadequate, it may so
3certify to the Governor and the State Comptroller and, in the
4absence of corrective action by the General Assembly, the new
5benefit increase shall expire at the end of the fiscal year in
6which the certification is made.
7 (d) Every new benefit increase shall expire 5 years after
8its effective date or on such earlier date as may be specified
9in the language enacting the new benefit increase or provided
10under subsection (c). This does not prevent the General
11Assembly from extending or re-creating a new benefit increase
12by law.
13 (e) Except as otherwise provided in the language creating
14the new benefit increase, a new benefit increase that expires
15under this Section continues to apply to persons who applied
16and qualified for the affected benefit while the new benefit
17increase was in effect and to the affected beneficiaries and
18alternate payees of such persons, but does not apply to any
19other person, including without limitation a person who
20continues in service after the expiration date and did not
21apply and qualify for the affected benefit while the new
22benefit increase was in effect.
23(Source: P.A. 96-37, eff. 7-13-09.)
24 (40 ILCS 5/15-108.1)
25 Sec. 15-108.1. Tier 1 member; Tier 1 employee.

SB2173- 74 -LRB100 11899 RPS 23506 b
1 "Tier 1 member": A participant or an annuitant of a
2retirement annuity under this Article, other than a participant
3in the self-managed plan under Section 15-158.2, who first
4became a participant or member before January 1, 2011 under any
5reciprocal retirement system or pension fund established under
6this Code, other than a retirement system or pension fund
7established under Articles 2, 3, 4, 5, 6, or 18 of this Code.
8"Tier 1 member" includes a person who first became a
9participant under this System before January 1, 2011 and who
10accepts a refund and is subsequently reemployed by an employer
11on or after January 1, 2011.
12 "Tier 1 employee": A Tier 1 member who is a participating
13employee, unless he or she is a disability benefit recipient
14under Section 15-150. However, for the purposes of the election
15under Section 15-132.9, "Tier 1 employee" does not include an
16individual who has made an irrevocable election on or before
17June 1, 2017 to retire from service pursuant to the terms of an
18employment contract or a collective bargaining agreement in
19effect on June 1, 2017, excluding any extension, amendment, or
20renewal of that agreement on or after that date, and has
21notified the System of that election.
22(Source: P.A. 98-92, eff. 7-16-13.)
23 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
24 Sec. 15-111. Earnings.
25 (a) "Earnings": Subject to Section 15-111.5, an amount paid

SB2173- 75 -LRB100 11899 RPS 23506 b
1for personal services equal to the sum of the basic
2compensation plus extra compensation for summer teaching,
3overtime or other extra service. For periods for which an
4employee receives service credit under subsection (c) of
5Section 15-113.1 or Section 15-113.2, earnings are equal to the
6basic compensation on which contributions are paid by the
7employee during such periods. Compensation for employment
8which is irregular, intermittent and temporary shall not be
9considered earnings, unless the participant is also receiving
10earnings from the employer as an employee under Section 15-107.
11 With respect to transition pay paid by the University of
12Illinois to a person who was a participating employee employed
13in the fire department of the University of Illinois's
14Champaign-Urbana campus immediately prior to the elimination
15of that fire department:
16 (1) "Earnings" includes transition pay paid to the
17 employee on or after the effective date of this amendatory
18 Act of the 91st General Assembly.
19 (2) "Earnings" includes transition pay paid to the
20 employee before the effective date of this amendatory Act
21 of the 91st General Assembly only if (i) employee
22 contributions under Section 15-157 have been withheld from
23 that transition pay or (ii) the employee pays to the System
24 before January 1, 2001 an amount representing employee
25 contributions under Section 15-157 on that transition pay.
26 Employee contributions under item (ii) may be paid in a

SB2173- 76 -LRB100 11899 RPS 23506 b
1 lump sum, by withholding from additional transition pay
2 accruing before January 1, 2001, or in any other manner
3 approved by the System. Upon payment of the employee
4 contributions on transition pay, the corresponding
5 employer contributions become an obligation of the State.
6 (a-5) Notwithstanding any other provision of this Section,
7"earnings" does not include any future increase in income that
8is offered for service by an employer to a Tier 1 employee
9under this Article pursuant to the condition set forth in
10subsection (c) of Section 15-132.9 and accepted under that
11condition by a Tier 1 employee who has made the election under
12paragraph (2) of subsection (a) of Section 15-132.9.
13 (a-10) Notwithstanding any other provision of this
14Section, "earnings" does not include any consideration payment
15made to a Tier 1 employee.
16 (b) For a Tier 2 member, the annual earnings shall not
17exceed $106,800; however, that amount shall annually
18thereafter be increased by the lesser of (i) 3% of that amount,
19including all previous adjustments, or (ii) one half the annual
20unadjusted percentage increase (but not less than zero) in the
21consumer price index-u for the 12 months ending with the
22September preceding each November 1, including all previous
23adjustments.
24 For the purposes of this Section, "consumer price index u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the average

SB2173- 77 -LRB100 11899 RPS 23506 b
1change in prices of goods and services purchased by all urban
2consumers, United States city average, all items, 1982-84 =
3100. The new amount resulting from each annual adjustment shall
4be determined by the Public Pension Division of the Department
5of Insurance and made available to the boards of the retirement
6systems and pension funds by November 1 of each year.
7 (c) With each submission of payroll information in the
8manner prescribed by the System, the employer shall certify
9that the payroll information is correct and complies with all
10applicable State and federal laws.
11(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
12 (40 ILCS 5/15-112.1 new)
13 Sec. 15-112.1. Future increase in income. "Future increase
14in income" means an increase to a Tier 1 employee's base pay
15that is offered by an employer to the Tier 1 employee for
16service under this Article after June 30, 2018 that qualifies
17as "earnings", as defined in Section 15-111, or would qualify
18as "earnings" but for the fact that it was offered to and
19accepted by the Tier 1 employee under the condition set forth
20in subsection (c) of Section 15-132.9. The term "future
21increase in income" includes an increase to a Tier 1 employee's
22base pay that is paid to the Tier 1 employee pursuant to an
23extension, amendment, or renewal of any such employment
24contract or collective bargaining agreement after the
25effective date of this Section.

SB2173- 78 -LRB100 11899 RPS 23506 b
1 (40 ILCS 5/15-112.2 new)
2 Sec. 15-112.2. Base pay. As used in Section 15-112.1 of
3this Code, "base pay" means the greater of either (i) the Tier
41 employee's annualized rate of earnings as of June 30, 2018,
5or (ii) the Tier 1 employee's annualized rate of earnings
6immediately preceding the expiration, renewal, or amendment of
7an employment contract or collective bargaining agreement in
8effect on the effective date of this Section. For a person
9returning to participating employee status as a Tier 1 employee
10after June 30, 2018, however, "base pay" means the employee's
11annualized rate of earnings as of the employee's last date of
12service prior to July 1, 2018. The System shall calculate the
13base pay of each Tier 1 employee pursuant to this Section.
14 (40 ILCS 5/15-132.9 new)
15 Sec. 15-132.9. Election by Tier 1 employees.
16 (a) Each Tier 1 employee shall make an irrevocable election
17either:
18 (1) to agree to delay his or her eligibility for
19 automatic annual increases in retirement annuity as
20 provided in subsection (d-1) of Section 15-136 and to have
21 the amount of the automatic annual increases in his or her
22 retirement annuity and survivor annuity that are otherwise
23 provided for in this Article calculated, instead, as
24 provided in subsection (d-1) of Section 15-136; or

SB2173- 79 -LRB100 11899 RPS 23506 b
1 (2) to not agree to the provisions of paragraph (1) of
2 this subsection.
3 The election required under this subsection (a) shall be
4made by each Tier 1 employee no earlier than January 1, 2018
5and no later than March 31, 2018, except that:
6 (i) a person who becomes a Tier 1 employee under this
7 Article on or after January 1, 2018 must make the election
8 under this subsection (a) within 60 days after becoming a
9 Tier 1 employee;
10 (ii) a person who returns to participating employee
11 status as a Tier 1 employee under this Article on or after
12 January 1, 2018 and has not yet made an election under this
13 Section must make the election under this subsection (a)
14 within 60 days after returning to participating employee
15 status as a Tier 1 employee; and
16 (iii) a person who returns to participating employee
17 status as a Tier 1 employee under this Article but who has
18 not made an election under Section 15-134.5 must make the
19 election under this subsection (a) at the same time as the
20 election under Section 15-134.5 and within the timeframes
21 required by that Section.
22 If a Tier 1 employee fails for any reason to make a
23required election under this subsection within the time
24specified, then the employee shall be deemed to have made the
25election under paragraph (2) of this subsection.
26 (a-5) If this Section is enjoined or stayed by an Illinois

SB2173- 80 -LRB100 11899 RPS 23506 b
1court or a court of competent jurisdiction pending the entry of
2a final and unappealable decision, and this Section is
3determined to be constitutional or otherwise valid by a final
4unappealable decision of an Illinois court or a court of
5competent jurisdiction, then the election procedure set forth
6in subsection (a) of this Section shall commence on the 180th
7calendar day after the date of the issuance of the final
8unappealable decision and shall conclude at the end of the
9270th calendar day after that date.
10 (a-10) All elections under subsection (a) that are made or
11deemed to be made before July 1, 2018 shall take effect on July
121, 2018. Elections that are made or deemed to be made on or
13after July 1, 2018 shall take effect on the first day of the
14month following the month in which the election is made or
15deemed to be made.
16 (b) As adequate and legal consideration provided under this
17amendatory Act of the 100th General Assembly for making an
18election under paragraph (1) of subsection (a) of this Section,
19the employer shall be expressly and irrevocably prohibited from
20offering any future increases in income to a Tier 1 employee
21who has made an election under paragraph (1) of subsection (a)
22of this Section on the condition of not constituting earnings
23under Section 15-111.
24 As adequate and legal consideration provided under this
25amendatory Act of the 100th General Assembly for making an
26election under paragraph (1) of subsection (a) of this Section,

SB2173- 81 -LRB100 11899 RPS 23506 b
1each Tier 1 employee who has made an election under paragraph
2(1) of subsection (a) of this Section shall receive a
3consideration payment equal to 10% of the contributions made by
4or on behalf of the employee under Section 15-157 before the
5effective date of that election. The State Comptroller shall
6pay the consideration payment to the Tier 1 employee out of
7funds appropriated for that purpose under Section 1.9 of the
8State Pension Funds Continuing Appropriation Act. The System
9shall calculate the amount of each consideration payment and,
10by July 1, 2018, shall certify to the State Comptroller the
11amount of the consideration payment, together with the name,
12address, and any other available payment information of the
13Tier 1 employee as found in the records of the System. The
14System shall make additional calculations and certifications
15of consideration payments to the State Comptroller as the
16System deems necessary.
17 (c) A Tier 1 employee who makes the election under
18paragraph (2) of subsection (a) of this Section shall not be
19subject to paragraph (1) of subsection (a) of this Section.
20However, each future increase in income offered by an employer
21under this Article to a Tier 1 employee who has made the
22election under paragraph (2) of subsection (a) of this Section
23shall be offered by the employer expressly and irrevocably on
24the condition of not constituting earnings under Section 15-111
25and that the Tier 1 employee's acceptance of the offered future
26increase in income shall constitute his or her agreement to

SB2173- 82 -LRB100 11899 RPS 23506 b
1that condition.
2 (d) The System shall make a good faith effort to contact
3each Tier 1 employee subject to this Section. The System shall
4mail information describing the required election to each Tier
51 employee by United States Postal Service mail to his or her
6last known address on file with the System. If the Tier 1
7employee is not responsive to other means of contact, it is
8sufficient for the System to publish the details of any
9required elections on its website or to publish those details
10in a regularly published newsletter or other existing public
11forum.
12 Tier 1 employees who are subject to this Section shall be
13provided with an election packet containing information
14regarding their options, as well as the forms necessary to make
15the required election. Upon request, the System shall offer
16Tier 1 employees an opportunity to receive information from the
17System before making the required election. The information may
18consist of video materials, benefit estimators, group
19presentations, individual consultation with a member or
20authorized representative of the System in person or by
21telephone or other electronic means, or any combination of
22these methods. The System shall not provide advice or
23counseling with respect to which election a Tier 1 employee
24should make or specific to the legal or tax circumstances of or
25consequences to the Tier 1 employee.
26 The System shall inform Tier 1 employees in the election

SB2173- 83 -LRB100 11899 RPS 23506 b
1packet required under this subsection that the Tier 1 employee
2may also wish to obtain information and counsel relating to the
3election required under this Section from any other available
4source, including, but not limited to, labor organizations and
5private counsel.
6 In no event shall the System, its staff, or the Board be
7held liable for any information given to a member regarding the
8elections under this Section. The System shall coordinate with
9the Illinois Department of Central Management Services and each
10other retirement system administering an election in
11accordance with this amendatory Act of the 100th General
12Assembly to provide information concerning the impact of the
13election set forth in this Section.
14 (e) Notwithstanding any other provision of law, an employer
15under this Article is required to offer each future increase in
16income expressly and irrevocably on the condition of not
17constituting "earnings" under Section 15-111 to any Tier 1
18employee who has made an election under paragraph (2) of
19subsection (a) of this Section. The offer shall also provide
20that the Tier 1 employee's acceptance of the offered future
21increase in income shall constitute his or her agreement to the
22condition set forth in this subsection.
23 For purposes of legislative intent, the condition set forth
24in this subsection shall be construed in a manner that ensures
25that the condition is not violated or circumvented through any
26contrivance of any kind.

SB2173- 84 -LRB100 11899 RPS 23506 b
1 (f) A member's election under this Section is not a
2prohibited election under subdivision (j)(1) of Section 1-119
3of this Code.
4 (g) No provision of this Section shall be interpreted in a
5way that would cause the System to cease to be a qualified plan
6under Section 401(a) of the Internal Revenue Code of 1986.
7 (h) If an election created by this amendatory Act in any
8other Article of this Code or any change deriving from that
9election is determined to be unconstitutional or otherwise
10invalid by a final unappealable decision of an Illinois court
11or a court of competent jurisdiction, the invalidity of that
12provision shall not in any way affect the validity of this
13Section or the changes deriving from the election required
14under this Section.
15 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
16 (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18 Sec. 15-136. Retirement annuities - Amount. The provisions
19of this Section 15-136 apply only to those participants who are
20participating in the traditional benefit package or the
21portable benefit package and do not apply to participants who
22are participating in the self-managed plan.
23 (a) The amount of a participant's retirement annuity,
24expressed in the form of a single-life annuity, shall be
25determined by whichever of the following rules is applicable

SB2173- 85 -LRB100 11899 RPS 23506 b
1and provides the largest annuity:
2 Rule 1: The retirement annuity shall be 1.67% of final rate
3of earnings for each of the first 10 years of service, 1.90%
4for each of the next 10 years of service, 2.10% for each year
5of service in excess of 20 but not exceeding 30, and 2.30% for
6each year in excess of 30; or for persons who retire on or
7after January 1, 1998, 2.2% of the final rate of earnings for
8each year of service.
9 Rule 2: The retirement annuity shall be the sum of the
10following, determined from amounts credited to the participant
11in accordance with the actuarial tables and the effective rate
12of interest in effect at the time the retirement annuity
13begins:
14 (i) the normal annuity which can be provided on an
15 actuarially equivalent basis, by the accumulated normal
16 contributions as of the date the annuity begins;
17 (ii) an annuity from employer contributions of an
18 amount equal to that which can be provided on an
19 actuarially equivalent basis from the accumulated normal
20 contributions made by the participant under Section
21 15-113.6 and Section 15-113.7 plus 1.4 times all other
22 accumulated normal contributions made by the participant;
23 and
24 (iii) the annuity that can be provided on an
25 actuarially equivalent basis from the entire contribution
26 made by the participant under Section 15-113.3.

SB2173- 86 -LRB100 11899 RPS 23506 b
1 With respect to a police officer or firefighter who retires
2on or after August 14, 1998, the accumulated normal
3contributions taken into account under clauses (i) and (ii) of
4this Rule 2 shall include the additional normal contributions
5made by the police officer or firefighter under Section
615-157(a).
7 The amount of a retirement annuity calculated under this
8Rule 2 shall be computed solely on the basis of the
9participant's accumulated normal contributions, as specified
10in this Rule and defined in Section 15-116. Neither an employee
11or employer contribution for early retirement under Section
1215-136.2 nor any other employer contribution shall be used in
13the calculation of the amount of a retirement annuity under
14this Rule 2.
15 This amendatory Act of the 91st General Assembly is a
16clarification of existing law and applies to every participant
17and annuitant without regard to whether status as an employee
18terminates before the effective date of this amendatory Act.
19 This Rule 2 does not apply to a person who first becomes an
20employee under this Article on or after July 1, 2005.
21 Rule 3: The retirement annuity of a participant who is
22employed at least one-half time during the period on which his
23or her final rate of earnings is based, shall be equal to the
24participant's years of service not to exceed 30, multiplied by
25(1) $96 if the participant's final rate of earnings is less
26than $3,500, (2) $108 if the final rate of earnings is at least

SB2173- 87 -LRB100 11899 RPS 23506 b
1$3,500 but less than $4,500, (3) $120 if the final rate of
2earnings is at least $4,500 but less than $5,500, (4) $132 if
3the final rate of earnings is at least $5,500 but less than
4$6,500, (5) $144 if the final rate of earnings is at least
5$6,500 but less than $7,500, (6) $156 if the final rate of
6earnings is at least $7,500 but less than $8,500, (7) $168 if
7the final rate of earnings is at least $8,500 but less than
8$9,500, and (8) $180 if the final rate of earnings is $9,500 or
9more, except that the annuity for those persons having made an
10election under Section 15-154(a-1) shall be calculated and
11payable under the portable retirement benefit program pursuant
12to the provisions of Section 15-136.4.
13 Rule 4: A participant who is at least age 50 and has 25 or
14more years of service as a police officer or firefighter, and a
15participant who is age 55 or over and has at least 20 but less
16than 25 years of service as a police officer or firefighter,
17shall be entitled to a retirement annuity of 2 1/4% of the
18final rate of earnings for each of the first 10 years of
19service as a police officer or firefighter, 2 1/2% for each of
20the next 10 years of service as a police officer or
21firefighter, and 2 3/4% for each year of service as a police
22officer or firefighter in excess of 20. The retirement annuity
23for all other service shall be computed under Rule 1. A Tier 2
24member is eligible for a retirement annuity calculated under
25Rule 4 only if that Tier 2 member meets the service
26requirements for that benefit calculation as prescribed under

SB2173- 88 -LRB100 11899 RPS 23506 b
1this Rule 4 in addition to the applicable age requirement under
2subsection (a-5) of Section 15-135.
3 For purposes of this Rule 4, a participant's service as a
4firefighter shall also include the following:
5 (i) service that is performed while the person is an
6 employee under subsection (h) of Section 15-107; and
7 (ii) in the case of an individual who was a
8 participating employee employed in the fire department of
9 the University of Illinois's Champaign-Urbana campus
10 immediately prior to the elimination of that fire
11 department and who immediately after the elimination of
12 that fire department transferred to another job with the
13 University of Illinois, service performed as an employee of
14 the University of Illinois in a position other than police
15 officer or firefighter, from the date of that transfer
16 until the employee's next termination of service with the
17 University of Illinois.
18 (b) For a Tier 1 member, the retirement annuity provided
19under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
20month the participant is under age 60 at the time of
21retirement. However, this reduction shall not apply in the
22following cases:
23 (1) For a disabled participant whose disability
24 benefits have been discontinued because he or she has
25 exhausted eligibility for disability benefits under clause
26 (6) of Section 15-152;

SB2173- 89 -LRB100 11899 RPS 23506 b
1 (2) For a participant who has at least the number of
2 years of service required to retire at any age under
3 subsection (a) of Section 15-135; or
4 (3) For that portion of a retirement annuity which has
5 been provided on account of service of the participant
6 during periods when he or she performed the duties of a
7 police officer or firefighter, if these duties were
8 performed for at least 5 years immediately preceding the
9 date the retirement annuity is to begin.
10 (b-5) The retirement annuity of a Tier 2 member who is
11retiring after attaining age 62 with at least 10 years of
12service credit shall be reduced by 1/2 of 1% for each full
13month that the member's age is under age 67.
14 (c) The maximum retirement annuity provided under Rules 1,
152, 4, and 5 shall be the lesser of (1) the annual limit of
16benefits as specified in Section 415 of the Internal Revenue
17Code of 1986, as such Section may be amended from time to time
18and as such benefit limits shall be adjusted by the
19Commissioner of Internal Revenue, and (2) 80% of final rate of
20earnings.
21 (d) Subject to the provisions of subsection (d-1), a A Tier
221 member whose status as an employee terminates after August
2314, 1969 shall receive automatic increases in his or her
24retirement annuity as follows:
25 Effective January 1 immediately following the date the
26retirement annuity begins, the annuitant shall receive an

SB2173- 90 -LRB100 11899 RPS 23506 b
1increase in his or her monthly retirement annuity of 0.125% of
2the monthly retirement annuity provided under Rule 1, Rule 2,
3Rule 3, or Rule 4 contained in this Section, multiplied by the
4number of full months which elapsed from the date the
5retirement annuity payments began to January 1, 1972, plus
60.1667% of such annuity, multiplied by the number of full
7months which elapsed from January 1, 1972, or the date the
8retirement annuity payments began, whichever is later, to
9January 1, 1978, plus 0.25% of such annuity multiplied by the
10number of full months which elapsed from January 1, 1978, or
11the date the retirement annuity payments began, whichever is
12later, to the effective date of the increase.
13 The annuitant shall receive an increase in his or her
14monthly retirement annuity on each January 1 thereafter during
15the annuitant's life of 3% of the monthly annuity provided
16under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
17Section. The change made under this subsection by P.A. 81-970
18is effective January 1, 1980 and applies to each annuitant
19whose status as an employee terminates before or after that
20date.
21 Beginning January 1, 1990, and except as provided in
22subsection (d-1), all automatic annual increases payable under
23this Section shall be calculated as a percentage of the total
24annuity payable at the time of the increase, including all
25increases previously granted under this Article.
26 The change made in this subsection by P.A. 85-1008 is

SB2173- 91 -LRB100 11899 RPS 23506 b
1effective January 26, 1988, and is applicable without regard to
2whether status as an employee terminated before that date.
3 (d-1) Notwithstanding any other provision of this Article,
4for a Tier 1 employee who made the election under paragraph (1)
5of subsection (a) of Section 15-132.9:
6 (1) The initial increase in retirement annuity under
7 this Section shall occur on the January 1 occurring either
8 on or after the attainment of age 67 or the fifth
9 anniversary of the annuity start date, whichever is
10 earlier.
11 (2) The amount of each automatic annual increase in
12 retirement annuity or survivor annuity occurring on or
13 after the effective date of that election shall be
14 calculated as a percentage of the originally granted
15 retirement annuity or survivor annuity, equal to 3% or
16 one-half the annual unadjusted percentage increase (but
17 not less than zero) in the consumer price index-u for the
18 12 months ending with the September preceding each November
19 1, whichever is less. If the annual unadjusted percentage
20 change in the consumer price index-u for the 12 months
21 ending with the September preceding each November 1 is zero
22 or there is a decrease, then the annuity shall not be
23 increased.
24 For the purposes of this Section, "consumer price index-u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the average

SB2173- 92 -LRB100 11899 RPS 23506 b
1change in prices of goods and services purchased by all urban
2consumers, United States city average, all items, 1982-84 =
3100. The new amount resulting from each annual adjustment shall
4be determined by the Public Pension Division of the Department
5of Insurance and made available to the board of the retirement
6system by November 1 of each year.
7 (d-5) A retirement annuity of a Tier 2 member shall receive
8annual increases on the January 1 occurring either on or after
9the attainment of age 67 or the first anniversary of the
10annuity start date, whichever is later. Each annual increase
11shall be calculated at 3% or one half the annual unadjusted
12percentage increase (but not less than zero) in the consumer
13price index-u for the 12 months ending with the September
14preceding each November 1, whichever is less, of the originally
15granted retirement annuity. If the annual unadjusted
16percentage change in the consumer price index-u for the 12
17months ending with the September preceding each November 1 is
18zero or there is a decrease, then the annuity shall not be
19increased.
20 (e) If, on January 1, 1987, or the date the retirement
21annuity payment period begins, whichever is later, the sum of
22the retirement annuity provided under Rule 1 or Rule 2 of this
23Section and the automatic annual increases provided under the
24preceding subsection or Section 15-136.1, amounts to less than
25the retirement annuity which would be provided by Rule 3, the
26retirement annuity shall be increased as of January 1, 1987, or

SB2173- 93 -LRB100 11899 RPS 23506 b
1the date the retirement annuity payment period begins,
2whichever is later, to the amount which would be provided by
3Rule 3 of this Section. Such increased amount shall be
4considered as the retirement annuity in determining benefits
5provided under other Sections of this Article. This paragraph
6applies without regard to whether status as an employee
7terminated before the effective date of this amendatory Act of
81987, provided that the annuitant was employed at least
9one-half time during the period on which the final rate of
10earnings was based.
11 (f) A participant is entitled to such additional annuity as
12may be provided on an actuarially equivalent basis, by any
13accumulated additional contributions to his or her credit.
14However, the additional contributions made by the participant
15toward the automatic increases in annuity provided under this
16Section shall not be taken into account in determining the
17amount of such additional annuity.
18 (g) If, (1) by law, a function of a governmental unit, as
19defined by Section 20-107 of this Code, is transferred in whole
20or in part to an employer, and (2) a participant transfers
21employment from such governmental unit to such employer within
226 months after the transfer of the function, and (3) the sum of
23(A) the annuity payable to the participant under Rule 1, 2, or
243 of this Section (B) all proportional annuities payable to the
25participant by all other retirement systems covered by Article
2620, and (C) the initial primary insurance amount to which the

SB2173- 94 -LRB100 11899 RPS 23506 b
1participant is entitled under the Social Security Act, is less
2than the retirement annuity which would have been payable if
3all of the participant's pension credits validated under
4Section 20-109 had been validated under this system, a
5supplemental annuity equal to the difference in such amounts
6shall be payable to the participant.
7 (h) On January 1, 1981, an annuitant who was receiving a
8retirement annuity on or before January 1, 1971 shall have his
9or her retirement annuity then being paid increased $1 per
10month for each year of creditable service. On January 1, 1982,
11an annuitant whose retirement annuity began on or before
12January 1, 1977, shall have his or her retirement annuity then
13being paid increased $1 per month for each year of creditable
14service.
15 (i) On January 1, 1987, any annuitant whose retirement
16annuity began on or before January 1, 1977, shall have the
17monthly retirement annuity increased by an amount equal to 8
18per year of creditable service times the number of years that
19have elapsed since the annuity began.
20(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
2198-92, eff. 7-16-13.)
22 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
23 Sec. 15-155. Employer contributions.
24 (a) The State of Illinois shall make contributions by
25appropriations of amounts which, together with the other

SB2173- 95 -LRB100 11899 RPS 23506 b
1employer contributions from trust, federal, and other funds,
2employee contributions, income from investments, and other
3income of this System, will be sufficient to meet the cost of
4maintaining and administering the System on a 90% funded basis
5in accordance with actuarial recommendations.
6 The Board shall determine the amount of State contributions
7required for each fiscal year on the basis of the actuarial
8tables and other assumptions adopted by the Board and the
9recommendations of the actuary, using the formula in subsection
10(a-1).
11 (a-1) For State fiscal years 2012 through 2045 (except as
12otherwise provided for fiscal year 2019), the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22 For State fiscal year 2019:
23 (1) The initial calculation and certification shall be
24 based on the amount determined above.
25 (2) For purposes of the recertification due on or
26 before May 1, 2018, the recalculation of the required State

SB2173- 96 -LRB100 11899 RPS 23506 b
1 contribution for fiscal year 2019 shall take into account
2 the effect on the System's liabilities of the elections
3 made under Section 15-132.9.
4 (3) For purposes of the recertification due on or
5 before October 1, 2018, the total required State
6 contribution for fiscal year 2019 shall be reduced by the
7 amount of the consideration payments made to Tier 1
8 employees who made the election under paragraph (1) of
9 subsection (a) of Section 15-132.9.
10 For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13so that by State fiscal year 2011, the State is contributing at
14the rate required under this Section.
15 Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$166,641,900.
18 Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$252,064,100.
21 For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

SB2173- 97 -LRB100 11899 RPS 23506 b
1 Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$702,514,000 and shall be made from the State Pensions Fund and
4proceeds of bonds sold in fiscal year 2010 pursuant to Section
57.2 of the General Obligation Bond Act, less (i) the pro rata
6share of bond sale expenses determined by the System's share of
7total bond proceeds, (ii) any amounts received from the General
8Revenue Fund in fiscal year 2010, (iii) any reduction in bond
9proceeds due to the issuance of discounted bonds, if
10applicable.
11 Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2011 is
13the amount recertified by the System on or before April 1, 2011
14pursuant to Section 15-165 and shall be made from the State
15Pensions Fund and proceeds of bonds sold in fiscal year 2011
16pursuant to Section 7.2 of the General Obligation Bond Act,
17less (i) the pro rata share of bond sale expenses determined by
18the System's share of total bond proceeds, (ii) any amounts
19received from the General Revenue Fund in fiscal year 2011, and
20(iii) any reduction in bond proceeds due to the issuance of
21discounted bonds, if applicable.
22 Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed to
24maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26 Amounts received by the System pursuant to Section 25 of

SB2173- 98 -LRB100 11899 RPS 23506 b
1the Budget Stabilization Act or Section 8.12 of the State
2Finance Act in any fiscal year do not reduce and do not
3constitute payment of any portion of the minimum State
4contribution required under this Article in that fiscal year.
5Such amounts shall not reduce, and shall not be included in the
6calculation of, the required State contributions under this
7Article in any future year until the System has reached a
8funding ratio of at least 90%. A reference in this Article to
9the "required State contribution" or any substantially similar
10term does not include or apply to any amounts payable to the
11System under Section 25 of the Budget Stabilization Act.
12 Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter, as calculated
15under this Section and certified under Section 15-165, shall
16not exceed an amount equal to (i) the amount of the required
17State contribution that would have been calculated under this
18Section for that fiscal year if the System had not received any
19payments under subsection (d) of Section 7.2 of the General
20Obligation Bond Act, minus (ii) the portion of the State's
21total debt service payments for that fiscal year on the bonds
22issued in fiscal year 2003 for the purposes of that Section
237.2, as determined and certified by the Comptroller, that is
24the same as the System's portion of the total moneys
25distributed under subsection (d) of Section 7.2 of the General
26Obligation Bond Act. In determining this maximum for State

SB2173- 99 -LRB100 11899 RPS 23506 b
1fiscal years 2008 through 2010, however, the amount referred to
2in item (i) shall be increased, as a percentage of the
3applicable employee payroll, in equal increments calculated
4from the sum of the required State contribution for State
5fiscal year 2007 plus the applicable portion of the State's
6total debt service payments for fiscal year 2007 on the bonds
7issued in fiscal year 2003 for the purposes of Section 7.2 of
8the General Obligation Bond Act, so that, by State fiscal year
92011, the State is contributing at the rate otherwise required
10under this Section.
11 (b) If an employee is paid from trust or federal funds, the
12employer shall pay to the Board contributions from those funds
13which are sufficient to cover the accruing normal costs on
14behalf of the employee. However, universities having employees
15who are compensated out of local auxiliary funds, income funds,
16or service enterprise funds are not required to pay such
17contributions on behalf of those employees. The local auxiliary
18funds, income funds, and service enterprise funds of
19universities shall not be considered trust funds for the
20purpose of this Article, but funds of alumni associations,
21foundations, and athletic associations which are affiliated
22with the universities included as employers under this Article
23and other employers which do not receive State appropriations
24are considered to be trust funds for the purpose of this
25Article.
26 (b-1) The City of Urbana and the City of Champaign shall

SB2173- 100 -LRB100 11899 RPS 23506 b
1each make employer contributions to this System for their
2respective firefighter employees who participate in this
3System pursuant to subsection (h) of Section 15-107. The rate
4of contributions to be made by those municipalities shall be
5determined annually by the Board on the basis of the actuarial
6assumptions adopted by the Board and the recommendations of the
7actuary, and shall be expressed as a percentage of salary for
8each such employee. The Board shall certify the rate to the
9affected municipalities as soon as may be practical. The
10employer contributions required under this subsection shall be
11remitted by the municipality to the System at the same time and
12in the same manner as employee contributions.
13 (c) Through State fiscal year 1995: The total employer
14contribution shall be apportioned among the various funds of
15the State and other employers, whether trust, federal, or other
16funds, in accordance with actuarial procedures approved by the
17Board. State of Illinois contributions for employers receiving
18State appropriations for personal services shall be payable
19from appropriations made to the employers or to the System. The
20contributions for Class I community colleges covering earnings
21other than those paid from trust and federal funds, shall be
22payable solely from appropriations to the Illinois Community
23College Board or the System for employer contributions.
24 (d) Beginning in State fiscal year 1996, the required State
25contributions to the System shall be appropriated directly to
26the System and shall be payable through vouchers issued in

SB2173- 101 -LRB100 11899 RPS 23506 b
1accordance with subsection (c) of Section 15-165, except as
2provided in subsection (g).
3 (e) The State Comptroller shall draw warrants payable to
4the System upon proper certification by the System or by the
5employer in accordance with the appropriation laws and this
6Code.
7 (f) Normal costs under this Section means liability for
8pensions and other benefits which accrues to the System because
9of the credits earned for service rendered by the participants
10during the fiscal year and expenses of administering the
11System, but shall not include the principal of or any
12redemption premium or interest on any bonds issued by the Board
13or any expenses incurred or deposits required in connection
14therewith.
15 (g) If the amount of a participant's earnings for any
16academic year used to determine the final rate of earnings,
17determined on a full-time equivalent basis, exceeds the amount
18of his or her earnings with the same employer for the previous
19academic year, determined on a full-time equivalent basis, by
20more than 6%, the participant's employer shall pay to the
21System, in addition to all other payments required under this
22Section and in accordance with guidelines established by the
23System, the present value of the increase in benefits resulting
24from the portion of the increase in earnings that is in excess
25of 6%. This present value shall be computed by the System on
26the basis of the actuarial assumptions and tables used in the

SB2173- 102 -LRB100 11899 RPS 23506 b
1most recent actuarial valuation of the System that is available
2at the time of the computation. The System may require the
3employer to provide any pertinent information or
4documentation.
5 Whenever it determines that a payment is or may be required
6under this subsection (g), the System shall calculate the
7amount of the payment and bill the employer for that amount.
8The bill shall specify the calculations used to determine the
9amount due. If the employer disputes the amount of the bill, it
10may, within 30 days after receipt of the bill, apply to the
11System in writing for a recalculation. The application must
12specify in detail the grounds of the dispute and, if the
13employer asserts that the calculation is subject to subsection
14(h) or (i) of this Section, must include an affidavit setting
15forth and attesting to all facts within the employer's
16knowledge that are pertinent to the applicability of subsection
17(h) or (i). Upon receiving a timely application for
18recalculation, the System shall review the application and, if
19appropriate, recalculate the amount due.
20 The employer contributions required under this subsection
21(g) may be paid in the form of a lump sum within 90 days after
22receipt of the bill. If the employer contributions are not paid
23within 90 days after receipt of the bill, then interest will be
24charged at a rate equal to the System's annual actuarially
25assumed rate of return on investment compounded annually from
26the 91st day after receipt of the bill. Payments must be

SB2173- 103 -LRB100 11899 RPS 23506 b
1concluded within 3 years after the employer's receipt of the
2bill.
3 When assessing payment for any amount due under this
4subsection (g), the System shall include earnings, to the
5extent not established by a participant under Section 15-113.11
6or 15-113.12, that would have been paid to the participant had
7the participant not taken (i) periods of voluntary or
8involuntary furlough occurring on or after July 1, 2015 and on
9or before June 30, 2017 or (ii) periods of voluntary pay
10reduction in lieu of furlough occurring on or after July 1,
112015 and on or before June 30, 2017. Determining earnings that
12would have been paid to a participant had the participant not
13taken periods of voluntary or involuntary furlough or periods
14of voluntary pay reduction shall be the responsibility of the
15employer, and shall be reported in a manner prescribed by the
16System.
17 (h) This subsection (h) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22 When assessing payment for any amount due under subsection
23(g), the System shall exclude earnings increases paid to
24participants under contracts or collective bargaining
25agreements entered into, amended, or renewed before June 1,
262005.

SB2173- 104 -LRB100 11899 RPS 23506 b
1 When assessing payment for any amount due under subsection
2(g), the System shall exclude earnings increases paid to a
3participant at a time when the participant is 10 or more years
4from retirement eligibility under Section 15-135.
5 When assessing payment for any amount due under subsection
6(g), the System shall exclude earnings increases resulting from
7overload work, including a contract for summer teaching, or
8overtime when the employer has certified to the System, and the
9System has approved the certification, that: (i) in the case of
10overloads (A) the overload work is for the sole purpose of
11academic instruction in excess of the standard number of
12instruction hours for a full-time employee occurring during the
13academic year that the overload is paid and (B) the earnings
14increases are equal to or less than the rate of pay for
15academic instruction computed using the participant's current
16salary rate and work schedule; and (ii) in the case of
17overtime, the overtime was necessary for the educational
18mission.
19 When assessing payment for any amount due under subsection
20(g), the System shall exclude any earnings increase resulting
21from (i) a promotion for which the employee moves from one
22classification to a higher classification under the State
23Universities Civil Service System, (ii) a promotion in academic
24rank for a tenured or tenure-track faculty position, or (iii) a
25promotion that the Illinois Community College Board has
26recommended in accordance with subsection (k) of this Section.

SB2173- 105 -LRB100 11899 RPS 23506 b
1These earnings increases shall be excluded only if the
2promotion is to a position that has existed and been filled by
3a member for no less than one complete academic year and the
4earnings increase as a result of the promotion is an increase
5that results in an amount no greater than the average salary
6paid for other similar positions.
7 (i) When assessing payment for any amount due under
8subsection (g), the System shall exclude any salary increase
9described in subsection (h) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (g) of this Section.
17 (j) The System shall prepare a report and file copies of
18the report with the Governor and the General Assembly by
19January 1, 2007 that contains all of the following information:
20 (1) The number of recalculations required by the
21 changes made to this Section by Public Act 94-1057 for each
22 employer.
23 (2) The dollar amount by which each employer's
24 contribution to the System was changed due to
25 recalculations required by Public Act 94-1057.
26 (3) The total amount the System received from each

SB2173- 106 -LRB100 11899 RPS 23506 b
1 employer as a result of the changes made to this Section by
2 Public Act 94-4.
3 (4) The increase in the required State contribution
4 resulting from the changes made to this Section by Public
5 Act 94-1057.
6 (k) The Illinois Community College Board shall adopt rules
7for recommending lists of promotional positions submitted to
8the Board by community colleges and for reviewing the
9promotional lists on an annual basis. When recommending
10promotional lists, the Board shall consider the similarity of
11the positions submitted to those positions recognized for State
12universities by the State Universities Civil Service System.
13The Illinois Community College Board shall file a copy of its
14findings with the System. The System shall consider the
15findings of the Illinois Community College Board when making
16determinations under this Section. The System shall not exclude
17any earnings increases resulting from a promotion when the
18promotion was not submitted by a community college. Nothing in
19this subsection (k) shall require any community college to
20submit any information to the Community College Board.
21 (l) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25 As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

SB2173- 107 -LRB100 11899 RPS 23506 b
1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6 (m) For purposes of determining the required State
7contribution to the system for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the system's actuarially assumed rate of return.
10 (n) If Section 15-132.9 is determined to be
11unconstitutional or otherwise invalid by a final unappealable
12decision of an Illinois court or a court of competent
13jurisdiction, then the changes made to this Section by this
14amendatory Act of the 100th General Assembly shall not take
15effect and are repealed by operation of law.
16(Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13;
1799-897, eff. 1-1-17.)
18 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
19 Sec. 15-157. Employee Contributions.
20 (a) Each participating employee shall make contributions
21towards the retirement benefits payable under the retirement
22program applicable to the employee from each payment of
23earnings applicable to employment under this system on and
24after the date of becoming a participant as follows: Prior to
25September 1, 1949, 3 1/2% of earnings; from September 1, 1949

SB2173- 108 -LRB100 11899 RPS 23506 b
1to August 31, 1955, 5%; from September 1, 1955 to August 31,
21969, 6%; from September 1, 1969, 6 1/2%. These contributions
3are to be considered as normal contributions for purposes of
4this Article.
5 Each participant who is a police officer or firefighter
6shall make normal contributions of 8% of each payment of
7earnings applicable to employment as a police officer or
8firefighter under this system on or after September 1, 1981,
9unless he or she files with the board within 60 days after the
10effective date of this amendatory Act of 1991 or 60 days after
11the board receives notice that he or she is employed as a
12police officer or firefighter, whichever is later, a written
13notice waiving the retirement formula provided by Rule 4 of
14Section 15-136. This waiver shall be irrevocable. If a
15participant had met the conditions set forth in Section
1615-132.1 prior to the effective date of this amendatory Act of
171991 but failed to make the additional normal contributions
18required by this paragraph, he or she may elect to pay the
19additional contributions plus compound interest at the
20effective rate. If such payment is received by the board, the
21service shall be considered as police officer service in
22calculating the retirement annuity under Rule 4 of Section
2315-136. While performing service described in clause (i) or
24(ii) of Rule 4 of Section 15-136, a participating employee
25shall be deemed to be employed as a firefighter for the purpose
26of determining the rate of employee contributions under this

SB2173- 109 -LRB100 11899 RPS 23506 b
1Section.
2 (b) Starting September 1, 1969, each participating
3employee shall make additional contributions of 1/2 of 1% of
4earnings to finance a portion of the cost of the annual
5increases in retirement annuity provided under Section 15-136,
6except that with respect to participants in the self-managed
7plan this additional contribution shall be used to finance the
8benefits obtained under that retirement program. Beginning
9July 1, 2018 or the effective date of the Tier 1 employee's
10election under paragraph (1) of subsection (a) of Section
1115-132.9, whichever is later, each Tier 1 employee who made the
12election under paragraph (1) of subsection (a) of Section
1315-132.9 is no longer required to make contributions under this
14subsection.
15 (c) Except as provided in subsection (c-5), in In addition
16to the amounts described in subsections (a) and (b) of this
17Section, each participating employee shall make contributions
18of 1% of earnings applicable under this system on and after
19August 1, 1959. The contributions made under this subsection
20(c) shall be considered as survivor's insurance contributions
21for purposes of this Article if the employee is covered under
22the traditional benefit package, and such contributions shall
23be considered as additional contributions for purposes of this
24Article if the employee is participating in the self-managed
25plan or has elected to participate in the portable benefit
26package and has completed the applicable one-year waiting

SB2173- 110 -LRB100 11899 RPS 23506 b
1period. Contributions in excess of $80 during any fiscal year
2beginning before August 31, 1969 and in excess of $120 during
3any fiscal year thereafter until September 1, 1971 shall be
4considered as additional contributions for purposes of this
5Article.
6 (c-5) Beginning July 1, 2018 or the effective date of the
7Tier 1 employee's election under paragraph (1) of subsection
8(a) of Section 15-132.9, whichever is later, in lieu of the
9contributions otherwise required under subsection (c), each
10Tier 1 employee who made the election under paragraph (1) of
11subsection (a) of Section 15-132.9 shall make contributions of
120.7% of earnings applicable under this System and each Tier 1
13employee who is a police officer or firefighter who makes
14normal contributions of 8% of each payment of earnings
15applicable to employment as a police officer or firefighter
16under this System and who made the election under paragraph (1)
17of subsection (a) of Section 15-132.9 shall make contributions
18of 0.55% of earnings applicable under this System. The
19contributions made under this subsection (c-5) shall be
20considered as survivor's insurance contributions for purposes
21of this Article and such contributions shall be considered as
22additional contributions for purposes of this Article if the
23employee has elected to participate in the portable benefit
24package and has completed the applicable one-year waiting
25period.
26 (d) If the board by board rule so permits and subject to

SB2173- 111 -LRB100 11899 RPS 23506 b
1such conditions and limitations as may be specified in its
2rules, a participant may make other additional contributions of
3such percentage of earnings or amounts as the participant shall
4elect in a written notice thereof received by the board.
5 (e) That fraction of a participant's total accumulated
6normal contributions, the numerator of which is equal to the
7number of years of service in excess of that which is required
8to qualify for the maximum retirement annuity, and the
9denominator of which is equal to the total service of the
10participant, shall be considered as accumulated additional
11contributions. The determination of the applicable maximum
12annuity and the adjustment in contributions required by this
13provision shall be made as of the date of the participant's
14retirement.
15 (f) Notwithstanding the foregoing, a participating
16employee shall not be required to make contributions under this
17Section after the date upon which continuance of such
18contributions would otherwise cause his or her retirement
19annuity to exceed the maximum retirement annuity as specified
20in clause (1) of subsection (c) of Section 15-136.
21 (g) A participant may make contributions for the purchase
22of service credit under this Article; however, only a
23participating employee may make optional contributions under
24subsection (b) of Section 15-157.1 of this Article.
25 (h) A Tier 2 member shall not make contributions on
26earnings that exceed the limitation as prescribed under

SB2173- 112 -LRB100 11899 RPS 23506 b
1subsection (b) of Section 15-111 of this Article.
2(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
3 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
4 (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6 Sec. 15-165. To certify amounts and submit vouchers.
7 (a) The Board shall certify to the Governor on or before
8November 15 of each year until November 15, 2011 the
9appropriation required from State funds for the purposes of
10this System for the following fiscal year. The certification
11under this subsection (a) shall include a copy of the actuarial
12recommendations upon which it is based and shall specifically
13identify the System's projected State normal cost for that
14fiscal year and the projected State cost for the self-managed
15plan for that fiscal year.
16 On or before May 1, 2004, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2005, taking
19into account the amounts appropriated to and received by the
20System under subsection (d) of Section 7.2 of the General
21Obligation Bond Act.
22 On or before July 1, 2005, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2006, taking
25into account the changes in required State contributions made

SB2173- 113 -LRB100 11899 RPS 23506 b
1by this amendatory Act of the 94th General Assembly.
2 On or before April 1, 2011, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2011, applying
5the changes made by Public Act 96-889 to the System's assets
6and liabilities as of June 30, 2009 as though Public Act 96-889
7was approved on that date.
8 (a-5) On or before November 1 of each year, beginning
9November 1, 2012, the Board shall submit to the State Actuary,
10the Governor, and the General Assembly a proposed certification
11of the amount of the required State contribution to the System
12for the next fiscal year, along with all of the actuarial
13assumptions, calculations, and data upon which that proposed
14certification is based. On or before January 1 of each year,
15beginning January 1, 2013, the State Actuary shall issue a
16preliminary report concerning the proposed certification and
17identifying, if necessary, recommended changes in actuarial
18assumptions that the Board must consider before finalizing its
19certification of the required State contributions. On or before
20January 15, 2013 and each January 15 thereafter, the Board
21shall certify to the Governor and the General Assembly the
22amount of the required State contribution for the next fiscal
23year. The Board's certification must note, in a written
24response to the State Actuary, any deviations from the State
25Actuary's recommended changes, the reason or reasons for not
26following the State Actuary's recommended changes, and the

SB2173- 114 -LRB100 11899 RPS 23506 b
1fiscal impact of not following the State Actuary's recommended
2changes on the required State contribution.
3 (a-10) On or before May 1, 2018, the Board shall
4recalculate and recertify to the Governor and the General
5Assembly the amount of the required State contribution to the
6System for State fiscal year 2019, taking into account the
7effect on the System's liabilities of the elections made under
8Section 15-132.9.
9 On or before October 1, 2018, the Board shall recalculate
10and recertify to the Governor and the General Assembly the
11amount of the required State contribution to the System for
12State fiscal year 2019, taking into account the reduction
13specified under item (3) of subsection (a-1) of Section 15-155.
14 (b) The Board shall certify to the State Comptroller or
15employer, as the case may be, from time to time, by its
16chairperson and secretary, with its seal attached, the amounts
17payable to the System from the various funds.
18 (c) Beginning in State fiscal year 1996, on or as soon as
19possible after the 15th day of each month the Board shall
20submit vouchers for payment of State contributions to the
21System, in a total monthly amount of one-twelfth of the
22required annual State contribution certified under subsection
23(a). From the effective date of this amendatory Act of the 93rd
24General Assembly through June 30, 2004, the Board shall not
25submit vouchers for the remainder of fiscal year 2004 in excess
26of the fiscal year 2004 certified contribution amount

SB2173- 115 -LRB100 11899 RPS 23506 b
1determined under this Section after taking into consideration
2the transfer to the System under subsection (b) of Section
36z-61 of the State Finance Act. These vouchers shall be paid by
4the State Comptroller and Treasurer by warrants drawn on the
5funds appropriated to the System for that fiscal year.
6 If in any month the amount remaining unexpended from all
7other appropriations to the System for the applicable fiscal
8year (including the appropriations to the System under Section
98.12 of the State Finance Act and Section 1 of the State
10Pension Funds Continuing Appropriation Act) is less than the
11amount lawfully vouchered under this Section, the difference
12shall be paid from the General Revenue Fund under the
13continuing appropriation authority provided in Section 1.1 of
14the State Pension Funds Continuing Appropriation Act.
15 (d) So long as the payments received are the full amount
16lawfully vouchered under this Section, payments received by the
17System under this Section shall be applied first toward the
18employer contribution to the self-managed plan established
19under Section 15-158.2. Payments shall be applied second toward
20the employer's portion of the normal costs of the System, as
21defined in subsection (f) of Section 15-155. The balance shall
22be applied toward the unfunded actuarial liabilities of the
23System.
24 (e) In the event that the System does not receive, as a
25result of legislative enactment or otherwise, payments
26sufficient to fully fund the employer contribution to the

SB2173- 116 -LRB100 11899 RPS 23506 b
1self-managed plan established under Section 15-158.2 and to
2fully fund that portion of the employer's portion of the normal
3costs of the System, as calculated in accordance with Section
415-155(a-1), then any payments received shall be applied
5proportionately to the optional retirement program established
6under Section 15-158.2 and to the employer's portion of the
7normal costs of the System, as calculated in accordance with
8Section 15-155(a-1).
9(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
10 (40 ILCS 5/15-198)
11 (Text of Section WITHOUT the changes made by P.A. 98-599,
12which has been held unconstitutional)
13 Sec. 15-198. Application and expiration of new benefit
14increases.
15 (a) As used in this Section, "new benefit increase" means
16an increase in the amount of any benefit provided under this
17Article, or an expansion of the conditions of eligibility for
18any benefit under this Article, that results from an amendment
19to this Code that takes effect after the effective date of this
20amendatory Act of the 94th General Assembly. "New benefit
21increase", however, does not include any benefit increase
22resulting from the changes made to this Article by this
23amendatory Act of the 100th General Assembly.
24 (b) Notwithstanding any other provision of this Code or any
25subsequent amendment to this Code, every new benefit increase

SB2173- 117 -LRB100 11899 RPS 23506 b
1is subject to this Section and shall be deemed to be granted
2only in conformance with and contingent upon compliance with
3the provisions of this Section.
4 (c) The Public Act enacting a new benefit increase must
5identify and provide for payment to the System of additional
6funding at least sufficient to fund the resulting annual
7increase in cost to the System as it accrues.
8 Every new benefit increase is contingent upon the General
9Assembly providing the additional funding required under this
10subsection. The Commission on Government Forecasting and
11Accountability shall analyze whether adequate additional
12funding has been provided for the new benefit increase and
13shall report its analysis to the Public Pension Division of the
14Department of Insurance Financial and Professional Regulation.
15A new benefit increase created by a Public Act that does not
16include the additional funding required under this subsection
17is null and void. If the Public Pension Division determines
18that the additional funding provided for a new benefit increase
19under this subsection is or has become inadequate, it may so
20certify to the Governor and the State Comptroller and, in the
21absence of corrective action by the General Assembly, the new
22benefit increase shall expire at the end of the fiscal year in
23which the certification is made.
24 (d) Every new benefit increase shall expire 5 years after
25its effective date or on such earlier date as may be specified
26in the language enacting the new benefit increase or provided

SB2173- 118 -LRB100 11899 RPS 23506 b
1under subsection (c). This does not prevent the General
2Assembly from extending or re-creating a new benefit increase
3by law.
4 (e) Except as otherwise provided in the language creating
5the new benefit increase, a new benefit increase that expires
6under this Section continues to apply to persons who applied
7and qualified for the affected benefit while the new benefit
8increase was in effect and to the affected beneficiaries and
9alternate payees of such persons, but does not apply to any
10other person, including without limitation a person who
11continues in service after the expiration date and did not
12apply and qualify for the affected benefit while the new
13benefit increase was in effect.
14(Source: P.A. 94-4, eff. 6-1-05.)
15 (40 ILCS 5/16-107.1 new)
16 Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
17teacher under this Article who first became a member or
18participant before January 1, 2011 under any reciprocal
19retirement system or pension fund established under this Code
20other than a retirement system or pension fund established
21under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
22the purposes of the election under Section 16-122.9, "Tier 1
23employee" does not include a teacher under this Article who
24would qualify as a Tier 1 employee but who has made an
25irrevocable election on or before June 1, 2017 to retire from

SB2173- 119 -LRB100 11899 RPS 23506 b
1service pursuant to the terms of an employment contract or a
2collective bargaining agreement in effect on June 1, 2017,
3excluding any extension, amendment, or renewal of that
4agreement after that date, and has notified the System of that
5election.
6 (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
7 (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9 Sec. 16-121. Salary. "Salary": The actual compensation
10received by a teacher during any school year and recognized by
11the system in accordance with rules of the board. For purposes
12of this Section, "school year" includes the regular school term
13plus any additional period for which a teacher is compensated
14and such compensation is recognized by the rules of the board.
15 Notwithstanding any other provision of this Section,
16"salary" does not include any future increase in income that is
17offered by an employer for service as a Tier 1 employee under
18this Article pursuant to the condition set forth in subsection
19(c) of Section 16-122.9 and accepted under that condition by a
20Tier 1 employee who has made the election under paragraph (2)
21of subsection (a) of Section 16-122.9.
22 Notwithstanding any other provision of this Section,
23"salary" does not include any consideration payment made to a
24Tier 1 employee.
25(Source: P.A. 84-1028.)

SB2173- 120 -LRB100 11899 RPS 23506 b
1 (40 ILCS 5/16-121.1 new)
2 Sec. 16-121.1. Future increase in income. "Future increase
3in income" means an increase to a Tier 1 employee's base pay
4that is offered by an employer to the Tier 1 employee for
5service under this Article after June 30, 2018 that qualifies
6as "salary", as defined in Section 16-121, or would qualify as
7"salary" but for the fact that it was offered to and accepted
8by the Tier 1 employee under the condition set forth in
9subsection (c) of Section 16-122.9. The term "future increase
10in income" includes an increase to a Tier 1 employee's base pay
11that is paid to the Tier 1 employee pursuant to an extension,
12amendment, or renewal of any such employment contract or
13collective bargaining agreement after the effective date of
14this Section.
15 (40 ILCS 5/16-121.2 new)
16 Sec. 16-121.2. Base pay. As used in Section 16-121.1 of
17this Code, "base pay" means the greater of either (i) the Tier
181 employee's annualized rate of salary as of June 30, 2018, or
19(ii) the Tier 1 employee's annualized rate of salary
20immediately preceding the expiration, renewal, or amendment of
21an employment contract or collective bargaining agreement in
22effect on the effective date of this Section. For a person
23returning to active service as a Tier 1 employee after June 30,
242018, however, "base pay" means the employee's annualized rate

SB2173- 121 -LRB100 11899 RPS 23506 b
1of salary as of the employee's last date of service prior to
2July 1, 2018. The System shall calculate the base pay of each
3Tier 1 employee pursuant to this Section.
4 (40 ILCS 5/16-122.9 new)
5 Sec. 16-122.9. Election by Tier 1 employees.
6 (a) Each active Tier 1 employee shall make an irrevocable
7election either:
8 (1) to agree to delay his or her eligibility for
9 automatic annual increases in retirement annuity as
10 provided in subsection (a-1) of Section 16-133.1 or
11 subsection (b-1) of Section 16-136.1, whichever is
12 applicable, and to have the amount of the automatic annual
13 increases in his or her retirement annuity and survivor
14 benefit that are otherwise provided for in this Article
15 calculated, instead, as provided in subsection (a-1) of
16 Section 16-133.1 or subsection (b-1) of Section 16-136.1,
17 whichever is applicable; or
18 (2) to not agree to paragraph (1) of this subsection.
19 The election required under this subsection (a) shall be
20made by each active Tier 1 employee no earlier than January 1,
212018 and no later than March 31, 2018, except that:
22 (i) a person who becomes a Tier 1 employee under this
23 Article on or after February 1, 2018 must make the election
24 under this subsection (a) within 60 days after becoming a
25 Tier 1 employee; and

SB2173- 122 -LRB100 11899 RPS 23506 b
1 (ii) a person who returns to active service as a Tier 1
2 employee under this Article on or after February 1, 2018
3 and has not yet made an election under this Section must
4 make the election under this subsection (a) within 60 days
5 after returning to active service as a Tier 1 employee.
6 If a Tier 1 employee fails for any reason to make a
7required election under this subsection within the time
8specified, then the employee shall be deemed to have made the
9election under paragraph (2) of this subsection.
10 (a-5) If this Section is enjoined or stayed by an Illinois
11court or a court of competent jurisdiction pending the entry of
12a final and unappealable decision, and this Section is
13determined to be constitutional or otherwise valid by a final
14unappealable decision of an Illinois court or a court of
15competent jurisdiction, then the election procedure set forth
16in subsection (a) of this Section shall commence on the 180th
17calendar day after the date of the issuance of the final
18unappealable decision and shall conclude at the end of the
19270th calendar day after that date.
20 (a-10) All elections under subsection (a) that are made or
21deemed to be made before July 1, 2018 shall take effect on July
221, 2018. Elections that are made or deemed to be made on or
23after July 1, 2018 shall take effect on the first day of the
24month following the month in which the election is made or
25deemed to be made.
26 (b) As adequate and legal consideration provided under this

SB2173- 123 -LRB100 11899 RPS 23506 b
1amendatory Act of the 100th General Assembly for making an
2election under paragraph (1) of subsection (a) of this Section,
3an employer shall be expressly and irrevocably prohibited from
4offering any future increases in income to a Tier 1 employee
5who has made an election under paragraph (1) of subsection (a)
6of this Section on the condition of not constituting salary
7under Section 16-121.
8 As adequate and legal consideration provided under this
9amendatory Act of the 100th General Assembly for making an
10election under paragraph (1) of subsection (a) of this Section,
11each Tier 1 employee who has made an election under paragraph
12(1) of subsection (a) of this Section shall receive a
13consideration payment equal to 10% of the contributions made by
14or on behalf of the employee under paragraphs (1), (2), and (3)
15of subsection (a) of Section 16-152 before the effective date
16of that election. The State Comptroller shall pay the
17consideration payment to the Tier 1 employee out of funds
18appropriated for that purpose under Section 1.9 of the State
19Pension Funds Continuing Appropriation Act. The System shall
20calculate the amount of each consideration payment and, by July
211, 2018, shall certify to the State Comptroller the amount of
22the consideration payment, together with the name, address, and
23any other available payment information of the Tier 1 employee
24as found in the records of the System. The System shall make
25additional calculations and certifications of consideration
26payments to the State Comptroller as the System deems

SB2173- 124 -LRB100 11899 RPS 23506 b
1necessary.
2 (c) A Tier 1 employee who makes the election under
3paragraph (2) of subsection (a) of this Section shall not be
4subject to paragraph (1) of subsection (a) of this Section.
5However, each future increase in income offered by an employer
6under this Article to a Tier 1 employee who has made the
7election under paragraph (2) of subsection (a) of this Section
8shall be offered by the employer expressly and irrevocably on
9the condition of not constituting salary under Section 16-121
10and that the Tier 1 employee's acceptance of the offered future
11increase in income shall constitute his or her agreement to
12that condition.
13 (d) The System shall make a good faith effort to contact
14each Tier 1 employee subject to this Section. The System shall
15mail information describing the required election to each Tier
161 employee by United States Postal Service mail to his or her
17last known address on file with the System. If the Tier 1
18employee is not responsive to other means of contact, it is
19sufficient for the System to publish the details of any
20required elections on its website or to publish those details
21in a regularly published newsletter or other existing public
22forum.
23 Tier 1 employees who are subject to this Section shall be
24provided with an election packet containing information
25regarding their options, as well as the forms necessary to make
26the required election. Upon request, the System shall offer

SB2173- 125 -LRB100 11899 RPS 23506 b
1Tier 1 employees an opportunity to receive information from the
2System before making the required election. The information may
3consist of video materials, group presentations, individual
4consultation with a member or authorized representative of the
5System in person or by telephone or other electronic means, or
6any combination of those methods. The System shall not provide
7advice or counseling with respect to which election a Tier 1
8employee should make or specific to the legal or tax
9circumstances of or consequences to the Tier 1 employee.
10 The System shall inform Tier 1 employees in the election
11packet required under this subsection that the Tier 1 employee
12may also wish to obtain information and counsel relating to the
13election required under this Section from any other available
14source, including, but not limited to, labor organizations and
15private counsel.
16 In no event shall the System, its staff, or the Board be
17held liable for any information given to a member regarding the
18elections under this Section. The System shall coordinate with
19the Illinois Department of Central Management Services and each
20other retirement system administering an election in
21accordance with this amendatory Act of the 100th General
22Assembly to provide information concerning the impact of the
23election set forth in this Section.
24 (e) Notwithstanding any other provision of law, an employer
25under this Article is required to offer each future increase in
26income expressly and irrevocably on the condition of not

SB2173- 126 -LRB100 11899 RPS 23506 b
1constituting "salary" under Section 16-121 to any Tier 1
2employee who has made an election under paragraph (2) of
3subsection (a) of this Section. The offer shall also provide
4that the Tier 1 employee's acceptance of the offered future
5increase in income shall constitute his or her agreement to the
6condition set forth in this subsection.
7 For purposes of legislative intent, the condition set forth
8in this subsection shall be construed in a manner that ensures
9that the condition is not violated or circumvented through any
10contrivance of any kind.
11 (f) A member's election under this Section is not a
12prohibited election under subdivision (j)(1) of Section 1-119
13of this Code.
14 (g) No provision of this Section shall be interpreted in a
15way that would cause the System to cease to be a qualified plan
16under Section 401(a) of the Internal Revenue Code of 1986.
17 (h) If an election created by this amendatory Act in any
18other Article of this Code or any change deriving from that
19election is determined to be unconstitutional or otherwise
20invalid by a final unappealable decision of an Illinois court
21or a court of competent jurisdiction, the invalidity of that
22provision shall not in any way affect the validity of this
23Section or the changes deriving from the election required
24under this Section.
25 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)

SB2173- 127 -LRB100 11899 RPS 23506 b
1 (Text of Section WITHOUT the changes made by P.A. 98-599,
2which has been held unconstitutional)
3 Sec. 16-133.1. Automatic annual increase in annuity.
4 (a) Each member with creditable service and retiring on or
5after August 26, 1969 is entitled to the automatic annual
6increases in annuity provided under this Section while
7receiving a retirement annuity or disability retirement
8annuity from the system.
9 Except as otherwise provided in subsection (a-1), an An
10annuitant shall first be entitled to an initial increase under
11this Section on the January 1 next following the first
12anniversary of retirement, or January 1 of the year next
13following attainment of age 61, whichever is later. At such
14time, the system shall pay an initial increase determined as
15follows:
16 (1) 1.5% of the originally granted retirement annuity
17 or disability retirement annuity multiplied by the number
18 of years elapsed, if any, from the date of retirement until
19 January 1, 1972, plus
20 (2) 2% of the originally granted annuity multiplied by
21 the number of years elapsed, if any, from the date of
22 retirement or January 1, 1972, whichever is later, until
23 January 1, 1978, plus
24 (3) 3% of the originally granted annuity multiplied by
25 the number of years elapsed from the date of retirement or
26 January 1, 1978, whichever is later, until the effective

SB2173- 128 -LRB100 11899 RPS 23506 b
1 date of the initial increase.
2However, the initial annual increase calculated under this
3Section for the recipient of a disability retirement annuity
4granted under Section 16-149.2 shall be reduced by an amount
5equal to the total of all increases in that annuity received
6under Section 16-149.5 (but not exceeding 100% of the amount of
7the initial increase otherwise provided under this Section).
8 Except as otherwise provided in subsection (a-1),
9following Following the initial increase, automatic annual
10increases in annuity shall be payable on each January 1
11thereafter during the lifetime of the annuitant, determined as
12a percentage of the originally granted retirement annuity or
13disability retirement annuity for increases granted prior to
14January 1, 1990, and calculated as a percentage of the total
15amount of annuity, including previous increases under this
16Section, for increases granted on or after January 1, 1990, as
17follows: 1.5% for periods prior to January 1, 1972, 2% for
18periods after December 31, 1971 and prior to January 1, 1978,
19and 3% for periods after December 31, 1977.
20 (a-1) Notwithstanding any other provision of this Article,
21for a Tier 1 employee who made the election under paragraph (1)
22of subsection (a) of Section 16-122.9:
23 (1) The initial increase in retirement annuity under
24 this Section shall occur on the January 1 occurring either
25 on or after the attainment of age 67 or the fifth
26 anniversary of the annuity start date, whichever is

SB2173- 129 -LRB100 11899 RPS 23506 b
1 earlier.
2 (2) The amount of each automatic annual increase in
3 retirement annuity and survivor benefit occurring on or
4 after the effective date of that election shall be
5 calculated as a percentage of the originally granted
6 retirement annuity or survivor benefit, equal to 3% or
7 one-half the annual unadjusted percentage increase (but
8 not less than zero) in the consumer price index-u for the
9 12 months ending with the September preceding each November
10 1, whichever is less. If the annual unadjusted percentage
11 change in the consumer price index-u for the 12 months
12 ending with the September preceding each November 1 is zero
13 or there is a decrease, then the annuity shall not be
14 increased.
15 For the purposes of this Section, "consumer price index-u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the board of the retirement
23system by November 1 of each year.
24 (b) The automatic annual increases in annuity provided
25under this Section shall not be applicable unless a member has
26made contributions toward such increases for a period

SB2173- 130 -LRB100 11899 RPS 23506 b
1equivalent to one full year of creditable service. If a member
2contributes for service performed after August 26, 1969 but the
3member becomes an annuitant before such contributions amount to
4one full year's contributions based on the salary at the date
5of retirement, he or she may pay the necessary balance of the
6contributions to the system and be eligible for the automatic
7annual increases in annuity provided under this Section.
8 (c) Each member shall make contributions toward the cost of
9the automatic annual increases in annuity as provided under
10Section 16-152.
11 (d) An annuitant receiving a retirement annuity or
12disability retirement annuity on July 1, 1969, who subsequently
13re-enters service as a teacher is eligible for the automatic
14annual increases in annuity provided under this Section if he
15or she renders at least one year of creditable service
16following the latest re-entry.
17 (e) In addition to the automatic annual increases in
18annuity provided under this Section, an annuitant who meets the
19service requirements of this Section and whose retirement
20annuity or disability retirement annuity began on or before
21January 1, 1971 shall receive, on January 1, 1981, an increase
22in the annuity then being paid of one dollar per month for each
23year of creditable service. On January 1, 1982, an annuitant
24whose retirement annuity or disability retirement annuity
25began on or before January 1, 1977 shall receive an increase in
26the annuity then being paid of one dollar per month for each

SB2173- 131 -LRB100 11899 RPS 23506 b
1year of creditable service.
2 On January 1, 1987, any annuitant whose retirement annuity
3began on or before January 1, 1977, shall receive an increase
4in the monthly retirement annuity equal to 8 per year of
5creditable service times the number of years that have elapsed
6since the annuity began.
7(Source: P.A. 91-927, eff. 12-14-00.)
8 (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
9 (Text of Section WITHOUT the changes made by P.A. 98-599,
10which has been held unconstitutional)
11 Sec. 16-136.1. Annual increase for certain annuitants.
12 (a) Any annuitant receiving a retirement annuity on June
1330, 1969 and any member retiring after June 30, 1969 shall be
14eligible for the annual increases provided under this Section
15provided the annuitant is ineligible for the automatic annual
16increase in annuity provided under Section 16-133.1, and
17provided further that (1) retirement occurred at age 55 or over
18and was based on 5 or more years of creditable service or (2)
19if retirement occurred prior to age 55, the retirement annuity
20was based on 20 or more years of creditable service.
21 (b) Except as otherwise provided in subsection (b-1), an An
22annuitant entitled to increases under this Section shall be
23entitled to the initial increase as of the later of: (1)
24January 1 following attainment of age 65, (2) January 1
25following the first anniversary of retirement, or (3) the first

SB2173- 132 -LRB100 11899 RPS 23506 b
1day of the month following receipt of the required qualifying
2contribution from the annuitant. The initial monthly increase
3shall be computed on the basis of the period elapsed between
4the later of the date of last retirement or attainment of age
550 and the date of qualification for the initial increase, at
6the rate of 1 1/2% of the original monthly retirement annuity
7per year for periods prior to September 1, 1971, and at the
8rate of 2% per year for periods between September 1, 1971 and
9September 1, 1978, and at the rate of 3% per year for periods
10thereafter.
11 Except as otherwise provided in subsection (b-1), if
12applicable, an An annuitant who has received an initial
13increase under this Section, shall be entitled, on each January
141 following the granting of the initial increase, to an
15increase of 3% of the original monthly retirement annuity for
16increases granted prior to January 1, 1990, and equal to 3% of
17the total annuity, including previous increases under this
18Section, for increases granted on or after January 1, 1990. The
19original monthly retirement annuity for computations under
20this subsection (b) shall be considered to be $83.34 for any
21annuitant entitled to benefits under Section 16-134. The
22minimum original disability retirement annuity for
23computations under this subsection (b) shall be considered to
24be $33.34 per month for any annuitant retired on account of
25disability.
26 (b-1) Notwithstanding any other provision of this Article,

SB2173- 133 -LRB100 11899 RPS 23506 b
1for a Tier 1 employee who made the election under paragraph (1)
2of subsection (a) of Section 16-122.9:
3 (1) The initial increase in retirement annuity under
4 this Section shall occur on the January 1 occurring either
5 on or after the attainment of age 67 or the fifth
6 anniversary of the annuity start date, whichever is
7 earlier.
8 (2) The amount of each automatic annual increase in
9 retirement annuity or survivor benefit occurring on or
10 after the effective date of that election shall be
11 calculated as a percentage of the originally granted
12 retirement annuity or survivor benefit, equal to 3% or
13 one-half the annual unadjusted percentage increase (but
14 not less than zero) in the consumer price index-u for the
15 12 months ending with the September preceding each November
16 1, whichever is less. If the annual unadjusted percentage
17 change in the consumer price index-u for the 12 months
18 ending with the September preceding each November 1 is zero
19 or there is a decrease, then the annuity shall not be
20 increased.
21 For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

SB2173- 134 -LRB100 11899 RPS 23506 b
1be determined by the Public Pension Division of the Department
2of Insurance and made available to the board of the retirement
3system by November 1 of each year.
4 (c) An annuitant who otherwise qualifies for annual
5increases under this Section must make a one-time payment of 1%
6of the monthly final average salary for each full year of the
7creditable service forming the basis of the retirement annuity
8or, if the retirement annuity was not computed using final
9average salary, 1% of the original monthly retirement annuity
10for each full year of service forming the basis of the
11retirement annuity.
12 (d) In addition to other increases which may be provided by
13this Section, regardless of creditable service, annuitants not
14meeting the service requirements of Section 16-133.1 and whose
15retirement annuity began on or before January 1, 1971 shall
16receive, on January 1, 1981, an increase in the retirement
17annuity then being paid of one dollar per month for each year
18of creditable service forming the basis of the retirement
19allowance. On January 1, 1982, annuitants whose retirement
20annuity began on or before January 1, 1977, shall receive an
21increase in the retirement annuity then being paid of one
22dollar per month for each year of creditable service.
23 On January 1, 1987, any annuitant whose retirement annuity
24began on or before January 1, 1977, shall receive an increase
25in the monthly retirement annuity equal to 8 per year of
26creditable service times the number of years that have elapsed

SB2173- 135 -LRB100 11899 RPS 23506 b
1since the annuity began.
2(Source: P.A. 86-273.)
3 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
4 (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6 Sec. 16-152. Contributions by members.
7 (a) Except as otherwise provided in subsection (a-5), each
8Each member shall make contributions for membership service to
9this System as follows:
10 (1) Effective July 1, 1998, contributions of 7.50% of
11 salary towards the cost of the retirement annuity. Such
12 contributions shall be deemed "normal contributions".
13 (2) Effective July 1, 1969, contributions of 1/2 of 1%
14 of salary toward the cost of the automatic annual increase
15 in retirement annuity provided under Section 16-133.1.
16 (3) Effective July 24, 1959, contributions of 1% of
17 salary towards the cost of survivor benefits. Such
18 contributions shall not be credited to the individual
19 account of the member and shall not be subject to refund
20 except as provided under Section 16-143.2.
21 (4) Effective July 1, 2005, contributions of 0.40% of
22 salary toward the cost of the early retirement without
23 discount option provided under Section 16-133.2. This
24 contribution shall cease upon termination of the early
25 retirement without discount option as provided in Section

SB2173- 136 -LRB100 11899 RPS 23506 b
1 16-133.2.
2 (a-5) Beginning July 1, 2018 or the effective date of the
3Tier 1 employee's election under paragraph (1) of subsection
4(a) of Section 16-122.9, whichever is later, in lieu of the
5contributions otherwise required under subsection (a), each
6Tier 1 employee who made the election under paragraph (1) of
7subsection (a) of Section 16-122.9 shall make contributions as
8follows:
9 (1) Contributions of 7.50% of salary towards the cost
10 of the retirement annuity. Such contributions shall be
11 deemed "normal contributions".
12 (2) Contributions of 0.60% towards the cost of survivor
13 benefits. Such contributions shall not be credited to the
14 individual account of the member and shall not be subject
15 to refund except as provided in Section 16-143.2.
16 (3) Contributions of 0.40% of salary toward the cost of
17 the early retirement without discount option provided
18 under Section 16-133.2. This contribution shall cease upon
19 termination of the early retirement without discount
20 option as provided in Section 16-133.2.
21 (b) The minimum required contribution for any year of
22full-time teaching service shall be $192.
23 (c) Contributions shall not be required of any annuitant
24receiving a retirement annuity who is given employment as
25permitted under Section 16-118 or 16-150.1.
26 (d) A person who (i) was a member before July 1, 1998, (ii)

SB2173- 137 -LRB100 11899 RPS 23506 b
1retires with more than 34 years of creditable service, and
2(iii) does not elect to qualify for the augmented rate under
3Section 16-129.1 shall be entitled, at the time of retirement,
4to receive a partial refund of contributions made under this
5Section for service occurring after the later of June 30, 1998
6or attainment of 34 years of creditable service, in an amount
7equal to 1.00% of the salary upon which those contributions
8were based.
9 (e) A member's contributions toward the cost of early
10retirement without discount made under item (a)(4) of this
11Section shall not be refunded if the member has elected early
12retirement without discount under Section 16-133.2 and has
13begun to receive a retirement annuity under this Article
14calculated in accordance with that election. Otherwise, a
15member's contributions toward the cost of early retirement
16without discount made under item (a)(4) of this Section shall
17be refunded according to whichever one of the following
18circumstances occurs first:
19 (1) The contributions shall be refunded to the member,
20 without interest, within 120 days after the member's
21 retirement annuity commences, if the member does not elect
22 early retirement without discount under Section 16-133.2.
23 (2) The contributions shall be included, without
24 interest, in any refund claimed by the member under Section
25 16-151.
26 (3) The contributions shall be refunded to the member's

SB2173- 138 -LRB100 11899 RPS 23506 b
1 designated beneficiary (or if there is no beneficiary, to
2 the member's estate), without interest, if the member dies
3 without having begun to receive a retirement annuity under
4 this Article.
5 (4) The contributions shall be refunded to the member,
6 without interest, if the early retirement without discount
7 option provided under subsection (d) of Section 16-133.2 is
8 terminated. In that event, the System shall provide to the
9 member, within 120 days after the option is terminated, an
10 application for a refund of those contributions.
11(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642,
12eff. 7-28-16.)
13 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
14 (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16 Sec. 16-158. Contributions by State and other employing
17units.
18 (a) The State shall make contributions to the System by
19means of appropriations from the Common School Fund and other
20State funds of amounts which, together with other employer
21contributions, employee contributions, investment income, and
22other income, will be sufficient to meet the cost of
23maintaining and administering the System on a 90% funded basis
24in accordance with actuarial recommendations.
25 The Board shall determine the amount of State contributions

SB2173- 139 -LRB100 11899 RPS 23506 b
1required for each fiscal year on the basis of the actuarial
2tables and other assumptions adopted by the Board and the
3recommendations of the actuary, using the formula in subsection
4(b-3).
5 (a-1) Annually, on or before November 15 until November 15,
62011, the Board shall certify to the Governor the amount of the
7required State contribution for the coming fiscal year. The
8certification under this subsection (a-1) shall include a copy
9of the actuarial recommendations upon which it is based and
10shall specifically identify the System's projected State
11normal cost for that fiscal year.
12 On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18 On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23 On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying
26the changes made by Public Act 96-889 to the System's assets

SB2173- 140 -LRB100 11899 RPS 23506 b
1and liabilities as of June 30, 2009 as though Public Act 96-889
2was approved on that date.
3 (a-5) On or before November 1 of each year, beginning
4November 1, 2012, the Board shall submit to the State Actuary,
5the Governor, and the General Assembly a proposed certification
6of the amount of the required State contribution to the System
7for the next fiscal year, along with all of the actuarial
8assumptions, calculations, and data upon which that proposed
9certification is based. On or before January 1 of each year,
10beginning January 1, 2013, the State Actuary shall issue a
11preliminary report concerning the proposed certification and
12identifying, if necessary, recommended changes in actuarial
13assumptions that the Board must consider before finalizing its
14certification of the required State contributions. On or before
15January 15, 2013 and each January 15 thereafter, the Board
16shall certify to the Governor and the General Assembly the
17amount of the required State contribution for the next fiscal
18year. The Board's certification must note any deviations from
19the State Actuary's recommended changes, the reason or reasons
20for not following the State Actuary's recommended changes, and
21the fiscal impact of not following the State Actuary's
22recommended changes on the required State contribution.
23 (a-10) On or before May 1, 2018, the Board shall
24recalculate and recertify to the Governor and the General
25Assembly the amount of the required State contribution to the
26System for State fiscal year 2019, taking into account the

SB2173- 141 -LRB100 11899 RPS 23506 b
1effect on the System's liabilities of the elections made under
2Section 16-122.9.
3 On or before October 1, 2018, the Board shall recalculate
4and recertify to the Governor and the General Assembly the
5amount of the required State contribution to the System for
6State fiscal year 2019, taking into account the reduction
7specified under item (3) of subsection (b-3) of this Section.
8 (b) Through State fiscal year 1995, the State contributions
9shall be paid to the System in accordance with Section 18-7 of
10the School Code.
11 (b-1) Beginning in State fiscal year 1996, on the 15th day
12of each month, or as soon thereafter as may be practicable, the
13Board shall submit vouchers for payment of State contributions
14to the System, in a total monthly amount of one-twelfth of the
15required annual State contribution certified under subsection
16(a-1). From the effective date of this amendatory Act of the
1793rd General Assembly through June 30, 2004, the Board shall
18not submit vouchers for the remainder of fiscal year 2004 in
19excess of the fiscal year 2004 certified contribution amount
20determined under this Section after taking into consideration
21the transfer to the System under subsection (a) of Section
226z-61 of the State Finance Act. These vouchers shall be paid by
23the State Comptroller and Treasurer by warrants drawn on the
24funds appropriated to the System for that fiscal year.
25 If in any month the amount remaining unexpended from all
26other appropriations to the System for the applicable fiscal

SB2173- 142 -LRB100 11899 RPS 23506 b
1year (including the appropriations to the System under Section
28.12 of the State Finance Act and Section 1 of the State
3Pension Funds Continuing Appropriation Act) is less than the
4amount lawfully vouchered under this subsection, the
5difference shall be paid from the Common School Fund under the
6continuing appropriation authority provided in Section 1.1 of
7the State Pension Funds Continuing Appropriation Act.
8 (b-2) Allocations from the Common School Fund apportioned
9to school districts not coming under this System shall not be
10diminished or affected by the provisions of this Article.
11 (b-3) For State fiscal years 2012 through 2045 (except as
12otherwise provided for fiscal year 2019), the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22 For State fiscal year 2019:
23 (1) The initial calculation and certification shall be
24 based on the amount determined above.
25 (2) For purposes of the recertification due on or
26 before May 1, 2018, the recalculation of the required State

SB2173- 143 -LRB100 11899 RPS 23506 b
1 contribution for fiscal year 2019 shall take into account
2 the effect on the System's liabilities of the elections
3 made under Section 16-122.9.
4 (3) For purposes of the recertification due on or
5 before October 1, 2018, the total required State
6 contribution for fiscal year 2019 shall be reduced by the
7 amount of the consideration payments made to Tier 1
8 employees who made the election under paragraph (1) of
9 subsection (a) of Section 16-122.9.
10 For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13so that by State fiscal year 2011, the State is contributing at
14the rate required under this Section; except that in the
15following specified State fiscal years, the State contribution
16to the System shall not be less than the following indicated
17percentages of the applicable employee payroll, even if the
18indicated percentage will produce a State contribution in
19excess of the amount otherwise required under this subsection
20and subsection (a), and notwithstanding any contrary
21certification made under subsection (a-1) before the effective
22date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
23in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
242003; and 13.56% in FY 2004.
25 Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

SB2173- 144 -LRB100 11899 RPS 23506 b
1$534,627,700.
2 Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$738,014,500.
5 For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11 Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$2,089,268,000 and shall be made from the proceeds of bonds
14sold in fiscal year 2010 pursuant to Section 7.2 of the General
15Obligation Bond Act, less (i) the pro rata share of bond sale
16expenses determined by the System's share of total bond
17proceeds, (ii) any amounts received from the Common School Fund
18in fiscal year 2010, and (iii) any reduction in bond proceeds
19due to the issuance of discounted bonds, if applicable.
20 Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2011 is
22the amount recertified by the System on or before April 1, 2011
23pursuant to subsection (a-1) of this Section and shall be made
24from the proceeds of bonds sold in fiscal year 2011 pursuant to
25Section 7.2 of the General Obligation Bond Act, less (i) the
26pro rata share of bond sale expenses determined by the System's

SB2173- 145 -LRB100 11899 RPS 23506 b
1share of total bond proceeds, (ii) any amounts received from
2the Common School Fund in fiscal year 2011, and (iii) any
3reduction in bond proceeds due to the issuance of discounted
4bonds, if applicable. This amount shall include, in addition to
5the amount certified by the System, an amount necessary to meet
6employer contributions required by the State as an employer
7under paragraph (e) of this Section, which may also be used by
8the System for contributions required by paragraph (a) of
9Section 16-127.
10 Beginning in State fiscal year 2046, the minimum State
11contribution for each fiscal year shall be the amount needed to
12maintain the total assets of the System at 90% of the total
13actuarial liabilities of the System.
14 Amounts received by the System pursuant to Section 25 of
15the Budget Stabilization Act or Section 8.12 of the State
16Finance Act in any fiscal year do not reduce and do not
17constitute payment of any portion of the minimum State
18contribution required under this Article in that fiscal year.
19Such amounts shall not reduce, and shall not be included in the
20calculation of, the required State contributions under this
21Article in any future year until the System has reached a
22funding ratio of at least 90%. A reference in this Article to
23the "required State contribution" or any substantially similar
24term does not include or apply to any amounts payable to the
25System under Section 25 of the Budget Stabilization Act.
26 Notwithstanding any other provision of this Section, the

SB2173- 146 -LRB100 11899 RPS 23506 b
1required State contribution for State fiscal year 2005 and for
2fiscal year 2008 and each fiscal year thereafter, as calculated
3under this Section and certified under subsection (a-1), shall
4not exceed an amount equal to (i) the amount of the required
5State contribution that would have been calculated under this
6Section for that fiscal year if the System had not received any
7payments under subsection (d) of Section 7.2 of the General
8Obligation Bond Act, minus (ii) the portion of the State's
9total debt service payments for that fiscal year on the bonds
10issued in fiscal year 2003 for the purposes of that Section
117.2, as determined and certified by the Comptroller, that is
12the same as the System's portion of the total moneys
13distributed under subsection (d) of Section 7.2 of the General
14Obligation Bond Act. In determining this maximum for State
15fiscal years 2008 through 2010, however, the amount referred to
16in item (i) shall be increased, as a percentage of the
17applicable employee payroll, in equal increments calculated
18from the sum of the required State contribution for State
19fiscal year 2007 plus the applicable portion of the State's
20total debt service payments for fiscal year 2007 on the bonds
21issued in fiscal year 2003 for the purposes of Section 7.2 of
22the General Obligation Bond Act, so that, by State fiscal year
232011, the State is contributing at the rate otherwise required
24under this Section.
25 (c) Payment of the required State contributions and of all
26pensions, retirement annuities, death benefits, refunds, and

SB2173- 147 -LRB100 11899 RPS 23506 b
1other benefits granted under or assumed by this System, and all
2expenses in connection with the administration and operation
3thereof, are obligations of the State.
4 If members are paid from special trust or federal funds
5which are administered by the employing unit, whether school
6district or other unit, the employing unit shall pay to the
7System from such funds the full accruing retirement costs based
8upon that service, which, beginning July 1, 2014, shall be at a
9rate, expressed as a percentage of salary, equal to the total
10minimum contribution to the System to be made by the State for
11that fiscal year, including both normal cost and unfunded
12liability components, expressed as a percentage of payroll, as
13determined by the System under subsection (b-3) of this
14Section. Employer contributions, based on salary paid to
15members from federal funds, may be forwarded by the
16distributing agency of the State of Illinois to the System
17prior to allocation, in an amount determined in accordance with
18guidelines established by such agency and the System. Any
19contribution for fiscal year 2015 collected as a result of the
20change made by this amendatory Act of the 98th General Assembly
21shall be considered a State contribution under subsection (b-3)
22of this Section.
23 (d) Effective July 1, 1986, any employer of a teacher as
24defined in paragraph (8) of Section 16-106 shall pay the
25employer's normal cost of benefits based upon the teacher's
26service, in addition to employee contributions, as determined

SB2173- 148 -LRB100 11899 RPS 23506 b
1by the System. Such employer contributions shall be forwarded
2monthly in accordance with guidelines established by the
3System.
4 However, with respect to benefits granted under Section
516-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
6of Section 16-106, the employer's contribution shall be 12%
7(rather than 20%) of the member's highest annual salary rate
8for each year of creditable service granted, and the employer
9shall also pay the required employee contribution on behalf of
10the teacher. For the purposes of Sections 16-133.4 and
1116-133.5, a teacher as defined in paragraph (8) of Section
1216-106 who is serving in that capacity while on leave of
13absence from another employer under this Article shall not be
14considered an employee of the employer from which the teacher
15is on leave.
16 (e) Beginning July 1, 1998, every employer of a teacher
17shall pay to the System an employer contribution computed as
18follows:
19 (1) Beginning July 1, 1998 through June 30, 1999, the
20 employer contribution shall be equal to 0.3% of each
21 teacher's salary.
22 (2) Beginning July 1, 1999 and thereafter, the employer
23 contribution shall be equal to 0.58% of each teacher's
24 salary.
25The school district or other employing unit may pay these
26employer contributions out of any source of funding available

SB2173- 149 -LRB100 11899 RPS 23506 b
1for that purpose and shall forward the contributions to the
2System on the schedule established for the payment of member
3contributions.
4 These employer contributions are intended to offset a
5portion of the cost to the System of the increases in
6retirement benefits resulting from this amendatory Act of 1998.
7 Each employer of teachers is entitled to a credit against
8the contributions required under this subsection (e) with
9respect to salaries paid to teachers for the period January 1,
102002 through June 30, 2003, equal to the amount paid by that
11employer under subsection (a-5) of Section 6.6 of the State
12Employees Group Insurance Act of 1971 with respect to salaries
13paid to teachers for that period.
14 The additional 1% employee contribution required under
15Section 16-152 by this amendatory Act of 1998 is the
16responsibility of the teacher and not the teacher's employer,
17unless the employer agrees, through collective bargaining or
18otherwise, to make the contribution on behalf of the teacher.
19 If an employer is required by a contract in effect on May
201, 1998 between the employer and an employee organization to
21pay, on behalf of all its full-time employees covered by this
22Article, all mandatory employee contributions required under
23this Article, then the employer shall be excused from paying
24the employer contribution required under this subsection (e)
25for the balance of the term of that contract. The employer and
26the employee organization shall jointly certify to the System

SB2173- 150 -LRB100 11899 RPS 23506 b
1the existence of the contractual requirement, in such form as
2the System may prescribe. This exclusion shall cease upon the
3termination, extension, or renewal of the contract at any time
4after May 1, 1998.
5 (f) If the amount of a teacher's salary for any school year
6used to determine final average salary exceeds the member's
7annual full-time salary rate with the same employer for the
8previous school year by more than 6%, the teacher's employer
9shall pay to the System, in addition to all other payments
10required under this Section and in accordance with guidelines
11established by the System, the present value of the increase in
12benefits resulting from the portion of the increase in salary
13that is in excess of 6%. This present value shall be computed
14by the System on the basis of the actuarial assumptions and
15tables used in the most recent actuarial valuation of the
16System that is available at the time of the computation. If a
17teacher's salary for the 2005-2006 school year is used to
18determine final average salary under this subsection (f), then
19the changes made to this subsection (f) by Public Act 94-1057
20shall apply in calculating whether the increase in his or her
21salary is in excess of 6%. For the purposes of this Section,
22change in employment under Section 10-21.12 of the School Code
23on or after June 1, 2005 shall constitute a change in employer.
24The System may require the employer to provide any pertinent
25information or documentation. The changes made to this
26subsection (f) by this amendatory Act of the 94th General

SB2173- 151 -LRB100 11899 RPS 23506 b
1Assembly apply without regard to whether the teacher was in
2service on or after its effective date.
3 Whenever it determines that a payment is or may be required
4under this subsection, the System shall calculate the amount of
5the payment and bill the employer for that amount. The bill
6shall specify the calculations used to determine the amount
7due. If the employer disputes the amount of the bill, it may,
8within 30 days after receipt of the bill, apply to the System
9in writing for a recalculation. The application must specify in
10detail the grounds of the dispute and, if the employer asserts
11that the calculation is subject to subsection (g) or (h) of
12this Section, must include an affidavit setting forth and
13attesting to all facts within the employer's knowledge that are
14pertinent to the applicability of that subsection. Upon
15receiving a timely application for recalculation, the System
16shall review the application and, if appropriate, recalculate
17the amount due.
18 The employer contributions required under this subsection
19(f) may be paid in the form of a lump sum within 90 days after
20receipt of the bill. If the employer contributions are not paid
21within 90 days after receipt of the bill, then interest will be
22charged at a rate equal to the System's annual actuarially
23assumed rate of return on investment compounded annually from
24the 91st day after receipt of the bill. Payments must be
25concluded within 3 years after the employer's receipt of the
26bill.

SB2173- 152 -LRB100 11899 RPS 23506 b
1 (g) This subsection (g) applies only to payments made or
2salary increases given on or after June 1, 2005 but before July
31, 2011. The changes made by Public Act 94-1057 shall not
4require the System to refund any payments received before July
531, 2006 (the effective date of Public Act 94-1057).
6 When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases paid to teachers
8under contracts or collective bargaining agreements entered
9into, amended, or renewed before June 1, 2005.
10 When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases paid to a
12teacher at a time when the teacher is 10 or more years from
13retirement eligibility under Section 16-132 or 16-133.2.
14 When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases resulting from
16overload work, including summer school, when the school
17district has certified to the System, and the System has
18approved the certification, that (i) the overload work is for
19the sole purpose of classroom instruction in excess of the
20standard number of classes for a full-time teacher in a school
21district during a school year and (ii) the salary increases are
22equal to or less than the rate of pay for classroom instruction
23computed on the teacher's current salary and work schedule.
24 When assessing payment for any amount due under subsection
25(f), the System shall exclude a salary increase resulting from
26a promotion (i) for which the employee is required to hold a

SB2173- 153 -LRB100 11899 RPS 23506 b
1certificate or supervisory endorsement issued by the State
2Teacher Certification Board that is a different certification
3or supervisory endorsement than is required for the teacher's
4previous position and (ii) to a position that has existed and
5been filled by a member for no less than one complete academic
6year and the salary increase from the promotion is an increase
7that results in an amount no greater than the lesser of the
8average salary paid for other similar positions in the district
9requiring the same certification or the amount stipulated in
10the collective bargaining agreement for a similar position
11requiring the same certification.
12 When assessing payment for any amount due under subsection
13(f), the System shall exclude any payment to the teacher from
14the State of Illinois or the State Board of Education over
15which the employer does not have discretion, notwithstanding
16that the payment is included in the computation of final
17average salary.
18 (h) When assessing payment for any amount due under
19subsection (f), the System shall exclude any salary increase
20described in subsection (g) of this Section given on or after
21July 1, 2011 but before July 1, 2014 under a contract or
22collective bargaining agreement entered into, amended, or
23renewed on or after June 1, 2005 but before July 1, 2011.
24Notwithstanding any other provision of this Section, any
25payments made or salary increases given after June 30, 2014
26shall be used in assessing payment for any amount due under

SB2173- 154 -LRB100 11899 RPS 23506 b
1subsection (f) of this Section.
2 (i) The System shall prepare a report and file copies of
3the report with the Governor and the General Assembly by
4January 1, 2007 that contains all of the following information:
5 (1) The number of recalculations required by the
6 changes made to this Section by Public Act 94-1057 for each
7 employer.
8 (2) The dollar amount by which each employer's
9 contribution to the System was changed due to
10 recalculations required by Public Act 94-1057.
11 (3) The total amount the System received from each
12 employer as a result of the changes made to this Section by
13 Public Act 94-4.
14 (4) The increase in the required State contribution
15 resulting from the changes made to this Section by Public
16 Act 94-1057.
17 (j) For purposes of determining the required State
18contribution to the System, the value of the System's assets
19shall be equal to the actuarial value of the System's assets,
20which shall be calculated as follows:
21 As of June 30, 2008, the actuarial value of the System's
22assets shall be equal to the market value of the assets as of
23that date. In determining the actuarial value of the System's
24assets for fiscal years after June 30, 2008, any actuarial
25gains or losses from investment return incurred in a fiscal
26year shall be recognized in equal annual amounts over the

SB2173- 155 -LRB100 11899 RPS 23506 b
15-year period following that fiscal year.
2 (k) For purposes of determining the required State
3contribution to the system for a particular year, the actuarial
4value of assets shall be assumed to earn a rate of return equal
5to the system's actuarially assumed rate of return.
6 (l) If Section 16-122.9 is determined to be
7unconstitutional or otherwise invalid by a final unappealable
8decision of an Illinois court or a court of competent
9jurisdiction, then the changes made to this Section by this
10amendatory Act of the 100th General Assembly shall not take
11effect and are repealed by operation of law.
12(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
146-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
15 (40 ILCS 5/16-203)
16 (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18 Sec. 16-203. Application and expiration of new benefit
19increases.
20 (a) As used in this Section, "new benefit increase" means
21an increase in the amount of any benefit provided under this
22Article, or an expansion of the conditions of eligibility for
23any benefit under this Article, that results from an amendment
24to this Code that takes effect after June 1, 2005 (the
25effective date of Public Act 94-4). "New benefit increase",

SB2173- 156 -LRB100 11899 RPS 23506 b
1however, does not include any benefit increase resulting from
2the changes made to this Article by Public Act 95-910 or this
3amendatory Act of the 100th General Assembly this amendatory
4Act of the 95th General Assembly.
5 (b) Notwithstanding any other provision of this Code or any
6subsequent amendment to this Code, every new benefit increase
7is subject to this Section and shall be deemed to be granted
8only in conformance with and contingent upon compliance with
9the provisions of this Section.
10 (c) The Public Act enacting a new benefit increase must
11identify and provide for payment to the System of additional
12funding at least sufficient to fund the resulting annual
13increase in cost to the System as it accrues.
14 Every new benefit increase is contingent upon the General
15Assembly providing the additional funding required under this
16subsection. The Commission on Government Forecasting and
17Accountability shall analyze whether adequate additional
18funding has been provided for the new benefit increase and
19shall report its analysis to the Public Pension Division of the
20Department of Insurance Financial and Professional Regulation.
21A new benefit increase created by a Public Act that does not
22include the additional funding required under this subsection
23is null and void. If the Public Pension Division determines
24that the additional funding provided for a new benefit increase
25under this subsection is or has become inadequate, it may so
26certify to the Governor and the State Comptroller and, in the

SB2173- 157 -LRB100 11899 RPS 23506 b
1absence of corrective action by the General Assembly, the new
2benefit increase shall expire at the end of the fiscal year in
3which the certification is made.
4 (d) Every new benefit increase shall expire 5 years after
5its effective date or on such earlier date as may be specified
6in the language enacting the new benefit increase or provided
7under subsection (c). This does not prevent the General
8Assembly from extending or re-creating a new benefit increase
9by law.
10 (e) Except as otherwise provided in the language creating
11the new benefit increase, a new benefit increase that expires
12under this Section continues to apply to persons who applied
13and qualified for the affected benefit while the new benefit
14increase was in effect and to the affected beneficiaries and
15alternate payees of such persons, but does not apply to any
16other person, including without limitation a person who
17continues in service after the expiration date and did not
18apply and qualify for the affected benefit while the new
19benefit increase was in effect.
20(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
21 (40 ILCS 5/17-106.05 new)
22 Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
23teacher under this Article who first became a member or
24participant before January 1, 2011 under any reciprocal
25retirement system or pension fund established under this Code

SB2173- 158 -LRB100 11899 RPS 23506 b
1other than a retirement system or pension fund established
2under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
3the purposes of the election under Section 17-115.5, "Tier 1
4employee" does not include a teacher under this Article who
5would qualify as a Tier 1 employee but who has made an
6irrevocable election on or before June 1, 2017 to retire from
7service pursuant to the terms of an employment contract or a
8collective bargaining agreement in effect on June 1, 2017,
9excluding any extension, amendment, or renewal of that
10agreement after that date, and has notified the Fund of that
11election.
12 (40 ILCS 5/17-113.4 new)
13 Sec. 17-113.4. Salary. "Salary" means any income in any
14form that qualifies as "average salary" or "annual rate of
15salary" for purposes of paragraph (1) of subsection (c) of
16Section 17-116 and "salary" for payroll deduction purposes
17under Sections 17-130, 17-131, and 17-132.
18 Notwithstanding any other provision of this Section,
19"salary" does not include any future increase in income that is
20offered by an employer for service as a Tier 1 employee under
21this Article pursuant to the condition set forth in subsection
22(c) of Section 17-115.5 and accepted under that condition by a
23Tier 1 employee who has made the election under paragraph (2)
24of subsection (a) of Section 17-115.5.

SB2173- 159 -LRB100 11899 RPS 23506 b
1 (40 ILCS 5/17-113.5 new)
2 Sec. 17-113.5. Future increase in income. "Future increase
3in income" means an increase to a Tier 1 employee's base pay
4that is offered by an employer to the Tier 1 employee for
5service under this Article after June 30, 2018 that qualifies
6as "salary", as defined in Section 17-113.4, or would qualify
7as "salary" but for the fact that it was offered to and
8accepted by the Tier 1 employee under the condition set forth
9in subsection (c) of Section 17-115.5. The term "future
10increase in income" includes an increase to a Tier 1 employee's
11base pay that is paid to the Tier 1 employee pursuant to an
12extension, amendment, or renewal of any employment contract or
13collective bargaining agreement after the effective date of
14this Section.
15 (40 ILCS 5/17-113.6 new)
16 Sec. 17-113.6. Base pay. As used in Section 17-113.5 of
17this Code, "base pay" means the greater of either (i) the Tier
181 employee's annualized rate of salary as of June 30, 2018, or
19(ii) the Tier 1 employee's annualized rate of salary
20immediately preceding the expiration, renewal, or amendment of
21an employment contract or collective bargaining agreement in
22effect on the effective date of this Section. For a person
23returning to active service as a Tier 1 employee after June 30,
242018, however, "base pay" means the employee's annualized rate
25of salary as of the employee's last date of service prior to

SB2173- 160 -LRB100 11899 RPS 23506 b
1July 1, 2018. The Fund shall calculate the base pay of each
2Tier 1 employee pursuant to this Section.
3 (40 ILCS 5/17-115.5 new)
4 Sec. 17-115.5. Election by Tier 1 employees.
5 (a) Each active Tier 1 employee shall make an irrevocable
6election either:
7 (1) to agree to delay his or her eligibility for
8 automatic annual increases in service retirement pension
9 as provided in Section 17-119.2 and to have the amount of
10 the automatic annual increases in his or her service
11 retirement pension and survivor's pension that are
12 otherwise provided for in this Article calculated,
13 instead, as provided in Section 17-119.2; or
14 (2) to not agree to paragraph (1) of this subsection.
15 The election required under this subsection (a) shall be
16made by each active Tier 1 employee no earlier than January 1,
172018 and no later than March 31, 2018, except that:
18 (i) a person who becomes a Tier 1 employee under this
19 Article on or after January 1, 2018 must make the election
20 under this subsection (a) within 60 days after becoming a
21 Tier 1 employee; and
22 (ii) a person who returns to active service as a Tier 1
23 employee under this Article on or after January 1, 2018 and
24 has not yet made an election under this Section must make
25 the election under this subsection (a) within 60 days after

SB2173- 161 -LRB100 11899 RPS 23506 b
1 returning to active service as a Tier 1 employee.
2 If a Tier 1 employee fails for any reason to make a
3required election under this subsection within the time
4specified, then the employee shall be deemed to have made the
5election under paragraph (2) of this subsection.
6 (a-5) If this Section is enjoined or stayed by an Illinois
7court or a court of competent jurisdiction pending the entry of
8a final and unappealable decision, and this Section is
9determined to be constitutional or otherwise valid by a final
10unappealable decision of an Illinois court or a court of
11competent jurisdiction, then the election procedure set forth
12in subsection (a) of this Section shall commence on the 180th
13calendar day after the date of the issuance of the final
14unappealable decision and shall conclude at the end of the
15270th calendar day after that date.
16 (a-10) All elections under subsection (a) that are made or
17deemed to be made before July 1, 2018 shall take effect on July
181, 2018. Elections that are made or deemed to be made on or
19after July 1, 2018 shall take effect on the first day of the
20month following the month in which the election is made or
21deemed to be made.
22 (b) As adequate and legal consideration provided under this
23amendatory Act of the 100th General Assembly for making an
24election under paragraph (1) of subsection (a) of this Section,
25an employer shall be expressly and irrevocably prohibited from
26offering any future increases in income to a Tier 1 employee

SB2173- 162 -LRB100 11899 RPS 23506 b
1who has made an election under paragraph (1) of subsection (a)
2of this Section on the condition of not constituting salary
3under Section 17-113.4.
4 As adequate and legal consideration provided under this
5amendatory Act of the 100th General Assembly for making an
6election under paragraph (1) of subsection (a) of this Section,
7each Tier 1 employee who has made an election under paragraph
8(1) of subsection (a) of this Section shall receive a
9consideration payment equal to 10% of the contributions made by
10or on behalf of the employee under Section 17-130 before the
11effective date of that election. The State Comptroller shall
12pay the consideration payment to the Tier 1 employee out of
13funds appropriated for that purpose under Section 1.9 of the
14State Pension Funds Continuing Appropriation Act. The Fund
15shall calculate the amount of each consideration payment and,
16by July 1, 2018, shall certify to the State Comptroller the
17amount of the consideration payment, together with the name,
18address, and any other available payment information of the
19Tier 1 employee as found in the records of the Fund. The Fund
20shall make additional calculations and certifications of
21consideration payments to the State Comptroller as the Fund
22deems necessary.
23 (c) A Tier 1 employee who makes the election under
24paragraph (2) of subsection (a) of this Section shall not be
25subject to paragraph (1) of subsection (a) of this Section.
26However, each future increase in income offered by an employer

SB2173- 163 -LRB100 11899 RPS 23506 b
1under this Article to a Tier 1 employee who has made the
2election under paragraph (2) of subsection (a) of this Section
3shall be offered by the employer expressly and irrevocably on
4the condition of not constituting salary under Section 17-113.4
5and that the Tier 1 employee's acceptance of the offered future
6increase in income shall constitute his or her agreement to
7that condition.
8 (d) The Fund shall make a good faith effort to contact each
9Tier 1 employee subject to this Section. The Fund shall mail
10information describing the required election to each Tier 1
11employee by United States Postal Service mail to his or her
12last known address on file with the Fund. If the Tier 1
13employee is not responsive to other means of contact, it is
14sufficient for the Fund to publish the details of any required
15elections on its website or to publish those details in a
16regularly published newsletter or other existing public forum.
17 Tier 1 employees who are subject to this Section shall be
18provided with an election packet containing information
19regarding their options, as well as the forms necessary to make
20the required election. Upon request, the Fund shall offer Tier
211 employees an opportunity to receive information from the Fund
22before making the required election. The information may
23consist of video materials, group presentations, individual
24consultation with a member or authorized representative of the
25Fund in person or by telephone or other electronic means, or
26any combination of those methods. The Fund shall not provide

SB2173- 164 -LRB100 11899 RPS 23506 b
1advice or counseling with respect to which election a Tier 1
2employee should make or specific to the legal or tax
3circumstances of or consequences to the Tier 1 employee.
4 The Fund shall inform Tier 1 employees in the election
5packet required under this subsection that the Tier 1 employee
6may also wish to obtain information and counsel relating to the
7election required under this Section from any other available
8source, including, but not limited to, labor organizations and
9private counsel.
10 In no event shall the Fund, its staff, or the Board be held
11liable for any information given to a member regarding the
12elections under this Section. The Fund shall coordinate with
13the Illinois Department of Central Management Services and each
14other retirement system administering an election in
15accordance with this amendatory Act of the 100th General
16Assembly to provide information concerning the impact of the
17election set forth in this Section.
18 (e) Notwithstanding any other provision of law, an employer
19under this Article is required to offer each future increase in
20income expressly and irrevocably on the condition of not
21constituting "salary" under Section 17-113.4 to any Tier 1
22employee who has made an election under paragraph (2) of
23subsection (a) of this Section. The offer shall also provide
24that the Tier 1 employee's acceptance of the offered future
25increase in income shall constitute his or her agreement to the
26condition set forth in this subsection.

SB2173- 165 -LRB100 11899 RPS 23506 b
1 For purposes of legislative intent, the condition set forth
2in this subsection shall be construed in a manner that ensures
3that the condition is not violated or circumvented through any
4contrivance of any kind.
5 (f) A member's election under this Section is not a
6prohibited election under subdivision (j)(1) of Section 1-119
7of this Code.
8 (g) No provision of this Section shall be interpreted in a
9way that would cause the Fund to cease to be a qualified plan
10under Section 401(a) of the Internal Revenue Code of 1986.
11 (h) If an election created by this amendatory Act in any
12other Article of this Code or any change deriving from that
13election is determined to be unconstitutional or otherwise
14invalid by a final unappealable decision of an Illinois court
15or a court of competent jurisdiction, the invalidity of that
16provision shall not in any way affect the validity of this
17Section or the changes deriving from the election required
18under this Section.
19 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
20 Sec. 17-116. Service retirement pension.
21 (a) Each teacher having 20 years of service upon attainment
22of age 55, or who thereafter attains age 55 shall be entitled
23to a service retirement pension upon or after attainment of age
2455; and each teacher in service on or after July 1, 1971, with
255 or more but less than 20 years of service shall be entitled

SB2173- 166 -LRB100 11899 RPS 23506 b
1to receive a service retirement pension upon or after
2attainment of age 62.
3 (b) The service retirement pension for a teacher who
4retires on or after June 25, 1971, at age 60 or over, shall be
5calculated as follows:
6 (1) For creditable service earned before July 1, 1998
7 that has not been augmented under Section 17-119.1: 1.67%
8 for each of the first 10 years of service; 1.90% for each
9 of the next 10 years of service; 2.10% for each year of
10 service in excess of 20 but not exceeding 30; and 2.30% for
11 each year of service in excess of 30, based upon average
12 salary as herein defined.
13 (2) For creditable service earned on or after July 1,
14 1998 by a member who has at least 30 years of creditable
15 service on July 1, 1998 and who does not elect to augment
16 service under Section 17-119.1: 2.3% of average salary for
17 each year of creditable service earned on or after July 1,
18 1998.
19 (3) For all other creditable service: 2.2% of average
20 salary for each year of creditable service.
21 (c) When computing such service retirement pensions, the
22following conditions shall apply:
23 1. Average salary shall consist of the average annual
24 rate of salary for the 4 consecutive years of validated
25 service within the last 10 years of service when such
26 average annual rate was highest. In the determination of

SB2173- 167 -LRB100 11899 RPS 23506 b
1 average salary for retirement allowance purposes, for
2 members who commenced employment after August 31, 1979,
3 that part of the salary for any year shall be excluded
4 which exceeds the annual full-time salary rate for the
5 preceding year by more than 20%. In the case of a member
6 who commenced employment before August 31, 1979 and who
7 receives salary during any year after September 1, 1983
8 which exceeds the annual full time salary rate for the
9 preceding year by more than 20%, an Employer and other
10 employers of eligible contributors as defined in Section
11 17-106 shall pay to the Fund an amount equal to the present
12 value of the additional service retirement pension
13 resulting from such excess salary. The present value of the
14 additional service retirement pension shall be computed by
15 the Board on the basis of actuarial tables adopted by the
16 Board. If a member elects to receive a pension from this
17 Fund provided by Section 20-121, his salary under the State
18 Universities Retirement System and the Teachers'
19 Retirement System of the State of Illinois shall be
20 considered in determining such average salary. Amounts
21 paid after the effective date of this amendatory Act of
22 1991 for unused vacation time earned after that effective
23 date shall not under any circumstances be included in the
24 calculation of average salary or the annual rate of salary
25 for the purposes of this Article.
26 2. Proportionate credit shall be given for validated

SB2173- 168 -LRB100 11899 RPS 23506 b
1 service of less than one year.
2 3. For retirement at age 60 or over the pension shall
3 be payable at the full rate.
4 4. For separation from service below age 60 to a
5 minimum age of 55, the pension shall be discounted at the
6 rate of 1/2 of one per cent for each month that the age of
7 the contributor is less than 60, but a teacher may elect to
8 defer the effective date of pension in order to eliminate
9 or reduce this discount. This discount shall not be
10 applicable to any participant who has at least 34 years of
11 service or a retirement pension of at least 74.6% of
12 average salary on the date the retirement annuity begins.
13 5. No additional pension shall be granted for service
14 exceeding 45 years. Beginning June 26, 1971 no pension
15 shall exceed the greater of $1,500 per month or 75% of
16 average salary as herein defined.
17 6. Service retirement pensions shall begin on the
18 effective date of resignation, retirement, the day
19 following the close of the payroll period for which service
20 credit was validated, or the time the person resigning or
21 retiring attains age 55, or on a date elected by the
22 teacher, whichever shall be latest; provided that, for a
23 person who first becomes a member after the effective date
24 of this amendatory Act of the 99th General Assembly, the
25 benefit shall not commence more than one year prior to the
26 date of the Fund's receipt of an application for the

SB2173- 169 -LRB100 11899 RPS 23506 b
1 benefit.
2 7. A member who is eligible to receive a retirement
3 pension of at least 74.6% of average salary and will attain
4 age 55 on or before December 31 during the year which
5 commences on July 1 shall be deemed to attain age 55 on the
6 preceding June 1.
7 8. A member retiring after the effective date of this
8 amendatory Act of 1998 shall receive a pension equal to 75%
9 of average salary if the member is qualified to receive a
10 retirement pension equal to at least 74.6% of average
11 salary under this Article or as proportional annuities
12 under Article 20 of this Code.
13 (d) Notwithstanding any other provision of this Section,
14annual salary does not include any future increase in income
15that is offered for service to a Tier 1 employee under this
16Article pursuant to the condition set forth in subsection (c)
17of Section 17-115.5 and accepted under that condition by a Tier
181 employee who has made the election under paragraph (2) of
19subsection (a) of Section 17-115.5.
20 Notwithstanding any other provision of this Section,
21annual salary does not include any consideration payment made
22to a Tier 1 employee.
23(Source: P.A. 99-702, eff. 7-29-16.)
24 (40 ILCS 5/17-119.2 new)
25 Sec. 17-119.2. Automatic annual increases in service

SB2173- 170 -LRB100 11899 RPS 23506 b
1retirement pension and survivor's pension for certain Tier 1
2employees. Notwithstanding any other provision of this
3Article, for a Tier 1 employee who made the election under
4paragraph (1) of subsection (a) of Section 17-115.5:
5 (1) The initial increase in service retirement pension
6 shall occur on the January 1 occurring either on or after
7 the attainment of age 67 or the fifth anniversary of the
8 pension start date, whichever is earlier.
9 (2) The amount of each automatic annual increase in
10 service retirement pension or survivor's pension occurring
11 on or after the effective date of that election shall be
12 calculated as a percentage of the originally granted
13 service retirement pension or survivor's pension, equal to
14 3% or one-half the annual unadjusted percentage increase
15 (but not less than zero) in the consumer price index-u for
16 the 12 months ending with the September preceding each
17 November 1, whichever is less. If the annual unadjusted
18 percentage change in the consumer price index-u for the 12
19 months ending with the September preceding each November 1
20 is zero or there is a decrease, then the annuity shall not
21 be increased.
22 For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

SB2173- 171 -LRB100 11899 RPS 23506 b
1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the Board by November 1 of
4each year.
5 (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
6 Sec. 17-129. Employer contributions; deficiency in Fund.
7 (a) If in any fiscal year of the Board of Education ending
8prior to 1997 the total amounts paid to the Fund from the Board
9of Education (other than under this subsection, and other than
10amounts used for making or "picking up" contributions on behalf
11of teachers) and from the State do not equal the total
12contributions made by or on behalf of the teachers for such
13year, or if the total income of the Fund in any such fiscal
14year of the Board of Education from all sources is less than
15the total such expenditures by the Fund for such year, the
16Board of Education shall, in the next succeeding year, in
17addition to any other payment to the Fund set apart and
18appropriate from moneys from its tax levy for educational
19purposes, a sum sufficient to remove such deficiency or
20deficiencies, and promptly pay such sum into the Fund in order
21to restore any of the reserves of the Fund that may have been
22so temporarily applied. Any amounts received by the Fund after
23December 4, 1997 from State appropriations, including under
24Section 17-127, shall be a credit against and shall fully
25satisfy any obligation that may have arisen, or be claimed to

SB2173- 172 -LRB100 11899 RPS 23506 b
1have arisen, under this subsection (a) as a result of any
2deficiency or deficiencies in the fiscal year of the Board of
3Education ending in calendar year 1997.
4 (b) (i) Notwithstanding any other provision of this
5Section, and notwithstanding any prior certification by the
6Board under subsection (c) for fiscal year 2011, the Board of
7Education's total required contribution to the Fund for fiscal
8year 2011 under this Section is $187,000,000.
9 (ii) Notwithstanding any other provision of this Section,
10the Board of Education's total required contribution to the
11Fund for fiscal year 2012 under this Section is $192,000,000.
12 (iii) Notwithstanding any other provision of this Section,
13the Board of Education's total required contribution to the
14Fund for fiscal year 2013 under this Section is $196,000,000.
15 (iv) For fiscal years 2014 through 2059, the minimum
16contribution to the Fund to be made by the Board of Education
17in each fiscal year shall be an amount determined by the Fund
18to be sufficient to bring the total assets of the Fund up to
1990% of the total actuarial liabilities of the Fund by the end
20of fiscal year 2059. In making these determinations, the
21required Board of Education contribution shall be calculated
22each year as a level percentage of the applicable employee
23payrolls over the years remaining to and including fiscal year
242059 and shall be determined under the projected unit credit
25actuarial cost method.
26 (v) Beginning in fiscal year 2060, the minimum Board of

SB2173- 173 -LRB100 11899 RPS 23506 b
1Education contribution for each fiscal year shall be the amount
2needed to maintain the total assets of the Fund at 90% of the
3total actuarial liabilities of the Fund.
4 (vi) Notwithstanding any other provision of this
5subsection (b), for any fiscal year, the contribution to the
6Fund from the Board of Education shall not be required to be in
7excess of the amount calculated as needed to maintain the
8assets (or cause the assets to be) at the 90% level by the end
9of the fiscal year.
10 (vii) Any contribution by the State to or for the benefit
11of the Fund, including, without limitation, as referred to
12under Section 17-127, shall be a credit against any
13contribution required to be made by the Board of Education
14under this subsection (b).
15 (c) The Board shall determine the amount of Board of
16Education contributions required for each fiscal year on the
17basis of the actuarial tables and other assumptions adopted by
18the Board and the recommendations of the actuary, in order to
19meet the minimum contribution requirements of subsections (a)
20and (b). Annually, on or before February 28, the Board shall
21certify to the Board of Education the amount of the required
22Board of Education contribution for the coming fiscal year. The
23certification shall include a copy of the actuarial
24recommendations upon which it is based.
25 (d) On or before May 1, 2018, the Board shall recalculate
26and recertify to the Board of Education the amount of the

SB2173- 174 -LRB100 11899 RPS 23506 b
1required Board of Education contribution to the Fund for fiscal
2year 2019, taking into account the effect on the Fund's
3liabilities of the elections made under Section 17-115.5.
4(Source: P.A. 96-889, eff. 4-14-10.)
5 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
6 Sec. 17-130. Participants' contributions by payroll
7deductions.
8 (a) Except as provided in subsection (a-5), there There
9shall be deducted from the salary of each teacher 7.50% of his
10salary for service or disability retirement pension and 0.5% of
11salary for the annual increase in base pension.
12 In addition, there shall be deducted from the salary of
13each teacher 1% of his salary for survivors' and children's
14pensions.
15 (a-5) Beginning on July 1, 2018 or the effective date of
16the Tier 1 employee's election under paragraph (1) of Section
1717-115.5, whichever is later, in lieu of the contributions
18otherwise required under subsection (a), each Tier 1 employee
19who made the election under paragraph (1) of Section 17-115.5
20shall make contributions of 7.50% of salary for service or
21disability retirement pension and 0.6% of salary for survivors'
22and children's pensions.
23 (b) An Employer and any employer of eligible contributors
24as defined in Section 17-106 is authorized to make the
25necessary deductions from the salaries of its teachers. Such

SB2173- 175 -LRB100 11899 RPS 23506 b
1amounts shall be included as a part of the Fund. An Employer
2and any employer of eligible contributors as defined in Section
317-106 shall formulate such rules and regulations as may be
4necessary to give effect to the provisions of this Section.
5 (c) All persons employed as teachers shall, by such
6employment, accept the provisions of this Article and of
7Sections 34-83 to 34-85, inclusive, of "The School Code",
8approved March 18, 1961, as amended, and thereupon become
9contributors to the Fund in accordance with the terms thereof.
10The provisions of this Article and of those Sections shall
11become a part of the contract of employment.
12 (d) A person who (i) was a member before July 1, 1998, (ii)
13retires with more than 34 years of creditable service, and
14(iii) does not elect to qualify for the augmented rate under
15Section 17-119.1 shall be entitled, at the time of retirement,
16to receive a partial refund of contributions made under this
17Section for service occurring after the later of June 30, 1998
18or attainment of 34 years of creditable service, in an amount
19equal to 1.00% of the salary upon which those contributions
20were based.
21(Source: P.A. 97-8, eff. 6-13-11.)
22 Section 40. The State Pension Funds Continuing
23Appropriation Act is amended by adding Section 1.9 as follows:
24 (40 ILCS 15/1.9 new)

SB2173- 176 -LRB100 11899 RPS 23506 b
1 Sec. 1.9. Appropriation for consideration payment. There
2is hereby appropriated from the General Revenue Fund to the
3State Comptroller, on a continuing basis, all amounts necessary
4for the payment of consideration payments under subsection (b)
5of Sections 2-110.3, 14-106.5, 15-132.9, 16-122.9, and
617-115.5 of the Illinois Pension Code, in the amounts certified
7to the State Comptroller by the respective retirement system or
8pension fund.
9 Section 45. The School Code is amended by changing Sections
1024-1, 24-8, and 34-18.53 as follows:
11 (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
12 Sec. 24-1. Appointment-Salaries-Payment-School
13month-School term.) School boards shall appoint all teachers,
14determine qualifications of employment and fix the amount of
15their salaries subject to any limitation set forth in this Act
16and subject to any applicable restrictions in Section 16-122.9
17of the Illinois Pension Code. They shall pay the wages of
18teachers monthly, subject, however, to the provisions of
19Section 24-21. The school month shall be the same as the
20calendar month but by resolution the school board may adopt for
21its use a month of 20 days, including holidays. The school term
22shall consist of at least the minimum number of pupil
23attendance days required by Section 10-19, any additional legal
24school holidays, days of teachers' institutes, or equivalent

SB2173- 177 -LRB100 11899 RPS 23506 b
1professional educational experiences, and one or two days at
2the beginning of the school term when used as a teachers'
3workshop.
4(Source: P.A. 80-249.)
5 (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
6 Sec. 24-8. Minimum salary. In fixing the salaries of
7teachers, school boards shall pay those who serve on a
8full-time basis not less than a rate for the school year that
9is based upon training completed in a recognized institution of
10higher learning, as follows: for the school year beginning July
111, 1980 and thereafter, less than a bachelor's degree, $9,000;
12120 semester hours or more and a bachelor's degree, $10,000;
13150 semester hours or more and a master's degree, $11,000.
14 Based upon previous public school experience in this State
15or any other State, territory, dependency or possession of the
16United States, or in schools operated by or under the auspices
17of the United States, teachers who serve on a full-time basis
18shall have their salaries increased to at least the following
19amounts above the starting salary for a teacher in such
20district in the same classification: with less than a
21bachelor's degree, $750 after 5 years; with 120 semester hours
22or more and a bachelor's degree, $1,000 after 5 years and
23$1,600 after 8 years; with 150 semester hours or more and a
24master's degree, $1,250 after 5 years, $2,000 after 8 years and
25$2,750 after 13 years. However, any salary increase is subject

SB2173- 178 -LRB100 11899 RPS 23506 b
1to any applicable restrictions in Section 16-122.9 of the
2Illinois Pension Code.
3 For the purpose of this Section a teacher's salary shall
4include any amount paid by the school district on behalf of the
5teacher, as teacher contributions, to the Teachers' Retirement
6System of the State of Illinois.
7 If a school board establishes a schedule for teachers'
8salaries based on education and experience, not inconsistent
9with this Section, all certificated nurses employed by that
10board shall be paid in accordance with the provisions of such
11schedule (subject to any applicable restrictions in Section
1216-122.9 of the Illinois Pension Code).
13 For purposes of this Section, a teacher who submits a
14certificate of completion to the school office prior to the
15first day of the school term shall be considered to have the
16degree stated in such certificate.
17(Source: P.A. 83-913.)
18 (105 ILCS 5/34-18.53 new)
19 Sec. 34-18.53. Future increase in income. The Board of
20Education must not pay, offer, or agree to pay any future
21increase in income, as that term is defined in Section 17-113.5
22of the Illinois Pension Code, to any person in a manner that
23violates Section 17-115.5 of the Illinois Pension Code.
24 Section 50. The State Universities Civil Service Act is

SB2173- 179 -LRB100 11899 RPS 23506 b
1amended by changing Section 36d as follows:
2 (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
3 Sec. 36d. Powers and duties of the Merit Board. The Merit
4Board shall have the power and duty-
5 (1) To approve a classification plan prepared under its
6 direction, assigning to each class positions of
7 substantially similar duties. The Merit Board shall have
8 power to delegate to its Director the duty of assigning
9 each position in the classified service to the appropriate
10 class in the classification plan approved by the Merit
11 Board.
12 (2) To prescribe the duties of each class of positions
13 and the qualifications required by employment in that
14 class.
15 (3) To prescribe the range of compensation for each
16 class or to fix a single rate of compensation for employees
17 in a particular class; and to establish other conditions of
18 employment which an employer and employee representatives
19 have agreed upon as fair and equitable. The Merit Board
20 shall direct the payment of the "prevailing rate of wages"
21 in those classifications in which, on January 1, 1952, any
22 employer is paying such prevailing rate and in such other
23 classes as the Merit Board may thereafter determine.
24 "Prevailing rate of wages" as used herein shall be the
25 wages paid generally in the locality in which the work is

SB2173- 180 -LRB100 11899 RPS 23506 b
1 being performed to employees engaged in work of a similar
2 character. Subject to any applicable restrictions in
3 Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois
4 Pension Code, each Each employer covered by the University
5 System shall be authorized to negotiate with
6 representatives of employees to determine appropriate
7 ranges or rates of compensation or other conditions of
8 employment and may recommend to the Merit Board for
9 establishment the rates or ranges or other conditions of
10 employment which the employer and employee representatives
11 have agreed upon as fair and equitable, but excluding the
12 changes, the impact of changes, and the implementation of
13 the changes set forth in this amendatory Act of the 100th
14 General Assembly. Any rates or ranges established prior to
15 January 1, 1952, and hereafter, shall not be changed except
16 in accordance with the procedures herein provided.
17 (4) To recommend to the institutions and agencies
18 specified in Section 36e standards for hours of work,
19 holidays, sick leave, overtime compensation and vacation
20 for the purpose of improving conditions of employment
21 covered therein and for the purpose of insuring conformity
22 with the prevailing rate principal.
23 (5) To prescribe standards of examination for each
24 class, the examinations to be related to the duties of such
25 class. The Merit Board shall have power to delegate to the
26 Director and his staff the preparation, conduct and grading

SB2173- 181 -LRB100 11899 RPS 23506 b
1 of examinations. Examinations may be written, oral, by
2 statement of training and experience, in the form of tests
3 of knowledge, skill, capacity, intellect, aptitude; or, by
4 any other method, which in the judgment of the Merit Board
5 is reasonable and practical for any particular
6 classification. Different examining procedures may be
7 determined for the examinations in different
8 classifications but all examinations in the same
9 classification shall be uniform.
10 (6) To authorize the continuous recruitment of
11 personnel and to that end, to delegate to the Director and
12 his staff the power and the duty to conduct open and
13 continuous competitive examinations for all
14 classifications of employment.
15 (7) To cause to be established from the results of
16 examinations registers for each class of positions in the
17 classified service of the State Universities Civil Service
18 System, of the persons who shall attain the minimum mark
19 fixed by the Merit Board for the examination; and such
20 persons shall take rank upon the registers as candidates in
21 the order of their relative excellence as determined by
22 examination, without reference to priority of time of
23 examination.
24 (8) To provide by its rules for promotions in the
25 classified service. Vacancies shall be filled by promotion
26 whenever practicable. For the purpose of this paragraph, an

SB2173- 182 -LRB100 11899 RPS 23506 b
1 advancement in class shall constitute a promotion.
2 (9) To set a probationary period of employment of no
3 less than 6 months and no longer than 12 months for each
4 class of positions in the classification plan, the length
5 of the probationary period for each class to be determined
6 by the Director.
7 (10) To provide by its rules for employment at regular
8 rates of compensation of persons with physical
9 disabilities in positions in which the disability does not
10 prevent the individual from furnishing satisfactory
11 service.
12 (11) To make and publish rules, to carry out the
13 purpose of the State Universities Civil Service System and
14 for examination, appointments, transfers and removals and
15 for maintaining and keeping records of the efficiency of
16 officers and employees and groups of officers and employees
17 in accordance with the provisions of Sections 36b to 36q,
18 inclusive, and said Merit Board may from time to time make
19 changes in such rules.
20 (12) To appoint a Director and such assistants and
21 other clerical and technical help as may be necessary
22 efficiently to administer Sections 36b to 36q, inclusive.
23 To authorize the Director to appoint an assistant resident
24 at the place of employment of each employer specified in
25 Section 36e and this assistant may be authorized to give
26 examinations and to certify names from the regional

SB2173- 183 -LRB100 11899 RPS 23506 b
1 registers provided in Section 36k.
2 (13) To submit to the Governor of this state on or
3 before November 1 of each year prior to the regular session
4 of the General Assembly a report of the University System's
5 business and an estimate of the amount of appropriation
6 from state funds required for the purpose of administering
7 the University System.
8(Source: P.A. 99-143, eff. 7-27-15.)
9 Section 55. The University of Illinois Act is amended by
10adding Section 100 as follows:
11 (110 ILCS 305/100 new)
12 Sec. 100. Future increases in income. The University of
13Illinois must not pay, offer, or agree to pay any future
14increase in income, as that term is defined in Section
1514-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
16to any person in a manner that violates Section 14-106.5,
1715-132.9, or 16-122.9 of the Illinois Pension Code.
18 Section 65. The Southern Illinois University Management
19Act is amended by adding Section 85 as follows:
20 (110 ILCS 520/85 new)
21 Sec. 85. Future increases in income. Southern Illinois
22University must not pay, offer, or agree to pay any future

SB2173- 184 -LRB100 11899 RPS 23506 b
1increase in income, as that term is defined in Section
214-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
3to any person in a manner that violates Section 14-106.5,
415-132.9, or 16-122.9 of the Illinois Pension Code.
5 Section 70. The Chicago State University Law is amended by
6adding Section 5-195 as follows:
7 (110 ILCS 660/5-195 new)
8 Sec. 5-195. Future increases in income. Chicago State
9University must not pay, offer, or agree to pay any future
10increase in income, as that term is defined in Section
1114-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
12to any person in a manner that violates Section 14-106.5,
1315-132.9, or 16-122.9 of the Illinois Pension Code.
14 Section 75. The Eastern Illinois University Law is amended
15by adding Section 10-195 as follows:
16 (110 ILCS 665/10-195 new)
17 Sec. 10-195. Future increases in income. Eastern Illinois
18University must not pay, offer, or agree to pay any future
19increase in income, as that term is defined in Section
2014-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
21to any person in a manner that violates Section 14-106.5,
2215-132.9, or 16-122.9 of the Illinois Pension Code.

SB2173- 185 -LRB100 11899 RPS 23506 b
1 Section 80. The Governors State University Law is amended
2by adding Section 15-195 as follows:
3 (110 ILCS 670/15-195 new)
4 Sec. 15-195. Future increases in income. Governors State
5University must not pay, offer, or agree to pay any future
6increase in income, as that term is defined in Section
714-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
8to any person in a manner that violates Section 14-106.5,
915-132.9, or 16-122.9 of the Illinois Pension Code.
10 Section 85. The Illinois State University Law is amended by
11adding Section 20-200 as follows:
12 (110 ILCS 675/20-200 new)
13 Sec. 20-200. Future increases in income. Illinois State
14University must not pay, offer, or agree to pay any future
15increase in income, as that term is defined in Section
1614-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
17to any person in a manner that violates Section 14-106.5,
1815-132.9, or 16-122.9 of the Illinois Pension Code.
19 Section 90. The Northeastern Illinois University Law is
20amended by adding Section 25-195 as follows:

SB2173- 186 -LRB100 11899 RPS 23506 b
1 (110 ILCS 680/25-195 new)
2 Sec. 25-195. Future increases in income. Northeastern
3Illinois University must not pay, offer, or agree to pay any
4future increase in income, as that term is defined in Section
514-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
6to any person in a manner that violates Section 14-106.5,
715-132.9, or 16-122.9 of the Illinois Pension Code.
8 Section 95. The Northern Illinois University Law is amended
9by adding Section 30-205 as follows:
10 (110 ILCS 685/30-205 new)
11 Sec. 30-205. Future increases in income. Northern Illinois
12University must not pay, offer, or agree to pay any future
13increase in income, as that term is defined in Section
1414-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
15to any person in a manner that violates Section 14-106.5,
1615-132.9, or 16-122.9 of the Illinois Pension Code.
17 Section 100. The Western Illinois University Law is amended
18by adding Section 35-200 as follows:
19 (110 ILCS 690/35-200 new)
20 Sec. 35-200. Future increases in income. Western Illinois
21University must not pay, offer, or agree to pay any future
22increase in income, as that term is defined in Section

SB2173- 187 -LRB100 11899 RPS 23506 b
114-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code,
2to any person in a manner that violates Section 14-106.5,
315-132.9, or 16-122.9 of the Illinois Pension Code.
4 Section 105. The Public Community College Act is amended by
5changing Sections 3-26 and 3-42 as follows:
6 (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
7 Sec. 3-26. (a) To make appointments and fix the salaries of
8a chief administrative officer, who shall be the executive
9officer of the board, other administrative personnel, and all
10teachers, but subject to any applicable restrictions in Section
1114-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code.
12In making these appointments and fixing the salaries, the board
13may make no discrimination on account of sex, race, creed,
14color or national origin.
15 (b) Upon the written request of an employee, to withhold
16from the compensation of that employee the membership dues of
17such employee payable to any specified labor organization as
18defined in the Illinois Educational Labor Relations Act. Under
19such arrangement, an amount shall be withheld for each regular
20payroll period which is equal to the prorata share of the
21annual membership dues plus any payments or contributions and
22the board shall pay such withholding to the specified labor
23organization within 10 working days from the time of the
24withholding.

SB2173- 188 -LRB100 11899 RPS 23506 b
1(Source: P.A. 83-1014.)
2 (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
3 Sec. 3-42. To employ such personnel as may be needed, to
4establish policies governing their employment and dismissal,
5and to fix the amount of their compensation, subject to any
6applicable restrictions in Section 14-106.5, 15-132.9, or
716-122.9 of the Illinois Pension Code. In the employment,
8establishment of policies and fixing of compensation the board
9may make no discrimination on account of sex, race, creed,
10color or national origin.
11 Residence within any community college district or outside
12any community college district shall not be considered:
13 (a) in determining whether to retain or not retain any
14 employee of a community college employed prior to July 1,
15 1977 or prior to the adoption by the community college
16 board of a resolution making residency within the community
17 college district of some or all employees a condition of
18 employment, whichever is later;
19 (b) in assigning, promoting or transferring any
20 employee of a community college to an office or position
21 employed prior to July 1, 1977 or prior to the adoption by
22 the community college board of a resolution making
23 residency within the community college district of some or
24 all employees a condition of employment, whichever is
25 later; or

SB2173- 189 -LRB100 11899 RPS 23506 b
1 (c) in determining the salary or other compensation of
2 any employee of a community college.
3(Source: P.A. 80-248.)
4 Section 110. The Illinois Educational Labor Relations Act
5is amended by changing Sections 4, 14, and 17 and by adding
6Section 10.6 as follows:
7 (115 ILCS 5/4) (from Ch. 48, par. 1704)
8 Sec. 4. Employer rights. Employers shall not be required to
9bargain over matters of inherent managerial policy, which shall
10include such areas of discretion or policy as the functions of
11the employer, standards of services, its overall budget, the
12organizational structure and selection of new employees and
13direction of employees. Employers, however, shall be required
14to bargain collectively with regard to policy matters directly
15affecting wages (but subject to any applicable restrictions in
16Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the
17Illinois Pension Code), hours and terms and conditions of
18employment as well as the impact thereon upon request by
19employee representatives, but excluding the changes, the
20impact of changes, and the implementation of the changes set
21forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of
22the Illinois Pension Code. To preserve the rights of employers
23and exclusive representatives which have established
24collective bargaining relationships or negotiated collective

SB2173- 190 -LRB100 11899 RPS 23506 b
1bargaining agreements prior to the effective date of this Act,
2employers shall be required to bargain collectively with regard
3to any matter concerning wages (but subject to any applicable
4restrictions in Section 14-106.5, 15-132.9, 16-122.9, or
517-115.5 of the Illinois Pension Code), hours or conditions of
6employment about which they have bargained for and agreed to in
7a collective bargaining agreement prior to the effective date
8of this Act, but excluding the changes, the impact of changes,
9and the implementation of the changes set forth in Section
1014-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
11Pension Code.
12(Source: P.A. 83-1014.)
13 (115 ILCS 5/10.6 new)
14 Sec. 10.6. No collective bargaining or interest
15arbitration regarding certain changes to the Illinois Pension
16Code.
17 (a) Notwithstanding any other provision of this Act,
18employers shall not be required to bargain over matters
19affected by the changes, the impact of the changes, and the
20implementation of the changes to Article 14, 15, 16, or 17 of
21the Illinois Pension Code made by the addition of Section
2214-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois
23Pension Code, which are deemed to be prohibited subjects of
24bargaining. Notwithstanding any provision of this Act, the
25changes, impact of the changes, or implementation of the

SB2173- 191 -LRB100 11899 RPS 23506 b
1changes to Article 14, 15, 16, or 17 of the Illinois Pension
2Code made by the addition of Section 14-106.5, 15-132.9,
316-122.9, or 17-115.5 of the Illinois Pension Code shall not be
4subject to interest arbitration or any award issued pursuant to
5interest arbitration. The provisions of this Section shall not
6apply to an employment contract or collective bargaining
7agreement that is in effect on the effective date of this
8amendatory Act of the 100th General Assembly. However, any such
9contract or agreement that is modified, amended, renewed, or
10superseded after the effective date of this amendatory Act of
11the 100th General Assembly shall be subject to the provisions
12of this Section. The provisions of this Section shall not apply
13to the ability of any employer and employee representative to
14bargain collectively with regard to the pick up of employee
15contributions pursuant to Section 14-133.1, 15-157.1,
1616-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
17 (b) Nothing in this Section shall be construed as otherwise
18limiting any of the obligations and requirements applicable to
19employers under any of the provisions of this Act, including,
20but not limited to, the requirement to bargain collectively
21with regard to policy matters directly affecting wages, hours,
22and terms and conditions of employment as well as the impact
23thereon upon request by employee representatives, except for
24the matters set forth in subsection (a) of this Section that
25are deemed prohibited subjects of bargaining. Nothing in this
26Section shall be construed as otherwise limiting any of the

SB2173- 192 -LRB100 11899 RPS 23506 b
1rights of employees or employee representatives under the
2provisions of this Act, except for the matters set forth in
3subsection (a) of this Section that are deemed prohibited
4subjects of bargaining.
5 (c) In case of any conflict between this Section and any
6other provisions of this Act or any other law, the provisions
7of this Section shall control.
8 (115 ILCS 5/14) (from Ch. 48, par. 1714)
9 Sec. 14. Unfair labor practices.
10 (a) Educational employers, their agents or representatives
11are prohibited from:
12 (1) Interfering, restraining or coercing employees in
13 the exercise of the rights guaranteed under this Act.
14 (2) Dominating or interfering with the formation,
15 existence or administration of any employee organization.
16 (3) Discriminating in regard to hire or tenure of
17 employment or any term or condition of employment to
18 encourage or discourage membership in any employee
19 organization.
20 (4) Discharging or otherwise discriminating against an
21 employee because he or she has signed or filed an
22 affidavit, authorization card, petition or complaint or
23 given any information or testimony under this Act.
24 (5) Subject to and except as provided in Section 10.6,
25 refusing Refusing to bargain collectively in good faith

SB2173- 193 -LRB100 11899 RPS 23506 b
1 with an employee representative which is the exclusive
2 representative of employees in an appropriate unit,
3 including but not limited to the discussing of grievances
4 with the exclusive representative; provided, however, that
5 if an alleged unfair labor practice involves
6 interpretation or application of the terms of a collective
7 bargaining agreement and said agreement contains a
8 grievance and arbitration procedure, the Board may defer
9 the resolution of such dispute to the grievance and
10 arbitration procedure contained in said agreement.
11 However, no actions of the employer taken to implement or
12 otherwise comply with the provisions of subsection (a) of
13 Section 10.6 shall constitute or give rise to an unfair
14 labor practice under this Act.
15 (6) Refusing to reduce a collective bargaining
16 agreement to writing and signing such agreement.
17 (7) Violating any of the rules and regulations
18 promulgated by the Board regulating the conduct of
19 representation elections.
20 (8) Refusing to comply with the provisions of a binding
21 arbitration award.
22 (9) Expending or causing the expenditure of public
23 funds to any external agent, individual, firm, agency,
24 partnership or association in any attempt to influence the
25 outcome of representational elections held pursuant to
26 paragraph (c) of Section 7 of this Act; provided, that

SB2173- 194 -LRB100 11899 RPS 23506 b
1 nothing in this subsection shall be construed to limit an
2 employer's right to be represented on any matter pertaining
3 to unit determinations, unfair labor practice charges or
4 pre-election conferences in any formal or informal
5 proceeding before the Board, or to seek or obtain advice
6 from legal counsel. Nothing in this paragraph shall be
7 construed to prohibit an employer from expending or causing
8 the expenditure of public funds on, or seeking or obtaining
9 services or advice from, any organization, group or
10 association established by, and including educational or
11 public employers, whether or not covered by this Act, the
12 Illinois Public Labor Relations Act or the public
13 employment labor relations law of any other state or the
14 federal government, provided that such services or advice
15 are generally available to the membership of the
16 organization, group, or association, and are not offered
17 solely in an attempt to influence the outcome of a
18 particular representational election.
19 (b) Employee organizations, their agents or
20representatives or educational employees are prohibited from:
21 (1) Restraining or coercing employees in the exercise
22 of the rights guaranteed under this Act, provided that a
23 labor organization or its agents shall commit an unfair
24 labor practice under this paragraph in duty of fair
25 representation cases only by intentional misconduct in
26 representing employees under this Act.

SB2173- 195 -LRB100 11899 RPS 23506 b
1 (2) Restraining or coercing an educational employer in
2 the selection of his representative for the purposes of
3 collective bargaining or the adjustment of grievances.
4 (3) Refusing to bargain collectively in good faith with
5 an educational employer, if they have been designated in
6 accordance with the provisions of this Act as the exclusive
7 representative of employees in an appropriate unit.
8 (4) Violating any of the rules and regulations
9 promulgated by the Board regulating the conduct of
10 representation elections.
11 (5) Refusing to reduce a collective bargaining
12 agreement to writing and signing such agreement.
13 (6) Refusing to comply with the provisions of a binding
14 arbitration award.
15 (c) The expressing of any views, argument, opinion or the
16dissemination thereof, whether in written, printed, graphic or
17visual form, shall not constitute or be evidence of an unfair
18labor practice under any of the provisions of this Act, if such
19expression contains no threat of reprisal or force or promise
20of benefit.
21 (d) The actions of a Financial Oversight Panel created
22pursuant to Section 1A-8 of the School Code due to a district
23violating a financial plan shall not constitute or be evidence
24of an unfair labor practice under any of the provisions of this
25Act. Such actions include, but are not limited to, reviewing,
26approving, or rejecting a school district budget or a

SB2173- 196 -LRB100 11899 RPS 23506 b
1collective bargaining agreement.
2(Source: P.A. 89-572, eff. 7-30-96.)
3 (115 ILCS 5/17) (from Ch. 48, par. 1717)
4 Sec. 17. Effect on other laws. In case of any conflict
5between the provisions of this Act and any other law (other
6than Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the
7Illinois Pension Code), executive order or administrative
8regulation, the provisions of this Act shall prevail and
9control. The provisions of this Act are subject to any
10applicable restrictions in Section 14-106.5, 15-132.9,
1116-122.9, or 17-115.5 of the Illinois Pension Code, as well as
12the changes, impact of changes, and implementation of changes
13set forth in Section 14-106.5, 15-132.9, 16-122.9, or 17-115.5
14of the Illinois Pension Code. Nothing in this Act shall be
15construed to replace or diminish the rights of employees
16established by Section 36d of "An Act to create the State
17Universities Civil Service System", approved May 11, 1905, as
18amended or modified.
19(Source: P.A. 83-1014.)
20 Section 900. The State Mandates Act is amended by adding
21Section 8.41 as follows:
22 (30 ILCS 805/8.41 new)
23 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8

SB2173- 197 -LRB100 11899 RPS 23506 b
1of this Act, no reimbursement by the State is required for the
2implementation of any mandate created by this amendatory Act of
3the 100th General Assembly.
4 Section 970. Severability. Except as otherwise provided in
5this Act, the provisions of this Act are severable under
6Section 1.31 of the Statute on Statutes.
7 Section 999. Effective date. This Act takes effect upon
8becoming law.

SB2173- 198 -LRB100 11899 RPS 23506 b
1 INDEX
2 Statutes amended in order of appearance
3 5 ILCS 315/7.6 new
4 5 ILCS 315/10from Ch. 48, par. 1610
5 5 ILCS 315/15from Ch. 48, par. 1615
6 15 ILCS 205/5 new
7 15 ILCS 310/13a new
8 15 ILCS 410/13a new
9 15 ILCS 510/12a new
10 20 ILCS 5/5-647 new
11 40 ILCS 5/2-105.3 new
12 40 ILCS 5/2-107.9 new
13 40 ILCS 5/2-107.10 new
14 40 ILCS 5/2-108from Ch. 108 1/2, par. 2-108
15 40 ILCS 5/2-110.3 new
16 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
17 40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
18 40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
19 40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
20 40 ILCS 5/2-162
21 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
22 40 ILCS 5/14-103.41 new
23 40 ILCS 5/14-103.42 new
24 40 ILCS 5/14-103.43 new
25 40 ILCS 5/14-106.5 new

SB2173- 199 -LRB100 11899 RPS 23506 b
1 40 ILCS 5/14-114from Ch. 108 1/2, par. 14-114
2 40 ILCS 5/14-131
3 40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
4 40 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.08
5 40 ILCS 5/14-152.1
6 40 ILCS 5/15-108.1
7 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8 40 ILCS 5/15-112.1 new
9 40 ILCS 5/15-112.2 new
10 40 ILCS 5/15-132.9 new
11 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
12 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
13 40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
14 40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
15 40 ILCS 5/15-198
16 40 ILCS 5/16-107.1 new
17 40 ILCS 5/16-121from Ch. 108 1/2, par. 16-121
18 40 ILCS 5/16-121.1 new
19 40 ILCS 5/16-121.2 new
20 40 ILCS 5/16-122.9 new
21 40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
22 40 ILCS 5/16-136.1from Ch. 108 1/2, par. 16-136.1
23 40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
24 40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
25 40 ILCS 5/16-203
26 40 ILCS 5/17-106.05 new

SB2173- 200 -LRB100 11899 RPS 23506 b
1 40 ILCS 5/17-113.4 new
2 40 ILCS 5/17-113.5 new
3 40 ILCS 5/17-113.6 new
4 40 ILCS 5/17-115.5 new
5 40 ILCS 5/17-116from Ch. 108 1/2, par. 17-116
6 40 ILCS 5/17-119.2 new
7 40 ILCS 5/17-129from Ch. 108 1/2, par. 17-129
8 40 ILCS 5/17-130from Ch. 108 1/2, par. 17-130
9 40 ILCS 15/1.9 new
10 105 ILCS 5/24-1from Ch. 122, par. 24-1
11 105 ILCS 5/24-8from Ch. 122, par. 24-8
12 105 ILCS 5/34-18.53 new
13 110 ILCS 70/36dfrom Ch. 24 1/2, par. 38b3
14 110 ILCS 305/100 new
15 110 ILCS 520/85 new
16 110 ILCS 660/5-195 new
17 110 ILCS 665/10-195 new
18 110 ILCS 670/15-195 new
19 110 ILCS 675/20-200 new
20 110 ILCS 680/25-195 new
21 110 ILCS 685/30-205 new
22 110 ILCS 690/35-200 new
23 110 ILCS 805/3-26from Ch. 122, par. 103-26
24 110 ILCS 805/3-42from Ch. 122, par. 103-42
25 115 ILCS 5/4from Ch. 48, par. 1704
26 115 ILCS 5/10.6 new

SB2173- 201 -LRB100 11899 RPS 23506 b