Sen. John J. Cullerton
Filed: 1/25/2017
 
 


 




10000SB0011sam002LRB100 06001 RPS 18499 a



1
AMENDMENT TO SENATE BILL 11




2 AMENDMENT NO. ______. Amend Senate Bill 11 by replacing 
3everything after the enacting clause with the following:


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 15, 16, or 17 of the 
14Illinois Pension Code made by this amendatory Act of the 100th 
15General Assembly, which are deemed to be prohibited subjects of 
16bargaining. Notwithstanding any provision of this Act, the 
 
 
10000SB0011sam002- 2 -LRB100 06001 RPS 18499 a


1changes, impact of the changes, or implementation of the 
2changes to Article 15, 16, or 17 of the Illinois Pension Code 
3made by this amendatory Act of the 100th General Assembly shall 
4not be subject to interest arbitration or any award issued 
5pursuant to interest arbitration. The provisions of this 
6Section shall not apply to an employment contract or collective 
7bargaining agreement that is in effect on the effective date of 
8this amendatory Act of the 100th General Assembly. However, any 
9such contract or agreement that is modified, amended, renewed, 
10or superseded after the effective date of this amendatory Act 
11of the 100th General Assembly shall be subject to the 
12provisions of this Section. Each employer with active employees 
13participating in a retirement system or pension fund 
14established under Article 15, 16, or 17 of the Illinois Pension 
15Code shall comply with and be subject to the provisions of this 
16amendatory Act of the 100th General Assembly. The provisions of 
17this Section shall not apply to the ability of any employer and 
18employee representative to bargain collectively with regard to 
19the pick up of employee contributions pursuant to Section 
2015-157.1, 16-152.1, 17-130.1, or 17-130.2 of the Illinois 
21Pension Code.
22 (b) Subject to and except for the matters set forth in 
23subsection (a) of this Section that are deemed prohibited 
24subjects of bargaining, nothing in this Section shall be 
25construed as otherwise limiting any of the obligations and 
26requirements applicable to employers under any of the 
 
 
10000SB0011sam002- 3 -LRB100 06001 RPS 18499 a


1provisions of this Act, including, but not limited to, the 
2requirement to bargain collectively with regard to policy 
3matters directly affecting wages, hours, and terms and 
4conditions of employment as well as the impact thereon upon 
5request by employee representatives. Subject to and except for 
6the matters set forth in subsection (a) of this Section that 
7are deemed prohibited subjects of bargaining, nothing in this 
8Section shall be construed as otherwise limiting any of the 
9rights of employees or employee representatives under the 
10provisions of this Act.
11 (c) In case of any conflict between this Section and any 
12other provisions of this Act or any other law, the provisions 
13of this Section shall control.




14 (5 ILCS 315/10) (from Ch. 48, par. 1610)



15 Sec. 10. Unfair labor practices. 

16 (a) It shall be an unfair labor practice
for an employer or 
17its agents:

18  (1) to interfere with, restrain or coerce public 
19 employees in the
exercise of the rights guaranteed in this 
20 Act or to dominate or interfere
with the formation, 
21 existence or administration of any labor organization
or 
22 contribute financial or other support to it; provided, an 
23 employer shall
not be prohibited from permitting employees 
24 to confer with him during
working hours without loss of 
25 time or pay;

 
 
10000SB0011sam002- 4 -LRB100 06001 RPS 18499 a


1  (2) to discriminate in regard to hire or tenure of 
2 employment or any term
or condition of employment in order 
3 to encourage or discourage membership
in or other support 
4 for any labor organization. Nothing in this Act or any

5 other law precludes a public employer from making an 
6 agreement with a labor
organization to require as a 
7 condition of employment the payment of a fair
share under 
8 paragraph (e) of Section 6;

9  (3) to discharge or otherwise discriminate against a 
10 public employee because
he has signed or filed an 
11 affidavit, petition or charge or provided any
information 
12 or testimony under this Act;

13  (4) subject to and except as provided in Section 7.6, 
14 to refuse to bargain collectively in good faith with a 
15 labor
organization which is the exclusive representative 
16 of public employees in
an appropriate unit, including, but 
17 not limited to, the discussing of
grievances with the 
18 exclusive representative; however, no actions of the 
19 employer taken to implement or otherwise comply with the 
20 provisions of subsection (a) of Section 7.6 shall 
21 constitute or give rise to an unfair labor practice under 
22 this Act;

23  (5) to violate any of the rules and regulations 
24 established by the Board
with jurisdiction over them 
25 relating to the conduct of representation elections
or the 
26 conduct affecting the representation elections;

 
 
10000SB0011sam002- 5 -LRB100 06001 RPS 18499 a


1  (6) to expend or cause the expenditure of public funds 
2 to any external
agent, individual, firm, agency, 
3 partnership or association in any attempt
to influence the 
4 outcome of representational elections held pursuant to

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

25  (7) to refuse to reduce a collective bargaining 
26 agreement to writing
or to refuse to sign such agreement.

 
 
10000SB0011sam002- 6 -LRB100 06001 RPS 18499 a


1 (b) It shall be an unfair labor practice for a labor 
2organization or its agents:

3  (1) to restrain or coerce public employees in the 
4 exercise of the rights
guaranteed in this Act, provided, 
5 (i) that this paragraph shall
not impair the right of a 
6 labor organization to prescribe its own rules
with respect 
7 to the acquisition or retention of membership therein or 
8 the
determination of fair share payments and (ii) that a 
9 labor organization
or its agents shall commit an unfair 
10 labor practice under this paragraph in
duty of fair 
11 representation cases only by intentional misconduct in

12 representing employees under this Act;

13  (2) to restrain or coerce a public employer in the 
14 selection of his
representatives for the purposes of 
15 collective bargaining or the settlement
of grievances; or

16  (3) to cause, or attempt to cause, an employer to 
17 discriminate against
an employee in violation of 
18 subsection (a)(2);

19  (4) to refuse to bargain collectively in good faith 
20 with a public employer,
if it has been designated in 
21 accordance with the provisions of this Act
as the exclusive 
22 representative of public employees in an appropriate unit;

23  (5) to violate any of the rules and regulations 
24 established by the
boards with jurisdiction over them 
25 relating to the conduct of
representation elections or the 
26 conduct affecting the representation elections;

 
 
10000SB0011sam002- 7 -LRB100 06001 RPS 18499 a


1  (6) to discriminate against any employee because he has 
2 signed or filed
an affidavit, petition or charge or 
3 provided any information or testimony
under this Act;

4  (7) to picket or cause to be picketed, or threaten to 
5 picket or cause
to be picketed, any public employer where 
6 an object thereof is forcing or
requiring an employer to 
7 recognize or bargain with a labor organization
of the 
8 representative of its employees, or forcing or requiring 
9 the employees
of an employer to accept or select such labor 
10 organization as their collective
bargaining 
11 representative, unless such labor organization is 
12 currently
certified as the representative of such 
13 employees:

14   (A) where the employer has lawfully recognized in 
15 accordance with this
Act any labor organization and a 
16 question concerning representation may
not 
17 appropriately be raised under Section 9 of this Act;

18   (B) where within the preceding 12 months a valid 
19 election under Section
9 of this Act has been 
20 conducted; or

21   (C) where such picketing has been conducted 
22 without a petition under Section
9 being filed within a 
23 reasonable period of time not to exceed 30 days from

24 the commencement of such picketing; provided that when 
25 such a petition has
been filed the Board shall 
26 forthwith, without regard to the provisions of

 
 
10000SB0011sam002- 8 -LRB100 06001 RPS 18499 a


1 subsection (a) of Section 9 or the absence of a showing 
2 of a substantial
interest on the part of the labor 
3 organization, direct an election in such
unit as the 
4 Board finds to be appropriate and shall certify the 
5 results
thereof; provided further, that nothing in 
6 this subparagraph shall be construed
to prohibit any 
7 picketing or other publicity for the purpose of 
8 truthfully
advising the public that an employer does 
9 not employ members of, or have a
contract with, a labor 
10 organization unless an effect of such picketing is
to 
11 induce any individual employed by any other person in 
12 the course of his
employment, not to pick up, deliver, 
13 or transport any goods or not to
perform any services; 
14 or

15  (8) to refuse to reduce a collective bargaining 
16 agreement to writing
or to refuse to sign such agreement.

17 (c) The expressing of any views, argument, or opinion or 
18the
dissemination thereof, whether in written, printed, 
19graphic, or visual
form, shall not constitute or be evidence of 
20an unfair labor practice under
any of the provisions of this 
21Act, if such expression contains no threat of
reprisal or force 
22or promise of benefit.

23(Source: P.A. 86-412; 87-736.)




24 (5 ILCS 315/15) (from Ch. 48, par. 1615)


25 (Text of Section WITHOUT the changes made by P.A. 98-599, 
 
 
10000SB0011sam002- 9 -LRB100 06001 RPS 18499 a


1which has been
held unconstitutional)

2 Sec. 15. Act Takes Precedence. 
3 (a) In case of any conflict between the
provisions of this 
4Act and any other law (other than Section 5 of the State 
5Employees Group Insurance Act of 1971 and other than the 
6changes made to the Illinois Pension Code by this amendatory 
7Act of the 96th General Assembly), executive order or 
8administrative
regulation relating to wages, hours and 
9conditions of employment and employment
relations, the 
10provisions of this Act or any collective bargaining agreement

11negotiated thereunder shall prevail and control.
Nothing in 
12this Act shall be construed to replace or diminish the
rights 
13of employees established by Sections 28 and 28a of the 
14Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 
15of the Regional Transportation
Authority Act. The provisions of 
16this Act are subject to Section 5 of the State Employees Group 
17Insurance Act of 1971. Nothing in this Act shall be construed 
18to replace the necessity of complaints against a sworn peace 
19officer, as defined in Section 2(a) of the Uniform Peace 
20Officer Disciplinary Act, from having a complaint supported by 
21a sworn affidavit.


22 (b) Except as provided in subsection (a) above, any 
23collective bargaining
contract between a public employer and a 
24labor organization executed pursuant
to this Act shall 
25supersede any contrary statutes, charters, ordinances, rules

26or regulations relating to wages, hours and conditions of 
 
 
10000SB0011sam002- 10 -LRB100 06001 RPS 18499 a


1employment and
employment relations adopted by the public 
2employer or its agents. Any collective
bargaining agreement 
3entered into prior to the effective date of this Act
shall 
4remain in full force during its duration.

5 (c) It is the public policy of this State, pursuant to 
6paragraphs (h)
and (i) of Section 6 of Article VII of the 
7Illinois Constitution, that the
provisions of this Act are the 
8exclusive exercise by the State of powers
and functions which 
9might otherwise be exercised by home rule units. Such
powers 
10and functions may not be exercised concurrently, either 
11directly
or indirectly, by any unit of local government, 
12including any home rule
unit, except as otherwise authorized by 
13this Act.
14 (d) Notwithstanding any other provision of law, no 
15collective bargaining agreement entered into, renewed, or 
16extended after the effective date of this amendatory Act of the 
17100th General Assembly or any arbitration award issued under 
18such collective bargaining agreement may violate or conflict 
19with the changes made by this amendatory Act of the 100th 
20General Assembly.
21(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)

22 Section 10. The State Employees Group Insurance Act of 1971 
23is amended by changing Sections 3 and 10 as follows:



24 (5 ILCS 375/3) (from Ch. 127, par. 523)


 
 
10000SB0011sam002- 11 -LRB100 06001 RPS 18499 a


1 Sec. 3. Definitions. Unless the context otherwise 
2requires, the
following words and phrases as used in this Act 
3shall have the following
meanings. The Department may define 
4these and other words and phrases
separately for the purpose of 
5implementing specific programs providing benefits
under this 
6Act.

7 (a) "Administrative service organization" means any 
8person, firm or
corporation experienced in the handling of 
9claims which is
fully qualified, financially sound and capable 
10of meeting the service
requirements of a contract of 
11administration executed with the Department.

12 (b) "Annuitant" means (1) an employee who retires, or has 
13retired,
on or after January 1, 1966 on an immediate annuity 
14under the provisions
of Articles 2, 14 (including an employee 
15who has elected to receive an alternative retirement 
16cancellation payment under Section 14-108.5 of the Illinois 
17Pension Code in lieu of an annuity or who meets the criteria 
18for retirement, but in lieu of receiving an annuity under that 
19Article has elected to receive an accelerated pension benefit 
20payment under Section 14-147.5 of that Article), 15 (including 
21an employee who has retired under the optional
retirement 
22program established under Section 15-158.2 or who meets the 
23criteria for retirement but in lieu of receiving an annuity 
24under that Article has elected to receive an accelerated 
25pension benefit payment under Section 15-185.5 of the Article),

26paragraphs (2), (3), or (5) of Section 16-106 (including an 
 
 
10000SB0011sam002- 12 -LRB100 06001 RPS 18499 a


1employee who meets the criteria for retirement, but in lieu of 
2receiving an annuity under that Article has elected to receive 
3an accelerated pension benefit payment under Section 16-190.5 
4of the Illinois Pension Code), or
Article 18 of the Illinois 
5Pension Code; (2) any person who was receiving
group insurance 
6coverage under this Act as of March 31, 1978 by
reason of his 
7status as an annuitant, even though the annuity in relation
to 
8which such coverage was provided is a proportional annuity 
9based on less
than the minimum period of service required for a 
10retirement annuity in
the system involved; (3) any person not 
11otherwise covered by this Act
who has retired as a 
12participating member under Article 2 of the Illinois
Pension 
13Code but is ineligible for the retirement annuity under Section

142-119 of the Illinois Pension Code; (4) the spouse of any 
15person who
is receiving a retirement annuity under Article 18 
16of the Illinois Pension
Code and who is covered under a group 
17health insurance program sponsored
by a governmental employer 
18other than the State of Illinois and who has
irrevocably 
19elected to waive his or her coverage under this Act and to have

20his or her spouse considered as the "annuitant" under this Act 
21and not as
a "dependent"; or (5) an employee who retires, or 
22has retired, from a
qualified position, as determined according 
23to rules promulgated by the
Director, under a qualified local 
24government, a qualified rehabilitation
facility, a qualified 
25domestic violence shelter or service, or a qualified child 
26advocacy center. (For definition
of "retired employee", see (p) 
 
 
10000SB0011sam002- 13 -LRB100 06001 RPS 18499 a


1post).

2 (b-5) (Blank).

3 (b-6) (Blank).

4 (b-7) (Blank).

5 (c) "Carrier" means (1) an insurance company, a corporation 
6organized
under the Limited Health Service Organization Act or 
7the Voluntary Health
Services Plan Act, a partnership, or other 
8nongovernmental organization,
which is authorized to do group 
9life or group health insurance business in
Illinois, or (2) the 
10State of Illinois as a self-insurer.

11 (d) "Compensation" means salary or wages payable on a 
12regular
payroll by the State Treasurer on a warrant of the 
13State Comptroller out
of any State, trust or federal fund, or 
14by the Governor of the State
through a disbursing officer of 
15the State out of a trust or out of
federal funds, or by any 
16Department out of State, trust, federal or
other funds held by 
17the State Treasurer or the Department, to any person
for 
18personal services currently performed, and ordinary or 
19accidental
disability benefits under Articles 2, 14, 15 
20(including ordinary or accidental
disability benefits under 
21the optional retirement program established under
Section 
2215-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or 
23Article 18 of the Illinois Pension Code, for disability

24incurred after January 1, 1966, or benefits payable under the 
25Workers'
Compensation or Occupational Diseases Act or benefits 
26payable under a sick
pay plan established in accordance with 
 
 
10000SB0011sam002- 14 -LRB100 06001 RPS 18499 a


1Section 36 of the State Finance Act.
"Compensation" also means 
2salary or wages paid to an employee of any
qualified local 
3government, qualified rehabilitation facility,
qualified 
4domestic violence shelter or service, or qualified child 
5advocacy center.

6 (e) "Commission" means the State Employees Group Insurance 
7Advisory
Commission authorized by this Act. Commencing July 1, 
81984, "Commission"
as used in this Act means the Commission on 
9Government Forecasting and Accountability as
established by 
10the Legislative Commission Reorganization Act of 1984.

11 (f) "Contributory", when referred to as contributory 
12coverage, shall
mean optional coverages or benefits elected by 
13the member toward the cost of
which such member makes 
14contribution, or which are funded in whole or in part
through 
15the acceptance of a reduction in earnings or the foregoing of 
16an
increase in earnings by an employee, as distinguished from 
17noncontributory
coverage or benefits which are paid entirely by 
18the State of Illinois
without reduction of the member's salary.

19 (g) "Department" means any department, institution, board,

20commission, officer, court or any agency of the State 
21government
receiving appropriations and having power to 
22certify payrolls to the
Comptroller authorizing payments of 
23salary and wages against such
appropriations as are made by the 
24General Assembly from any State fund, or
against trust funds 
25held by the State Treasurer and includes boards of
trustees of 
26the retirement systems created by Articles 2, 14, 15, 16 and
18 
 
 
10000SB0011sam002- 15 -LRB100 06001 RPS 18499 a


1of the Illinois Pension Code. "Department" also includes the 
2Illinois
Comprehensive Health Insurance Board, the Board of 
3Examiners established under
the Illinois Public Accounting 
4Act, and the Illinois Finance Authority.

5 (h) "Dependent", when the term is used in the context of 
6the health
and life plan, means a member's spouse and any child 
7(1) from
birth to age 26 including an adopted child, a child 
8who lives with the
member from the time of the filing of a 
9petition for adoption until entry
of an order of adoption, a 
10stepchild or adjudicated child, or a child who lives with the 
11member
if such member is a court appointed guardian of the 
12child or (2)
age 19 or over who has a mental or physical 
13disability from a cause originating prior to the age of 19 (age 
1426 if enrolled as an adult child dependent). For
the health 
15plan only, the term "dependent" also includes (1) any person

16enrolled prior to the effective date of this Section who is 
17dependent upon
the member to the extent that the member may 
18claim such person as a
dependent for income tax deduction 
19purposes and (2) any person who
has received after June 30, 
202000 an organ transplant and who is financially
dependent upon 
21the member and eligible to be claimed as a dependent for income

22tax purposes. A member requesting to cover any dependent must 
23provide documentation as requested by the Department of Central 
24Management Services and file with the Department any and all 
25forms required by the Department. 

26 (i) "Director" means the Director of the Illinois 
 
 
10000SB0011sam002- 16 -LRB100 06001 RPS 18499 a


1Department of Central
Management Services.

2 (j) "Eligibility period" means the period of time a member 
3has to
elect enrollment in programs or to select benefits 
4without regard to
age, sex or health.

5 (k) "Employee" means and includes each officer or employee 
6in the
service of a department who (1) receives his 
7compensation for
service rendered to the department on a 
8warrant issued pursuant to a payroll
certified by a department 
9or on a warrant or check issued and drawn by a
department upon 
10a trust, federal or other fund or on a warrant issued
pursuant 
11to a payroll certified by an elected or duly appointed officer

12of the State or who receives payment of the performance of 
13personal
services on a warrant issued pursuant to a payroll 
14certified by a
Department and drawn by the Comptroller upon the 
15State Treasurer against
appropriations made by the General 
16Assembly from any fund or against
trust funds held by the State 
17Treasurer, and (2) is employed full-time or
part-time in a 
18position normally requiring actual performance of duty
during 
19not less than 1/2 of a normal work period, as established by 
20the
Director in cooperation with each department, except that 
21persons elected
by popular vote will be considered employees 
22during the entire
term for which they are elected regardless of 
23hours devoted to the
service of the State, and (3) except that 
24"employee" does not include any
person who is not eligible by 
25reason of such person's employment to
participate in one of the 
26State retirement systems under Articles 2, 14, 15
(either the 
 
 
10000SB0011sam002- 17 -LRB100 06001 RPS 18499 a


1regular Article 15 system or the optional retirement program

2established under Section 15-158.2) or 18, or under paragraph 
3(2), (3), or
(5) of Section 16-106, of the Illinois
Pension 
4Code, but such term does include persons who are employed 
5during
the 6 month qualifying period under Article 14 of the 
6Illinois Pension
Code. Such term also includes any person who 
7(1) after January 1, 1966,
is receiving ordinary or accidental 
8disability benefits under Articles
2, 14, 15 (including 
9ordinary or accidental disability benefits under the
optional 
10retirement program established under Section 15-158.2), 
11paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of 
12the
Illinois Pension Code, for disability incurred after 
13January 1, 1966, (2)
receives total permanent or total 
14temporary disability under the Workers'
Compensation Act or 
15Occupational Disease Act as a result of injuries
sustained or 
16illness contracted in the course of employment with the
State 
17of Illinois, or (3) is not otherwise covered under this Act and 
18has
retired as a participating member under Article 2 of the 
19Illinois Pension
Code but is ineligible for the retirement 
20annuity under Section 2-119 of
the Illinois Pension Code. 
21However, a person who satisfies the criteria
of the foregoing 
22definition of "employee" except that such person is made

23ineligible to participate in the State Universities Retirement 
24System by
clause (4) of subsection (a) of Section 15-107 of the 
25Illinois Pension
Code is also an "employee" for the purposes of 
26this Act. "Employee" also
includes any person receiving or 
 
 
10000SB0011sam002- 18 -LRB100 06001 RPS 18499 a


1eligible for benefits under a sick pay
plan established in 
2accordance with Section 36 of the State Finance Act.
"Employee" 
3also includes (i) each officer or employee in the service of a

4qualified local government, including persons appointed as 
5trustees of
sanitary districts regardless of hours devoted to 
6the service of the
sanitary district, (ii) each employee in the 
7service of a qualified
rehabilitation facility, (iii) each 
8full-time employee in the service of a
qualified domestic 
9violence shelter or service, and (iv) each full-time employee 
10in the service of a qualified child advocacy center, as 
11determined according to
rules promulgated by the Director.

12 (l) "Member" means an employee, annuitant, retired 
13employee or survivor. In the case of an annuitant or retired 
14employee who first becomes an annuitant or retired employee on 
15or after the effective date of this amendatory Act of the 97th 
16General Assembly, the individual must meet the minimum vesting 
17requirements of the applicable retirement system in order to be 
18eligible for group insurance benefits under that system. In the 
19case of a survivor who first becomes a survivor on or after the 
20effective date of this amendatory Act of the 97th General 
21Assembly, the deceased employee, annuitant, or retired 
22employee upon whom the annuity is based must have been eligible 
23to participate in the group insurance system under the 
24applicable retirement system in order for the survivor to be 
25eligible for group insurance benefits under that system. 

26 (m) "Optional coverages or benefits" means those coverages 
 
 
10000SB0011sam002- 19 -LRB100 06001 RPS 18499 a


1or
benefits available to the member on his or her voluntary 
2election, and at
his or her own expense.

3 (n) "Program" means the group life insurance, health 
4benefits and other
employee benefits designed and contracted 
5for by the Director under this Act.

6 (o) "Health plan" means a health benefits
program offered

7by the State of Illinois for persons eligible for the plan.

8 (p) "Retired employee" means any person who would be an 
9annuitant as
that term is defined herein but for the fact that 
10such person retired prior to
January 1, 1966. Such term also 
11includes any person formerly employed by
the University of 
12Illinois in the Cooperative Extension Service who would
be an 
13annuitant but for the fact that such person was made ineligible 
14to
participate in the State Universities Retirement System by 
15clause (4) of
subsection (a) of Section 15-107 of the Illinois

16Pension Code.

17 (q) "Survivor" means a person receiving an annuity as a 
18survivor of an
employee or of an annuitant. "Survivor" also 
19includes: (1) the surviving
dependent of a person who satisfies 
20the definition of "employee" except that
such person is made 
21ineligible to participate in the State Universities
Retirement 
22System by clause (4) of subsection (a)
of Section 15-107 of the 
23Illinois Pension Code; (2) the surviving
dependent of any 
24person formerly employed by the University of Illinois in
the 
25Cooperative Extension Service who would be an annuitant except 
26for the
fact that such person was made ineligible to 
 
 
10000SB0011sam002- 20 -LRB100 06001 RPS 18499 a


1participate in the State
Universities Retirement System by 
2clause (4) of subsection (a) of Section
15-107 of the Illinois 
3Pension Code; and (3) the surviving dependent of a person who 
4was an annuitant under this Act by virtue of receiving an 
5alternative retirement cancellation payment under Section 
614-108.5 of the Illinois Pension Code.

7 (q-2) "SERS" means the State Employees' Retirement System 
8of Illinois, created under Article 14 of the Illinois Pension 
9Code.

10 (q-3) "SURS" means the State Universities Retirement 
11System, created under Article 15 of the Illinois Pension Code.

12 (q-4) "TRS" means the Teachers' Retirement System of the 
13State of Illinois, created under Article 16 of the Illinois 
14Pension Code.

15 (q-5) (Blank).


16 (q-6) (Blank).

17 (q-7) (Blank).

18 (r) "Medical services" means the services provided within 
19the scope
of their licenses by practitioners in all categories 
20licensed under the
Medical Practice Act of 1987.

21 (s) "Unit of local government" means any county, 
22municipality,
township, school district (including a 
23combination of school districts under
the Intergovernmental 
24Cooperation Act), special district or other unit,
designated as 
25a
unit of local government by law, which exercises limited 
26governmental
powers or powers in respect to limited 
 
 
10000SB0011sam002- 21 -LRB100 06001 RPS 18499 a


1governmental subjects, any
not-for-profit association with a 
2membership that primarily includes
townships and township 
3officials, that has duties that include provision of
research 
4service, dissemination of information, and other acts for the

5purpose of improving township government, and that is funded 
6wholly or
partly in accordance with Section 85-15 of the 
7Township Code; any
not-for-profit corporation or association, 
8with a membership consisting
primarily of municipalities, that 
9operates its own utility system, and
provides research, 
10training, dissemination of information, or other acts to

11promote cooperation between and among municipalities that 
12provide utility
services and for the advancement of the goals 
13and purposes of its
membership;
the Southern Illinois 
14Collegiate Common Market, which is a consortium of higher

15education institutions in Southern Illinois; the Illinois 
16Association of
Park Districts; and any hospital provider that 
17is owned by a county that has 100 or fewer hospital beds and 
18has not already joined the program. "Qualified
local 
19government" means a unit of local government approved by the 
20Director and
participating in a program created under 
21subsection (i) of Section 10 of this
Act.

22 (t) "Qualified rehabilitation facility" means any 
23not-for-profit
organization that is accredited by the 
24Commission on Accreditation of
Rehabilitation Facilities or 
25certified by the Department
of Human Services (as successor to 
26the Department of Mental Health
and Developmental 
 
 
10000SB0011sam002- 22 -LRB100 06001 RPS 18499 a


1Disabilities) to provide services to persons with
disabilities

2and which receives funds from the State of Illinois for 
3providing those
services, approved by the Director and 
4participating in a program created
under subsection (j) of 
5Section 10 of this Act.

6 (u) "Qualified domestic violence shelter or service" means 
7any Illinois
domestic violence shelter or service and its 
8administrative offices funded
by the Department of Human 
9Services (as successor to the Illinois Department of
Public 
10Aid),
approved by the Director and
participating in a program 
11created under subsection (k) of Section 10.

12 (v) "TRS benefit recipient" means a person who:


13  (1) is not a "member" as defined in this Section; and


14  (2) is receiving a monthly benefit or retirement 
15 annuity
under Article 16 of the Illinois Pension Code; and


16  (3) either (i) has at least 8 years of creditable 
17 service under Article
16 of the Illinois Pension Code, or 
18 (ii) was enrolled in the health insurance
program offered 
19 under that Article on January 1, 1996, or (iii) is the 
20 survivor
of a benefit recipient who had at least 8
years of 
21 creditable service under Article 16 of the Illinois Pension 
22 Code or
was enrolled in the health insurance program 
23 offered under that Article on
the effective date of this 
24 amendatory Act of 1995, or (iv) is a recipient or
survivor 
25 of a recipient of a disability benefit under Article 16 of 
26 the
Illinois Pension Code.

 
 
10000SB0011sam002- 23 -LRB100 06001 RPS 18499 a


1 (w) "TRS dependent beneficiary" means a person who:


2  (1) is not a "member" or "dependent" as defined in this 
3 Section; and


4  (2) is a TRS benefit recipient's: (A) spouse, (B) 
5 dependent parent who
is receiving at least half of his or 
6 her support from the TRS benefit
recipient, or (C) natural, 
7 step, adjudicated, or adopted child who is (i) under age 
8 26, (ii) was, on January 1, 1996, participating as a 
9 dependent
beneficiary in the health insurance program 
10 offered under Article 16 of the
Illinois Pension Code, or 
11 (iii) age 19 or over who has a mental or physical 
12 disability from a cause originating prior to the age of 19 
13 (age 26 if enrolled as an adult child).

14 "TRS dependent beneficiary" does not include, as indicated 
15under paragraph (2) of this subsection (w), a dependent of the 
16survivor of a TRS benefit recipient who first becomes a 
17dependent of a survivor of a TRS benefit recipient on or after 
18the effective date of this amendatory Act of the 97th General 
19Assembly unless that dependent would have been eligible for 
20coverage as a dependent of the deceased TRS benefit recipient 
21upon whom the survivor benefit is based. 
22 (x) "Military leave" refers to individuals in basic

23training for reserves, special/advanced training, annual 
24training, emergency
call up, activation by the President of the 
25United States, or any other training or duty in service to the 
26United States Armed Forces.

 
 
10000SB0011sam002- 24 -LRB100 06001 RPS 18499 a


1 (y) (Blank).

2 (z) "Community college benefit recipient" means a person 
3who:


4  (1) is not a "member" as defined in this Section; and


5  (2) is receiving a monthly survivor's annuity or 
6 retirement annuity
under Article 15 of the Illinois Pension 
7 Code; and


8  (3) either (i) was a full-time employee of a community 
9 college district or
an association of community college 
10 boards created under the Public Community
College Act 
11 (other than an employee whose last employer under Article 
12 15 of the
Illinois Pension Code was a community college 
13 district subject to Article VII
of the Public Community 
14 College Act) and was eligible to participate in a group

15 health benefit plan as an employee during the time of 
16 employment with a
community college district (other than a 
17 community college district subject to
Article VII of the 
18 Public Community College Act) or an association of 
19 community
college boards, or (ii) is the survivor of a 
20 person described in item (i).

21 (aa) "Community college dependent beneficiary" means a 
22person who:


23  (1) is not a "member" or "dependent" as defined in this 
24 Section; and


25  (2) is a community college benefit recipient's: (A) 
26 spouse, (B) dependent
parent who is receiving at least half 
 
 
10000SB0011sam002- 25 -LRB100 06001 RPS 18499 a


1 of his or her support from the community
college benefit 
2 recipient, or (C) natural, step, adjudicated, or adopted 
3 child who is (i)
under age 26, or (ii)
age 19 or over and 
4 has a mental or physical disability from a cause 
5 originating prior to the age of 19 (age 26 if enrolled as 
6 an adult child).

7 "Community college dependent beneficiary" does not 
8include, as indicated under paragraph (2) of this subsection 
9(aa), a dependent of the survivor of a community college 
10benefit recipient who first becomes a dependent of a survivor 
11of a community college benefit recipient on or after the 
12effective date of this amendatory Act of the 97th General 
13Assembly unless that dependent would have been eligible for 
14coverage as a dependent of the deceased community college 
15benefit recipient upon whom the survivor annuity is based. 
16 (bb) "Qualified child advocacy center" means any Illinois 
17child advocacy center and its administrative offices funded by 
18the Department of Children and Family Services, as defined by 
19the Children's Advocacy Center Act (55 ILCS 80/), approved by 
20the Director and participating in a program created under 
21subsection (n) of Section 10.

22(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)





23 (5 ILCS 375/10) (from Ch. 127, par. 530)


24 Sec. 10. Contributions by the State and members. 

25 (a) The State shall pay the cost of basic non-contributory 
 
 
10000SB0011sam002- 26 -LRB100 06001 RPS 18499 a


1group life
insurance and, subject to member paid contributions 
2set by the Department or
required by this Section and except as 
3provided in this Section, the basic program of group health 
4benefits on each
eligible member, except a member, not 
5otherwise
covered by this Act, who has retired as a 
6participating member under Article 2
of the Illinois Pension 
7Code but is ineligible for the retirement annuity under
Section 
82-119 of the Illinois Pension Code, and part of each eligible 
9member's
and retired member's premiums for health insurance 
10coverage for enrolled
dependents as provided by Section 9. The 
11State shall pay the cost of the basic
program of group health 
12benefits only after benefits are reduced by the amount
of 
13benefits covered by Medicare for all members and dependents
who 
14are eligible for benefits under Social Security or
the Railroad 
15Retirement system or who had sufficient Medicare-covered

16government employment, except that such reduction in benefits 
17shall apply only
to those members and dependents who (1) first 
18become eligible
for such Medicare coverage on or after July 1, 
191992; or (2) are
Medicare-eligible members or dependents of a 
20local government unit which began
participation in the program 
21on or after July 1, 1992; or (3) remain eligible
for, but no 
22longer receive Medicare coverage which they had been receiving 
23on
or after July 1, 1992. The Department may determine the 
24aggregate level of the
State's contribution on the basis of 
25actual cost of medical services adjusted
for age, sex or 
26geographic or other demographic characteristics which affect

 
 
10000SB0011sam002- 27 -LRB100 06001 RPS 18499 a


1the costs of such programs.

2 The cost of participation in the basic program of group 
3health benefits
for the dependent or survivor of a living or 
4deceased retired employee who was
formerly employed by the 
5University of Illinois in the Cooperative Extension
Service and 
6would be an annuitant but for the fact that he or she was made

7ineligible to participate in the State Universities Retirement 
8System by clause
(4) of subsection (a) of Section 15-107 of the 
9Illinois Pension Code shall not
be greater than the cost of 
10participation that would otherwise apply to that
dependent or 
11survivor if he or she were the dependent or survivor of an

12annuitant under the State Universities Retirement System.

13 (a-1) (Blank).


14 (a-2) (Blank).

15 (a-3) (Blank).

16 (a-4) (Blank).

17 (a-5) (Blank).

18 (a-6) (Blank).

19 (a-7) (Blank).

20 (a-8) Any annuitant, survivor, or retired employee may 
21waive or terminate coverage in
the program of group health 
22benefits. Any such annuitant, survivor, or retired employee
who 
23has waived or terminated coverage may enroll or re-enroll in 
24the
program of group health benefits only during the annual 
25benefit choice period,
as determined by the Director; except 
26that in the event of termination of
coverage due to nonpayment 
 
 
10000SB0011sam002- 28 -LRB100 06001 RPS 18499 a


1of premiums, the annuitant, survivor, or retired employee
may 
2not re-enroll in the program.

3 (a-8.5) Beginning on the effective date of this amendatory 
4Act of the 97th General Assembly, the Director of Central 
5Management Services shall, on an annual basis, determine the 
6amount that the State shall contribute toward the basic program 
7of group health benefits on behalf of annuitants (including 
8individuals who (i) participated in the General Assembly 
9Retirement System, the State Employees' Retirement System of 
10Illinois, the State Universities Retirement System, the 
11Teachers' Retirement System of the State of Illinois, or the 
12Judges Retirement System of Illinois and (ii) qualify as 
13annuitants under subsection (b) of Section 3 of this Act), 
14survivors (including individuals who (i) receive an annuity as 
15a survivor of an individual who participated in the General 
16Assembly Retirement System, the State Employees' Retirement 
17System of Illinois, the State Universities Retirement System, 
18the Teachers' Retirement System of the State of Illinois, or 
19the Judges Retirement System of Illinois and (ii) qualify as 
20survivors under subsection (q) of Section 3 of this Act), and 
21retired employees (as defined in subsection (p) of Section 3 of 
22this Act). The remainder of the cost of coverage for each 
23annuitant, survivor, or retired employee, as determined by the 
24Director of Central Management Services, shall be the 
25responsibility of that annuitant, survivor, or retired 
26employee.
 
 
10000SB0011sam002- 29 -LRB100 06001 RPS 18499 a


1 Contributions required of annuitants, survivors, and 
2retired employees shall be the same for all retirement systems 
3and shall also be based on whether an individual has made an 
4election under Section 15-135.1 of the Illinois Pension Code. 
5Contributions may be based on annuitants', survivors', or 
6retired employees' Medicare eligibility, but may not be based 
7on Social Security eligibility.
8 (a-9) No later than May 1 of each calendar year, the 
9Director
of Central Management Services shall certify in 
10writing to the Executive
Secretary of the State Employees' 
11Retirement System of Illinois the amounts
of the Medicare 
12supplement health care premiums and the amounts of the
health 
13care premiums for all other retirees who are not Medicare 
14eligible.

15 A separate calculation of the premiums based upon the 
16actual cost of each
health care plan shall be so certified.

17 The Director of Central Management Services shall provide 
18to the
Executive Secretary of the State Employees' Retirement 
19System of
Illinois such information, statistics, and other data 
20as he or she
may require to review the premium amounts 
21certified by the Director
of Central Management Services.

22 The Department of Central Management Services, or any 
23successor agency designated to procure healthcare contracts 
24pursuant to this Act, is authorized to establish funds, 
25separate accounts provided by any bank or banks as defined by 
26the Illinois Banking Act, or separate accounts provided by any 
 
 
10000SB0011sam002- 30 -LRB100 06001 RPS 18499 a


1savings and loan association or associations as defined by the 
2Illinois Savings and Loan Act of 1985 to be held by the 
3Director, outside the State treasury, for the purpose of 
4receiving the transfer of moneys from the Local Government 
5Health Insurance Reserve Fund. The Department may promulgate 
6rules further defining the methodology for the transfers. Any 
7interest earned by moneys in the funds or accounts shall inure 
8to the Local Government Health Insurance Reserve Fund. The 
9transferred moneys, and interest accrued thereon, shall be used 
10exclusively for transfers to administrative service 
11organizations or their financial institutions for payments of 
12claims to claimants and providers under the self-insurance 
13health plan. The transferred moneys, and interest accrued 
14thereon, shall not be used for any other purpose including, but 
15not limited to, reimbursement of administration fees due the 
16administrative service organization pursuant to its contract 
17or contracts with the Department.

18 (a-10) To the extent that participation, benefits, or 
19premiums under this Act are based on a person's service credit 
20under an Article of the Illinois Pension Code, service credit 
21terminated in exchange for an accelerated pension benefit 
22payment under Section 14-147.5, 15-185.5, or 16-190.5 of that 
23Code shall be included in determining a person's service credit 
24for the purposes of this Act. 
25 (b) State employees who become eligible for this program on 
26or after January
1, 1980 in positions normally requiring actual 
 
 
10000SB0011sam002- 31 -LRB100 06001 RPS 18499 a


1performance of duty not less
than 1/2 of a normal work period 
2but not equal to that of a normal work period,
shall be given 
3the option of participating in the available program. If the

4employee elects coverage, the State shall contribute on behalf 
5of such employee
to the cost of the employee's benefit and any 
6applicable dependent supplement,
that sum which bears the same 
7percentage as that percentage of time the
employee regularly 
8works when compared to normal work period.

9 (c) The basic non-contributory coverage from the basic 
10program of
group health benefits shall be continued for each 
11employee not in pay status or
on active service by reason of 
12(1) leave of absence due to illness or injury,
(2) authorized 
13educational leave of absence or sabbatical leave, or (3)

14military leave. This coverage shall continue until
expiration 
15of authorized leave and return to active service, but not to 
16exceed
24 months for leaves under item (1) or (2). This 
1724-month limitation and the
requirement of returning to active 
18service shall not apply to persons receiving
ordinary or 
19accidental disability benefits or retirement benefits through 
20the
appropriate State retirement system or benefits under the 
21Workers' Compensation
or Occupational Disease Act.

22 (d) The basic group life insurance coverage shall continue, 
23with
full State contribution, where such person is (1) absent 
24from active
service by reason of disability arising from any 
25cause other than
self-inflicted, (2) on authorized educational 
26leave of absence or
sabbatical leave, or (3) on military leave.

 
 
10000SB0011sam002- 32 -LRB100 06001 RPS 18499 a


1 (e) Where the person is in non-pay status for a period in 
2excess of
30 days or on leave of absence, other than by reason 
3of disability,
educational or sabbatical leave, or military 
4leave, such
person may continue coverage only by making 
5personal
payment equal to the amount normally contributed by 
6the State on such person's
behalf. Such payments and coverage 
7may be continued: (1) until such time as
the person returns to 
8a status eligible for coverage at State expense, but not
to 
9exceed 24 months or (2) until such person's employment or 
10annuitant status
with the State is terminated (exclusive of any 
11additional service imposed pursuant to law).

12 (f) The Department shall establish by rule the extent to 
13which other
employee benefits will continue for persons in 
14non-pay status or who are
not in active service.

15 (g) The State shall not pay the cost of the basic 
16non-contributory
group life insurance, program of health 
17benefits and other employee benefits
for members who are 
18survivors as defined by paragraphs (1) and (2) of
subsection 
19(q) of Section 3 of this Act. The costs of benefits for these

20survivors shall be paid by the survivors or by the University 
21of Illinois
Cooperative Extension Service, or any combination 
22thereof.
However, the State shall pay the amount of the 
23reduction in the cost of
participation, if any, resulting from 
24the amendment to subsection (a) made
by this amendatory Act of 
25the 91st General Assembly.

26 (h) Those persons occupying positions with any department 
 
 
10000SB0011sam002- 33 -LRB100 06001 RPS 18499 a


1as a result
of emergency appointments pursuant to Section 8b.8 
2of the Personnel Code
who are not considered employees under 
3this Act shall be given the option
of participating in the 
4programs of group life insurance, health benefits and
other 
5employee benefits. Such persons electing coverage may 
6participate only
by making payment equal to the amount normally 
7contributed by the State for
similarly situated employees. Such 
8amounts shall be determined by the
Director. Such payments and 
9coverage may be continued until such time as the
person becomes 
10an employee pursuant to this Act or such person's appointment 
11is
terminated.

12 (i) Any unit of local government within the State of 
13Illinois
may apply to the Director to have its employees, 
14annuitants, and their
dependents provided group health 
15coverage under this Act on a non-insured
basis. To participate, 
16a unit of local government must agree to enroll
all of its 
17employees, who may select coverage under either the State group

18health benefits plan or a health maintenance organization that 
19has
contracted with the State to be available as a health care 
20provider for
employees as defined in this Act. A unit of local 
21government must remit the
entire cost of providing coverage 
22under the State group health benefits plan
or, for coverage 
23under a health maintenance organization, an amount determined

24by the Director based on an analysis of the sex, age, 
25geographic location, or
other relevant demographic variables 
26for its employees, except that the unit of
local government 
 
 
10000SB0011sam002- 34 -LRB100 06001 RPS 18499 a


1shall not be required to enroll those of its employees who are

2covered spouses or dependents under this plan or another group 
3policy or plan
providing health benefits as long as (1) an 
4appropriate official from the unit
of local government attests 
5that each employee not enrolled is a covered spouse
or 
6dependent under this plan or another group policy or plan, and 
7(2) at least
50% of the employees are enrolled and the unit of 
8local government remits
the entire cost of providing coverage 
9to those employees, except that a
participating school district 
10must have enrolled at least 50% of its full-time
employees who 
11have not waived coverage under the district's group health
plan 
12by participating in a component of the district's cafeteria 
13plan. A
participating school district is not required to enroll 
14a full-time employee
who has waived coverage under the 
15district's health plan, provided that an
appropriate official 
16from the participating school district attests that the

17full-time employee has waived coverage by participating in a 
18component of the
district's cafeteria plan. For the purposes of 
19this subsection, "participating
school district" includes a 
20unit of local government whose primary purpose is
education as 
21defined by the Department's rules.

22 Employees of a participating unit of local government who 
23are not enrolled
due to coverage under another group health 
24policy or plan may enroll in
the event of a qualifying change 
25in status, special enrollment, special
circumstance as defined 
26by the Director, or during the annual Benefit Choice
Period. A 
 
 
10000SB0011sam002- 35 -LRB100 06001 RPS 18499 a


1participating unit of local government may also elect to cover 
2its
annuitants. Dependent coverage shall be offered on an 
3optional basis, with the
costs paid by the unit of local 
4government, its employees, or some combination
of the two as 
5determined by the unit of local government. The unit of local

6government shall be responsible for timely collection and 
7transmission of
dependent premiums.

8 The Director shall annually determine monthly rates of 
9payment, subject
to the following constraints:

10  (1) In the first year of coverage, the rates shall be 
11 equal to the
amount normally charged to State employees for 
12 elected optional coverages
or for enrolled dependents 
13 coverages or other contributory coverages, or
contributed 
14 by the State for basic insurance coverages on behalf of its

15 employees, adjusted for differences between State 
16 employees and employees
of the local government in age, 
17 sex, geographic location or other relevant
demographic 
18 variables, plus an amount sufficient to pay for the 
19 additional
administrative costs of providing coverage to 
20 employees of the unit of
local government and their 
21 dependents.

22  (2) In subsequent years, a further adjustment shall be 
23 made to reflect
the actual prior years' claims experience 
24 of the employees of the unit of
local government.

25 In the case of coverage of local government employees under 
26a health
maintenance organization, the Director shall annually 
 
 
10000SB0011sam002- 36 -LRB100 06001 RPS 18499 a


1determine for each
participating unit of local government the 
2maximum monthly amount the unit
may contribute toward that 
3coverage, based on an analysis of (i) the age,
sex, geographic 
4location, and other relevant demographic variables of the

5unit's employees and (ii) the cost to cover those employees 
6under the State
group health benefits plan. The Director may 
7similarly determine the
maximum monthly amount each unit of 
8local government may contribute toward
coverage of its 
9employees' dependents under a health maintenance organization.

10 Monthly payments by the unit of local government or its 
11employees for
group health benefits plan or health maintenance 
12organization coverage shall
be deposited in the Local 
13Government Health Insurance Reserve Fund.

14 The Local Government Health Insurance Reserve Fund is 
15hereby created as a nonappropriated trust fund to be held 
16outside the State Treasury, with the State Treasurer as 
17custodian. The Local Government Health Insurance Reserve Fund 
18shall be a continuing
fund not subject to fiscal year 
19limitations. The Local Government Health Insurance Reserve 
20Fund is not subject to administrative charges or charge-backs, 
21including but not limited to those authorized under Section 8h 
22of the State Finance Act. All revenues arising from the 
23administration of the health benefits program established 
24under this Section shall be deposited into the Local Government 
25Health Insurance Reserve Fund. Any interest earned on moneys in 
26the Local Government Health Insurance Reserve Fund shall be 
 
 
10000SB0011sam002- 37 -LRB100 06001 RPS 18499 a


1deposited into the Fund. All expenditures from this Fund
shall 
2be used for payments for health care benefits for local 
3government and rehabilitation facility
employees, annuitants, 
4and dependents, and to reimburse the Department or
its 
5administrative service organization for all expenses incurred 
6in the
administration of benefits. No other State funds may be 
7used for these
purposes.

8 A local government employer's participation or desire to 
9participate
in a program created under this subsection shall 
10not limit that employer's
duty to bargain with the 
11representative of any collective bargaining unit
of its 
12employees.

13 (j) Any rehabilitation facility within the State of 
14Illinois may apply
to the Director to have its employees, 
15annuitants, and their eligible
dependents provided group 
16health coverage under this Act on a non-insured
basis. To 
17participate, a rehabilitation facility must agree to enroll all

18of its employees and remit the entire cost of providing such 
19coverage for
its employees, except that the rehabilitation 
20facility shall not be
required to enroll those of its employees 
21who are covered spouses or
dependents under this plan or 
22another group policy or plan providing health
benefits as long 
23as (1) an appropriate official from the rehabilitation
facility 
24attests that each employee not enrolled is a covered spouse or

25dependent under this plan or another group policy or plan, and 
26(2) at least
50% of the employees are enrolled and the 
 
 
10000SB0011sam002- 38 -LRB100 06001 RPS 18499 a


1rehabilitation facility remits
the entire cost of providing 
2coverage to those employees. Employees of a
participating 
3rehabilitation facility who are not enrolled due to coverage

4under another group health policy or plan may enroll
in the 
5event of a qualifying change in status, special enrollment, 
6special
circumstance as defined by the Director, or during the 
7annual Benefit Choice
Period. A participating rehabilitation 
8facility may also elect
to cover its annuitants. Dependent 
9coverage shall be offered on an optional
basis, with the costs 
10paid by the rehabilitation facility, its employees, or
some 
11combination of the 2 as determined by the rehabilitation 
12facility. The
rehabilitation facility shall be responsible for 
13timely collection and
transmission of dependent premiums.

14 The Director shall annually determine quarterly rates of 
15payment, subject
to the following constraints:

16  (1) In the first year of coverage, the rates shall be 
17 equal to the amount
normally charged to State employees for 
18 elected optional coverages or for
enrolled dependents 
19 coverages or other contributory coverages on behalf of
its 
20 employees, adjusted for differences between State 
21 employees and
employees of the rehabilitation facility in 
22 age, sex, geographic location
or other relevant 
23 demographic variables, plus an amount sufficient to pay
for 
24 the additional administrative costs of providing coverage 
25 to employees
of the rehabilitation facility and their 
26 dependents.

 
 
10000SB0011sam002- 39 -LRB100 06001 RPS 18499 a


1  (2) In subsequent years, a further adjustment shall be 
2 made to reflect
the actual prior years' claims experience 
3 of the employees of the
rehabilitation facility.

4 Monthly payments by the rehabilitation facility or its 
5employees for
group health benefits shall be deposited in the 
6Local Government Health
Insurance Reserve Fund.

7 (k) Any domestic violence shelter or service within the 
8State of Illinois
may apply to the Director to have its 
9employees, annuitants, and their
dependents provided group 
10health coverage under this Act on a non-insured
basis. To 
11participate, a domestic violence shelter or service must agree 
12to
enroll all of its employees and pay the entire cost of 
13providing such coverage
for its employees. The domestic 
14violence shelter shall not be required to enroll those of its 
15employees who are covered spouses or dependents under this plan 
16or another group policy or plan providing health benefits as 
17long as (1) an appropriate official from the domestic violence 
18shelter attests that each employee not enrolled is a covered 
19spouse or dependent under this plan or another group policy or 
20plan and (2) at least 50% of the employees are enrolled and the 
21domestic violence shelter remits the entire cost of providing 
22coverage to those employees. Employees of a participating 
23domestic violence shelter who are not enrolled due to coverage 
24under another group health policy or plan may enroll in the 
25event of a qualifying change in status, special enrollment, or 
26special circumstance as defined by the Director or during the 
 
 
10000SB0011sam002- 40 -LRB100 06001 RPS 18499 a


1annual Benefit Choice Period. A participating domestic 
2violence shelter may also elect
to cover its annuitants. 
3Dependent coverage shall be offered on an optional
basis, with

4employees, or some combination of the 2 as determined by the 
5domestic violence
shelter or service. The domestic violence 
6shelter or service shall be
responsible for timely collection 
7and transmission of dependent premiums.

8 The Director shall annually determine rates of payment,

9subject to the following constraints:

10  (1) In the first year of coverage, the rates shall be 
11 equal to the
amount normally charged to State employees for 
12 elected optional coverages
or for enrolled dependents 
13 coverages or other contributory coverages on
behalf of its 
14 employees, adjusted for differences between State 
15 employees and
employees of the domestic violence shelter or 
16 service in age, sex, geographic
location or other relevant 
17 demographic variables, plus an amount sufficient
to pay for 
18 the additional administrative costs of providing coverage 
19 to
employees of the domestic violence shelter or service 
20 and their dependents.

21  (2) In subsequent years, a further adjustment shall be 
22 made to reflect
the actual prior years' claims experience 
23 of the employees of the domestic
violence shelter or 
24 service.

25 Monthly payments by the domestic violence shelter or 
26service or its employees
for group health insurance shall be 
 
 
10000SB0011sam002- 41 -LRB100 06001 RPS 18499 a


1deposited in the Local Government Health
Insurance Reserve 
2Fund.

3 (l) A public community college or entity organized pursuant 
4to the
Public Community College Act may apply to the Director 
5initially to have
only annuitants not covered prior to July 1, 
61992 by the district's health
plan provided health coverage 
7under this Act on a non-insured basis. The
community college 
8must execute a 2-year contract to participate in the
Local 
9Government Health Plan.
Any annuitant may enroll in the event 
10of a qualifying change in status, special
enrollment, special 
11circumstance as defined by the Director, or during the
annual 
12Benefit Choice Period.

13 The Director shall annually determine monthly rates of 
14payment subject to
the following constraints: for those 
15community colleges with annuitants
only enrolled, first year 
16rates shall be equal to the average cost to cover
claims for a 
17State member adjusted for demographics, Medicare

18participation, and other factors; and in the second year, a 
19further adjustment
of rates shall be made to reflect the actual 
20first year's claims experience
of the covered annuitants.

21 (l-5) The provisions of subsection (l) become inoperative 
22on July 1, 1999.

23 (m) The Director shall adopt any rules deemed necessary for

24implementation of this amendatory Act of 1989 (Public Act 
2586-978).

26 (n) Any child advocacy center within the State of Illinois 
 
 
10000SB0011sam002- 42 -LRB100 06001 RPS 18499 a


1may apply to the Director to have its employees, annuitants, 
2and their dependents provided group health coverage under this 
3Act on a non-insured basis. To participate, a child advocacy 
4center must agree to enroll all of its employees and pay the 
5entire cost of providing coverage for its employees. The child

6advocacy center shall not be required to enroll those of its

7employees who are covered spouses or dependents under this plan

8or another group policy or plan providing health benefits as

9long as (1) an appropriate official from the child advocacy

10center attests that each employee not enrolled is a covered

11spouse or dependent under this plan or another group policy or

12plan and (2) at least 50% of the employees are enrolled and the 
13child advocacy center remits the entire cost of providing 
14coverage to those employees. Employees of a participating child 
15advocacy center who are not enrolled due to coverage under 
16another group health policy or plan may enroll in the event of 
17a qualifying change in status, special enrollment, or special 
18circumstance as defined by the Director or during the annual 
19Benefit Choice Period. A participating child advocacy center 
20may also elect to cover its annuitants. Dependent coverage 
21shall be offered on an optional basis, with the costs paid by 
22the child advocacy center, its employees, or some combination 
23of the 2 as determined by the child advocacy center. The child 
24advocacy center shall be responsible for timely collection and 
25transmission of dependent premiums.
26 The Director shall annually determine rates of payment, 
 
 
10000SB0011sam002- 43 -LRB100 06001 RPS 18499 a


1subject to the following constraints:
2  (1) In the first year of coverage, the rates shall be 
3 equal to the amount normally charged to State employees for 
4 elected optional coverages or for enrolled dependents 
5 coverages or other contributory coverages on behalf of its 
6 employees, adjusted for differences between State 
7 employees and employees of the child advocacy center in 
8 age, sex, geographic location, or other relevant 
9 demographic variables, plus an amount sufficient to pay for 
10 the additional administrative costs of providing coverage 
11 to employees of the child advocacy center and their 
12 dependents.
13  (2) In subsequent years, a further adjustment shall be 
14 made to reflect the actual prior years' claims experience 
15 of the employees of the child advocacy center.
16 Monthly payments by the child advocacy center or its 
17employees for group health insurance shall be deposited into 
18the Local Government Health Insurance Reserve Fund.
19(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)


20 Section 15. The Civil Administrative Code of Illinois is 
21amended by adding Section 5-647 as follows:

22 (20 ILCS 5/5-647 new)
23 Sec. 5-647. Future increases in income. A Department must 
24not pay, offer, or agree to pay any future increase in income, 
 
 
10000SB0011sam002- 44 -LRB100 06001 RPS 18499 a


1as that term is defined in Section 15-112.1 or 16-121.1 of the 
2Illinois Pension Code, to any person in a manner that violates 
3Section 15-132.9 or 16-122.9 of the Illinois Pension Code.

4 Section 20. The Illinois Pension Code is amended by 
5changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, 
62-126, 2-134, 2-162, 14-131, 14-135.08, 14-152.1, 15-108.1, 
715-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121, 
816-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-119.2, 
917-129, 17-130, 18-131, 18-140, 20-121, 20-123, 20-124, and 
1020-125 and by adding Sections 2-105.3, 2-107.9, 2-110.3, 
112-165.1, 2-166.1, 14-147.5, 15-112.1, 15-132.9, 15-185.5, 
1215-200.1, 15-201.1, 16-107.1, 16-121.1, 16-122.9, 16-190.5, 
1316-205.1, 16-206.1, 17-106.05, 17-113.4, 17-113.5, and 
1417-115.5 as follows:

15 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)

16 Sec. 2-101. Creation of system.  A retirement system is 
17created to provide
retirement annuities, survivor's annuities 
18and other benefits for certain
members of the General Assembly, 
19certain elected state officials, and their
beneficiaries.


20 The system shall be known as the "General Assembly 
21Retirement System".
All its funds and property shall be a trust 
22separate from all other
entities, maintained for the purpose of 
23securing payment of annuities and
benefits under this Article.


24 Participation in the retirement system created under this 
 
 
10000SB0011sam002- 45 -LRB100 06001 RPS 18499 a


1Article is
restricted to persons who became participants before 
2the effective date of this amendatory Act of the 100th General 
3Assembly.
Beginning on that date, the System shall not accept 
4any new participants.


5(Source: P.A. 83-1440.)


6 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)

7 Sec. 2-105. Member.  "Member": Members of the General 
8Assembly of this
State, including persons who enter military 
9service while a member of the
General Assembly, and any person 
10serving as Governor, Lieutenant Governor,
Secretary of State, 
11Treasurer, Comptroller, or Attorney General for the period
of 
12service in such office.


13 Any person who has served for 10 or more years as Clerk or 
14Assistant Clerk
of the House of Representatives, Secretary or 
15Assistant Secretary of the
Senate, or any combination thereof, 
16may elect to become a member
of this system while thenceforth 
17engaged in such service by filing a
written election with the 
18board. Any person so electing shall be
deemed an active member 
19of the General Assembly for the purpose of validating
and 
20transferring any service credits earned under any of the funds 
21and systems
established under Articles 3 through 18 of this 
22Code.


23 However, notwithstanding any other provision of this 
24Article, a person
shall not be deemed a member for the purposes 
25of this Article unless he or she
became a participant of the 
 
 
10000SB0011sam002- 46 -LRB100 06001 RPS 18499 a


1System before the effective date of this amendatory Act of the 
2100th General Assembly.


3(Source: P.A. 85-1008.)


4 (40 ILCS 5/2-105.3 new)
5 Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A 
6participant who first became a participant before January 1, 
72011.




8 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)



9 Sec. 2-107. Participant. "Participant": Any member who 
10elects to
participate; and any former member who elects to 
11continue participation
under Section 2-117.1, for the duration 
12of such continued participation. However, notwithstanding any 
13other provision of this Article, a person
shall not be deemed a 
14participant for the purposes of this Article unless he or she

15became a participant of the System before the effective date of 
16this amendatory Act of the 100th General Assembly.

17(Source: P.A. 86-1488.)


18 (40 ILCS 5/2-107.9 new)
19 Sec. 2-107.9. Future increase in income. "Future increase 
20in income" means an increase in income in any form offered to a 
21Tier 1 employee for service under this Article after June 30, 
222018 that qualifies as "salary", as defined in Section 2-108, 
23or would qualify as "salary" but for the fact that it was 
 
 
10000SB0011sam002- 47 -LRB100 06001 RPS 18499 a


1offered to and accepted by a Tier 1 employee under the 
2condition set forth in subsection (c) of Section 2-110.3.



3 (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)



4 (Text of Section WITHOUT the changes made by P.A. 98-599, 
5which has been
held unconstitutional)

6 Sec. 2-108. Salary. "Salary": 
7 (1) For members of the General Assembly,
the total 
8compensation paid to the member by the State for one
year of 
9service, including the additional amounts, if any, paid to
the 
10member as an officer pursuant to Section 1 of "An Act
in 
11relation to the compensation and emoluments of the members of 
12the
General Assembly", approved December 6, 1907, as now or 
13hereafter
amended.

14 (2) For the State executive officers specified
in Section 
152-105, the total compensation paid to the member for one year

16of service.

17 (3) For members of the System who are participants under 
18Section
2-117.1, or who are serving as Clerk or Assistant Clerk 
19of the House of
Representatives or Secretary or Assistant 
20Secretary of the Senate, the
total compensation paid to the 
21member for one year of service, but not to
exceed the salary of 
22the highest salaried officer of the General Assembly.

23 However, in the event that federal law results in any 
24participant
receiving imputed income based on the value of 
25group term life insurance
provided by the State, such imputed 
 
 
10000SB0011sam002- 48 -LRB100 06001 RPS 18499 a


1income shall not be included in salary
for the purposes of this 
2Article.

3 Notwithstanding any other provision of this Section, 
4"salary" does not include any future increase in income that is 
5offered for service to a Tier 1 employee under this Article 
6pursuant to the condition set forth in subsection (c) of 
7Section 2-110.3 and accepted under that condition by a Tier 1 
8employee who has made the election under paragraph (2) of 
9subsection (a) of Section 2-110.3.
10 Notwithstanding any other provision of this Section, 
11"salary" does not include any consideration payment made to a 
12Tier 1 employee. 
13(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)


14 (40 ILCS 5/2-110.3 new)
15 Sec. 2-110.3. 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 2-119.1 and to have 
21 the amount of the automatic annual increases in his or her 
22 retirement annuity and survivor's annuity that are 
23 otherwise provided for in this Article calculated, 
24 instead, as provided in subsection (a-1) of Section 
25 2-119.1; or
 
 
10000SB0011sam002- 49 -LRB100 06001 RPS 18499 a


1  (2) to not agree to paragraph (1) of this subsection. 
2 The election required under this subsection (a) shall be 
3made by each active Tier 1 employee no earlier than January 1, 
42018 and no later than March 31, 2018, except that a person who 
5returns to active service as a Tier 1 employee under this 
6Article on or after January 1, 2018 and has not yet made an 
7election under this Section must make the election under this 
8subsection (a) within 60 days after returning to active service 
9as a Tier 1 employee.
10 If a Tier 1 employee fails for any reason to make a 
11required election under this subsection within the time 
12specified, then the employee shall be deemed to have made the 
13election under paragraph (2) of this subsection. 
14 (a-5) If this Section is enjoined or stayed by an Illinois 
15court or a court of competent jurisdiction pending the entry of 
16a final and unappealable decision, and this Section is 
17determined to be constitutional or otherwise valid by a final 
18unappealable decision of an Illinois court or a court of 
19competent jurisdiction, then the election procedure set forth 
20in subsection (a) of this Section shall commence on the 180th 
21calendar day after the date of the issuance of the final 
22unappealable decision and shall conclude at the end of the 
23270th calendar day after that date. 
24 (a-10) All elections under subsection (a) that are made or 
25deemed to be made before July 1, 2018 shall take effect on July 
261, 2018. Elections that are made or deemed to be made on or 
 
 
10000SB0011sam002- 50 -LRB100 06001 RPS 18499 a


1after July 1, 2018 shall take effect on the first day of the 
2month following the month in which the election is made or 
3deemed to be made. 
4 (b) 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, 
7the State of Illinois shall be expressly and irrevocably 
8prohibited from offering any future increases in income to a 
9Tier 1 employee who has made an election under paragraph (1) of 
10subsection (a) of this Section on the condition of not 
11constituting salary under Section 2-108.
12 As adequate and legal consideration provided under this 
13amendatory Act of the 100th General Assembly for making an 
14election under paragraph (1) of subsection (a) of this Section, 
15each Tier 1 employee who has made an election under paragraph 
16(1) of subsection (a) of this Section shall receive a 
17consideration payment equal to 10% of the contributions made by 
18or on behalf of the employee under Section 2-126 before the 
19effective date of that election. The State Comptroller shall 
20pay the consideration payment to the Tier 1 employee out of 
21funds appropriated for that purpose under Section 1.9 of the 
22State Pension Funds Continuing Appropriation Act. The System 
23shall calculate the amount of each consideration payment and 
24shall certify to the State Comptroller the amount of the 
25consideration payment, together with the name, address, and any 
26other available payment information of the Tier 1 employee as 
 
 
10000SB0011sam002- 51 -LRB100 06001 RPS 18499 a


1found in the records of the System.
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 for service as 
6a member under this Article to a Tier 1 employee who has made 
7the election under paragraph (2) of subsection (a) of this 
8Section shall be offered expressly and irrevocably on the 
9condition of not constituting salary under Section 2-108 and 
10that 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 
 
 
10000SB0011sam002- 52 -LRB100 06001 RPS 18499 a


1Tier 1 employees an opportunity to receive information from the 
2System before making the required election. The information may 
3be provided through video materials, group presentations, 
4individual consultation with a member or authorized 
5representative of the System in person or by telephone or other 
6electronic means, or any combination of those methods. The 
7System shall not provide advice or counseling with respect to 
8which election a Tier 1 employee should make or specific to the 
9legal or tax circumstances of or consequences to the Tier 1 
10employee. 
11 The System shall inform Tier 1 employees in the election 
12packet required under this subsection that the Tier 1 employee 
13may also wish to obtain information and counsel relating to the 
14election required under this Section from any other available 
15source, including, but not limited to, labor organizations and 
16private counsel. 
17 In no event shall the System, its staff, or the Board be 
18held liable for any information given to a member regarding the 
19elections under this Section. The System shall coordinate with 
20the Illinois Department of Central Management Services and each 
21other retirement system administering an election in 
22accordance with this amendatory Act of the 100th General 
23Assembly to provide information concerning the impact of the 
24election set forth in this Section. 
25 (e) Notwithstanding any other provision of law, each future 
26increase in income offered by the State of Illinois for service 
 
 
10000SB0011sam002- 53 -LRB100 06001 RPS 18499 a


1as a member must be offered expressly and irrevocably on the 
2condition of not constituting "salary" under Section 2-108 to 
3any Tier 1 employee who has made an election under paragraph 
4(2) of subsection (a) of this Section. The offer shall also 
5provide that the Tier 1 employee's acceptance of the offered 
6future increase in income shall constitute his or her agreement 
7to the condition set forth in this subsection.
8 For purposes of legislative intent, the condition set forth 
9in this subsection shall be construed in a manner that ensures 
10that the condition is not violated or circumvented through any 
11contrivance of any kind.
12 (f) A member's election under this Section is not a 
13prohibited election under subdivision (j)(1) of Section 1-119 
14of this Code. 
15 (g) No provision of this Section shall be interpreted in a 
16way that would cause the System to cease to be a qualified plan 
17under Section 401(a) of the Internal Revenue Code of 1986. The 
18provisions of this Section shall be subject to and implemented 
19in a manner that complies with Section 11 of Article IV of the 
20Illinois Constitution. 
21 (h) If an election created by this amendatory Act in any 
22other Article of this Code or any change deriving from that 
23election is determined to be unconstitutional or otherwise 
24invalid by a final unappealable decision of an Illinois court 
25or a court of competent jurisdiction, the invalidity of that 
26provision shall not in any way affect the validity of this 
 
 
10000SB0011sam002- 54 -LRB100 06001 RPS 18499 a


1Section or the changes deriving from the election required 
2under this Section. 



3 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)


4 (Text of Section WITHOUT the changes made by P.A. 98-599, 
5which has been
held unconstitutional)

6 Sec. 2-119.1. Automatic increase in retirement annuity. 

7 (a) Except as provided in subsection (a-1), a A participant 
8who retires after June 30, 1967, and who has not
received an 
9initial increase under this Section before the effective date

10of this amendatory Act of 1991, shall, in January or July next 
11following
the first anniversary of retirement, whichever 
12occurs first, and in the same
month of each year thereafter, 
13but in no event prior to age 60, have the amount
of the 
14originally granted retirement annuity increased as follows: 
15for each
year through 1971, 1 1/2%; for each year from 1972 
16through 1979, 2%; and for
1980 and each year thereafter, 3%. 
17Annuitants who have received an initial
increase under this 
18subsection prior to the effective date of this amendatory
Act 
19of 1991 shall continue to receive their annual increases in the 
20same month
as the initial increase.

21 (a-1) Notwithstanding any other provision of this Article, 
22for a Tier 1 employee who made the election under paragraph (1) 
23of subsection (a) of Section 2-110.3:
24  (1) The initial increase in retirement annuity under 
25 this Section shall occur on the January 1 occurring either 
 
 
10000SB0011sam002- 55 -LRB100 06001 RPS 18499 a


1 on or after the attainment of age 67 or the fifth 
2 anniversary of the annuity start date, whichever is 
3 earlier.
4  (2) The amount of each automatic annual increase in 
5 retirement annuity or survivor's annuity occurring on or 
6 after the effective date of that election shall be 
7 calculated as a percentage of the originally granted 
8 retirement annuity or survivor's annuity, equal to 3% or 
9 one-half the annual unadjusted percentage increase (but 
10 not less than zero) in the consumer price index-u for the 
11 12 months ending with the September preceding each November 
12 1, whichever is less. If the annual unadjusted percentage 
13 change in the consumer price index-u for the 12 months 
14 ending with the September preceding each November 1 is zero 
15 or there is a decrease, then the annuity shall not be 
16 increased.
17 For the purposes of this Section, "consumer price index-u" 
18means
the index published by the Bureau of Labor Statistics of 
19the United States
Department of Labor that measures the average 
20change in prices of goods and
services purchased by all urban 
21consumers, United States city average, all
items, 1982-84 = 
22100. The new amount resulting from each annual adjustment
shall 
23be determined by the Public Pension Division of the Department 
24of Insurance and made available to the board of the retirement 
25system by November 1 of each year. 
26 (b) Beginning January 1, 1990, for eligible participants 
 
 
10000SB0011sam002- 56 -LRB100 06001 RPS 18499 a


1who remain
in service after attaining 20 years of creditable 
2service, the 3% increases
provided under subsection (a) shall 
3begin to accrue on the January 1 next
following the date upon 
4which the participant (1) attains age 55, or (2)
attains 20 
5years of creditable service, whichever occurs later, and shall

6continue to accrue while the participant remains in service; 
7such increases
shall become payable on January 1 or July 1, 
8whichever occurs first, next
following the first anniversary of 
9retirement. For any person who has service
credit in the System 
10for the entire period from January 15, 1969 through
December 
1131, 1992, regardless of the date of termination of service, the

12reference to age 55 in clause (1) of this subsection (b) shall 
13be deemed to
mean age 50.

14 This subsection (b) does not apply to any person who first 
15becomes a
member of the System after August 8, 2003 (the 
16effective date of Public Act 93-494) this amendatory Act of
the 
1793rd General Assembly.

18 (b-5) Notwithstanding any other provision of this Article, 
19a participant who first becomes a participant on or after 
20January 1, 2011 (the effective date of Public Act 96-889) 
21shall, in January or July next following the first anniversary 
22of retirement, whichever occurs first, and in the same month of 
23each year thereafter, but in no event prior to age 67, have the 
24amount of the retirement annuity then being paid increased by 
253% or the annual unadjusted percentage increase in the Consumer 
26Price Index for All Urban Consumers as determined by the Public 
 
 
10000SB0011sam002- 57 -LRB100 06001 RPS 18499 a


1Pension Division of the Department of Insurance under 
2subsection (a) of Section 2-108.1, whichever is less. 
3 (c) The foregoing provisions relating to automatic 
4increases are not
applicable to a participant who retires 
5before having made contributions
(at the rate prescribed in 
6Section 2-126) for automatic increases for less
than the 
7equivalent of one full year. However, in order to be eligible 
8for
the automatic increases, such a participant may make 
9arrangements to pay
to the system the amount required to bring 
10the total contributions for the
automatic increase to the 
11equivalent of one year's contributions based upon
his or her 
12last salary.

13 (d) A participant who terminated service prior to July 1, 
141967, with at
least 14 years of service is entitled to an 
15increase in retirement annuity
beginning January, 1976, and to 
16additional increases in January of each
year thereafter.

17 The initial increase shall be 1 1/2% of the originally 
18granted retirement
annuity multiplied by the number of full 
19years that the annuitant was in
receipt of such annuity prior 
20to January 1, 1972, plus 2% of the originally
granted 
21retirement annuity for each year after that date. The 
22subsequent
annual increases shall be at the rate of 2% of the 
23originally granted
retirement annuity for each year through 
241979 and at the rate of 3% for
1980 and thereafter.

25 (e) Beginning January 1, 1990, and except as provided in 
26subsection (a-1), all automatic annual increases payable
under 
 
 
10000SB0011sam002- 58 -LRB100 06001 RPS 18499 a


1this Section shall be calculated as a percentage of the total 
2annuity
payable at the time of the increase, including previous 
3increases granted
under this Article.

4(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)




5 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)


6 (Text of Section WITHOUT the changes made by P.A. 98-599, 
7which has been
held unconstitutional)

8 Sec. 2-124. Contributions by State. 

9 (a) The State shall make contributions to the System by

10appropriations of amounts which, together with the 
11contributions of
participants, interest earned on investments, 
12and other income
will meet the cost of maintaining and 
13administering the System on a 90%
funded basis in accordance 
14with actuarial recommendations.

15 (b) The Board shall determine the amount of State

16contributions required for each fiscal year on the basis of the

17actuarial tables and other assumptions adopted by the Board and 
18the
prescribed rate of interest, using the formula in 
19subsection (c).

20 (c) For State fiscal years 2018 through 2045 (except as 
21otherwise provided for fiscal year 2019), the minimum 
22contribution to the System to be made by the State for each 
23fiscal year shall be an amount determined by the System to be 
24sufficient to bring the total assets of the System up to 90% of 
25the total actuarial liabilities of the System by the end of 
 
 
10000SB0011sam002- 59 -LRB100 06001 RPS 18499 a


1State fiscal year 2045. In making these determinations, the 
2required State contribution shall be calculated each year as a 
3level percentage of total payroll, including payroll that is 
4not deemed pensionable, but excluding payroll attributable to 
5participants in the defined contribution plan under Section 
62-165.1, over the years remaining to and including fiscal year 
72045 and shall be determined under the projected unit credit 
8actuarial cost method.
9 For State fiscal year 2019:
10  (1) The initial calculation and certification shall be 
11 based on the amount determined above.
12  (2) For purposes of the recertification due on or 
13 before May 1, 2018, the recalculation of the required State 
14 contribution for fiscal year 2019 shall take into account 
15 the effect on the System's liabilities of the elections 
16 made under Section 2-110.3.
17  (3) For purposes of the recertification due on or 
18 before October 1, 2018, the total required State 
19 contribution for fiscal year 2019 shall be reduced by the 
20 amount of the consideration payments made to Tier 1 
21 employees who made the election under paragraph (1) of 
22 subsection (a) of Section 2-110.3.
23 Beginning in State fiscal year 2018, any increase or 
24decrease in State contribution over the prior fiscal year due 
25exclusively to changes in actuarial or investment assumptions 
26adopted by the Board shall be included in the State 
 
 
10000SB0011sam002- 60 -LRB100 06001 RPS 18499 a


1contribution to the System, as a percentage of the applicable 
2employee payroll, and shall be increased in equal annual 
3increments so that by the State fiscal year occurring 5 years 
4after the adoption of the actuarial or investment assumptions, 
5the State is contributing at the rate otherwise required under 
6this Section.
7 If Section 2-110.3 is determined to be unconstitutional or 
8otherwise invalid by a final unappealable decision of an 
9Illinois court
or a court of competent jurisdiction, then the 
10changes made to this Section by this amendatory Act of the 
11100th General Assembly shall not take effect and are repealed 
12by operation of law. 
13 For State fiscal years 2012 through 2017 2045, the minimum 
14contribution
to the System to be made by the State for each 
15fiscal year shall be an amount
determined by the System to be 
16sufficient to bring the total assets of the
System up to 90% of 
17the total actuarial liabilities of the System by the end of

18State fiscal year 2045. In making these determinations, the 
19required State
contribution shall be calculated each year as a 
20level percentage of payroll
over the years remaining to and 
21including fiscal year 2045 and shall be
determined under the 
22projected unit credit actuarial cost method.

23 For State fiscal years 1996 through 2005, the State 
24contribution to
the System, as a percentage of the applicable 
25employee payroll, shall be
increased in equal annual increments 
26so that by State fiscal year 2011, the
State is contributing at 
 
 
10000SB0011sam002- 61 -LRB100 06001 RPS 18499 a


1the rate required under this Section.

2 Notwithstanding any other provision of this Article, the 
3total required State
contribution for State fiscal year 2006 is 
4$4,157,000.

5 Notwithstanding any other provision of this Article, the 
6total required State
contribution for State fiscal year 2007 is 
7$5,220,300.

8 For each of State fiscal years 2008 through 2009, the State 
9contribution to
the System, as a percentage of the applicable 
10employee payroll, shall be
increased in equal annual increments 
11from the required State contribution for State fiscal year 
122007, so that by State fiscal year 2011, the
State is 
13contributing at the rate otherwise required under this Section.

14 Notwithstanding any other provision of this Article, the 
15total required State contribution for State fiscal year 2010 is 
16$10,454,000 and shall be made from the proceeds of bonds sold 
17in fiscal year 2010 pursuant to Section 7.2 of the General 
18Obligation Bond Act, less (i) the pro rata share of bond sale 
19expenses determined by the System's share of total bond 
20proceeds, (ii) any amounts received from the General Revenue 
21Fund in fiscal year 2010, and (iii) any reduction in bond 
22proceeds due to the issuance of discounted bonds, if 
23applicable. 
24 Notwithstanding any other provision of this Article, the

25total required State contribution for State fiscal year 2011 is

26the amount recertified by the System on or before April 1, 2011 
 
 
10000SB0011sam002- 62 -LRB100 06001 RPS 18499 a


1pursuant to Section 2-134 and shall be made from the proceeds 
2of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of 
3the General
Obligation Bond Act, less (i) the pro rata share of 
4bond sale
expenses determined by the System's share of total 
5bond
proceeds, (ii) any amounts received from the General 
6Revenue
Fund in fiscal year 2011, and (iii) any reduction in 
7bond
proceeds due to the issuance of discounted bonds, if

8applicable. 
9 Beginning in State fiscal year 2046, the minimum State 
10contribution for
each fiscal year shall be the amount needed to 
11maintain the total assets of
the System at 90% of the total 
12actuarial liabilities of the System.

13 Amounts received by the System pursuant to Section 25 of 
14the Budget Stabilization Act or Section 8.12 of the State 
15Finance Act in any fiscal year do not reduce and do not 
16constitute payment of any portion of the minimum State 
17contribution required under this Article in that fiscal year. 
18Such amounts shall not reduce, and shall not be included in the 
19calculation of, the required State contributions under this 
20Article in any future year until the System has reached a 
21funding ratio of at least 90%. A reference in this Article to 
22the "required State contribution" or any substantially similar 
23term does not include or apply to any amounts payable to the 
24System under Section 25 of the Budget Stabilization Act.

25 Notwithstanding any other provision of this Section, the 
26required State
contribution for State fiscal year 2005 and for 
 
 
10000SB0011sam002- 63 -LRB100 06001 RPS 18499 a


1fiscal year 2008 and each fiscal year thereafter, as
calculated 
2under this Section and
certified under Section 2-134, shall not 
3exceed an amount equal to (i) the
amount of the required State 
4contribution that would have been calculated under
this Section 
5for that fiscal year if the System had not received any 
6payments
under subsection (d) of Section 7.2 of the General 
7Obligation Bond Act, minus
(ii) the portion of the State's 
8total debt service payments for that fiscal
year on the bonds 
9issued in fiscal year 2003 for the purposes of that Section 
107.2, as determined
and certified by the Comptroller, that is 
11the same as the System's portion of
the total moneys 
12distributed under subsection (d) of Section 7.2 of the General

13Obligation Bond Act. In determining this maximum for State 
14fiscal years 2008 through 2010, however, the amount referred to 
15in item (i) shall be increased, as a percentage of the 
16applicable employee payroll, in equal increments calculated 
17from the sum of the required State contribution for State 
18fiscal year 2007 plus the applicable portion of the State's 
19total debt service payments for fiscal year 2007 on the bonds 
20issued in fiscal year 2003 for the purposes of Section 7.2 of 
21the General
Obligation Bond Act, so that, by State fiscal year 
222011, the
State is contributing at the rate otherwise required 
23under this Section.


24 (d) For purposes of determining the required State 
25contribution to the System, the value of the System's assets 
26shall be equal to the actuarial value of the System's assets, 
 
 
10000SB0011sam002- 64 -LRB100 06001 RPS 18499 a


1which shall be calculated as follows:
2 As of June 30, 2008, the actuarial value of the System's 
3assets shall be equal to the market value of the assets as of 
4that date. In determining the actuarial value of the System's 
5assets for fiscal years after June 30, 2008, any actuarial 
6gains or losses from investment return incurred in a fiscal 
7year shall be recognized in equal annual amounts over the 
85-year period following that fiscal year. 
9 (e) For purposes of determining the required State 
10contribution to the system for a particular year, the actuarial 
11value of assets shall be assumed to earn a rate of return equal 
12to the system's actuarially assumed rate of return. 
13(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 
1496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. 
157-13-12.)




16 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)



17 (Text of Section WITHOUT the changes made by P.A. 98-599, 
18which has been
held unconstitutional)

19 Sec. 2-126. Contributions by participants. 

20 (a) Each participant shall contribute toward the cost of 
21his or her
retirement annuity a percentage of each payment of 
22salary received by him or
her for service as a member as 
23follows: for service between October 31, 1947
and January 1, 
241959, 5%; for service between January 1, 1959 and June 30, 
251969,
6%; for service between July 1, 1969 and January 10, 
 
 
10000SB0011sam002- 65 -LRB100 06001 RPS 18499 a


11973, 6 1/2%; for service
after January 10, 1973, 7%; for 
2service after December 31, 1981, 8 1/2%.

3 (b) Beginning August 2, 1949, each male participant, and 
4from July 1,
1971, each female participant shall contribute 
5towards the cost of the
survivor's annuity 2% of salary.

6 A participant who has no eligible survivor's annuity 
7beneficiary may elect
to cease making contributions for 
8survivor's annuity under this subsection.
A survivor's annuity 
9shall not be payable upon the death of a person who has
made 
10this election, unless prior to that death the election has been 
11revoked
and the amount of the contributions that would have 
12been paid under this
subsection in the absence of the election 
13is paid to the System, together
with interest at the rate of 4% 
14per year from the date the contributions
would have been made 
15to the date of payment.

16 (c) Beginning July 1, 1967, each participant shall 
17contribute 1% of
salary towards the cost of automatic increase 
18in annuity provided in
Section 2-119.1. These contributions 
19shall be made concurrently with
contributions for retirement 
20annuity purposes.

21 (d) In addition, each participant serving as an officer of 
22the General
Assembly shall contribute, for the same purposes 
23and at the same rates
as are required of a regular participant, 
24on each additional payment
received as an officer. If the 
25participant serves as an
officer for at least 2 but less than 4 
26years, he or she shall
contribute an amount equal to the amount 
 
 
10000SB0011sam002- 66 -LRB100 06001 RPS 18499 a


1that would have been contributed
had the participant served as 
2an officer for 4 years. Persons who serve
as officers in the 
387th General Assembly but cannot receive the additional
payment 
4to officers because of the ban on increases in salary during 
5their
terms may nonetheless make contributions based on those 
6additional payments
for the purpose of having the additional 
7payments included in their highest
salary for annuity purposes; 
8however, persons electing to make these
additional 
9contributions must also pay an amount representing the

10corresponding employer contributions, as calculated by the 
11System.

12 (e) Notwithstanding any other provision of this Article, 
13the required contribution of a participant who first becomes a 
14participant on or after January 1, 2011 shall not exceed the 
15contribution that would be due under this Article if that 
16participant's highest salary for annuity purposes were 
17$106,800, plus any increases in that amount under Section 
182-108.1. 
19 (f) Beginning July 1, 2018 or the effective date of the 
20Tier 1 employee's election under paragraph (1) of subsection 
21(a) of Section 2-110.3, whichever is later, in lieu of the 
22contributions otherwise required under this Section, each Tier 
231 employee who made the election under paragraph (1) of 
24subsection (a) of Section 2-110.3 shall contribute 8.5% of each 
25payment of salary toward the cost of his or her retirement 
26annuity and 1.85% of each payment of salary toward the cost of 
 
 
10000SB0011sam002- 67 -LRB100 06001 RPS 18499 a


1the survivor's annuity.
2 (g) Notwithstanding subsection (f) of this Section, 
3beginning July 1, 2018 or the effective date of the Tier 1 
4employee's election under paragraph (1) of subsection (a) of 
5Section 2-110.3, whichever is later, in lieu of the 
6contributions otherwise required under this Section, each Tier 
71 employee who made the election under paragraph (1) of 
8subsection (a) of Section 2-110.3 and has elected to cease 
9making contributions for survivor's annuity under subsection 
10(b) of this Section, shall contribute 8.55% of each payment of 
11salary toward the cost of his or her retirement annuity.
12(Source: P.A. 96-1490, eff. 1-1-11.)




13 (40 ILCS 5/2-134)
 (from Ch. 108 1/2, par. 2-134)


14 (Text of Section WITHOUT the changes made by P.A. 98-599, 
15which has been
held unconstitutional)

16 Sec. 2-134. To certify required State contributions and 
17submit vouchers. 

18 (a) The Board shall certify to the Governor on or before 
19December 15 of each
year until December 15, 2011 the amount of 
20the required State contribution to the System for the next

21fiscal year and shall specifically identify the System's 
22projected State normal cost for that fiscal year. The 
23certification shall include a copy of the actuarial

24recommendations upon which it is based and shall specifically 
25identify the System's projected State normal cost for that 
 
 
10000SB0011sam002- 68 -LRB100 06001 RPS 18499 a


1fiscal year.

2 On or before November 1 of each year, beginning November 1, 
32012, the Board shall submit to the State Actuary, the 
4Governor, and the General Assembly a proposed certification of 
5the amount of the required State contribution to the System for 
6the next fiscal year, along with all of the actuarial 
7assumptions, calculations, and data upon which that proposed 
8certification is based. On or before January 1 of each year 
9beginning January 1, 2013, the State Actuary shall issue a 
10preliminary report concerning the proposed certification and 
11identifying, if necessary, recommended changes in actuarial 
12assumptions that the Board must consider before finalizing its 
13certification of the required State contributions. On or before 
14January 15, 2013 and every January 15 thereafter, the Board 
15shall certify to the Governor and the General Assembly the 
16amount of the required State contribution for the next fiscal 
17year. The Board's certification must note any deviations from 
18the State Actuary's recommended changes, the reason or reasons 
19for not following the State Actuary's recommended changes, and 
20the fiscal impact of not following the State Actuary's 
21recommended changes on the required State contribution. 
22 On or before May 1, 2004, the Board shall recalculate and 
23recertify to
the Governor the amount of the required State 
24contribution to the System for
State fiscal year 2005, taking 
25into account the amounts appropriated to and
received by the 
26System under subsection (d) of Section 7.2 of the General

 
 
10000SB0011sam002- 69 -LRB100 06001 RPS 18499 a


1Obligation Bond Act.

2 On or before July 1, 2005, the Board shall recalculate and 
3recertify
to the Governor the amount of the required State

4contribution to the System for State fiscal year 2006, taking 
5into account the changes in required State contributions made 
6by this amendatory Act of the 94th General Assembly.

7 On or before April 1, 2011, the Board shall recalculate and 
8recertify to the Governor the amount of the required State 
9contribution to the System for State fiscal year 2011, applying 
10the changes made by Public Act 96-889 to the System's assets 
11and liabilities as of June 30, 2009 as though Public Act 96-889 
12was approved on that date. 
13 As soon as practical after the effective date of this 
14amendatory Act of the 100th General Assembly, the State Actuary 
15and the Board shall recalculate and recertify to the Governor 
16and the General Assembly the amount of the State contribution 
17to the System for State fiscal year 2018, taking into account 
18the changes in required State contributions made by this 
19amendatory Act of the 100th General Assembly. 
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 
 
 
10000SB0011sam002- 70 -LRB100 06001 RPS 18499 a


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

 
 
10000SB0011sam002- 71 -LRB100 06001 RPS 18499 a


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 
 
 
10000SB0011sam002- 72 -LRB100 06001 RPS 18499 a


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 
 
 
10000SB0011sam002- 73 -LRB100 06001 RPS 18499 a


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 5/2-165.1 new)
17 Sec. 2-165.1. Defined contribution plan.
18 (a) By July 1, 2018, the System shall prepare and implement 
19a voluntary defined contribution plan for up to 5% of eligible 
20active Tier 1 employees. The System shall determine the 5% cap 
21by the number of active Tier 1 employees on the effective date 
22of this Section. The defined contribution plan developed under 
23this Section shall be a plan that aggregates employer and 
24employee contributions in individual participant accounts 
25which, after meeting any other requirements, are used for 
 
 
10000SB0011sam002- 74 -LRB100 06001 RPS 18499 a


1payouts after retirement in accordance with this Section and 
2any other applicable laws.
3 As used in this Section, "defined benefit plan" means the 
4retirement plan available under this Article to Tier 1 
5employees who have not made the election authorized under this 
6Section.
7  (1) Under the defined contribution plan, an active
Tier 
8 1 employee of this System could elect to cease accruing 
9 benefits in the defined benefit plan under this Article and 
10 begin accruing benefits for future service in the defined 
11 contribution plan. Service credit under the defined 
12 contribution plan may be used for determining retirement 
13 eligibility under the defined benefit plan.
14  (2) Participants in the defined contribution plan

15 shall pay employee contributions at the same rate as Tier 1 
16 employees in this System who do not participate in the 
17 defined contribution plan.
18  (3) State contributions shall be paid into the
accounts 
19 of all participants in the defined contribution plan at a 
20 uniform rate, expressed as a percentage of compensation and 
21 determined for each year. This rate shall be no higher than 
22 the employer's normal cost for Tier 1 employees in the 
23 defined benefit plan for that year, as determined by the 
24 System and expressed as a percentage of compensation, and 
25 shall be no lower than 3% of compensation. The State shall 
26 adjust this rate annually.
 
 
10000SB0011sam002- 75 -LRB100 06001 RPS 18499 a


1  (4) The defined contribution plan shall require 5
years 
2 of participation in the defined contribution plan before 
3 vesting in State contributions. If the participant fails to 
4 vest in them, the State contributions, and the earnings 
5 thereon, shall be forfeited.
6  (5) The defined contribution plan may provide for

7 participants in the plan to be eligible for defined 
8 disability benefits. If it does, the System shall reduce 
9 the employee contributions credited to the participant's 
10 defined contribution plan account by an amount determined 
11 by the System to cover the cost of offering such benefits.
12  (6) The defined contribution plan shall provide a

13 variety of options for investments. These options shall 
14 include investments handled by the Illinois State Board of 
15 Investment as well as private sector investment options.
16  (7) The defined contribution plan shall provide a

17 variety of options for payouts to retirees and their 
18 survivors.
19  (8) To the extent authorized under federal law and
as 
20 authorized by the System, the plan shall allow former 
21 participants in the plan to transfer or roll over employee 
22 and vested State contributions, and the earnings thereon, 
23 into other qualified retirement plans.
24  (9) The System shall reduce the employee
contributions 
25 credited to the participant's defined contribution plan 
26 account by an amount determined by the System to cover the 
 
 
10000SB0011sam002- 76 -LRB100 06001 RPS 18499 a


1 cost of offering these benefits and any applicable 
2 administrative fees.
3 (b) Only persons who are active Tier 1 employees of the 
4System on the effective date of this Section are eligible to 
5participate in the defined contribution plan. Participation in 
6the defined contribution plan shall be limited to the first 5% 
7of eligible persons who elect to participate. The election to 
8participate in the defined contribution plan is voluntary and 
9irrevocable.
10 (c) An eligible active Tier 1 employee may irrevocably 
11elect to participate in the defined contribution plan by filing 
12with the System a written application to participate that is 
13received by the System prior to its determination that 5% of 
14eligible persons have elected to participate in the defined 
15contribution plan.
16 When the System first determines that 5% of eligible 
17persons have elected to participate in the defined contribution 
18plan, the System shall provide notice to previously eligible 
19employees that the plan is no longer available and shall cease 
20accepting applications to participate.
21 (d) The System shall make a good faith effort to contact 
22each active Tier 1 employee who is eligible to participate in 
23the defined contribution plan. The System shall mail 
24information describing the option to join the defined 
25contribution plan to each of these employees to his or her last 
26known address on file with the System. If the employee is not 
 
 
10000SB0011sam002- 77 -LRB100 06001 RPS 18499 a


1responsive to other means of contact, it is sufficient for the 
2System to publish the details of the option on its website.
3 Upon request for further information describing the 
4option, the System shall provide employees with information 
5from the System before exercising the option to join the plan, 
6including information on the impact to their vested benefits or 
7non-vested service. The individual consultation shall include 
8projections of the participant's defined benefits at 
9retirement or earlier termination of service and the value of 
10the participant's account at retirement or earlier termination 
11of service. The System shall not provide advice or counseling 
12with respect to whether the employee should exercise the 
13option. The System shall inform Tier 1 employees who are 
14eligible to participate in the defined contribution plan that 
15they may also wish to obtain information and counsel relating 
16to their option from any other available source, including but 
17not limited to labor organizations, private counsel, and 
18financial advisors.
19 (e) In no event shall the System, its staff, its authorized 
20representatives, or the Board be liable for any information 
21given to an employee under this Section. The System may 
22coordinate with the Illinois Department of Central Management 
23Services and other retirement systems administering a defined 
24contribution plan in accordance with this amendatory Act of the 
25100th General Assembly to provide information concerning the 
26impact of the option set forth in this Section.
 
 
10000SB0011sam002- 78 -LRB100 06001 RPS 18499 a


1 (f) Notwithstanding any other provision of this Section, no 
2person shall begin participating in the defined contribution 
3plan until it has attained qualified plan status and received 
4all necessary approvals from the U.S. Internal Revenue Service.
5 (g) The System shall report on its progress under this 
6Section, including the available details of the defined 
7contribution plan and the System's plans for informing eligible 
8Tier 1 employees about the plan, to the Governor and the 
9General Assembly on or before January 15, 2018.
10 (h) The Illinois State Board of Investments shall be the 
11plan sponsor for the defined contribution plan established 
12under this Section.
13 (i) The intent of this amendatory Act of the 100th General 
14Assembly is to ensure that the State's normal cost of 
15participation in the defined contribution plan is similar, and 
16if possible equal, to the State's normal cost of participation 
17in the defined benefit plan, unless a lower State's normal cost 
18is necessary to ensure cost neutrality.
19 (j) If Section 2-110.3 is determined to be unconstitutional 
20or otherwise invalid by a final unappealable decision of an 
21Illinois court
or a court of competent jurisdiction, then this 
22Section shall not take effect and is repealed by operation of 
23law. 

24 (40 ILCS 5/2-166.1 new)
25 Sec. 2-166.1. Defined contribution plan; termination. If 
 
 
10000SB0011sam002- 79 -LRB100 06001 RPS 18499 a


1the defined contribution plan is terminated or becomes 
2inoperative pursuant to law, then each participant in the plan 
3shall automatically be deemed to have been a contributing Tier 
41 employee in the System's defined benefit plan during the time 
5in which he or she participated in the defined contribution 
6plan, and for that purpose the System shall be entitled to 
7recover the amounts in the participant's defined contribution 
8accounts.


9 (40 ILCS 5/14-131)



10 Sec. 14-131. Contributions by State. 

11 (a) The State shall make contributions to the System by 
12appropriations of
amounts which, together with other employer 
13contributions from trust, federal,
and other funds, employee 
14contributions, investment income, and other income,
will be 
15sufficient to meet the cost of maintaining and administering 
16the System
on a 90% funded basis in accordance with actuarial 
17recommendations.

18 For the purposes of this Section and Section 14-135.08, 
19references to State
contributions refer only to employer 
20contributions and do not include employee
contributions that 
21are picked up or otherwise paid by the State or a
department on 
22behalf of the employee.

23 (b) The Board shall determine the total amount of State 
24contributions
required for each fiscal year on the basis of the 
25actuarial tables and other
assumptions adopted by the Board, 
 
 
10000SB0011sam002- 80 -LRB100 06001 RPS 18499 a


1using the formula in subsection (e).

2 The Board shall also determine a State contribution rate 
3for each fiscal
year, expressed as a percentage of payroll, 
4based on the total required State
contribution for that fiscal 
5year (less the amount received by the System from

6appropriations under Section 8.12 of the State Finance Act and 
7Section 1 of the
State Pension Funds Continuing Appropriation 
8Act, if any, for the fiscal year
ending on the June 30 
9immediately preceding the applicable November 15
certification 
10deadline), the estimated payroll (including all forms of

11compensation) for personal services rendered by eligible 
12employees, and the
recommendations of the actuary.

13 For the purposes of this Section and Section 14.1 of the 
14State Finance Act,
the term "eligible employees" includes 
15employees who participate in the System,
persons who may elect 
16to participate in the System but have not so elected,
persons 
17who are serving a qualifying period that is required for 
18participation,
and annuitants employed by a department as 
19described in subdivision (a)(1) or
(a)(2) of Section 14-111.

20 (c) Contributions shall be made by the several departments 
21for each pay
period by warrants drawn by the State Comptroller 
22against their respective
funds or appropriations based upon 
23vouchers stating the amount to be so
contributed. These amounts 
24shall be based on the full rate certified by the
Board under 
25Section 14-135.08 for that fiscal year.
From the effective date 
26of this amendatory Act of the 93rd General
Assembly through the 
 
 
10000SB0011sam002- 81 -LRB100 06001 RPS 18499 a


1payment of the final payroll from fiscal year 2004

2appropriations, the several departments shall not make 
3contributions
for the remainder of fiscal year 2004 but shall 
4instead make payments
as required under subsection (a-1) of 
5Section 14.1 of the State Finance Act.
The several departments 
6shall resume those contributions at the commencement of
fiscal 
7year 2005.

8 (c-1) Notwithstanding subsection (c) of this Section, for 
9fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only, 
10contributions by the several departments are not required to be 
11made for General Revenue Funds payrolls processed by the 
12Comptroller. Payrolls paid by the several departments from all 
13other State funds must continue to be processed pursuant to 
14subsection (c) of this Section.
15 (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015, 
162016, and 2017 only, on or as soon as possible after the 15th 
17day of each month, the Board shall submit vouchers for payment 
18of State contributions to the System, in a total monthly amount 
19of one-twelfth of the fiscal year General Revenue Fund 
20contribution as certified by the System pursuant to Section 
2114-135.08 of the Illinois Pension Code. 
22 (d) If an employee is paid from trust funds or federal 
23funds, the
department or other employer shall pay employer 
24contributions from those funds
to the System at the certified 
25rate, unless the terms of the trust or the
federal-State 
26agreement preclude the use of the funds for that purpose, in

 
 
10000SB0011sam002- 82 -LRB100 06001 RPS 18499 a


1which case the required employer contributions shall be paid by 
2the State.
From the effective date of this amendatory
Act of 
3the 93rd General Assembly through the payment of the final

4payroll from fiscal year 2004 appropriations, the department or 
5other
employer shall not pay contributions for the remainder of 
6fiscal year
2004 but shall instead make payments as required 
7under subsection (a-1) of
Section 14.1 of the State Finance 
8Act. The department or other employer shall
resume payment of

9contributions at the commencement of fiscal year 2005.

10 (e) For State fiscal years 2018 through 2045, the minimum 
11contribution to the System to be made by the State for each 
12fiscal year shall be an amount determined by the System to be 
13sufficient to bring the total assets of the System up to 90% of 
14the total actuarial liabilities of the System by the end of 
15State fiscal year 2045. In making these determinations, the 
16required State contribution shall be calculated each year as a 
17level percentage of payroll, over the years remaining to and 
18including fiscal year 2045 and shall be determined under the 
19projected unit credit actuarial cost method.
20 Beginning in State fiscal year 2018, any increase or 
21decrease in State contribution over the prior fiscal year due 
22exclusively to changes in actuarial or investment assumptions 
23adopted by the Board shall be included in the State 
24contribution to the System, as a percentage of the applicable 
25employee payroll, and shall be increased in equal annual 
26increments so that by the State fiscal year occurring 5 years 
 
 
10000SB0011sam002- 83 -LRB100 06001 RPS 18499 a


1after the adoption of the actuarial or investment assumptions, 
2the State is contributing at the rate otherwise required under 
3this Section. 
4 For State fiscal years 2012 through 2017 2045, the minimum 
5contribution
to the System to be made by the State for each 
6fiscal year shall be an amount
determined by the System to be 
7sufficient to bring the total assets of the
System up to 90% of 
8the total actuarial liabilities of the System by the end
of 
9State fiscal year 2045. In making these determinations, the 
10required State
contribution shall be calculated each year as a 
11level percentage of payroll
over the years remaining to and 
12including fiscal year 2045 and shall be
determined under the 
13projected unit credit actuarial cost method.

14 For State fiscal years 1996 through 2005, the State 
15contribution to
the System, as a percentage of the applicable 
16employee payroll, shall be
increased in equal annual increments 
17so that by State fiscal year 2011, the
State is contributing at 
18the rate required under this Section; except that
(i) for State 
19fiscal year 1998, for all purposes of this Code and any other

20law of this State, the certified percentage of the applicable 
21employee payroll
shall be 5.052% for employees earning eligible 
22creditable service under Section
14-110 and 6.500% for all 
23other employees, notwithstanding any contrary
certification 
24made under Section 14-135.08 before the effective date of this

25amendatory Act of 1997, and (ii)
in the following specified 
26State fiscal years, the State contribution to
the System shall 
 
 
10000SB0011sam002- 84 -LRB100 06001 RPS 18499 a


1not be less than the following indicated percentages of the

2applicable employee payroll, even if the indicated percentage 
3will produce a
State contribution in excess of the amount 
4otherwise required under this
subsection and subsection (a):

59.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY 
62002;
10.6% in FY 2003; and
10.8% in FY 2004.

7 Notwithstanding any other provision of this Article, the 
8total required State
contribution to the System for State 
9fiscal year 2006 is $203,783,900.

10 Notwithstanding any other provision of this Article, the 
11total required State
contribution to the System for State 
12fiscal year 2007 is $344,164,400.

13 For each of State fiscal years 2008 through 2009, the State 
14contribution to
the System, as a percentage of the applicable 
15employee payroll, shall be
increased in equal annual increments 
16from the required State contribution for State fiscal year 
172007, so that by State fiscal year 2011, the
State is 
18contributing at the rate otherwise required under this Section.

19 Notwithstanding any other provision of this Article, the 
20total required State General Revenue Fund contribution for 
21State fiscal year 2010 is $723,703,100 and shall be made from 
22the proceeds of bonds sold in fiscal year 2010 pursuant to 
23Section 7.2 of the General Obligation Bond Act, less (i) the 
24pro rata share of bond sale expenses determined by the System's 
25share of total bond proceeds, (ii) any amounts received from 
26the General Revenue Fund in fiscal year 2010, and (iii) any 
 
 
10000SB0011sam002- 85 -LRB100 06001 RPS 18499 a


1reduction in bond proceeds due to the issuance of discounted 
2bonds, if applicable. 
3 Notwithstanding any other provision of this Article, the

4total required State General Revenue Fund contribution for

5State fiscal year 2011 is the amount recertified by the System 
6on or before April 1, 2011 pursuant to Section 14-135.08 and 
7shall be made from
the proceeds of bonds sold in fiscal year 
82011 pursuant to
Section 7.2 of the General Obligation Bond 
9Act, less (i) the
pro rata share of bond sale expenses 
10determined by the System's
share of total bond proceeds, (ii) 
11any amounts received from
the General Revenue Fund in fiscal 
12year 2011, and (iii) any
reduction in bond proceeds due to the 
13issuance of discounted
bonds, if applicable. 
14 Beginning in State fiscal year 2046, the minimum State 
15contribution for
each fiscal year shall be the amount needed to 
16maintain the total assets of
the System at 90% of the total 
17actuarial liabilities of the System.

18 Amounts received by the System pursuant to Section 25 of 
19the Budget Stabilization Act or Section 8.12 of the State 
20Finance Act in any fiscal year do not reduce and do not 
21constitute payment of any portion of the minimum State 
22contribution required under this Article in that fiscal year. 
23Such amounts shall not reduce, and shall not be included in the 
24calculation of, the required State contributions under this 
25Article in any future year until the System has reached a 
26funding ratio of at least 90%. A reference in this Article to 
 
 
10000SB0011sam002- 86 -LRB100 06001 RPS 18499 a


1the "required State contribution" or any substantially similar 
2term does not include or apply to any amounts payable to the 
3System under Section 25 of the Budget Stabilization Act.

4 Notwithstanding any other provision of this Section, the 
5required State
contribution for State fiscal year 2005 and for 
6fiscal year 2008 and each fiscal year thereafter, as
calculated 
7under this Section and
certified under Section 14-135.08, shall 
8not exceed an amount equal to (i) the
amount of the required 
9State contribution that would have been calculated under
this 
10Section for that fiscal year if the System had not received any 
11payments
under subsection (d) of Section 7.2 of the General 
12Obligation Bond Act, minus
(ii) the portion of the State's 
13total debt service payments for that fiscal
year on the bonds 
14issued in fiscal year 2003 for the purposes of that Section 
157.2, as determined
and certified by the Comptroller, that is 
16the same as the System's portion of
the total moneys 
17distributed under subsection (d) of Section 7.2 of the General

18Obligation Bond Act. In determining this maximum for State 
19fiscal years 2008 through 2010, however, the amount referred to 
20in item (i) shall be increased, as a percentage of the 
21applicable employee payroll, in equal increments calculated 
22from the sum of the required State contribution for State 
23fiscal year 2007 plus the applicable portion of the State's 
24total debt service payments for fiscal year 2007 on the bonds 
25issued in fiscal year 2003 for the purposes of Section 7.2 of 
26the General
Obligation Bond Act, so that, by State fiscal year 
 
 
10000SB0011sam002- 87 -LRB100 06001 RPS 18499 a


12011, the
State is contributing at the rate otherwise required 
2under this Section.

3 (f) After the submission of all payments for eligible 
4employees
from personal services line items in fiscal year 2004 
5have been made,
the Comptroller shall provide to the System a 
6certification of the sum
of all fiscal year 2004 expenditures 
7for personal services that would
have been covered by payments 
8to the System under this Section if the
provisions of this 
9amendatory Act of the 93rd General Assembly had not been

10enacted. Upon
receipt of the certification, the System shall 
11determine the amount
due to the System based on the full rate 
12certified by the Board under
Section 14-135.08 for fiscal year 
132004 in order to meet the State's
obligation under this 
14Section. The System shall compare this amount
due to the amount 
15received by the System in fiscal year 2004 through
payments 
16under this Section and under Section 6z-61 of the State Finance 
17Act.
If the amount
due is more than the amount received, the 
18difference shall be termed the
"Fiscal Year 2004 Shortfall" for 
19purposes of this Section, and the
Fiscal Year 2004 Shortfall 
20shall be satisfied under Section 1.2 of the State
Pension Funds 
21Continuing Appropriation Act. If the amount due is less than 
22the
amount received, the
difference shall be termed the "Fiscal 
23Year 2004 Overpayment" for purposes of
this Section, and the 
24Fiscal Year 2004 Overpayment shall be repaid by
the System to 
25the Pension Contribution Fund as soon as practicable
after the 
26certification.

 
 
10000SB0011sam002- 88 -LRB100 06001 RPS 18499 a


1 (g) For purposes of determining the required State 
2contribution to the System, the value of the System's assets 
3shall be equal to the actuarial value of the System's assets, 
4which shall be calculated as follows:
5 As of June 30, 2008, the actuarial value of the System's 
6assets shall be equal to the market value of the assets as of 
7that date. In determining the actuarial value of the System's 
8assets for fiscal years after June 30, 2008, any actuarial 
9gains or losses from investment return incurred in a fiscal 
10year shall be recognized in equal annual amounts over the 
115-year period following that fiscal year. 
12 (h) For purposes of determining the required State 
13contribution to the System for a particular year, the actuarial 
14value of assets shall be assumed to earn a rate of return equal 
15to the System's actuarially assumed rate of return. 
16 (i) After the submission of all payments for eligible 
17employees from personal services line items paid from the 
18General Revenue Fund in fiscal year 2010 have been made, the 
19Comptroller shall provide to the System a certification of the 
20sum of all fiscal year 2010 expenditures for personal services 
21that would have been covered by payments to the System under 
22this Section if the provisions of this amendatory Act of the 
2396th General Assembly had not been enacted. Upon receipt of the 
24certification, the System shall determine the amount due to the 
25System based on the full rate certified by the Board under 
26Section 14-135.08 for fiscal year 2010 in order to meet the 
 
 
10000SB0011sam002- 89 -LRB100 06001 RPS 18499 a


1State's obligation under this Section. The System shall compare 
2this amount due to the amount received by the System in fiscal 
3year 2010 through payments under this Section. If the amount 
4due is more than the amount received, the difference shall be 
5termed the "Fiscal Year 2010 Shortfall" for purposes of this 
6Section, and the Fiscal Year 2010 Shortfall shall be satisfied 
7under Section 1.2 of the State Pension Funds Continuing 
8Appropriation Act. If the amount due is less than the amount 
9received, the difference shall be termed the "Fiscal Year 2010 
10Overpayment" for purposes of this Section, and the Fiscal Year 
112010 Overpayment shall be repaid by the System to the General 
12Revenue Fund as soon as practicable after the certification.
13 (j) After the submission of all payments for eligible 
14employees from personal services line items paid from the 
15General Revenue Fund in fiscal year 2011 have been made, the 
16Comptroller shall provide to the System a certification of the 
17sum of all fiscal year 2011 expenditures for personal services 
18that would have been covered by payments to the System under 
19this Section if the provisions of this amendatory Act of the 
2096th General Assembly had not been enacted. Upon receipt of the 
21certification, the System shall determine the amount due to the 
22System based on the full rate certified by the Board under 
23Section 14-135.08 for fiscal year 2011 in order to meet the 
24State's obligation under this Section. The System shall compare 
25this amount due to the amount received by the System in fiscal 
26year 2011 through payments under this Section. If the amount 
 
 
10000SB0011sam002- 90 -LRB100 06001 RPS 18499 a


1due is more than the amount received, the difference shall be 
2termed the "Fiscal Year 2011 Shortfall" for purposes of this 
3Section, and the Fiscal Year 2011 Shortfall shall be satisfied 
4under Section 1.2 of the State Pension Funds Continuing 
5Appropriation Act. If the amount due is less than the amount 
6received, the difference shall be termed the "Fiscal Year 2011 
7Overpayment" for purposes of this Section, and the Fiscal Year 
82011 Overpayment shall be repaid by the System to the General 
9Revenue Fund as soon as practicable after the certification.
10 (k) For fiscal years 2012 through 2017 only, after the 
11submission of all payments for eligible employees from personal 
12services line items paid from the General Revenue Fund in the 
13fiscal year have been made, the Comptroller shall provide to 
14the System a certification of the sum of all expenditures in 
15the fiscal year for personal services. Upon receipt of the 
16certification, the System shall determine the amount due to the 
17System based on the full rate certified by the Board under 
18Section 14-135.08 for the fiscal year in order to meet the 
19State's obligation under this Section. The System shall compare 
20this amount due to the amount received by the System for the 
21fiscal year. If the amount due is more than the amount 
22received, the difference shall be termed the "Prior Fiscal Year 
23Shortfall" for purposes of this Section, and the Prior Fiscal 
24Year Shortfall shall be satisfied under Section 1.2 of the 
25State Pension Funds Continuing Appropriation Act. If the amount 
26due is less than the amount received, the difference shall be 
 
 
10000SB0011sam002- 91 -LRB100 06001 RPS 18499 a


1termed the "Prior Fiscal Year Overpayment" for purposes of this 
2Section, and the Prior Fiscal Year Overpayment shall be repaid 
3by the System to the General Revenue Fund as soon as 
4practicable after the certification. 
5(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, 
6eff. 7-9-15; 99-523, eff. 6-30-16.)




7 (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)


8 (Text of Section WITHOUT the changes made by P.A. 98-599, 
9which has been held unconstitutional)

10 Sec. 14-135.08. To certify required State contributions. 
11 (a)
To certify to the Governor and to each department, on 
12or before
November 15 of each year until November 15, 2011, the 
13required rate for State contributions to the
System for the 
14next State fiscal year, as determined under subsection (b) of

15Section 14-131. The certification to the Governor under this 
16subsection (a) shall include a copy of the
actuarial 
17recommendations upon which the rate is based and shall 
18specifically identify the System's projected State normal cost 
19for that fiscal year.

20 (a-5) On or before November 1 of each year, beginning 
21November 1, 2012, the Board shall submit to the State Actuary, 
22the Governor, and the General Assembly a proposed certification 
23of the amount of the required State contribution to the System 
24for the next fiscal year, along with all of the actuarial 
25assumptions, calculations, and data upon which that proposed 
 
 
10000SB0011sam002- 92 -LRB100 06001 RPS 18499 a


1certification is based. On or before January 1 of each year 
2beginning January 1, 2013, the State Actuary shall issue a 
3preliminary report concerning the proposed certification and 
4identifying, if necessary, recommended changes in actuarial 
5assumptions that the Board must consider before finalizing its 
6certification of the required State contributions. On or before 
7January 15, 2013 and each January 15 thereafter, the Board 
8shall certify to the Governor and the General Assembly the 
9amount of the required State contribution for the next fiscal 
10year. The Board's certification must note any deviations from 
11the State Actuary's recommended changes, the reason or reasons 
12for not following the State Actuary's recommended changes, and 
13the fiscal impact of not following the State Actuary's 
14recommended changes on the required State contribution. 
15 (b) The certifications under subsections (a) and (a-5) 
16shall include an additional amount necessary to pay all 
17principal of and interest on those general obligation bonds due 
18the next fiscal year authorized by Section 7.2(a) of the 
19General Obligation Bond Act and issued to provide the proceeds 
20deposited by the State with the System in July 2003, 
21representing deposits other than amounts reserved under 
22Section 7.2(c) of the General Obligation Bond Act. For State 
23fiscal year 2005, the Board shall make a supplemental 
24certification of the additional amount necessary to pay all 
25principal of and interest on those general obligation bonds due 
26in State fiscal years 2004 and 2005 authorized by Section 
 
 
10000SB0011sam002- 93 -LRB100 06001 RPS 18499 a


17.2(a) of the General Obligation Bond Act and issued to provide 
2the proceeds deposited by the State with the System in July 
32003, representing deposits other than amounts reserved under 
4Section 7.2(c) of the General Obligation Bond Act, as soon as 
5practical after the effective date of this amendatory Act of 
6the 93rd General Assembly.

7 On or before May 1, 2004, the Board shall recalculate and 
8recertify
to the Governor and to each department the amount of 
9the required State
contribution to the System and the required 
10rates for State contributions
to the System for State fiscal 
11year 2005, taking into account the amounts
appropriated to and 
12received by the System under subsection (d) of Section
7.2 of 
13the General Obligation Bond Act.

14 On or before July 1, 2005, the Board shall recalculate and 
15recertify
to the Governor and to each department the amount of 
16the required State
contribution to the System and the required 
17rates for State contributions
to the System for State fiscal 
18year 2006, taking into account the changes in required State 
19contributions made by this amendatory Act of the 94th General 
20Assembly.

21 On or before April 1, 2011, the Board shall recalculate and 
22recertify to the Governor and to each department the amount of 
23the required State contribution to the System for State fiscal 
24year 2011, applying the changes made by Public Act 96-889 to 
25the System's assets and liabilities as of June 30, 2009 as 
26though Public Act 96-889 was approved on that date. 
 
 
10000SB0011sam002- 94 -LRB100 06001 RPS 18499 a


1 As soon as practical after the effective date of this 
2amendatory Act of the 100th General Assembly, the State Actuary 
3and the Board shall recalculate and recertify to the Governor 
4and the General Assembly the amount of the State contribution 
5to the System for State fiscal year 2018, taking into account 
6the changes in required State contributions made by this 
7amendatory Act of the 100th General Assembly. 
8(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 
997-694, eff. 6-18-12.)


10 (40 ILCS 5/14-147.5 new)
11 Sec. 14-147.5. Accelerated pension benefit payment.
12 (a) As used in this Section:
13 "Eligible person" means a person who:
14  (1) has terminated service; 
15  (2) has accrued sufficient service credit to be 
16 eligible to receive a retirement annuity under this 
17 Article;
18  (3) has not received any retirement annuity under this 
19 Article; and
20  (4) does not have a QILDRO in effect against him or her 
21 under this Article.
22 "Pension benefit" means the benefits under this Article, or 
23Article 1 as it relates to those benefits, including any 
24anticipated annual increases, that an eligible person is 
25entitled to upon attainment of the applicable retirement age. 
 
 
10000SB0011sam002- 95 -LRB100 06001 RPS 18499 a


1"Pension benefit" also includes applicable survivor's or 
2disability benefits. 
3 (b) Before January 1, 2018, and annually thereafter, the 
4System shall calculate, using actuarial tables and other 
5assumptions adopted by the Board, the net present value of 
6pension benefits for each eligible person and shall offer each 
7eligible person the opportunity to irrevocably elect to receive 
8an amount determined by the System to be equal to 70% of the 
9net present value of his or her pension benefits in lieu of 
10receiving any pension benefit. The offer shall specify the 
11dollar amount that the eligible person will receive if he or 
12she so elects and shall expire when a subsequent offer is made 
13to an eligible person or when the System determines that 10% of 
14eligible persons in that year have made the election under this 
15subsection, whichever occurs first. The System shall make a 
16good faith effort to contact every eligible person to notify 
17him or her of the election and of the amount of the accelerated 
18pension benefit payment.
19 Until the System determines that 10% of eligible persons in 
20that year have made the election under this subsection, an 
21eligible person may irrevocably elect to receive an accelerated 
22pension benefit payment in the amount that the System offers 
23under this subsection in lieu of receiving any pension benefit. 
24A person who elects to receive an accelerated pension benefit 
25payment under this Section may not elect to proceed under the 
26Retirement Systems Reciprocal Act with respect to service under 
 
 
10000SB0011sam002- 96 -LRB100 06001 RPS 18499 a


1this Article. 
2 (c) A person's credits and creditable service under this 
3Article shall be terminated upon the person's receipt of an 
4accelerated pension benefit payment under this Section, and no 
5other benefit shall be paid under this Article based on those 
6terminated credits and creditable service, including any 
7retirement, survivor, or other benefit; except that to the 
8extent that participation, benefits, or premiums under the 
9State Employees Group Insurance Act of 1971 are based on the 
10amount of service credit, the terminated service credit shall 
11be used for that purpose.
12 (d) If a person who has received an accelerated pension 
13benefit payment under this Section returns to active service 
14under this Article, then:
15  (1) Any benefits under the System earned as a result of 
16 that return to active service shall be based solely on the 
17 person's credits and creditable service arising from the 
18 return to active service. 
19  (2) The accelerated pension benefit payment may not be 
20 repaid to the System, and the terminated credits and 
21 creditable service may not under any circumstances be 
22 reinstated. 
23 (e) As a condition of receiving an accelerated pension 
24benefit payment, an eligible person must have another 
25retirement plan or account qualified under the Internal Revenue 
26Code of 1986, as amended, for the accelerated pension benefit 
 
 
10000SB0011sam002- 97 -LRB100 06001 RPS 18499 a


1payment to be rolled into. The accelerated pension benefit 
2payment under this Section may be subject to withholding or 
3payment of applicable taxes, but to the extent permitted by 
4federal law, a person who receives an accelerated pension 
5benefit payment under this Section must direct the System to 
6pay all of that payment as a rollover into another retirement 
7plan or account qualified under the Internal Revenue Code of 
81986, as amended. 
9 (f) Before January 1, 2019 and every January 1 thereafter, 
10the Board shall certify to the Illinois Finance Authority and 
11the General Assembly the amount by which the total amount of 
12accelerated pension benefit payments made under this Section 
13exceed the amount appropriated to the System for the purpose of 
14making those payments. 
15 (g) The Board shall adopt any rules necessary to implement 
16this Section.
17 (h) No provision of this Section shall be interpreted in a 
18way that would cause the applicable System to cease to be a 
19qualified plan under the Internal Revenue Code of 1986.
20 (i) Notwithstanding any other provision of this Section, in 
21no case shall the total amount of accelerated pension benefit 
22payments paid under this Section, Section 15-185.5, and Section 
2316-190.5 cause the Illinois Finance Authority to issue more 
24than the $250,000,000 of State Pension Obligation Acceleration 
25Bonds authorized in subsection (c-5) of Section 801-40 of the 
26Illinois Finance Authority Act. 

 
 
10000SB0011sam002- 98 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/14-152.1)
2 (Text of Section WITHOUT the changes made by P.A. 98-599, 
3which has been held unconstitutional)

4 Sec. 14-152.1. Application and expiration of new benefit 
5increases.
6 (a) As used in this Section, "new benefit increase" means 
7an increase in the amount of any benefit provided under this 
8Article, or an expansion of the conditions of eligibility for 
9any benefit under this Article, that results from an amendment 
10to this Code that takes effect after June 1, 2005 (the 
11effective date of Public Act 94-4). "New benefit increase", 
12however, does not include any benefit increase resulting from 
13the changes made to this Article by Public Act 96-37 or by this 
14amendatory Act of the 100th General Assembly this amendatory 
15Act of the 96th General Assembly.

16 (b) Notwithstanding any other provision of this Code or any 
17subsequent amendment to this Code, every new benefit increase 
18is subject to this Section and shall be deemed to be granted 
19only in conformance with and contingent upon compliance with 
20the provisions of this Section.

21 (c) The Public Act enacting a new benefit increase must 
22identify and provide for payment to the System of additional 
23funding at least sufficient to fund the resulting annual 
24increase in cost to the System as it accrues.
25 Every new benefit increase is contingent upon the General 
 
 
10000SB0011sam002- 99 -LRB100 06001 RPS 18499 a


1Assembly providing the additional funding required under this 
2subsection. The Commission on Government Forecasting and 
3Accountability shall analyze whether adequate additional 
4funding has been provided for the new benefit increase and 
5shall report its analysis to the Public Pension Division of the 
6Department of Financial and Professional Regulation. A new 
7benefit increase created by a Public Act that does not include 
8the additional funding required under this subsection is null 
9and void. If the Public Pension Division determines that the 
10additional funding provided for a new benefit increase under 
11this subsection is or has become inadequate, it may so certify 
12to the Governor and the State Comptroller and, in the absence 
13of corrective action by the General Assembly, the new benefit 
14increase shall expire at the end of the fiscal year in which 
15the certification is made.

16 (d) Every new benefit increase shall expire 5 years after 
17its effective date or on such earlier date as may be specified 
18in the language enacting the new benefit increase or provided 
19under subsection (c). This does not prevent the General 
20Assembly from extending or re-creating a new benefit increase 
21by law.
22 (e) Except as otherwise provided in the language creating 
23the new benefit increase, a new benefit increase that expires 
24under this Section continues to apply to persons who applied 
25and qualified for the affected benefit while the new benefit 
26increase was in effect and to the affected beneficiaries and 
 
 
10000SB0011sam002- 100 -LRB100 06001 RPS 18499 a


1alternate payees of such persons, but does not apply to any 
2other person, including without limitation a person who 
3continues in service after the expiration date and did not 
4apply and qualify for the affected benefit while the new 
5benefit increase was in effect.

6(Source: P.A. 96-37, eff. 7-13-09.)

7 (40 ILCS 5/15-108.1)
8 Sec. 15-108.1. Tier 1 member; Tier 1 employee. 
9 "Tier 1 member": A participant or an annuitant of a 
10retirement annuity under this Article, other than a participant 
11in the self-managed plan under Section 15-158.2, who first 
12became a participant or member before January 1, 2011 under any 
13reciprocal retirement system or pension fund established under 
14this Code, other than a retirement system or pension fund 
15established under Articles 2, 3, 4, 5, 6, or 18 of this Code. 
16"Tier 1 member" includes a person who first became a 
17participant under this System before January 1, 2011 and who 
18accepts a refund and is subsequently reemployed by an employer 
19on or after January 1, 2011.

20 "Tier 1 employee": An employee under this Article, other 
21than a participant in the self-managed plan under Section 
2215-158.2, who first became a member or participant before 
23January 1, 2011 under any reciprocal retirement system or 
24pension fund established under this Code other than a 
25retirement system or pension fund established under Article 2, 
 
 
10000SB0011sam002- 101 -LRB100 06001 RPS 18499 a


13, 4, 5, 6, or 18 of this Code. However, for the purposes of the 
2election under Section 15-132.9, "Tier 1 employee" does not 
3include a participant under this Article who would qualify as a 
4Tier 1 employee but who has made an irrevocable election on or 
5before June 1, 2017 to retire from service pursuant to the 
6terms of a collective bargaining agreement in effect on June 1, 
72017, excluding any extension, amendment, or renewal of that 
8agreement on or after that date, and has notified the System of 
9that election.
10(Source: P.A. 98-92, eff. 7-16-13.)



11 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)



12 Sec. 15-111. Earnings. 

13 (a) "Earnings": Subject to Section 15-111.5, an amount paid 
14for personal services equal to the sum of
the basic 
15compensation plus extra compensation for summer teaching,

16overtime or other extra service. For periods for which an 
17employee receives
service credit under subsection (c) of 
18Section 15-113.1 or Section 15-113.2,
earnings are equal to the 
19basic compensation on which contributions are
paid by the 
20employee during such periods. Compensation for employment 
21which is
irregular, intermittent and temporary shall not be 
22considered earnings, unless
the participant is also receiving 
23earnings from the employer as an employee
under Section 15-107.

24 With respect to transition pay paid by the University of 
25Illinois to a
person who was a participating employee employed 
 
 
10000SB0011sam002- 102 -LRB100 06001 RPS 18499 a


1in the fire department of
the University of Illinois's 
2Champaign-Urbana campus immediately prior to
the elimination 
3of that fire department:


4  (1) "Earnings" includes transition pay paid to the 
5 employee on or after
the effective date of this amendatory 
6 Act of the 91st General Assembly.


7  (2) "Earnings" includes transition pay paid to the 
8 employee before the
effective date of this amendatory Act 
9 of the 91st General Assembly only if (i)
employee 
10 contributions under Section 15-157 have been withheld from 
11 that
transition pay or (ii) the employee pays to the System 
12 before January 1, 2001
an amount representing employee 
13 contributions under Section 15-157 on that
transition pay. 
14 Employee contributions under item (ii) may be paid in a 
15 lump
sum, by withholding from additional transition pay 
16 accruing before January 1,
2001, or in any other manner 
17 approved by the System. Upon payment of the
employee 
18 contributions on transition pay, the corresponding 
19 employer
contributions become an obligation of the State.

20 (a-5) Notwithstanding any other provision of this Section, 
21"earnings" does not include any future increase in income that 
22is offered for service by an employer to a Tier 1 employee 
23under this Article pursuant to the condition set forth in 
24subsection (c) of Section 15-132.9 and accepted under that 
25condition by a Tier 1 employee who has made the election under 
26paragraph (2) of subsection (a) of Section 15-132.9. 
 
 
10000SB0011sam002- 103 -LRB100 06001 RPS 18499 a


1 (a-10) Notwithstanding any other provision of this 
2Section, "earnings" does not include any consideration payment 
3made to a Tier 1 employee. 
4 (b) For a Tier 2 member, the annual earnings shall not 
5exceed $106,800; however, that amount shall annually 
6thereafter be increased by the lesser of (i) 3% of that amount, 
7including all previous adjustments, or (ii) one half the annual 
8unadjusted percentage increase (but not less than zero) in the 
9consumer price index-u for the 12 months ending with the 
10September preceding each November 1, including all previous 
11adjustments. 
12 For the purposes of this Section, "consumer price index u" 
13means the index published by the Bureau of Labor Statistics of 
14the United States Department of Labor that measures the average 
15change in prices of goods and services purchased by all urban 
16consumers, United States city average, all items, 1982-84 = 
17100. The new amount resulting from each annual adjustment shall 
18be determined by the Public Pension Division of the Department 
19of Insurance and made available to the boards of the retirement 
20systems and pension funds by November 1 of each year. 
21 (c) With each submission of payroll information in the 
22manner prescribed by the System, the
employer shall certify 
23that the payroll information is correct and complies with all 
24applicable
State and federal laws.
25(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)


 
 
10000SB0011sam002- 104 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/15-112.1 new)
2 Sec. 15-112.1. Future increase in income. "Future increase 
3in income" means an increase in income in any form offered by 
4an employer to a Tier 1 employee for service under this Article 
5after June 30, 2018 that qualifies as "earnings", as defined in 
6Section 15-111, or would qualify as "earnings" but for the fact 
7that it was offered to and accepted by a Tier 1 employee under 
8the condition set forth in subsection (c) of Section 15-132.9. 
9The term "future increase in income" does not include an 
10increase in income in any form that is paid to a Tier 1 
11employee under an employment contract or a collective 
12bargaining agreement that is in effect on the effective date of 
13this Section, but does include an increase in income in any 
14form pursuant to an extension, amendment, or renewal of any 
15such employment contract or collective bargaining agreement on 
16or after the effective date of this Section.

17 (40 ILCS 5/15-132.9 new)
18 Sec. 15-132.9. Election by Tier 1 employees.
19 (a) Each active Tier 1 employee shall make an irrevocable 
20election either: 
21  (1) to agree to delay his or her eligibility for 
22 automatic annual increases in retirement annuity as 
23 provided in subsection (d-1) of Section 15-136 and to have 
24 the amount of the automatic annual increases in his or her 
25 retirement annuity and survivor annuity that are otherwise 
 
 
10000SB0011sam002- 105 -LRB100 06001 RPS 18499 a


1 provided for in this Article calculated, instead, as 
2 provided in subsection (d-1) of Section 15-136; or
3  (2) to not agree to the provisions of paragraph (1) of 
4 this subsection. 
5 The election required under this subsection (a) shall be 
6made by each active Tier 1 employee no earlier than January 1, 
72018 and no later than March 31, 2018, except that:
8  (i) a person who becomes a Tier 1 employee under this 
9 Article on or after January 1, 2018 must make the election 
10 under this subsection (a) within 60 days after becoming a 
11 Tier 1 employee; and
12  (ii) a person who returns to active service as a Tier 1 
13 employee under this Article on or after January 1, 2018 and 
14 has not yet made an election under this Section must make 
15 the election under this subsection (a) within 60 days after 
16 returning to active service as a Tier 1 employee.
17 If a Tier 1 employee fails for any reason to make a 
18required election under this subsection within the time 
19specified, then the employee shall be deemed to have made the 
20election under paragraph (2) of this subsection. 
21 (a-5) If this Section is enjoined or stayed by an Illinois 
22court or a court of competent jurisdiction pending the entry of 
23a final and unappealable decision, and this Section is 
24determined to be constitutional or otherwise valid by a final 
25unappealable decision of an Illinois court or a court of 
26competent jurisdiction, then the election procedure set forth 
 
 
10000SB0011sam002- 106 -LRB100 06001 RPS 18499 a


1in subsection (a) of this Section shall commence on the 180th 
2calendar day after the date of the issuance of the final 
3unappealable decision and shall conclude at the end of the 
4270th calendar day after that date. 
5 (a-10) All elections under subsection (a) that are made or 
6deemed to be made before July 1, 2018 shall take effect on July 
71, 2018. Elections that are made or deemed to be made on or 
8after July 1, 2018 shall take effect on the first day of the 
9month following the month in which the election is made or 
10deemed to be made. 
11 (b) As adequate and legal consideration provided under this 
12amendatory Act of the 100th General Assembly for making an 
13election under paragraph (1) of subsection (a) of this Section, 
14the employer shall be expressly and irrevocably prohibited from 
15offering any future increases in income to a Tier 1 employee 
16who has made an election under paragraph (1) of subsection (a) 
17of this Section on the condition of not constituting earnings 
18under Section 15-111.
19 As adequate and legal consideration provided under this 
20amendatory Act of the 100th General Assembly for making an 
21election under paragraph (1) of subsection (a) of this Section, 
22each Tier 1 employee who has made an election under paragraph 
23(1) of subsection (a) of this Section shall receive a 
24consideration payment equal to 10% of the contributions made by 
25or on behalf of the employee under Section 15-157 before the 
26effective date of that election. The State Comptroller shall 
 
 
10000SB0011sam002- 107 -LRB100 06001 RPS 18499 a


1pay the consideration payment to the Tier 1 employee out of 
2funds appropriated for that purpose under Section 1.9 of the 
3State Pension Funds Continuing Appropriation Act. The System 
4shall calculate the amount of each consideration payment and 
5shall certify to the State Comptroller the amount of the 
6consideration payment, together with the name, address, and any 
7other available payment information of the Tier 1 employee as 
8found in the records of the System. 
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 an employer 
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 employer expressly and irrevocably on 
16the condition of not constituting earnings under Section 15-111 
17and that the Tier 1 employee's acceptance of the offered future 
18increase in income shall constitute his or her agreement to 
19that 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 
 
 
10000SB0011sam002- 108 -LRB100 06001 RPS 18499 a


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 
 
 
10000SB0011sam002- 109 -LRB100 06001 RPS 18499 a


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, an employer 
6under this Article is required to offer each future increase in 
7income expressly and irrevocably on the condition of not 
8constituting "earnings" under Section 15-111 to any Tier 1 
9employee who has made an election under paragraph (2) of 
10subsection (a) of this Section. The offer shall also provide 
11that the Tier 1 employee's acceptance of the offered future 
12increase in income shall constitute his or her agreement to the 
13condition 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. 
24 (h) If an election created by this amendatory Act in any 
25other Article of this Code or any change deriving from that 
26election is determined to be unconstitutional or otherwise 
 
 
10000SB0011sam002- 110 -LRB100 06001 RPS 18499 a


1invalid by a final unappealable decision of an Illinois court 
2or a court of competent jurisdiction, the invalidity of that 
3provision shall not in any way affect the validity of this 
4Section or the changes deriving from the election required 
5under this Section. 



6 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)


7 (Text of Section WITHOUT the changes made by P.A. 98-599, 
8which has been held unconstitutional)

9 Sec. 15-136. Retirement annuities - Amount. The provisions 
10of this
Section 15-136 apply only to those participants who are 
11participating in the
traditional benefit package or the 
12portable benefit package and do not
apply to participants who 
13are participating in the self-managed plan.

14 (a) The amount of a participant's retirement annuity, 
15expressed in the form
of a single-life annuity, shall be 
16determined by whichever of the following
rules is applicable 
17and provides the largest annuity:

18 Rule 1: The retirement annuity shall be 1.67% of final rate 
19of earnings for
each of the first 10 years of service, 1.90% 
20for each of the next 10 years of
service, 2.10% for each year 
21of service in excess of 20 but not exceeding 30,
and 2.30% for 
22each year in excess of 30; or for persons who retire on or

23after January 1, 1998, 2.2% of the final rate of earnings for 
24each year of
service.

25 Rule 2: The retirement annuity shall be the sum of the 
 
 
10000SB0011sam002- 111 -LRB100 06001 RPS 18499 a


1following,
determined from amounts credited to the participant 
2in accordance with the
actuarial tables and the effective rate 
3of interest in effect at the
time the retirement annuity 
4begins:


5  (i) the normal annuity which can be provided on an 
6 actuarially
equivalent basis, by the accumulated normal 
7 contributions as of
the date the annuity begins;


8  (ii) an annuity from employer contributions of an 
9 amount equal to that
which can be provided on an 
10 actuarially equivalent basis from the accumulated
normal 
11 contributions made by the participant under Section 
12 15-113.6 and Section
15-113.7 plus 1.4 times all other 
13 accumulated normal contributions made by
the participant; 
14 and


15  (iii) the annuity that can be provided on an 
16 actuarially equivalent basis
from the entire contribution 
17 made by the participant under Section 15-113.3.

18 With respect to a police officer or firefighter who retires 
19on or after
August 14, 1998, the accumulated normal 
20contributions taken into account under
clauses (i) and (ii) of 
21this Rule 2 shall include the additional normal
contributions 
22made by the police officer or firefighter under Section

2315-157(a).

24 The amount of a retirement annuity calculated under this 
25Rule 2 shall
be computed solely on the basis of the 
26participant's accumulated normal
contributions, as specified 
 
 
10000SB0011sam002- 112 -LRB100 06001 RPS 18499 a


1in this Rule and defined in Section 15-116.
Neither an employee 
2or employer contribution for early retirement under
Section 
315-136.2 nor any other employer contribution shall be used in 
4the
calculation of the amount of a retirement annuity under 
5this Rule 2.

6 This amendatory Act of the 91st General Assembly is a 
7clarification of
existing law and applies to every participant 
8and annuitant without regard to
whether status as an employee 
9terminates before the effective date of this
amendatory Act.

10 This Rule 2 does not apply to a person who first becomes an 
11employee under this Article on or after July 1, 2005.

12 Rule 3: The retirement annuity of a participant who is 
13employed
at least one-half time during the period on which his 
14or her final rate of
earnings is based, shall be equal to the 
15participant's years of service
not to exceed 30, multiplied by 
16(1) $96 if the participant's final rate
of earnings is less 
17than $3,500, (2) $108 if the final rate of earnings is
at least 
18$3,500 but less than $4,500, (3) $120 if the final rate of 
19earnings
is at least $4,500 but less than $5,500, (4) $132 if 
20the final rate
of earnings is at least $5,500 but less than 
21$6,500, (5)
$144 if the final rate of earnings is at least 
22$6,500 but less than
$7,500, (6) $156 if the final rate of 
23earnings is at least $7,500 but less
than $8,500, (7) $168 if 
24the final rate of earnings is at least $8,500 but
less than 
25$9,500, and (8) $180 if the final rate of earnings is $9,500 or

26more, except that the annuity for those persons having made an 
 
 
10000SB0011sam002- 113 -LRB100 06001 RPS 18499 a


1election under
Section 15-154(a-1) shall be calculated and 
2payable under the portable
retirement benefit program pursuant 
3to the provisions of Section 15-136.4.

4 Rule 4: A participant who is at least age 50 and has 25 or 
5more years of
service as a police officer or firefighter, and a 
6participant who is age 55 or
over and has at least 20 but less 
7than 25 years of service as a police officer
or firefighter, 
8shall be entitled to a retirement annuity of 2 1/4% of the

9final rate of earnings for each of the first 10 years of 
10service as a police
officer or firefighter, 2 1/2% for each of 
11the next 10 years of service as a
police officer or 
12firefighter, and 2 3/4% for each year of service as a police

13officer or firefighter in excess of 20. The retirement annuity 
14for all other
service shall be computed under Rule 1. A Tier 2 
15member is eligible for a retirement annuity calculated under 
16Rule 4 only if that Tier 2 member meets the service 
17requirements for that benefit calculation as prescribed under 
18this Rule 4 in addition to the applicable age requirement under 
19subsection (a-5) of Section 15-135.

20 For purposes of this Rule 4, a participant's service as a 
21firefighter
shall also include the following:


22  (i) service that is performed while the person is an 
23 employee under
subsection (h) of Section 15-107; and


24  (ii) in the case of an individual who was a 
25 participating employee
employed in the fire department of 
26 the University of Illinois's
Champaign-Urbana campus 
 
 
10000SB0011sam002- 114 -LRB100 06001 RPS 18499 a


1 immediately prior to the elimination of that fire

2 department and who immediately after the elimination of 
3 that fire department
transferred to another job with the 
4 University of Illinois, service performed
as an employee of 
5 the University of Illinois in a position other than police

6 officer or firefighter, from the date of that transfer 
7 until the employee's
next termination of service with the 
8 University of Illinois.

9 (b) For a Tier 1 member, the retirement annuity provided 
10under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each 
11month the participant is under age 60 at the
time of 
12retirement. However, this reduction shall not apply in the 
13following
cases:


14  (1) For a disabled participant whose disability 
15 benefits have been
discontinued because he or she has 
16 exhausted eligibility for disability
benefits under clause 
17 (6) of Section 15-152;


18  (2) For a participant who has at least the number of 
19 years of service
required to retire at any age under 
20 subsection (a) of Section 15-135; or


21  (3) For that portion of a retirement annuity which has 
22 been provided on
account of service of the participant 
23 during periods when he or she performed
the duties of a 
24 police officer or firefighter, if these duties were 
25 performed
for at least 5 years immediately preceding the 
26 date the retirement annuity
is to begin.

 
 
10000SB0011sam002- 115 -LRB100 06001 RPS 18499 a


1 (b-5) The retirement annuity of a Tier 2 member who is 
2retiring after attaining age 62 with at least 10 years of 
3service credit shall be reduced by 1/2 of 1% for each full 
4month that the member's age is under age 67. 
5 (c) The maximum retirement annuity provided under Rules 1, 
62, 4,
and 5
shall be the lesser of (1) the annual limit of 
7benefits as specified in
Section 415 of the Internal Revenue 
8Code of 1986, as such Section may be
amended from time to time 
9and as such benefit limits shall be adjusted by
the 
10Commissioner of Internal Revenue, and (2) 80% of final rate of

11earnings.

12 (d) Subject to the provisions of subsection (d-1), a A Tier 
131 member whose status as an employee terminates after August 
1414,
1969 shall receive automatic increases in his or her 
15retirement annuity as
follows:

16 Effective January 1 immediately following the date the 
17retirement annuity
begins, the annuitant shall receive an 
18increase in his or her monthly
retirement annuity of 0.125% of 
19the monthly retirement annuity provided under
Rule 1, Rule 2, 
20Rule 3, or Rule 4 contained in this
Section, multiplied by
the 
21number of full months which elapsed from the date the 
22retirement annuity
payments began to January 1, 1972, plus 
230.1667% of such annuity, multiplied by
the number of full 
24months which elapsed from January 1, 1972, or the date the

25retirement annuity payments began, whichever is later, to 
26January 1, 1978, plus
0.25% of such annuity multiplied by the 
 
 
10000SB0011sam002- 116 -LRB100 06001 RPS 18499 a


1number of full months which elapsed
from January 1, 1978, or 
2the date the retirement annuity payments began,
whichever is 
3later, to the effective date of the increase.

4 The annuitant shall receive an increase in his or her 
5monthly retirement
annuity on each January 1 thereafter during 
6the annuitant's life of 3% of
the monthly annuity provided 
7under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this 
8Section. The change made under this subsection by P.A. 81-970 
9is
effective January 1, 1980 and applies to each annuitant 
10whose status as
an employee terminates before or after that 
11date.

12 Beginning January 1, 1990, and except as provided in 
13subsection (d-1), all automatic annual increases payable under

14this Section shall be calculated as a percentage of the total 
15annuity
payable at the time of the increase, including all 
16increases previously
granted under this Article.

17 The change made in this subsection by P.A. 85-1008 is 
18effective January
26, 1988, and is applicable without regard to 
19whether status as an employee
terminated before that date.

20 (d-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 15-132.9:
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 
 
 
10000SB0011sam002- 117 -LRB100 06001 RPS 18499 a


1 earlier.
2  (2) The amount of each automatic annual increase in 
3 retirement annuity or survivor annuity 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 annuity, 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 (d-5) A retirement annuity of a Tier 2 member shall receive 
25annual increases on the January 1 occurring either on or after 
26the attainment of age 67 or the first anniversary of the 
 
 
10000SB0011sam002- 118 -LRB100 06001 RPS 18499 a


1annuity start date, whichever is later. Each annual increase 
2shall be calculated at 3% or one half the annual unadjusted 
3percentage increase (but not less than zero) in the consumer 
4price index-u for the 12 months ending with the September 
5preceding each November 1, whichever is less, of the originally 
6granted retirement annuity. If the annual unadjusted 
7percentage change in the consumer price index-u for the 12 
8months ending with the September preceding each November 1 is 
9zero or there is a decrease, then the annuity shall not be 
10increased. 
11 (e) If, on January 1, 1987, or the date the retirement 
12annuity payment
period begins, whichever is later, the sum of 
13the retirement annuity
provided under Rule 1 or Rule 2 of this 
14Section
and the automatic annual increases provided under the 
15preceding subsection
or Section 15-136.1, amounts to less than 
16the retirement
annuity which would be provided by Rule 3, the 
17retirement
annuity shall be increased as of January 1, 1987, or 
18the date the
retirement annuity payment period begins, 
19whichever is later, to the amount
which would be provided by 
20Rule 3 of this Section. Such increased
amount shall be 
21considered as the retirement annuity in determining
benefits 
22provided under other Sections of this Article. This paragraph

23applies without regard to whether status as an employee 
24terminated before the
effective date of this amendatory Act of 
251987, provided that the annuitant was
employed at least 
26one-half time during the period on which the final rate of

 
 
10000SB0011sam002- 119 -LRB100 06001 RPS 18499 a


1earnings was based.

2 (f) A participant is entitled to such additional annuity as 
3may be provided
on an actuarially equivalent basis, by any 
4accumulated
additional contributions to his or her credit. 
5However,
the additional contributions made by the participant 
6toward the automatic
increases in annuity provided under this 
7Section shall not be taken into
account in determining the 
8amount of such additional annuity.

9 (g) If, (1) by law, a function of a governmental unit, as 
10defined by Section
20-107 of this Code, is transferred in whole 
11or in part to an employer, and (2)
a participant transfers 
12employment from such governmental unit to such employer
within 
136 months after the transfer of the function, and (3) the sum of 
14(A) the
annuity payable to the participant under Rule 1, 2, or 
153 of this Section (B)
all proportional annuities payable to the 
16participant by all other retirement
systems covered by Article 
1720, and (C) the initial primary insurance amount to
which the 
18participant is entitled under the Social Security Act, is less 
19than
the retirement annuity which would have been payable if 
20all of the
participant's pension credits validated under 
21Section 20-109 had been validated
under this system, a 
22supplemental annuity equal to the difference in such
amounts 
23shall be payable to the participant.

24 (h) On January 1, 1981, an annuitant who was receiving
a 
25retirement annuity on or before January 1, 1971 shall have his 
26or her
retirement annuity then being paid increased $1 per 
 
 
10000SB0011sam002- 120 -LRB100 06001 RPS 18499 a


1month for
each year of creditable service. On January 1, 1982, 
2an annuitant whose
retirement annuity began on or before 
3January 1, 1977, shall have his or her
retirement annuity then 
4being paid increased $1 per month for each year of
creditable 
5service.

6 (i) On January 1, 1987, any annuitant whose retirement 
7annuity began on or
before January 1, 1977, shall have the 
8monthly retirement annuity increased by
an amount equal to 8¢ 
9per year of creditable service times the number of years
that 
10have elapsed since the annuity began.

11(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; 
1298-92, eff. 7-16-13.)




13 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)


14 Sec. 15-155. Employer contributions. 

15 (a) The State of Illinois shall make contributions by 
16appropriations of
amounts which, together with the other 
17employer contributions from trust,
federal, and other funds, 
18employee contributions, income from investments,
and other 
19income of this System, will be sufficient to meet the cost of

20maintaining and administering the System on a 90% funded basis 
21in accordance
with actuarial recommendations.

22 The Board shall determine the amount of State contributions 
23required for
each fiscal year on the basis of the actuarial 
24tables and other assumptions
adopted by the Board and the 
25recommendations of the actuary, using the formula
in subsection 
 
 
10000SB0011sam002- 121 -LRB100 06001 RPS 18499 a


1(a-1).

2 (a-1) For State fiscal years 2018 through 2045 (except as 
3otherwise provided for fiscal year 2019), the minimum 
4contribution to the System to be made by the State for each 
5fiscal year shall be an amount determined by the System to be 
6sufficient to bring the total assets of the System up to 90% of 
7the total actuarial liabilities of the System by the end of 
8State fiscal year 2045. In making these determinations, the 
9required State contribution shall be calculated each year as a 
10level percentage of total payroll, including payroll that is 
11not deemed pensionable, but excluding payroll attributable to 
12participants in the defined contribution plan under Section 
1315-200.1, over the years remaining to and including fiscal year 
142045 and shall be determined under the projected unit credit 
15actuarial cost method.
16 For State fiscal year 2019:
17  (1) The initial calculation and certification shall be 
18 based on the amount determined above.
19  (2) For purposes of the recertification due on or 
20 before May 1, 2018, the recalculation of the required State 
21 contribution for fiscal year 2019 shall take into account 
22 the effect on the System's liabilities of the elections 
23 made under Section 15-132.9.
24  (3) For purposes of the recertification due on or 
25 before October 1, 2018, the total required State 
26 contribution for fiscal year 2019 shall be reduced by the 
 
 
10000SB0011sam002- 122 -LRB100 06001 RPS 18499 a


1 amount of the consideration payments made to Tier 1 
2 employees who made the election under paragraph (1) of 
3 subsection (a) of Section 15-132.9.
4 Beginning in State fiscal year 2018, any increase or

5decrease in State contribution over the prior fiscal year due

6exclusively to changes in actuarial or investment assumptions

7adopted by the Board shall be included in the State

8contribution to the System, as a percentage of the applicable

9employee payroll, and shall be increased in equal annual

10increments so that by the State fiscal year occurring 5 years

11after the adoption of the actuarial or investment assumptions,

12the State is contributing at the rate otherwise required under

13this Section. 
14 For State fiscal years 2012 through 2017 2045, the minimum 
15contribution
to the System to be made by the State for each 
16fiscal year shall be an amount
determined by the System to be 
17sufficient to bring the total assets of the
System up to 90% of 
18the total actuarial liabilities of the System by the end of

19State fiscal year 2045. In making these determinations, the 
20required State
contribution shall be calculated each year as a 
21level percentage of payroll
over the years remaining to and 
22including fiscal year 2045 and shall be
determined under the 
23projected unit credit actuarial cost method.

24 For State fiscal years 1996 through 2005, the State 
25contribution to
the System, as a percentage of the applicable 
26employee payroll, shall be
increased in equal annual increments 
 
 
10000SB0011sam002- 123 -LRB100 06001 RPS 18499 a


1so that by State fiscal year 2011, the
State is contributing at 
2the rate required under this Section.

3 Notwithstanding any other provision of this Article, the 
4total required State
contribution for State fiscal year 2006 is 
5$166,641,900.

6 Notwithstanding any other provision of this Article, the 
7total required State
contribution for State fiscal year 2007 is 
8$252,064,100.

9 For each of State fiscal years 2008 through 2009, the State 
10contribution to
the System, as a percentage of the applicable 
11employee payroll, shall be
increased in equal annual increments 
12from the required State contribution for State fiscal year 
132007, so that by State fiscal year 2011, the
State is 
14contributing at the rate otherwise required under this Section.

15 Notwithstanding any other provision of this Article, the 
16total required State contribution for State fiscal year 2010 is 
17$702,514,000 and shall be made from the State Pensions Fund and 
18proceeds of bonds sold in fiscal year 2010 pursuant to Section 
197.2 of the General Obligation Bond Act, less (i) the pro rata 
20share of bond sale expenses determined by the System's share of 
21total bond proceeds, (ii) any amounts received from the General 
22Revenue Fund in fiscal year 2010, (iii) any reduction in bond 
23proceeds due to the issuance of discounted bonds, if 
24applicable. 
25 Notwithstanding any other provision of this Article, the

26total required State contribution for State fiscal year 2011 is

 
 
10000SB0011sam002- 124 -LRB100 06001 RPS 18499 a


1the amount recertified by the System on or before April 1, 2011 
2pursuant to Section 15-165 and shall be made from the State 
3Pensions Fund and
proceeds of bonds sold in fiscal year 2011 
4pursuant to Section
7.2 of the General Obligation Bond Act, 
5less (i) the pro rata
share of bond sale expenses determined by 
6the System's share of
total bond proceeds, (ii) any amounts 
7received from the General
Revenue Fund in fiscal year 2011, and 
8(iii) any reduction in bond
proceeds due to the issuance of 
9discounted bonds, if
applicable. 
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 
 
 
10000SB0011sam002- 125 -LRB100 06001 RPS 18499 a


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 Section 15-165, 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 (b) If an employee is paid from trust or federal funds, the 
26employer
shall pay to the Board contributions from those funds 
 
 
10000SB0011sam002- 126 -LRB100 06001 RPS 18499 a


1which are
sufficient to cover the accruing normal costs on 
2behalf of the employee.
However, universities having employees 
3who are compensated out of local
auxiliary funds, income funds, 
4or service enterprise funds are not required
to pay such 
5contributions on behalf of those employees. The local auxiliary

6funds, income funds, and service enterprise funds of 
7universities shall not be
considered trust funds for the 
8purpose of this Article, but funds of alumni
associations, 
9foundations, and athletic associations which are affiliated 
10with
the universities included as employers under this Article 
11and other employers
which do not receive State appropriations 
12are considered to be trust funds for
the purpose of this 
13Article.

14 (b-1) The City of Urbana and the City of Champaign shall 
15each make
employer contributions to this System for their 
16respective firefighter
employees who participate in this 
17System pursuant to subsection (h) of Section
15-107. The rate 
18of contributions to be made by those municipalities shall
be 
19determined annually by the Board on the basis of the actuarial 
20assumptions
adopted by the Board and the recommendations of the 
21actuary, and shall be
expressed as a percentage of salary for 
22each such employee. The Board shall
certify the rate to the 
23affected municipalities as soon as may be practical.
The 
24employer contributions required under this subsection shall be 
25remitted by
the municipality to the System at the same time and 
26in the same manner as
employee contributions.

 
 
10000SB0011sam002- 127 -LRB100 06001 RPS 18499 a


1 (c) Through State fiscal year 1995: The total employer 
2contribution shall
be apportioned among the various funds of 
3the State and other employers,
whether trust, federal, or other 
4funds, in accordance with actuarial procedures
approved by the 
5Board. State of Illinois contributions for employers receiving

6State appropriations for personal services shall be payable 
7from appropriations
made to the employers or to the System. The 
8contributions for Class I
community colleges covering earnings 
9other than those paid from trust and
federal funds, shall be 
10payable solely from appropriations to the Illinois
Community 
11College Board or the System for employer contributions.

12 (d) Beginning in State fiscal year 1996, the required State 
13contributions
to the System shall be appropriated directly to 
14the System and shall be payable
through vouchers issued in 
15accordance with subsection (c) of Section 15-165, except as 
16provided in subsection (g).

17 (e) The State Comptroller shall draw warrants payable to 
18the System upon
proper certification by the System or by the 
19employer in accordance with the
appropriation laws and this 
20Code.

21 (f) Normal costs under this Section means liability for

22pensions and other benefits which accrues to the System because 
23of the
credits earned for service rendered by the participants 
24during the
fiscal year and expenses of administering the 
25System, but shall not
include the principal of or any 
26redemption premium or interest on any bonds
issued by the Board 
 
 
10000SB0011sam002- 128 -LRB100 06001 RPS 18499 a


1or any expenses incurred or deposits required in
connection 
2therewith.

3 (g) For academic years beginning on or after June 1, 2005 
4and before July 1, 2018, if If the amount of a participant's 
5earnings for any academic year used to determine the final rate 
6of earnings, determined on a full-time equivalent basis, 
7exceeds the amount of his or her earnings with the same 
8employer for the previous academic year, determined on a 
9full-time equivalent basis, by more than 6%, the participant's 
10employer shall pay to the System, in addition to all other 
11payments required under this Section and in accordance with 
12guidelines established by the System, the present value of the 
13increase in benefits resulting from the portion of the increase 
14in earnings that is in excess of 6%. This present value shall 
15be computed by the System on the basis of the actuarial 
16assumptions and tables used in the most recent actuarial 
17valuation of the System that is available at the time of the 
18computation. The System may require the employer to provide any 
19pertinent information or documentation.
20 Whenever it determines that a payment is or may be required 
21under this subsection (g), the System shall calculate the 
22amount of the payment and bill the employer for that amount. 
23The bill shall specify the calculations used to determine the 
24amount due. If the employer disputes the amount of the bill, it 
25may, within 30 days after receipt of the bill, apply to the 
26System in writing for a recalculation. The application must 
 
 
10000SB0011sam002- 129 -LRB100 06001 RPS 18499 a


1specify in detail the grounds of the dispute and, if the 
2employer asserts that the calculation is subject to subsection 
3(h) or (i) of this Section, must include an affidavit setting 
4forth and attesting to all facts within the employer's 
5knowledge that are pertinent to the applicability of subsection 
6(h) or (i). Upon receiving a timely application for 
7recalculation, the System shall review the application and, if 
8appropriate, recalculate the amount due.

9 The employer contributions required under this subsection 
10(g) may be paid in the form of a lump sum within 90 days after 
11receipt of the bill. If the employer contributions are not paid 
12within 90 days after receipt of the bill, then interest will be 
13charged at a rate equal to the System's annual actuarially 
14assumed rate of return on investment compounded annually from 
15the 91st day after receipt of the bill. Payments must be 
16concluded within 3 years after the employer's receipt of the 
17bill.
18 When assessing payment for any amount due under this 
19subsection (g), the System shall include earnings, to the 
20extent not established by a participant under Section 15-113.11 
21or 15-113.12, that would have been paid to the participant had 
22the participant not taken (i) periods of voluntary or 
23involuntary furlough occurring on or after July 1, 2015 and on 
24or before June 30, 2017 or (ii) periods of voluntary pay 
25reduction in lieu of furlough occurring on or after July 1, 
262015 and on or before June 30, 2017. Determining earnings that 
 
 
10000SB0011sam002- 130 -LRB100 06001 RPS 18499 a


1would have been paid to a participant had the participant not 
2taken periods of voluntary or involuntary furlough or periods 
3of voluntary pay reduction shall be the responsibility of the 
4employer, and shall be reported in a manner prescribed by the 
5System.
6 (g-1) For academic years beginning on or after July 1, 
72018, if the amount of a participant's earnings for any 
8academic year used to determine the final rate of earnings, 
9determined on a full-time equivalent basis, exceeds the amount 
10of his or her earnings with the same employer for the previous 
11academic year, determined on a full-time equivalent basis, by 
12more than the unadjusted percentage increase in the consumer 
13price index-u for the calendar year ending on the December 31 
14immediately preceding the beginning of the academic year, then 
15the participant's employer shall pay to the System, in addition 
16to all other payments required under this Section and in 
17accordance with guidelines established by the System, the 
18present value of the increase in benefits resulting from the 
19portion of the increase in earnings that is in excess of the 
20unadjusted percentage increase in the consumer price index-u 
21for the applicable calendar year. This present value shall be 
22computed by the System on the basis of the actuarial 
23assumptions and tables used in the most recent actuarial 
24valuation of the System that is available at the time of the 
25computation. The System may require the employer to provide any 
26pertinent information or documentation. 
 
 
10000SB0011sam002- 131 -LRB100 06001 RPS 18499 a


1 Whenever it determines that a payment is or may be required 
2under this subsection (g-1), the System shall calculate the 
3amount of the payment and bill the employer for that amount. 
4The bill shall specify the calculations used to determine the 
5amount due. If the employer disputes the amount of the bill, it 
6may, within 30 days after receipt of the bill, apply to the 
7System in writing for a recalculation. The application must 
8specify in detail the grounds of the dispute and, if the 
9employer asserts that the calculation is subject to subsection 
10(i-1) of this Section, must include an affidavit setting forth 
11and attesting to all facts within the employer's knowledge that 
12are pertinent to the applicability of subsection (i-1). Upon 
13receiving a timely application for recalculation, the System 
14shall review the application and, if appropriate, recalculate 
15the amount due. 
16 The employer contributions required under this subsection 
17(g-1) may be paid in the form of a lump sum within 90 days after 
18receipt of the bill. If the employer contributions are not paid 
19within 90 days after receipt of the bill, then interest shall 
20be charged at a rate equal to the System's annual actuarially 
21assumed rate of return on investment compounded annually from 
22the 91st day after receipt of the bill. Payments must be 
23concluded within 3 years after the employer's receipt of the 
24bill.
25 For the purposes of this Section, "consumer price index-u" 
26means the index published by the Bureau of Labor Statistics of 
 
 
10000SB0011sam002- 132 -LRB100 06001 RPS 18499 a


1the United States Department of Labor that measures the average 
2change in prices of goods and services purchased by all urban 
3consumers, United States city average, all items, 1982-84 = 
4100. The new amount resulting from each annual adjustment shall 
5be determined by the Public Pension Division of the Department 
6of Insurance and made available to the boards of the retirement 
7systems and pension funds by November 1 of each year. 
8 (h) This subsection (h) applies only to payments made or 
9salary increases given on or after June 1, 2005 but before July 
101, 2011. The changes made by Public Act 94-1057 shall not 
11require the System to refund any payments received before July 
1231, 2006 (the effective date of Public Act 94-1057).
13 When assessing payment for any amount due under subsection 
14(g), the System shall exclude earnings increases paid to 
15participants under contracts or collective bargaining 
16agreements entered into, amended, or renewed before June 1, 
172005.

18 When assessing payment for any amount due under subsection 
19(g), the System shall exclude earnings increases paid to a 
20participant at a time when the participant is 10 or more years 
21from retirement eligibility under Section 15-135.

22 When assessing payment for any amount due under subsection 
23(g), the System shall exclude earnings increases resulting from 
24overload work, including a contract for summer teaching, or 
25overtime when the employer has certified to the System, and the 
26System has approved the certification, that: (i) in the case of 
 
 
10000SB0011sam002- 133 -LRB100 06001 RPS 18499 a


1overloads (A) the overload work is for the sole purpose of 
2academic instruction in excess of the standard number of 
3instruction hours for a full-time employee occurring during the 
4academic year that the overload is paid and (B) the earnings 
5increases are equal to or less than the rate of pay for 
6academic instruction computed using the participant's current 
7salary rate and work schedule; and (ii) in the case of 
8overtime, the overtime was necessary for the educational 
9mission.
10 When assessing payment for any amount due under subsection 
11(g), the System shall exclude any earnings increase resulting 
12from (i) a promotion for which the employee moves from one 
13classification to a higher classification under the State 
14Universities Civil Service System, (ii) a promotion in academic 
15rank for a tenured or tenure-track faculty position, or (iii) a 
16promotion that the Illinois Community College Board has 
17recommended in accordance with subsection (k) of this Section. 
18These earnings increases shall be excluded only if the 
19promotion is to a position that has existed and been filled by 
20a member for no less than one complete academic year and the 
21earnings increase as a result of the promotion is an increase 
22that results in an amount no greater than the average salary 
23paid for other similar positions.
24 (i) When assessing payment for any amount due under 
25subsection (g), the System shall exclude any salary increase 
26described in subsection (h) of this Section given on or after 
 
 
10000SB0011sam002- 134 -LRB100 06001 RPS 18499 a


1July 1, 2011 but before July 1, 2014 under a contract or 
2collective bargaining agreement entered into, amended, or 
3renewed on or after June 1, 2005 but before July 1, 2011. 
4Notwithstanding any other provision of this Section, any 
5payments made or salary increases given after June 30, 2014 
6shall be used in assessing payment for any amount due under 
7subsection (g) of this Section.

8 (i-1) When assessing payment for any amount due under 
9subsection (g-1), the System shall exclude salary increases 
10paid to participants under contracts or collective bargaining 
11agreements entered into, amended, or renewed before the 
12effective date of this amendatory Act of the 100th General 
13Assembly. 
14 (j) The System shall prepare a report and file copies of 
15the report with the Governor and the General Assembly by 
16January 1, 2007 that contains all of the following information:
17  (1) The number of recalculations required by the 
18 changes made to this Section by Public Act 94-1057 for each 
19 employer.
20  (2) The dollar amount by which each employer's 
21 contribution to the System was changed due to 
22 recalculations required by Public Act 94-1057.
23  (3) The total amount the System received from each 
24 employer as a result of the changes made to this Section by 
25 Public Act 94-4.
26  (4) The increase in the required State contribution 
 
 
10000SB0011sam002- 135 -LRB100 06001 RPS 18499 a


1 resulting from the changes made to this Section by Public 
2 Act 94-1057.
3 (j-5) For academic years beginning on or after July 1, 
42018, if the amount of a participant's earnings for any 
5academic year, determined on a full-time equivalent basis, 
6exceeds the amount of the salary set for the Governor, the 
7participant's employer shall pay to the System, in addition to 
8all other payments required under this Section and in 
9accordance with guidelines established by the System, the 
10amount of the earnings that exceed the salary set for the 
11Governor multiplied by the level percentage of payroll used in 
12that fiscal year, as determined by the System, to be sufficient 
13to bring the total assets of the System up to 90% of the total 
14actuarial liabilities of the System by the end of State fiscal 
15year 2045. This amount shall be computed by the System on the 
16basis of the actuarial assumptions and tables used in the most 
17recent actuarial valuation of the System that is available at 
18the time of the computation. The System may require the 
19employer to provide any pertinent information or 
20documentation.
21 Whenever it determines that a payment is or may be required 
22under this subsection, the System shall calculate the amount of 
23the payment and bill the employer for that amount. The bill 
24shall specify the calculations used to determine the amount 
25due. If the employer disputes the amount of the bill, it may, 
26within 30 days after receipt of the bill, apply to the System 
 
 
10000SB0011sam002- 136 -LRB100 06001 RPS 18499 a


1in writing for a recalculation. The application must specify in 
2detail the grounds of the dispute. Upon receiving a timely 
3application for recalculation, the System shall review the 
4application and, if appropriate, recalculate the amount due. 
5 The employer contributions required under this subsection 
6may be paid in the form of a lump sum within 90 days after 
7receipt of the bill. If the employer contributions are not paid 
8within 90 days after receipt of the bill, then interest will be 
9charged at a rate equal to the System's annual actuarially 
10assumed rate of return on investment compounded annually from 
11the 91st day after receipt of the bill. Payments must be 
12concluded within 3 years after the employer's receipt of the 
13bill. 
14 (k) The Illinois Community College Board shall adopt rules 
15for recommending lists of promotional positions submitted to 
16the Board by community colleges and for reviewing the 
17promotional lists on an annual basis. When recommending 
18promotional lists, the Board shall consider the similarity of 
19the positions submitted to those positions recognized for State 
20universities by the State Universities Civil Service System. 
21The Illinois Community College Board shall file a copy of its 
22findings with the System. The System shall consider the 
23findings of the Illinois Community College Board when making 
24determinations under this Section. The System shall not exclude 
25any earnings increases resulting from a promotion when the 
26promotion was not submitted by a community college. Nothing in 
 
 
10000SB0011sam002- 137 -LRB100 06001 RPS 18499 a


1this subsection (k) shall require any community college to 
2submit any information to the Community College Board.

3 (l) For purposes of determining the required State 
4contribution to the System, the value of the System's assets 
5shall be equal to the actuarial value of the System's assets, 
6which shall be calculated as follows:
7 As of June 30, 2008, the actuarial value of the System's 
8assets shall be equal to the market value of the assets as of 
9that date. In determining the actuarial value of the System's 
10assets for fiscal years after June 30, 2008, any actuarial 
11gains or losses from investment return incurred in a fiscal 
12year shall be recognized in equal annual amounts over the 
135-year period following that fiscal year. 
14 (m) For purposes of determining the required State 
15contribution to the system for a particular year, the actuarial 
16value of assets shall be assumed to earn a rate of return equal 
17to the system's actuarially assumed rate of return. 
18 (n) If Section 15-132.9 is determined to be 
19unconstitutional or otherwise invalid by a final unappealable 
20decision of an Illinois court or a court of competent 
21jurisdiction, then the changes made to this Section by this 
22amendatory Act of the 100th General Assembly shall not take 
23effect and are repealed by operation of law. 
24(Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; 
2599-897, eff. 1-1-17.)




 
 
10000SB0011sam002- 138 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)



2 Sec. 15-157. Employee Contributions. 

3 (a) Each participating employee
shall make contributions 
4towards the retirement
benefits payable under the retirement 
5program applicable to the
employee from each payment
of 
6earnings applicable to employment under this system on and 
7after the
date of becoming a participant as follows: Prior to 
8September 1, 1949,
3 1/2% of earnings; from September 1, 1949 
9to August 31, 1955, 5%; from
September 1, 1955 to August 31, 
101969, 6%; from September 1, 1969, 6 1/2%.
These contributions 
11are to be considered as normal contributions for purposes
of 
12this Article.

13 Each participant who is a police officer or firefighter 
14shall make normal
contributions of 8% of each payment of 
15earnings applicable to employment as a
police officer or 
16firefighter under this system on or after September 1, 1981,

17unless he or she files with the board within 60 days after the 
18effective date
of this amendatory Act of 1991 or 60 days after 
19the board receives notice that
he or she is employed as a 
20police officer or firefighter, whichever is later,
a written 
21notice waiving the retirement formula provided by Rule 4 of 
22Section
15-136. This waiver shall be irrevocable. If a 
23participant had met the
conditions set forth in Section 
2415-132.1 prior to the effective date of this
amendatory Act of 
251991 but failed to make the additional normal contributions

26required by this paragraph, he or she may elect to pay the 
 
 
10000SB0011sam002- 139 -LRB100 06001 RPS 18499 a


1additional
contributions plus compound interest at the 
2effective rate. If such payment
is received by the board, the 
3service shall be considered as police officer
service in 
4calculating the retirement annuity under Rule 4 of Section 
515-136.
While performing service described in clause (i) or 
6(ii) of Rule 4 of Section
15-136, a participating employee 
7shall be deemed to be employed as a
firefighter for the purpose 
8of determining the rate of employee contributions
under this 
9Section.

10 (b) Starting September 1, 1969, each participating 
11employee shall make
additional contributions of 1/2 of 1% of 
12earnings to finance a portion
of the cost of the annual 
13increases in retirement annuity provided under
Section 15-136, 
14except that with respect to participants in the
self-managed 
15plan this additional contribution shall be used to finance the

16benefits obtained under that retirement program. Beginning 
17July 1, 2018 or the effective date of the Tier 1 employee's 
18election under paragraph (1) of subsection (a) of Section 
1915-132.9, whichever is later, each Tier 1 employee who made the 
20election under paragraph (1) of subsection (a) of Section 
2115-132.9 is no longer required to make contributions under this 
22subsection.

23 (c) Except as provided in subsection (c-5), in In addition 
24to the amounts described in subsections (a) and (b) of this

25Section, each participating employee shall make contributions 
26of 1% of earnings
applicable under this system on and after 
 
 
10000SB0011sam002- 140 -LRB100 06001 RPS 18499 a


1August 1, 1959. The contributions
made under this subsection 
2(c) shall be considered as survivor's insurance
contributions 
3for purposes of this Article if the employee is covered under

4the traditional benefit package, and such contributions shall 
5be considered
as additional contributions for purposes of this 
6Article if the employee is
participating in the self-managed 
7plan or has elected to participate in the
portable benefit 
8package and has completed the applicable one-year waiting

9period. Contributions in excess of $80 during any fiscal year 
10beginning before
August 31, 1969 and in excess of $120 during 
11any fiscal year thereafter until
September 1, 1971 shall be 
12considered as additional contributions for purposes
of this 
13Article.

14 (c-5) Beginning July 1, 2018 or the effective date of the 
15Tier 1 employee's election under paragraph (1) of subsection 
16(a) of Section 15-132.9, whichever is later, in lieu of the 
17contributions otherwise required under subsection (c), each 
18Tier 1 employee who made the election under paragraph (1) of 
19subsection (a) of Section 15-132.9 shall make contributions of 
200.7% of earnings applicable under this System and each Tier 1 
21employee who is a police officer or firefighter who makes 
22normal contributions of 8% of each payment of earnings 
23applicable to employment as a police officer or firefighter 
24under this System and who made the election under paragraph (1) 
25of subsection (a) of Section 15-132.9 shall make contributions 
26of 0.55% of earnings applicable under this System. The 
 
 
10000SB0011sam002- 141 -LRB100 06001 RPS 18499 a


1contributions made under this subsection (c-5) shall be 
2considered as survivor's insurance contributions for purposes 
3of this Article and such contributions shall be considered as 
4additional contributions for purposes of this Article if the 
5employee has elected to participate in the portable benefit 
6package and has completed the applicable one-year waiting 
7period. 
8 (d) If the board by board rule so permits and subject to 
9such conditions
and limitations as may be specified in its 
10rules, a participant may make
other additional contributions of 
11such percentage of earnings or amounts as
the participant shall 
12elect in a written notice thereof received by the board.

13 (e) That fraction of a participant's total accumulated 
14normal
contributions, the numerator of which is equal to the 
15number of years of
service in excess of that which is required 
16to qualify for the maximum
retirement annuity, and the 
17denominator of which is equal to the total
service of the 
18participant, shall be considered as accumulated additional

19contributions. The determination of the applicable maximum 
20annuity and
the adjustment in contributions required by this 
21provision shall be made
as of the date of the participant's 
22retirement.

23 (f) Notwithstanding the foregoing, a participating 
24employee shall not
be required to make contributions under this 
25Section after the date upon
which continuance of such 
26contributions would otherwise cause his or her
retirement 
 
 
10000SB0011sam002- 142 -LRB100 06001 RPS 18499 a


1annuity to exceed the maximum retirement annuity as specified 
2in
clause (1) of subsection (c) of Section 15-136.

3 (g) A participant may make contributions for the purchase 
4of
service credit under this Article; however, only a 
5participating employee may make optional contributions under 
6subsection (b) of Section 15-157.1 of this Article.

7 (h) A Tier 2 member shall not make contributions on 
8earnings that exceed the limitation as prescribed under 
9subsection (b) of Section 15-111 of this Article.
10(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)




11 (40 ILCS 5/15-165)
 (from Ch. 108 1/2, par. 15-165)


12 (Text of Section WITHOUT the changes made by P.A. 98-599, 
13which has been held unconstitutional)

14 Sec. 15-165. To certify amounts and submit vouchers. 

15 (a) The Board shall certify to the Governor on or before 
16November 15 of each
year until November 15, 2011 the 
17appropriation required from State funds for the purposes of 
18this
System for the following fiscal year. The certification 
19under this subsection (a) shall include a copy
of the actuarial 
20recommendations upon which it is based and shall specifically 
21identify the System's projected State normal cost for that 
22fiscal year and the projected State cost for the self-managed 
23plan for that fiscal year.

24 On or before May 1, 2004, the Board shall recalculate and 
25recertify to
the Governor the amount of the required State 
 
 
10000SB0011sam002- 143 -LRB100 06001 RPS 18499 a


1contribution to the System for
State fiscal year 2005, taking 
2into account the amounts appropriated to and
received by the 
3System under subsection (d) of Section 7.2 of the General

4Obligation Bond Act.

5 On or before July 1, 2005, the Board shall recalculate and 
6recertify
to the Governor the amount of the required State

7contribution to the System for State fiscal year 2006, taking 
8into account the changes in required State contributions made 
9by this amendatory Act of the 94th General Assembly.

10 On or before April 1, 2011, the Board shall recalculate and 
11recertify to the Governor the amount of the required State 
12contribution to the System for State fiscal year 2011, applying 
13the changes made by Public Act 96-889 to the System's assets 
14and liabilities as of June 30, 2009 as though Public Act 96-889 
15was approved on that date. 
16 (a-5) On or before November 1 of each year, beginning 
17November 1, 2012, the Board shall submit to the State Actuary, 
18the Governor, and the General Assembly a proposed certification 
19of the amount of the required State contribution to the System 
20for the next fiscal year, along with all of the actuarial 
21assumptions, calculations, and data upon which that proposed 
22certification is based. On or before January 1 of each year, 
23beginning January 1, 2013, the State Actuary shall issue a 
24preliminary report concerning the proposed certification and 
25identifying, if necessary, recommended changes in actuarial 
26assumptions that the Board must consider before finalizing its 
 
 
10000SB0011sam002- 144 -LRB100 06001 RPS 18499 a


1certification of the required State contributions. On or before 
2January 15, 2013 and each January 15 thereafter, the Board 
3shall certify to the Governor and the General Assembly the 
4amount of the required State contribution for the next fiscal 
5year. The Board's certification must note, in a written 
6response to the State Actuary, any deviations from the State 
7Actuary's recommended changes, the reason or reasons for not 
8following the State Actuary's recommended changes, and the 
9fiscal impact of not following the State Actuary's recommended 
10changes on the required State contribution. 
11 (a-10) As soon as practical after the effective date of 
12this amendatory Act of the 100th General Assembly, the State 
13Actuary and the Board shall recalculate and recertify to the 
14Governor and the General Assembly the amount of the State 
15contribution to the System for State fiscal year 2018, taking 
16into account the changes in required State contributions made 
17by this amendatory Act of the 100th General Assembly. 
18 (a-15) On or before May 1, 2018, the Board shall 
19recalculate and recertify
to the Governor and the General 
20Assembly the amount of the required State
contribution to the 
21System for State fiscal year 2019, taking into account the 
22effect on the System's liabilities of the elections made under 
23Section 15-132.9. 
24 On or before October 1, 2018, the Board shall recalculate 
25and recertify to the Governor and the General Assembly the 
26amount of the required State contribution to the System for 
 
 
10000SB0011sam002- 145 -LRB100 06001 RPS 18499 a


1State fiscal year 2019, taking into account the reduction 
2specified under item (3) of subsection (a-1) of Section 15-155. 
3 (b) The Board shall certify to the State Comptroller or 
4employer, as the
case may be, from time to time, by its 
5chairperson and secretary, with its seal
attached, the amounts 
6payable to the System from the various funds.

7 (c) Beginning in State fiscal year 1996, on or as soon as 
8possible after the
15th day of each month the Board shall 
9submit vouchers for payment of State
contributions to the 
10System, in a total monthly amount of one-twelfth of the

11required annual State contribution certified under subsection 
12(a).
From the effective date of this amendatory Act
of the 93rd 
13General Assembly through June 30, 2004, the Board shall not

14submit vouchers for the remainder of fiscal year 2004 in excess 
15of the
fiscal year 2004 certified contribution amount 
16determined
under this Section after taking into consideration 
17the transfer to the
System under subsection (b) of Section 
186z-61 of the State Finance Act.
These
vouchers shall be paid by 
19the State Comptroller and Treasurer by warrants drawn
on the 
20funds appropriated to the System for that fiscal year.

21 If in any month the amount remaining unexpended from all 
22other
appropriations to the System for the applicable fiscal 
23year (including the
appropriations to the System under Section 
248.12 of the State Finance Act and
Section 1 of the State 
25Pension Funds Continuing Appropriation Act) is less than
the 
26amount lawfully vouchered under this Section, the difference 
 
 
10000SB0011sam002- 146 -LRB100 06001 RPS 18499 a


1shall be paid
from the General Revenue Fund under the 
2continuing appropriation authority
provided in Section 1.1 of 
3the State Pension Funds Continuing Appropriation
Act.

4 (d) So long as the payments received are the full amount 
5lawfully
vouchered under this Section, payments received by the 
6System under this
Section shall be applied first toward the 
7employer contribution to the
self-managed plan established 
8under Section 15-158.2. Payments shall be
applied second toward 
9the employer's portion of the normal costs of the System,
as 
10defined in subsection (f) of Section 15-155. The balance shall 
11be applied
toward the unfunded actuarial liabilities of the 
12System.

13 (e) In the event that the System does not receive, as a 
14result of
legislative enactment or otherwise, payments 
15sufficient to
fully fund the employer contribution to the 
16self-managed plan
established under Section 15-158.2 and to 
17fully fund that portion of the
employer's portion of the normal 
18costs of the System, as calculated in
accordance with Section 
1915-155(a-1), then any payments received shall be
applied 
20proportionately to the optional retirement program established 
21under
Section 15-158.2 and to the employer's portion of the 
22normal costs of the
System, as calculated in accordance with 
23Section 15-155(a-1).

24(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)


25 (40 ILCS 5/15-185.5 new)
 
 
10000SB0011sam002- 147 -LRB100 06001 RPS 18499 a


1 Sec. 15-185.5. Accelerated pension benefit payment.
2 (a) As used in this Section:
3 "Eligible person" means a person who:
4  (1) has terminated service; 
5  (2) has accrued sufficient service credit to be 
6 eligible to receive a retirement annuity under this 
7 Article;
8  (3) has not received any retirement annuity under this 
9 Article;
10  (4) does not have a QILDRO in effect against him or her 
11 under this Article; and
12  (5) is not a participant in the self-managed plan under 
13 Section 15-158.2. 
14 "Pension benefit" means the benefits under this Article, or 
15Article 1 as it relates to those benefits, including any 
16anticipated annual increases, that an eligible person is 
17entitled to upon attainment of the applicable retirement age. 
18"Pension benefit" also includes applicable survivor's or 
19disability benefits. 
20 (b) Before January 1, 2018, and annually thereafter, the 
21System shall calculate, using actuarial tables and other 
22assumptions adopted by the Board, the net present value of 
23pension benefits for each eligible person and shall offer each 
24eligible person the opportunity to irrevocably elect to receive 
25an amount determined by the System to be equal to 70% of the 
26net present value of his or her pension benefits in lieu of 
 
 
10000SB0011sam002- 148 -LRB100 06001 RPS 18499 a


1receiving any pension benefit. The offer shall specify the 
2dollar amount that the eligible person will receive if he or 
3she so elects and shall expire when a subsequent offer is made 
4to an eligible person or when the System determines that 10% of 
5eligible persons in that year have made the election under this 
6subsection, whichever occurs first. The System shall make a 
7good faith effort to contact every eligible person to notify 
8him or her of the election and of the amount of the accelerated 
9pension benefit payment.
10 Until the System determines that 10% of eligible persons in 
11that year have made the election under this subsection, an 
12eligible person may irrevocably elect to receive an accelerated 
13pension benefit payment in the amount that the System offers 
14under this subsection in lieu of receiving any pension benefit. 
15A person who elects to receive an accelerated pension benefit 
16payment under this Section may not elect to proceed under the 
17Retirement Systems Reciprocal Act with respect to service under 
18this Article. 
19 (c) A person's credits and creditable service under this 
20Article shall be terminated upon the person's receipt of an 
21accelerated pension benefit payment under this Section, and no 
22other benefit shall be paid under this Article based on those 
23terminated credits and creditable service, including any 
24retirement, survivor, or other benefit; except that to the 
25extent that participation, benefits, or premiums under the 
26State Employees Group Insurance Act of 1971 are based on the 
 
 
10000SB0011sam002- 149 -LRB100 06001 RPS 18499 a


1amount of service credit, the terminated service credit shall 
2be used for that purpose.
3 (d) If a person who has received an accelerated pension 
4benefit payment under this Section returns to active service 
5under this Article, then:
6  (1) Any benefits under the System earned as a result of 
7 that return to active service shall be based solely on the 
8 person's credits and creditable service arising from the 
9 return to active service. 
10  (2) The accelerated pension benefit payment may not be 
11 repaid to the System, and the terminated credits and 
12 creditable service may not under any circumstances be 
13 reinstated. 
14 (e) As a condition of receiving an accelerated pension 
15benefit payment, an eligible person must have another 
16retirement plan or account qualified under the Internal Revenue 
17Code of 1986, as amended, for the accelerated pension benefit 
18payment to be rolled into. The accelerated pension benefit 
19payment under this Section may be subject to withholding or 
20payment of applicable taxes, but to the extent permitted by 
21federal law, a person who receives an accelerated pension 
22benefit payment under this Section must direct the System to 
23pay all of that payment as a rollover into another retirement 
24plan or account qualified under the Internal Revenue Code of 
251986, as amended. 
26 (f) Before January 1, 2019 and every January 1 thereafter, 
 
 
10000SB0011sam002- 150 -LRB100 06001 RPS 18499 a


1the Board shall certify to the Illinois Finance Authority and 
2the General Assembly the amount by which the total amount of 
3accelerated pension benefit payments made under this Section 
4exceed the amount appropriated to the System for the purpose of 
5making those payments. 
6 (g) The Board shall adopt any rules necessary to implement 
7this Section.
8 (h) No provision of this Section shall be interpreted in a 
9way that would cause the applicable System to cease to be a 
10qualified plan under the Internal Revenue Code of 1986.
11 (i) Notwithstanding any other provision of this Section, in 
12no case shall the total amount of accelerated pension benefit 
13payments paid under this Section, Section 14-147.5, and Section 
1416-190.5 cause the Illinois Finance Authority to issue more 
15than the $250,000,000 of State Pension Obligation Acceleration 
16Bonds authorized in subsection (c-5) of Section 801-40 of the 
17Illinois Finance Authority Act. 

18 (40 ILCS 5/15-198)
19 (Text of Section WITHOUT the changes made by P.A. 98-599, 
20which has been held unconstitutional)

21 Sec. 15-198. 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 
 
 
10000SB0011sam002- 151 -LRB100 06001 RPS 18499 a


1any benefit under this Article, that results from an amendment 
2to this Code that takes effect after the effective date of this 
3amendatory Act of the 94th General Assembly. "New benefit 
4increase", however, does not include any benefit increase 
5resulting from the changes made to this Article by this 
6amendatory Act of the 100th General Assembly.
7 (b) Notwithstanding any other provision of this Code or any 
8subsequent amendment to this Code, every new benefit increase 
9is subject to this Section and shall be deemed to be granted 
10only in conformance with and contingent upon compliance with 
11the provisions of this Section.

12 (c) The Public Act enacting a new benefit increase must 
13identify and provide for payment to the System of additional 
14funding at least sufficient to fund the resulting annual 
15increase in cost to the System as it accrues.
16 Every new benefit increase is contingent upon the General 
17Assembly providing the additional funding required under this 
18subsection. The Commission on Government Forecasting and 
19Accountability shall analyze whether adequate additional 
20funding has been provided for the new benefit increase and 
21shall report its analysis to the Public Pension Division of the 
22Department of Insurance Financial and Professional Regulation. 
23A new benefit increase created by a Public Act that does not 
24include the additional funding required under this subsection 
25is null and void. If the Public Pension Division determines 
26that the additional funding provided for a new benefit increase 
 
 
10000SB0011sam002- 152 -LRB100 06001 RPS 18499 a


1under this subsection is or has become inadequate, it may so 
2certify to the Governor and the State Comptroller and, in the 
3absence of corrective action by the General Assembly, the new 
4benefit increase shall expire at the end of the fiscal year in 
5which the certification is made.

6 (d) Every new benefit increase shall expire 5 years after 
7its effective date or on such earlier date as may be specified 
8in the language enacting the new benefit increase or provided 
9under subsection (c). This does not prevent the General 
10Assembly from extending or re-creating a new benefit increase 
11by law.
12 (e) Except as otherwise provided in the language creating 
13the new benefit increase, a new benefit increase that expires 
14under this Section continues to apply to persons who applied 
15and qualified for the affected benefit while the new benefit 
16increase was in effect and to the affected beneficiaries and 
17alternate payees of such persons, but does not apply to any 
18other person, including without limitation a person who 
19continues in service after the expiration date and did not 
20apply and qualify for the affected benefit while the new 
21benefit increase was in effect.

22(Source: P.A. 94-4, eff. 6-1-05.)

23 (40 ILCS 5/15-200.1 new)
24 Sec. 15-200.1. Defined contribution plan.
25 (a) By July 1, 2018, the System shall prepare and implement 
 
 
10000SB0011sam002- 153 -LRB100 06001 RPS 18499 a


1a voluntary defined contribution plan for up to 5% of eligible 
2active Tier 1 employees. The System shall determine the 5% cap 
3by the number of active Tier 1 employees on the effective date 
4of this Section. The defined contribution plan developed under 
5this Section shall be a plan that aggregates employer and 
6employee contributions in individual participant accounts 
7which, after meeting any other requirements, are used for 
8payouts after retirement in accordance with this Section and 
9any other applicable laws.
10 As used in this Section, "defined benefit plan" means the 
11retirement plan available under this Article to Tier 1 
12employees who have not made the election authorized under this 
13Section.
14  (1) Under the defined contribution plan, an active
Tier 
15 1 employee of this System could elect to cease accruing 
16 benefits in the defined benefit plan under this Article and 
17 begin accruing benefits for future service in the defined 
18 contribution plan. Service credit under the defined 
19 contribution plan may be used for determining retirement 
20 eligibility under the defined benefit plan. An active Tier 
21 1 employee who elects to cease accruing benefits in his or 
22 her defined benefit plan shall be prohibited from 
23 purchasing service credit on or after the date of his or 
24 her election. A Tier 1 employee making the irrevocable 
25 election provided under this Section shall not receive 
26 interest accruals to his or her Rule 2 benefit on or after 
 
 
10000SB0011sam002- 154 -LRB100 06001 RPS 18499 a


1 the date of his or her election.
2  (2) Participants in the defined contribution plan

3 shall pay employee contributions at the same rate as other 
4 participants under this Article as determined by the 
5 System.
6  (3) State contributions shall be paid into the
accounts 
7 of all participants in the defined contribution plan at a 
8 uniform rate, expressed as a percentage of earnings and 
9 determined for each year. This rate shall be no higher than 
10 the employer's normal cost for Tier 1 employees in the 
11 defined benefit plan for that year, as determined by the 
12 System and expressed as a percentage of earnings, and shall 
13 be no lower than 3% of earnings. The State shall adjust 
14 this rate annually.
15  (4) The defined contribution plan shall require 5
years 
16 of participation in the defined contribution plan before 
17 vesting in State contributions. If the participant fails to 
18 vest in them, the State contributions, and the earnings 
19 thereon, shall be forfeited.
20  (5) The defined contribution plan may provide for

21 participants in the plan to be eligible for the defined 
22 disability benefits available to other participants under 
23 this Article. If it does, the System shall reduce the 
24 employee contributions credited to the member's defined 
25 contribution plan account by an amount determined by the 
26 System to cover the cost of offering such benefits.
 
 
10000SB0011sam002- 155 -LRB100 06001 RPS 18499 a


1  (6) The defined contribution plan shall provide a

2 variety of options for investments. These options shall 
3 include investments handled by the System as well as 
4 private sector investment options.
5  (7) The defined contribution plan shall provide a

6 variety of options for payouts to retirees and their 
7 survivors.
8  (8) To the extent authorized under federal law and
as 
9 authorized by the System, the plan shall allow former 
10 participants in the plan to transfer or roll over employee 
11 and vested State contributions, and the earnings thereon, 
12 into other qualified retirement plans.
13  (9) The System shall reduce the employee
contributions 
14 credited to the member's defined contribution plan account 
15 by an amount determined by the System to cover the cost of 
16 offering these benefits and any applicable administrative 
17 fees.
18 (b) Only persons who are active Tier 1 employees of the 
19System on the effective date of this Section are eligible to 
20participate in the defined contribution plan. Participation in 
21the defined contribution plan shall be limited to the first 5% 
22of eligible persons who elect to participate. The election to 
23participate in the defined contribution plan is voluntary and 
24irrevocable.
25 (c) An eligible Tier 1 employee may irrevocably elect to 
26participate in the defined contribution plan by filing with the 
 
 
10000SB0011sam002- 156 -LRB100 06001 RPS 18499 a


1System a written application to participate that is received by 
2the System prior to its determination that 5% of eligible 
3persons have elected to participate in the defined contribution 
4plan.
5 When the System first determines that 5% of eligible 
6persons have elected to participate in the defined contribution 
7plan, the System shall provide notice to previously eligible 
8employees that the plan is no longer available and shall cease 
9accepting applications to participate.
10 (d) The System shall make a good faith effort to contact 
11each active Tier 1 employee who is eligible to participate in 
12the defined contribution plan. The System shall mail 
13information describing the option to join the defined 
14contribution plan to each of these employees to his or her last 
15known address on file with the System. If the employee is not 
16responsive to other means of contact, it is sufficient for the 
17System to publish the details of the option on its website.
18 Upon request for further information describing the 
19option, the System shall provide employees with information 
20from the System before exercising the option to join the plan, 
21including information on the impact to their vested benefits or 
22non-vested service. The individual consultation shall include 
23projections of the member's defined benefits at retirement or 
24earlier termination of service and the value of the member's 
25account at retirement or earlier termination of service. The 
26System shall not provide advice or counseling with respect to 
 
 
10000SB0011sam002- 157 -LRB100 06001 RPS 18499 a


1whether the employee should exercise the option. The System 
2shall inform Tier 1 employees who are eligible to participate 
3in the defined contribution plan that they may also wish to 
4obtain information and counsel relating to their option from 
5any other available source, including but not limited to labor 
6organizations, private counsel, and financial advisors.
7 (e) In no event shall the System, its staff, its authorized 
8representatives, or the Board be liable for any information 
9given to an employee under this Section. The System may 
10coordinate with the Illinois Department of Central Management 
11Services and other retirement systems administering a defined 
12contribution plan in accordance with this amendatory Act of the 
13100th General Assembly to provide information concerning the 
14impact of the option set forth in this Section.
15 (f) Notwithstanding any other provision of this Section, no 
16person shall begin participating in the defined contribution 
17plan until it has attained qualified plan status and received 
18all necessary approvals from the U.S. Internal Revenue Service.
19 (g) The System shall report on its progress under this 
20Section, including the available details of the defined 
21contribution plan and the System's plans for informing eligible 
22Tier 1 employees about the plan, to the Governor and the 
23General Assembly on or before January 15, 2018.
24 (h) If an active Tier 1 employee has not made an election 
25under Section 15-134.5 of this Code, then the plan prescribed 
26under this Section shall not apply to that Tier 1 employee and 
 
 
10000SB0011sam002- 158 -LRB100 06001 RPS 18499 a


1that Tier 1 employee shall remain eligible to make the election 
2prescribed under Section 15-134.5.
3 (i) The intent of this amendatory Act of the 100th General 
4Assembly is to ensure that the State's normal cost of 
5participation in the defined contribution plan is similar, and 
6if possible equal, to the State's normal cost of participation 
7in the defined benefit plan, unless a lower State's normal cost 
8is necessary to ensure cost neutrality.
9 (j) If Section 15-132.9 is determined to be 
10unconstitutional or otherwise invalid by a final unappealable 
11decision of an Illinois court or a court of competent 
12jurisdiction, then this Section shall not take effect and is 
13repealed by operation of law. 

14 (40 ILCS 5/15-201.1 new)
15 Sec. 15-201.1. Defined contribution plan; termination. If 
16the defined contribution plan is terminated or becomes 
17inoperative pursuant to law, then each participant in the plan 
18shall automatically be deemed to have been a contributing Tier 
191 employee participating in the System's defined benefit plan 
20during the time in which he or she participated in the defined 
21contribution plan, and for that purpose the System shall be 
22entitled to recover the amounts in the participant's defined 
23contribution accounts.

24 (40 ILCS 5/16-107.1 new)
 
 
10000SB0011sam002- 159 -LRB100 06001 RPS 18499 a


1 Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A 
2teacher under this Article who first became a member or 
3participant before January 1, 2011 under any reciprocal 
4retirement system or pension fund established under this Code 
5other than a retirement system or pension fund established 
6under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for 
7the purposes of the election under Section 16-122.9, "Tier 1 
8employee" does not include a teacher under this Article who 
9would qualify as a Tier 1 employee but who has made an 
10irrevocable election on or before June 1, 2017 to retire from 
11service pursuant to the terms of a collective bargaining 
12agreement in effect on June 1, 2017, excluding any extension, 
13amendment, or renewal of that agreement on or after that date, 
14and has notified the System of that election.



15 (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)



16 (Text of Section WITHOUT the changes made by P.A. 98-599, 
17which has been held unconstitutional)

18 Sec. 16-121. Salary. "Salary": The actual compensation 
19received by a teacher during any
school year and recognized by 
20the system in accordance with
rules of the board. For purposes 
21of this Section, "school year" includes
the regular school term 
22plus any additional period for which a teacher is
compensated 
23and such compensation is recognized by the rules of the board.

24 Notwithstanding any other provision of this Section, 
25"salary" does not include any future increase in income that is 
 
 
10000SB0011sam002- 160 -LRB100 06001 RPS 18499 a


1offered by an employer for service as a Tier 1 employee under 
2this Article pursuant to the condition set forth in subsection 
3(c) of Section 16-122.9 and accepted under that condition by a 
4Tier 1 employee who has made the election under paragraph (2) 
5of subsection (a) of Section 16-122.9. 
6 Notwithstanding any other provision of this Section, 
7"salary" does not include any consideration payment made to a 
8Tier 1 employee. 
9(Source: P.A. 84-1028.)


10 (40 ILCS 5/16-121.1 new)
11 Sec. 16-121.1. Future increase in income. "Future increase 
12in income" means an increase in income in any form offered by 
13an employer to a Tier 1 employee for service under this Article 
14after June 30, 2018 that qualifies as "salary", as defined in 
15Section 16-121, or would qualify as "salary" but for the fact 
16that it was offered to and accepted by a Tier 1 employee under 
17the condition set forth in subsection (c) of Section 16-122.9. 
18The term "future increase in income" does not include an 
19increase in income in any form that is paid to a Tier 1 
20employee under an employment contract or a collective 
21bargaining agreement that is in effect on the effective date of 
22this Section, but does include an increase in income in any 
23form pursuant to an extension, amendment, or renewal of any 
24such employment contract or collective bargaining agreement on 
25or after the effective date of this Section. 

 
 
10000SB0011sam002- 161 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/16-122.9 new)
2 Sec. 16-122.9. Election by Tier 1 employees. 
3 (a) Each active Tier 1 employee shall make an irrevocable 
4election either: 
5  (1) to agree to delay his or her eligibility for 
6 automatic annual increases in retirement annuity as 
7 provided in subsection (a-1) of Section 16-133.1 or 
8 subsection (b-1) of Section 16-136.1, whichever is 
9 applicable, and to have the amount of the automatic annual 
10 increases in his or her retirement annuity and survivor 
11 benefit that are otherwise provided for in this Article 
12 calculated, instead, as provided in subsection (a-1) of 
13 Section 16-133.1 or subsection (b-1) of Section 16-136.1, 
14 whichever is applicable; or
15  (2) to not agree to paragraph (1) of this subsection. 
16 The election required under this subsection (a) shall be 
17made by each active Tier 1 employee no earlier than January 1, 
182018 and no later than March 31, 2018, except that:
19  (i) a person who becomes a Tier 1 employee under this 
20 Article on or after February 1, 2018 must make the election 
21 under this subsection (a) within 60 days after becoming a 
22 Tier 1 employee; and
23  (ii) a person who returns to active service as a Tier 1 
24 employee under this Article on or after February 1, 2018 
25 and has not yet made an election under this Section must 
 
 
10000SB0011sam002- 162 -LRB100 06001 RPS 18499 a


1 make the election under this subsection (a) within 60 days 
2 after returning to active service as a Tier 1 employee.
3 If a Tier 1 employee fails for any reason to make a 
4required election under this subsection within the time 
5specified, then the employee shall be deemed to have made the 
6election under paragraph (2) of this subsection. 
7 (a-5) If this Section is enjoined or stayed by an Illinois 
8court or a court of competent jurisdiction pending the entry of 
9a final and unappealable decision, and this Section is 
10determined to be constitutional or otherwise valid by a final 
11unappealable decision of an Illinois court or a court of 
12competent jurisdiction, then the election procedure set forth 
13in subsection (a) of this Section shall commence on the 180th 
14calendar day after the date of the issuance of the final 
15unappealable decision and shall conclude at the end of the 
16270th calendar day after that date. 
17 (a-10) All elections under subsection (a) that are made or 
18deemed to be made before July 1, 2018 shall take effect on July 
191, 2018. Elections that are made or deemed to be made on or 
20after July 1, 2018 shall take effect on the first day of the 
21month following the month in which the election is made or 
22deemed to be made. 
23 (b) As adequate and legal consideration provided under this 
24amendatory Act of the 100th General Assembly for making an 
25election under paragraph (1) of subsection (a) of this Section, 
26an employer shall be expressly and irrevocably prohibited from 
 
 
10000SB0011sam002- 163 -LRB100 06001 RPS 18499 a


1offering any future increases in income to a Tier 1 employee 
2who has made an election under paragraph (1) of subsection (a) 
3of this Section on the condition of not constituting salary 
4under Section 16-121. 
5 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, 
8each Tier 1 employee who has made an election under paragraph 
9(1) of subsection (a) of this Section shall receive a 
10consideration payment equal to 10% of the contributions made by 
11or on behalf of the employee under paragraphs (1), (2), and (3) 
12of subsection (a) of Section 16-152 before the effective date 
13of that election. The State Comptroller shall pay the 
14consideration payment to the Tier 1 employee out of funds 
15appropriated for that purpose under Section 1.9 of the State 
16Pension Funds Continuing Appropriation Act. The System shall 
17calculate the amount of each consideration payment and shall 
18certify to the State Comptroller the amount of the 
19consideration payment, together with the name, address, and any 
20other available payment information of the Tier 1 employee as 
21found in the records of the System. 
22 (c) A Tier 1 employee who makes the election under 
23paragraph (2) of subsection (a) of this Section shall not be 
24subject to paragraph (1) of subsection (a) of this Section. 
25However, each future increase in income offered by an employer 
26under this Article to a Tier 1 employee who has made the 
 
 
10000SB0011sam002- 164 -LRB100 06001 RPS 18499 a


1election under paragraph (2) of subsection (a) of this Section 
2shall be offered by the employer expressly and irrevocably on 
3the condition of not constituting salary under Section 16-121 
4and that the Tier 1 employee's acceptance of the offered future 
5increase in income shall constitute his or her agreement to 
6that condition. 
7 (d) The System shall make a good faith effort to contact 
8each Tier 1 employee subject to this Section. The System shall 
9mail information describing the required election to each Tier 
101 employee by United States Postal Service mail to his or her 
11last known address on file with the System. If the Tier 1 
12employee is not responsive to other means of contact, it is 
13sufficient for the System to publish the details of any 
14required elections on its website or to publish those details 
15in a regularly published newsletter or other existing public 
16forum. 
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 System shall offer 
21Tier 1 employees an opportunity to receive information from the 
22System before making the required election. The information may 
23consist of video materials, group presentations, individual 
24consultation with a member or authorized representative of the 
25System in person or by telephone or other electronic means, or 
26any combination of those methods. The System shall not provide 
 
 
10000SB0011sam002- 165 -LRB100 06001 RPS 18499 a


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 System 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 System, its staff, or the Board be 
11held liable for any information given to a member regarding the 
12elections under this Section. The System 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 16-121 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. 
 
 
10000SB0011sam002- 166 -LRB100 06001 RPS 18499 a


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 System 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 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)



20 (Text of Section WITHOUT the changes made by P.A. 98-599, 
21which has been held unconstitutional)

22 Sec. 16-133.1. Automatic annual increase in annuity. 

23 (a) Each member with creditable service and retiring on or 
24after August 26,
1969 is entitled to the automatic annual 
25increases in annuity provided under
this Section while 
 
 
10000SB0011sam002- 167 -LRB100 06001 RPS 18499 a


1receiving a retirement annuity or disability retirement

2annuity from the system.

3 Except as otherwise provided in subsection (a-1), an An 
4annuitant shall first be entitled to an initial increase under 
5this
Section on the January 1 next following the first 
6anniversary of retirement,
or January 1 of the year next 
7following attainment of age 61, whichever is
later. At such 
8time, the system shall pay an initial increase determined as

9follows:


10  (1) 1.5% of the originally granted retirement annuity 
11 or disability
retirement annuity multiplied by the number 
12 of years elapsed, if any, from the date of retirement
until 
13 January 1, 1972, plus


14  (2) 2% of the originally granted annuity multiplied by 
15 the number of
years elapsed, if any, from the date of 
16 retirement or January
1, 1972, whichever is later, until 
17 January 1, 1978, plus


18  (3) 3% of the originally granted annuity multiplied by 
19 the number
of years elapsed from the date of retirement or 
20 January 1,
1978, whichever is later, until the effective 
21 date of the initial
increase.

22However, the initial annual increase calculated under this 
23Section for the
recipient of a disability retirement annuity 
24granted under Section 16-149.2
shall be reduced by an amount 
25equal to the total of all increases in that
annuity received 
26under Section 16-149.5 (but not exceeding 100% of the amount
of 
 
 
10000SB0011sam002- 168 -LRB100 06001 RPS 18499 a


1the initial increase otherwise provided under this Section).

2 Except as otherwise provided in subsection (a-1), 
3following Following the initial increase, automatic annual 
4increases in annuity shall
be payable on each January 1 
5thereafter during the lifetime of the annuitant,
determined as 
6a percentage of the originally granted retirement annuity
or 
7disability retirement annuity for increases granted prior to 
8January
1, 1990, and calculated as a percentage of the total 
9amount of annuity,
including previous increases under this 
10Section, for increases granted on
or after January 1, 1990, as 
11follows: 1.5% for periods prior to January 1,
1972, 2% for 
12periods after December 31, 1971 and prior to January 1, 1978,

13and 3% for periods after December 31, 1977.

14 (a-1) Notwithstanding any other provision of this Article, 
15for a Tier 1 employee who made the election under paragraph (1) 
16of subsection (a) of Section 16-122.9:
17  (1) The initial increase in retirement annuity under 
18 this Section shall occur on the January 1 occurring either 
19 on or after the attainment of age 67 or the fifth 
20 anniversary of the annuity start date, whichever is 
21 earlier.
22  (2) The amount of each automatic annual increase in 
23 retirement annuity and survivor benefit occurring on or 
24 after the effective date of that election shall be 
25 calculated as a percentage of the originally granted 
26 retirement annuity or survivor benefit, equal to 3% or 
 
 
10000SB0011sam002- 169 -LRB100 06001 RPS 18499 a


1 one-half the annual unadjusted percentage increase (but 
2 not less than zero) in the consumer price index-u for the 
3 12 months ending with the September preceding each November 
4 1, whichever is less. If the annual unadjusted percentage 
5 change in the consumer price index-u for the 12 months 
6 ending with the September preceding each November 1 is zero 
7 or there is a decrease, then the annuity shall not be 
8 increased.
9 For the purposes of this Section, "consumer price index-u" 
10means
the index published by the Bureau of Labor Statistics of 
11the United States
Department of Labor that measures the average 
12change in prices of goods and
services purchased by all urban 
13consumers, United States city average, all
items, 1982-84 = 
14100. The new amount resulting from each annual adjustment
shall 
15be determined by the Public Pension Division of the Department 
16of Insurance and made available to the board of the retirement 
17system by November 1 of each year. 
18 (b) The automatic annual increases in annuity provided 
19under this Section
shall not be applicable unless a member has 
20made contributions toward such
increases for a period 
21equivalent to one full year of creditable service.
If a member 
22contributes for service performed after August 26, 1969 but
the 
23member becomes an annuitant before such contributions amount to 
24one
full year's contributions based on the salary at the date 
25of retirement,
he or she may pay the necessary balance of the 
26contributions to the system
and be eligible for the automatic 
 
 
10000SB0011sam002- 170 -LRB100 06001 RPS 18499 a


1annual increases in annuity provided under
this Section.

2 (c) Each member shall make contributions toward the cost of 
3the automatic
annual increases in annuity as provided under 
4Section 16-152.

5 (d) An annuitant receiving a retirement annuity or 
6disability retirement
annuity on July 1, 1969, who subsequently 
7re-enters service as a teacher
is eligible for the automatic 
8annual increases in annuity provided under
this Section if he 
9or she renders at least one year of creditable service

10following the latest re-entry.

11 (e) In addition to the automatic annual increases in 
12annuity provided
under this Section, an annuitant who meets the 
13service requirements of this
Section and whose retirement 
14annuity or disability retirement annuity began
on or before 
15January 1, 1971 shall receive, on January 1, 1981, an increase

16in the annuity then being paid of one dollar per month for each 
17year of
creditable service. On January 1, 1982, an annuitant 
18whose retirement
annuity or disability retirement annuity 
19began on or before January 1, 1977
shall receive an increase in 
20the annuity then being paid of one dollar per
month for each 
21year of creditable service. 

22 On January 1, 1987, any annuitant whose retirement annuity 
23began
on or before January 1, 1977, shall receive an increase 
24in the monthly
retirement annuity equal to 8¢ per year of 
25creditable service times the
number of years that have elapsed 
26since the annuity began.

 
 
10000SB0011sam002- 171 -LRB100 06001 RPS 18499 a


1(Source: P.A. 91-927, eff. 12-14-00.)




2 (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)



3 (Text of Section WITHOUT the changes made by P.A. 98-599, 
4which has been held unconstitutional)

5 Sec. 16-136.1. Annual increase for certain annuitants.  
6 (a) Any annuitant receiving a retirement annuity on June 
730, 1969 and
any member retiring after June 30, 1969 shall be 
8eligible for the annual
increases provided under this Section 
9provided the annuitant is ineligible
for the automatic annual 
10increase in annuity provided under Section
16-133.1, and 
11provided further that (1) retirement occurred at age 55 or over

12and was based on 5 or more years of creditable service or (2) 
13if
retirement occurred prior to age 55, the retirement annuity

14was based on 20 or more years of creditable service.

15 (b) Except as otherwise provided in subsection (b-1), an An 
16annuitant entitled to increases under this Section shall be 
17entitled
to the initial increase as of the later of: (1) 
18January 1 following
attainment of age 65, (2) January 1 
19following the first anniversary
of retirement, or (3) the first 
20day of the month following receipt of
the required qualifying 
21contribution from the annuitant. The initial monthly
increase 
22shall be computed on the basis of the period elapsed between

23the later of the date of last retirement or attainment of age 
2450 and the
date of qualification for the initial increase, at 
25the rate of 1 1/2% of
the original monthly retirement annuity 
 
 
10000SB0011sam002- 172 -LRB100 06001 RPS 18499 a


1per year for periods
prior to September 1, 1971, and at the 
2rate of 2% per year for periods between
September 1, 1971 and 
3September 1, 1978, and at the rate of 3% per year
for periods 
4thereafter.

5 Except as otherwise provided in subsection (b-1), if 
6applicable, an An annuitant who has received an initial 
7increase under this Section,
shall be entitled, on each January 
81 following the granting of the
initial increase, to an 
9increase of 3% of the original monthly retirement
annuity for 
10increases granted prior to January 1, 1990, and equal to 3%
of 
11the total annuity, including previous increases under this 
12Section, for
increases granted on or after January 1, 1990. The 
13original monthly
retirement annuity for computations under 
14this subsection
(b) shall be considered to be $83.34 for any 
15annuitant entitled to benefits
under Section 16-134. The 
16minimum original disability retirement annuity
for 
17computations under this subsection (b) shall be considered to 
18be
$33.34 per month for any annuitant retired on account of 
19disability.

20 (b-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 
 
 
10000SB0011sam002- 173 -LRB100 06001 RPS 18499 a


1 earlier.
2  (2) The amount of each automatic annual increase in 
3 retirement annuity or 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 (c) An annuitant who otherwise qualifies for annual

25increases under this Section must make a one-time payment of
1% 
26of the monthly final average salary for each full year of the 
 
 
10000SB0011sam002- 174 -LRB100 06001 RPS 18499 a


1creditable
service forming the basis of the retirement annuity 
2or, if the
retirement annuity was not computed using final 
3average salary, 1% of the
original monthly retirement annuity 
4for each full year of service
forming the basis of the 
5retirement annuity.

6 (d) In addition to other increases which may be provided by 
7this Section,
regardless of creditable service, annuitants not 
8meeting
the service requirements of Section 16-133.1 and whose 
9retirement annuity
began on or before January 1, 1971 shall 
10receive, on January
1, 1981, an increase in the retirement 
11annuity then being paid
of one dollar per month for each year 
12of creditable service forming
the basis of the retirement 
13allowance. On January 1, 1982, annuitants
whose retirement 
14annuity began on or before January 1, 1977, shall receive
an 
15increase in the retirement annuity then being paid of one 
16dollar per
month for each year of creditable service.

17 On January 1, 1987, any annuitant whose retirement annuity 
18began
on or before January 1, 1977, shall receive an increase 
19in the monthly
retirement annuity equal to 8¢ per year of 
20creditable service times the
number of years that have elapsed 
21since the annuity began.

22(Source: P.A. 86-273.)





23 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)


24 (Text of Section WITHOUT the changes made by P.A. 98-599, 
25which has been held unconstitutional)

 
 
10000SB0011sam002- 175 -LRB100 06001 RPS 18499 a


1 Sec. 16-152. Contributions by members. 

2 (a) Except as otherwise provided in subsection (a-5), each 
3Each member shall make contributions for membership service to 
4this
System as follows:

5  (1) Effective July 1, 1998, contributions of 7.50% of 
6 salary towards the
cost of the retirement annuity. Such 
7 contributions shall be deemed "normal
contributions".

8  (2) Effective July 1, 1969, contributions of 1/2 of 1% 
9 of salary toward
the cost of the automatic annual increase 
10 in retirement annuity provided
under Section 16-133.1.

11  (3) Effective July 24, 1959, contributions of 1% of 
12 salary towards the
cost of survivor benefits. Such 
13 contributions shall not be credited to
the individual 
14 account of the member and shall not be subject to refund

15 except as provided under Section 16-143.2.

16  (4) Effective July 1, 2005, contributions of 0.40% of 
17 salary toward the cost of the early retirement without 
18 discount option provided under Section 16-133.2. This 
19 contribution shall cease upon termination of the early 
20 retirement without discount option as provided in Section 
21 16-133.2.

22 (a-5) Beginning July 1, 2018 or the effective date of the 
23Tier 1 employee's election under paragraph (1) of subsection 
24(a) of Section 16-122.9, whichever is later, in lieu of the 
25contributions otherwise required under subsection (a), each 
26Tier 1 employee who made the election under paragraph (1) of 
 
 
10000SB0011sam002- 176 -LRB100 06001 RPS 18499 a


1subsection (a) of Section 16-122.9 shall make contributions as 
2follows: 
3  (1) Contributions of 7.50% of salary towards the cost 
4 of the retirement annuity. Such contributions shall be 
5 deemed "normal contributions". 
6  (2) Contributions of 0.60% towards the cost of survivor 
7 benefits. Such contributions shall not be credited to the 
8 individual account of the member and shall not be subject 
9 to refund except as provided in Section 16-143.2.
10  (3) Contributions of 0.40% of salary toward the cost of 
11 the early retirement without discount option provided 
12 under Section 16-133.2. This contribution shall cease upon 
13 termination of the early retirement without discount 
14 option as provided in Section 16-133.2. 
15 (b) The minimum required contribution for any year of 
16full-time
teaching service shall be $192.

17 (c) Contributions shall not be required of any annuitant 
18receiving
a retirement annuity who is given employment as 
19permitted under Section 16-118 or 16-150.1.

20 (d) A person who (i) was a member before July 1, 1998, (ii) 
21retires with
more than 34 years of creditable service, and 
22(iii) does not elect to qualify
for the augmented rate under 
23Section 16-129.1 shall be entitled, at the time
of retirement, 
24to receive a partial refund of contributions made under this

25Section for service occurring after the later of June 30, 1998 
26or attainment
of 34 years of creditable service, in an amount 
 
 
10000SB0011sam002- 177 -LRB100 06001 RPS 18499 a


1equal to 1.00% of the salary
upon which those contributions 
2were based.

3 (e) A member's contributions toward the cost of early 
4retirement without discount made under item (a)(4) of this 
5Section shall not be refunded if the member has elected early 
6retirement without discount under Section 16-133.2 and has 
7begun to receive a retirement annuity under this Article 
8calculated in accordance with that election. Otherwise, a 
9member's contributions toward the cost of early retirement 
10without discount made under item (a)(4) of this Section shall 
11be refunded according to whichever one of the following 
12circumstances occurs first:
13  (1) The contributions shall be refunded to the member, 
14 without interest, within 120 days after the member's 
15 retirement annuity commences, if the member does not elect 
16 early retirement without discount under Section 16-133.2.
17  (2) The contributions shall be included, without 
18 interest, in any refund claimed by the member under Section 
19 16-151.
20  (3) The contributions shall be refunded to the member's 
21 designated beneficiary (or if there is no beneficiary, to 
22 the member's estate), without interest, if the member dies 
23 without having begun to receive a retirement annuity under 
24 this Article.
25  (4) The contributions shall be refunded to the member, 
26 without interest, if the early retirement without discount 
 
 
10000SB0011sam002- 178 -LRB100 06001 RPS 18499 a


1 option provided under subsection (d) of Section 16-133.2 is 
2 terminated. In that event, the System shall provide to the 
3 member, within 120 days after the option is terminated, an 
4 application for a refund of those contributions.
5(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, 
6eff. 7-28-16.)



7 (40 ILCS 5/16-158)
 (from Ch. 108 1/2, par. 16-158)

8 (Text of Section WITHOUT the changes made by P.A. 98-599, 
9which has been held unconstitutional)

10 Sec. 16-158. Contributions by State and other employing 
11units. 

12 (a) The State shall make contributions to the System by 
13means of
appropriations from the Common School Fund and other 
14State funds of amounts
which, together with other employer 
15contributions, employee contributions,
investment income, and 
16other income, will be sufficient to meet the cost of

17maintaining and administering the System on a 90% funded basis 
18in accordance
with actuarial recommendations.

19 The Board shall determine the amount of State contributions 
20required for
each fiscal year on the basis of the actuarial 
21tables and other assumptions
adopted by the Board and the 
22recommendations of the actuary, using the formula
in subsection 
23(b-3).

24 (a-1) Annually, on or before November 15 until November 15, 
252011, the Board shall certify to the
Governor the amount of the 
 
 
10000SB0011sam002- 179 -LRB100 06001 RPS 18499 a


1required State contribution for the coming fiscal
year. The 
2certification under this subsection (a-1) shall include a copy 
3of the actuarial recommendations
upon which it is based and 
4shall specifically identify the System's projected State 
5normal cost for that fiscal year.

6 On or before May 1, 2004, the Board shall recalculate and 
7recertify to
the Governor the amount of the required State 
8contribution to the System for
State fiscal year 2005, taking 
9into account the amounts appropriated to and
received by the 
10System under subsection (d) of Section 7.2 of the General

11Obligation Bond Act.

12 On or before July 1, 2005, the Board shall recalculate and 
13recertify
to the Governor the amount of the required State

14contribution to the System for State fiscal year 2006, taking 
15into account the changes in required State contributions made 
16by this amendatory Act of the 94th General Assembly.

17 On or before April 1, 2011, the Board shall recalculate and 
18recertify to the Governor the amount of the required State 
19contribution to the System for State fiscal year 2011, applying 
20the changes made by Public Act 96-889 to the System's assets 
21and liabilities as of June 30, 2009 as though Public Act 96-889 
22was approved on that date. 
23 (a-5) On or before November 1 of each year, beginning 
24November 1, 2012, the Board shall submit to the State Actuary, 
25the Governor, and the General Assembly a proposed certification 
26of the amount of the required State contribution to the System 
 
 
10000SB0011sam002- 180 -LRB100 06001 RPS 18499 a


1for the next fiscal year, along with all of the actuarial 
2assumptions, calculations, and data upon which that proposed 
3certification is based. On or before January 1 of each year, 
4beginning January 1, 2013, the State Actuary shall issue a 
5preliminary report concerning the proposed certification and 
6identifying, if necessary, recommended changes in actuarial 
7assumptions that the Board must consider before finalizing its 
8certification of the required State contributions. On or before 
9January 15, 2013 and each January 15 thereafter, the Board 
10shall certify to the Governor and the General Assembly the 
11amount of the required State contribution for the next fiscal 
12year. The Board's certification must note any deviations from 
13the State Actuary's recommended changes, the reason or reasons 
14for not following the State Actuary's recommended changes, and 
15the fiscal impact of not following the State Actuary's 
16recommended changes on the required State contribution. 
17 (a-10) As soon as practical after the effective date of 
18this amendatory Act of the 100th General Assembly, the State 
19Actuary and the Board shall recalculate and recertify to the 
20Governor and the General Assembly the amount of the State 
21contribution to the System for State fiscal year 2018, taking 
22into account the changes in required State contributions made 
23by this amendatory Act of the 100th General Assembly. 
24 (a-15) On or before May 1, 2018, the Board shall 
25recalculate and recertify
to the Governor and the General 
26Assembly the amount of the required State
contribution to the 
 
 
10000SB0011sam002- 181 -LRB100 06001 RPS 18499 a


1System for State fiscal year 2019, taking into account the 
2effect on the System's liabilities of the elections made under 
3Section 16-122.9. 
4 On or before October 1, 2018, the Board shall recalculate 
5and recertify to the Governor and the General Assembly the 
6amount of the required State contribution to the System for 
7State fiscal year 2019, taking into account the reduction 
8specified under item (3) of subsection (b-3) of this Section. 
9 (b) Through State fiscal year 1995, the State contributions 
10shall be
paid to the System in accordance with Section 18-7 of 
11the School Code.

12 (b-1) Beginning in State fiscal year 1996, on the 15th day 
13of each month,
or as soon thereafter as may be practicable, the 
14Board shall submit vouchers
for payment of State contributions 
15to the System, in a total monthly amount of
one-twelfth of the 
16required annual State contribution certified under
subsection 
17(a-1).
From the
effective date of this amendatory Act of the 
1893rd General Assembly
through June 30, 2004, the Board shall 
19not submit vouchers for the
remainder of fiscal year 2004 in 
20excess of the fiscal year 2004
certified contribution amount 
21determined under this Section
after taking into consideration 
22the transfer to the System
under subsection (a) of Section 
236z-61 of the State Finance Act.
These vouchers shall be paid by 
24the State Comptroller and
Treasurer by warrants drawn on the 
25funds appropriated to the System for that
fiscal year.

26 If in any month the amount remaining unexpended from all 
 
 
10000SB0011sam002- 182 -LRB100 06001 RPS 18499 a


1other appropriations
to the System for the applicable fiscal 
2year (including the appropriations to
the System under Section 
38.12 of the State Finance Act and Section 1 of the
State 
4Pension Funds Continuing Appropriation Act) is less than the 
5amount
lawfully vouchered under this subsection, the 
6difference shall be paid from the
Common School Fund under the 
7continuing appropriation authority provided in
Section 1.1 of 
8the State Pension Funds Continuing Appropriation Act.

9 (b-2) Allocations from the Common School Fund apportioned 
10to school
districts not coming under this System shall not be 
11diminished or affected by
the provisions of this Article.

12 (b-3) For State fiscal years 2018 through 2045 (except as 
13otherwise provided for fiscal year 2019), the minimum 
14contribution to the System to be made by the State for each 
15fiscal year shall be an amount determined by the System to be 
16sufficient to bring the total assets of the System up to 90% of 
17the total actuarial liabilities of the System by the end of 
18State fiscal year 2045. In making these determinations, the 
19required State contribution shall be calculated each year as a 
20level percentage of total payroll, including payroll that is 
21not deemed pensionable, but excluding payroll attributable to 
22participants in the defined contribution plan under Section 
2316-205.1, over the years remaining to and including fiscal year 
242045 and shall be determined under the projected unit credit 
25actuarial cost method. 
26 For State fiscal year 2019:
 
 
10000SB0011sam002- 183 -LRB100 06001 RPS 18499 a


1  (1) The initial calculation and certification shall be 
2 based on the amount determined above.
3  (2) For purposes of the recertification due on or 
4 before May 1, 2018, the recalculation of the required State 
5 contribution for fiscal year 2019 shall take into account 
6 the effect on the System's liabilities of the elections 
7 made under Section 16-122.9.
8  (3) For purposes of the recertification due on or 
9 before October 1, 2018, the total required State 
10 contribution for fiscal year 2019 shall be reduced by the 
11 amount of the consideration payments made to Tier 1 
12 employees who made the election under paragraph (1) of 
13 subsection (a) of Section 16-122.9.
14 Beginning in State fiscal year 2018, any increase or 
15decrease in State contribution over the prior fiscal year due 
16exclusively to changes in actuarial or investment assumptions 
17adopted by the Board shall be included in the State 
18contribution to the System, as a percentage of the applicable 
19employee payroll, and shall be increased in equal annual 
20increments so that by the State fiscal year occurring 5 years 
21after the adoption of the actuarial or investment assumptions, 
22the State is contributing at the rate otherwise required under 
23this Section. 
24 For State fiscal years 2012 through 2017 2045, the minimum 
25contribution
to the System to be made by the State for each 
26fiscal year shall be an amount
determined by the System to be 
 
 
10000SB0011sam002- 184 -LRB100 06001 RPS 18499 a


1sufficient to bring the total assets of the
System up to 90% of 
2the total actuarial liabilities of the System by the end of

3State fiscal year 2045. In making these determinations, the 
4required State
contribution shall be calculated each year as a 
5level percentage of payroll
over the years remaining to and 
6including fiscal year 2045 and shall be
determined under the 
7projected unit credit actuarial cost method.

8 For State fiscal years 1996 through 2005, the State 
9contribution to the
System, as a percentage of the applicable 
10employee payroll, shall be increased
in equal annual increments 
11so that by State fiscal year 2011, the State is
contributing at 
12the rate required under this Section; except that in the

13following specified State fiscal years, the State contribution 
14to the System
shall not be less than the following indicated 
15percentages of the applicable
employee payroll, even if the 
16indicated percentage will produce a State
contribution in 
17excess of the amount otherwise required under this subsection

18and subsection (a), and notwithstanding any contrary 
19certification made under
subsection (a-1) before the effective 
20date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% 
21in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY 
222003; and
13.56% in FY 2004.

23 Notwithstanding any other provision of this Article, the 
24total required State
contribution for State fiscal year 2006 is 
25$534,627,700.

26 Notwithstanding any other provision of this Article, the 
 
 
10000SB0011sam002- 185 -LRB100 06001 RPS 18499 a


1total required State
contribution for State fiscal year 2007 is 
2$738,014,500.

3 For each of State fiscal years 2008 through 2009, the State 
4contribution to
the System, as a percentage of the applicable 
5employee payroll, shall be
increased in equal annual increments 
6from the required State contribution for State fiscal year 
72007, so that by State fiscal year 2011, the
State is 
8contributing at the rate otherwise required under this Section.

9 Notwithstanding any other provision of this Article, the 
10total required State contribution for State fiscal year 2010 is 
11$2,089,268,000 and shall be made from the proceeds of bonds 
12sold in fiscal year 2010 pursuant to Section 7.2 of the General 
13Obligation Bond Act, less (i) the pro rata share of bond sale 
14expenses determined by the System's share of total bond 
15proceeds, (ii) any amounts received from the Common School Fund 
16in fiscal year 2010, and (iii) any reduction in bond proceeds 
17due to the issuance of discounted bonds, if applicable. 
18 Notwithstanding any other provision of this Article, the

19total required State contribution for State fiscal year 2011 is

20the amount recertified by the System on or before April 1, 2011 
21pursuant to subsection (a-1) of this Section and shall be made 
22from the proceeds of bonds
sold in fiscal year 2011 pursuant to 
23Section 7.2 of the General
Obligation Bond Act, less (i) the 
24pro rata share of bond sale
expenses determined by the System's 
25share of total bond
proceeds, (ii) any amounts received from 
26the Common School Fund
in fiscal year 2011, and (iii) any 
 
 
10000SB0011sam002- 186 -LRB100 06001 RPS 18499 a


1reduction in bond proceeds
due to the issuance of discounted 
2bonds, if applicable. This amount shall include, in addition to 
3the amount certified by the System, an amount necessary to meet 
4employer contributions required by the State as an employer 
5under paragraph (e) of this Section, which may also be used by 
6the System for contributions required by paragraph (a) of 
7Section 16-127. 
8 Beginning in State fiscal year 2046, the minimum State 
9contribution for
each fiscal year shall be the amount needed to 
10maintain the total assets of
the System at 90% of the total 
11actuarial liabilities of the System.

12 Amounts received by the System pursuant to Section 25 of 
13the Budget Stabilization Act or Section 8.12 of the State 
14Finance Act in any fiscal year do not reduce and do not 
15constitute payment of any portion of the minimum State 
16contribution required under this Article in that fiscal year. 
17Such amounts shall not reduce, and shall not be included in the 
18calculation of, the required State contributions under this 
19Article in any future year until the System has reached a 
20funding ratio of at least 90%. A reference in this Article to 
21the "required State contribution" or any substantially similar 
22term does not include or apply to any amounts payable to the 
23System under Section 25 of the Budget Stabilization Act.
24 Notwithstanding any other provision of this Section, the 
25required State
contribution for State fiscal year 2005 and for 
26fiscal year 2008 and each fiscal year thereafter, as
calculated 
 
 
10000SB0011sam002- 187 -LRB100 06001 RPS 18499 a


1under this Section and
certified under subsection (a-1), shall 
2not exceed an amount equal to (i) the
amount of the required 
3State contribution that would have been calculated under
this 
4Section for that fiscal year if the System had not received any 
5payments
under subsection (d) of Section 7.2 of the General 
6Obligation Bond Act, minus
(ii) the portion of the State's 
7total debt service payments for that fiscal
year on the bonds 
8issued in fiscal year 2003 for the purposes of that Section 
97.2, as determined
and certified by the Comptroller, that is 
10the same as the System's portion of
the total moneys 
11distributed under subsection (d) of Section 7.2 of the General

12Obligation Bond Act. In determining this maximum for State 
13fiscal years 2008 through 2010, however, the amount referred to 
14in item (i) shall be increased, as a percentage of the 
15applicable employee payroll, in equal increments calculated 
16from the sum of the required State contribution for State 
17fiscal year 2007 plus the applicable portion of the State's 
18total debt service payments for fiscal year 2007 on the bonds 
19issued in fiscal year 2003 for the purposes of Section 7.2 of 
20the General
Obligation Bond Act, so that, by State fiscal year 
212011, the
State is contributing at the rate otherwise required 
22under this Section.

23 (c) Payment of the required State contributions and of all 
24pensions,
retirement annuities, death benefits, refunds, and 
25other benefits granted
under or assumed by this System, and all 
26expenses in connection with the
administration and operation 
 
 
10000SB0011sam002- 188 -LRB100 06001 RPS 18499 a


1thereof, are obligations of the State.

2 If members are paid from special trust or federal funds 
3which are
administered by the employing unit, whether school 
4district or other
unit, the employing unit shall pay to the 
5System from such
funds the full accruing retirement costs based 
6upon that
service, which, beginning July 1, 2014, shall be at a 
7rate, expressed as a percentage of salary, equal to the total 
8minimum contribution
to the System to be made by the State for 
9that fiscal year, including both normal cost and unfunded 
10liability components, expressed as a percentage of payroll, as 
11determined by the System under subsection (b-3) of this 
12Section. Employer contributions, based on
salary paid to 
13members from federal funds, may be forwarded by the 
14distributing
agency of the State of Illinois to the System 
15prior to allocation, in an
amount determined in accordance with 
16guidelines established by such
agency and the System. Any 
17contribution for fiscal year 2015 collected as a result of the 
18change made by this amendatory Act of the 98th General Assembly 
19shall be considered a State contribution under subsection (b-3) 
20of this Section. 

21 (d) Effective July 1, 1986, any employer of a teacher as 
22defined in
paragraph (8) of Section 16-106 shall pay the 
23employer's normal cost
of benefits based upon the teacher's 
24service, in addition to
employee contributions, as determined 
25by the System. Such employer
contributions shall be forwarded 
26monthly in accordance with guidelines
established by the 
 
 
10000SB0011sam002- 189 -LRB100 06001 RPS 18499 a


1System.

2 However, with respect to benefits granted under Section 
316-133.4 or
16-133.5 to a teacher as defined in paragraph (8) 
4of Section 16-106, the
employer's contribution shall be 12% 
5(rather than 20%) of the member's
highest annual salary rate 
6for each year of creditable service granted, and
the employer 
7shall also pay the required employee contribution on behalf of

8the teacher. For the purposes of Sections 16-133.4 and 
916-133.5, a teacher
as defined in paragraph (8) of Section 
1016-106 who is serving in that capacity
while on leave of 
11absence from another employer under this Article shall not
be 
12considered an employee of the employer from which the teacher 
13is on leave.

14 (e) Beginning July 1, 1998, every employer of a teacher

15shall pay to the System an employer contribution computed as 
16follows:


17  (1) Beginning July 1, 1998 through June 30, 1999, the 
18 employer
contribution shall be equal to 0.3% of each 
19 teacher's salary.


20  (2) Beginning July 1, 1999 and thereafter, the employer

21 contribution shall be equal to 0.58% of each teacher's 
22 salary.

23The school district or other employing unit may pay these 
24employer
contributions out of any source of funding available 
25for that purpose and
shall forward the contributions to the 
26System on the schedule established
for the payment of member 
 
 
10000SB0011sam002- 190 -LRB100 06001 RPS 18499 a


1contributions.

2 These employer contributions are intended to offset a 
3portion of the cost
to the System of the increases in 
4retirement benefits resulting from this
amendatory Act of 1998.

5 Each employer of teachers is entitled to a credit against 
6the contributions
required under this subsection (e) with 
7respect to salaries paid to teachers
for the period January 1, 
82002 through June 30, 2003, equal to the amount paid
by that 
9employer under subsection (a-5) of Section 6.6 of the State 
10Employees
Group Insurance Act of 1971 with respect to salaries 
11paid to teachers for that
period.

12 The additional 1% employee contribution required under 
13Section 16-152 by
this amendatory Act of 1998 is the 
14responsibility of the teacher and not the
teacher's employer, 
15unless the employer agrees, through collective bargaining
or 
16otherwise, to make the contribution on behalf of the teacher.

17 If an employer is required by a contract in effect on May 
181, 1998 between the
employer and an employee organization to 
19pay, on behalf of all its full-time
employees
covered by this 
20Article, all mandatory employee contributions required under

21this Article, then the employer shall be excused from paying 
22the employer
contribution required under this subsection (e) 
23for the balance of the term
of that contract. The employer and 
24the employee organization shall jointly
certify to the System 
25the existence of the contractual requirement, in such
form as 
26the System may prescribe. This exclusion shall cease upon the

 
 
10000SB0011sam002- 191 -LRB100 06001 RPS 18499 a


1termination, extension, or renewal of the contract at any time 
2after May 1,
1998.

3 (f) For school years beginning on or after June 1, 2005 and 
4before July 1, 2018, if If the amount of a teacher's salary for 
5any school year used to determine final average salary exceeds 
6the member's annual full-time salary rate with the same 
7employer for the previous school year by more than 6%, the 
8teacher's employer shall pay to the System, in addition to all 
9other payments required under this Section and in accordance 
10with guidelines established by the System, the present value of 
11the increase in benefits resulting from the portion of the 
12increase in salary that is in excess of 6%. This present value 
13shall be computed by the System on the basis of the actuarial 
14assumptions and tables used in the most recent actuarial 
15valuation of the System that is available at the time of the 
16computation. If a teacher's salary for the 2005-2006 school 
17year is used to determine final average salary under this 
18subsection (f), then the changes made to this subsection (f) by 
19Public Act 94-1057 shall apply in calculating whether the 
20increase in his or her salary is in excess of 6%. For the 
21purposes of this Section, change in employment under Section 
2210-21.12 of the School Code on or after June 1, 2005 shall 
23constitute a change in employer. The System may require the 
24employer to provide any pertinent information or 
25documentation.
The changes made to this subsection (f) by this 
26amendatory Act of the 94th General Assembly apply without 
 
 
10000SB0011sam002- 192 -LRB100 06001 RPS 18499 a


1regard to whether the teacher was in service on or after its 
2effective 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.

 
 
10000SB0011sam002- 193 -LRB100 06001 RPS 18499 a


1 (f-1) For school years beginning on or after July 1, 2018, 
2if the amount of a teacher's salary for any school year used to 
3determine final average salary exceeds the member's annual 
4full-time salary rate with the same employer for the previous 
5school year by more than the unadjusted percentage increase in 
6the consumer price index-u for the calendar year ending on the 
7December 31 immediately preceding the beginning of the school 
8year, then the teacher's employer shall pay to the System, in 
9addition to all other payments required under this Section and 
10in accordance with guidelines established by the System, the 
11present value of the increase in benefits resulting from the 
12portion of the increase in salary that is in excess of the 
13unadjusted percentage increase in the consumer price index-u 
14for the applicable calendar year. This present value shall be 
15computed by the System on the basis of the actuarial 
16assumptions and tables used in the most recent actuarial 
17valuation of the System that is available at the time of the 
18computation. The System may require the employer to provide any 
19pertinent information or documentation. 
20 Whenever it determines that a payment is or may be required 
21under this subsection (f-1), the System shall calculate the 
22amount of the payment and bill the employer for that amount. 
23The bill shall specify the calculations used to determine the 
24amount due. If the employer disputes the amount of the bill, it 
25may, within 30 days after receipt of the bill, apply to the 
26System in writing for a recalculation. The application must 
 
 
10000SB0011sam002- 194 -LRB100 06001 RPS 18499 a


1specify in detail the grounds of the dispute and, if the 
2employer asserts that the calculation is subject to subsection 
3(h-1) of this Section, must include an affidavit setting forth 
4and attesting to all facts within the employer's knowledge that 
5are pertinent to the applicability of subsection (h-1). Upon 
6receiving a timely application for recalculation, the System 
7shall review the application and, if appropriate, recalculate 
8the amount due. 
9 The employer contributions required under this subsection 
10(f-1) may be paid in the form of a lump sum within 90 days after 
11receipt of the bill. If the employer contributions are not paid 
12within 90 days after receipt of the bill, then interest shall 
13be charged at a rate equal to the System's annual actuarially 
14assumed rate of return on investment compounded annually from 
15the 91st day after receipt of the bill. Payments must be 
16concluded within 3 years after the employer's receipt of the 
17bill.
18 For the purposes of this Section, "consumer price index-u" 
19means the index published by the Bureau of Labor Statistics of 
20the United States Department of Labor that measures the average 
21change in prices of goods and services purchased by all urban 
22consumers, United States city average, all items, 1982-84 = 
23100. The new amount resulting from each annual adjustment shall 
24be determined by the Public Pension Division of the Department 
25of Insurance and made available to the boards of the retirement 
26systems and pension funds by November 1 of each year. 
 
 
10000SB0011sam002- 195 -LRB100 06001 RPS 18499 a


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 
 
 
10000SB0011sam002- 196 -LRB100 06001 RPS 18499 a


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 
 
 
10000SB0011sam002- 197 -LRB100 06001 RPS 18499 a


1subsection (f) of this Section.

2 (h-1) When assessing payment for any amount due under 
3subsection (f-1), the System shall exclude earnings increases 
4paid to participants under contracts or collective bargaining 
5agreements entered into, amended, or renewed before the 
6effective date of this amendatory Act of the 100th General 
7Assembly. 
8 (i) The System shall prepare a report and file copies of 
9the report with the Governor and the General Assembly by 
10January 1, 2007 that contains all of the following information:
11  (1) The number of recalculations required by the 
12 changes made to this Section by Public Act 94-1057 for each 
13 employer.
14  (2) The dollar amount by which each employer's 
15 contribution to the System was changed due to 
16 recalculations required by Public Act 94-1057.
17  (3) The total amount the System received from each 
18 employer as a result of the changes made to this Section by 
19 Public Act 94-4.
20  (4) The increase in the required State contribution 
21 resulting from the changes made to this Section by Public 
22 Act 94-1057.

23 (i-5) For school years beginning on or after July 1, 2018, 
24if the amount of a participant's salary for any school year, 
25determined on a full-time equivalent basis, exceeds the amount 
26of the salary set for the Governor, the participant's employer 
 
 
10000SB0011sam002- 198 -LRB100 06001 RPS 18499 a


1shall pay to the System, in addition to all other payments 
2required under this Section and in accordance with guidelines 
3established by the System, the amount of earnings that exceed 
4the salary set for the Governor multiplied by the level 
5percentage of payroll used in that fiscal year as determined by 
6the System to be sufficient to bring the total assets of the 
7System up to 90% of the total actuarial liabilities of the 
8System by the end of State fiscal year 2045. This amount shall 
9be computed by the System on the basis of the actuarial 
10assumptions and tables used in the most recent actuarial 
11valuation of the System that is available at the time of the 
12computation. The System may require the employer to provide any 
13pertinent information or documentation.
14 Whenever it determines that a payment is or may be required 
15under this subsection, the System shall calculate the amount of 
16the payment and bill the employer for that amount. The bill 
17shall specify the calculations used to determine the amount 
18due. If the employer disputes the amount of the bill, it may, 
19within 30 days after receipt of the bill, apply to the System 
20in writing for a recalculation. The application must specify in 
21detail the grounds of the dispute. Upon receiving a timely 
22application for recalculation, the System shall review the 
23application and, if appropriate, recalculate the amount due. 
24 The employer contributions required under this subsection 
25may be paid in the form of a lump sum within 90 days after 
26receipt of the bill. If the employer contributions are not paid 
 
 
10000SB0011sam002- 199 -LRB100 06001 RPS 18499 a


1within 90 days after receipt of the bill, then interest will be 
2charged at a rate equal to the System's annual actuarially 
3assumed rate of return on investment compounded annually from 
4the 91st day after receipt of the bill. Payments must be 
5concluded within 3 years after the employer's receipt of the 
6bill. 
7 (j) 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 (k) 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 (l) If Section 16-122.9 is determined to be 
23unconstitutional or otherwise invalid by a final unappealable 
24decision of an Illinois court or a court of competent 
25jurisdiction, then the changes made to this Section by this 
26amendatory Act of the 100th General Assembly shall not take 
 
 
10000SB0011sam002- 200 -LRB100 06001 RPS 18499 a


1effect and are repealed by operation of law. 
2(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 
396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. 
46-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)


5 (40 ILCS 5/16-190.5 new)
6 Sec. 16-190.5. Accelerated pension benefit payment.
7 (a) As used in this Section:
8 "Eligible person" means a person who:
9  (1) has terminated service; 
10  (2) has accrued sufficient service credit to be 
11 eligible to receive a retirement annuity under this 
12 Article;
13  (3) has not received any retirement annuity under this 
14 Article; and
15  (4) does not have a QILDRO in effect against him or her 
16 under this Article.
17 "Pension benefit" means the benefits under this Article, or 
18Article 1 as it relates to those benefits, including any 
19anticipated annual increases, that an eligible person is 
20entitled to upon attainment of the applicable retirement age. 
21"Pension benefit" also includes applicable survivor's or 
22disability benefits. 
23 (b) Before January 1, 2018, and annually thereafter, the 
24System shall calculate, using actuarial tables and other 
25assumptions adopted by the Board, the net present value of 
 
 
10000SB0011sam002- 201 -LRB100 06001 RPS 18499 a


1pension benefits for each eligible person and shall offer each 
2eligible person the opportunity to irrevocably elect to receive 
3an amount determined by the System to be equal to 70% of the 
4net present value of his or her pension benefits in lieu of 
5receiving any pension benefit. The offer shall specify the 
6dollar amount that the eligible person will receive if he or 
7she so elects and shall expire when a subsequent offer is made 
8to an eligible person or when the System determines that 10% of 
9eligible persons in that year have made the election under this 
10subsection, whichever occurs first. The System shall make a 
11good faith effort to contact every eligible person to notify 
12him or her of the election and of the amount of the accelerated 
13pension benefit payment.
14 Until the System determines that 10% of eligible persons in 
15that year have made the election under this subsection, an 
16eligible person may irrevocably elect to receive an accelerated 
17pension benefit payment in the amount that the System offers 
18under this subsection in lieu of receiving any pension benefit. 
19A person who elects to receive an accelerated pension benefit 
20payment under this Section may not elect to proceed under the 
21Retirement Systems Reciprocal Act with respect to service under 
22this Article. 
23 (c) A person's credits and creditable service under this 
24Article shall be terminated upon the person's receipt of an 
25accelerated pension benefit payment under this Section, and no 
26other benefit shall be paid under this Article based on those 
 
 
10000SB0011sam002- 202 -LRB100 06001 RPS 18499 a


1terminated credits and creditable service, including any 
2retirement, survivor, or other benefit; except that to the 
3extent that participation, benefits, or premiums under the 
4State Employees Group Insurance Act of 1971 are based on the 
5amount of service credit, the terminated service credit shall 
6be used for that purpose.
7 (d) If a person who has received an accelerated pension 
8benefit payment under this Section returns to active service 
9under this Article, then:
10  (1) Any benefits under the System earned as a result of 
11 that return to active service shall be based solely on the 
12 person's credits and creditable service arising from the 
13 return to active service. 
14  (2) The accelerated pension benefit payment may not be 
15 repaid to the System, and the terminated credits and 
16 creditable service may not under any circumstances be 
17 reinstated. 
18 (e) As a condition of receiving an accelerated pension 
19benefit payment, an eligible person must have another 
20retirement plan or account qualified under the Internal Revenue 
21Code of 1986, as amended, for the accelerated pension benefit 
22payment to be rolled into. The accelerated pension benefit 
23payment under this Section may be subject to withholding or 
24payment of applicable taxes, but to the extent permitted by 
25federal law, a person who receives an accelerated pension 
26benefit payment under this Section must direct the System to 
 
 
10000SB0011sam002- 203 -LRB100 06001 RPS 18499 a


1pay all of that payment as a rollover into another retirement 
2plan or account qualified under the Internal Revenue Code of 
31986, as amended. 
4 (f) Before January 1, 2019 and every January 1 thereafter, 
5the Board shall certify to the Illinois Finance Authority and 
6the General Assembly the amount by which the total amount of 
7accelerated pension benefit payments made under this Section 
8exceed the amount appropriated to the System for the purpose of 
9making those payments. 
10 (g) The Board shall adopt any rules necessary to implement 
11this Section.
12 (h) No provision of this Section shall be interpreted in a 
13way that would cause the applicable System to cease to be a 
14qualified plan under the Internal Revenue Code of 1986.
15 (i) Notwithstanding any other provision of this Section, in 
16no case shall the total amount of accelerated pension benefit 
17payments paid under this Section, Section 14-147.5, and Section 
1815-185.5, and Section 16-190.5 cause the Illinois Finance 
19Authority to issue more than the $250,000,000 of State Pension 
20Obligation Acceleration Bonds authorized in subsection (c-5) 
21of Section 801-40 of the Illinois Finance Authority Act. 

22 (40 ILCS 5/16-203)
23 (Text of Section WITHOUT the changes made by P.A. 98-599, 
24which has been held unconstitutional)

25 Sec. 16-203. Application and expiration of new benefit 
 
 
10000SB0011sam002- 204 -LRB100 06001 RPS 18499 a


1increases.
2 (a) As used in this Section, "new benefit increase" means 
3an increase in the amount of any benefit provided under this 
4Article, or an expansion of the conditions of eligibility for 
5any benefit under this Article, that results from an amendment 
6to this Code that takes effect after June 1, 2005 (the 
7effective date of Public Act 94-4). "New benefit increase", 
8however, does not include any benefit increase resulting from 
9the changes made to this Article by Public Act 95-910 or this 
10amendatory Act of the 100th 95th General Assembly.
11 (b) Notwithstanding any other provision of this Code or any 
12subsequent amendment to this Code, every new benefit increase 
13is subject to this Section and shall be deemed to be granted 
14only in conformance with and contingent upon compliance with 
15the provisions of this Section.

16 (c) The Public Act enacting a new benefit increase must 
17identify and provide for payment to the System of additional 
18funding at least sufficient to fund the resulting annual 
19increase in cost to the System as it accrues.
20 Every new benefit increase is contingent upon the General 
21Assembly providing the additional funding required under this 
22subsection. The Commission on Government Forecasting and 
23Accountability shall analyze whether adequate additional 
24funding has been provided for the new benefit increase and 
25shall report its analysis to the Public Pension Division of the 
26Department of Insurance Financial and Professional Regulation. 
 
 
10000SB0011sam002- 205 -LRB100 06001 RPS 18499 a


1A new benefit increase created by a Public Act that does not 
2include the additional funding required under this subsection 
3is null and void. If the Public Pension Division determines 
4that the additional funding provided for a new benefit increase 
5under this subsection is or has become inadequate, it may so 
6certify to the Governor and the State Comptroller and, in the 
7absence of corrective action by the General Assembly, the new 
8benefit increase shall expire at the end of the fiscal year in 
9which the certification is made.

10 (d) Every new benefit increase shall expire 5 years after 
11its effective date or on such earlier date as may be specified 
12in the language enacting the new benefit increase or provided 
13under subsection (c). This does not prevent the General 
14Assembly from extending or re-creating a new benefit increase 
15by law.
16 (e) Except as otherwise provided in the language creating 
17the new benefit increase, a new benefit increase that expires 
18under this Section continues to apply to persons who applied 
19and qualified for the affected benefit while the new benefit 
20increase was in effect and to the affected beneficiaries and 
21alternate payees of such persons, but does not apply to any 
22other person, including without limitation a person who 
23continues in service after the expiration date and did not 
24apply and qualify for the affected benefit while the new 
25benefit increase was in effect.

26(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)

 
 
10000SB0011sam002- 206 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/16-205.1 new)
2 Sec. 16-205.1. Defined contribution plan.
3 (a) By July 1, 2018, the System shall prepare and implement 
4a voluntary defined contribution plan for up to 5% of eligible 
5active Tier 1 employees. The System shall determine the 5% cap 
6by the number of active Tier 1 employees on the effective date 
7of this Section. The defined contribution plan developed under 
8this Section shall be a plan that aggregates employer and 
9employee contributions in individual participant accounts 
10which, after meeting any other requirements, are used for 
11payouts after retirement in accordance with this Section and 
12any other applicable laws.
13 As used in this Section, "defined benefit plan" means the 
14retirement plan available under this Article to Tier 1 
15employees who have not made the election authorized under this 
16Section.
17  (1) Under the defined contribution plan, an active
Tier 
18 1 employee of this System could elect to cease accruing 
19 benefits in the defined benefit plan under this Article and 
20 begin accruing benefits for future service in the defined 
21 contribution plan. Service credit under the defined 
22 contribution plan may be used for determining retirement 
23 eligibility under the defined benefit plan. An active Tier 
24 1 employee who elects to cease accruing benefits in his or 
25 her defined benefit plan shall be prohibited from 
 
 
10000SB0011sam002- 207 -LRB100 06001 RPS 18499 a


1 purchasing service credit on or after the date of his or 
2 her election. A Tier 1 employee making the irrevocable 
3 election provided under this Section shall not receive 
4 interest accruals to his or her benefit under paragraph (A) 
5 of subsection (a) of Section 16-133 on or after the date of 
6 his or her election.
7  (2) Participants in the defined contribution plan

8 shall pay employee contributions at the same rate as Tier 1 
9 employees in this System who do not participate in the 
10 defined contribution plan.
11  (3) State contributions shall be paid into the
accounts 
12 of all participants in the defined contribution plan at a 
13 uniform rate, expressed as a percentage of salary and 
14 determined for each year. This rate shall be no higher than 
15 the employer's normal cost for Tier 1 employees in the 
16 defined benefit plan for that year, as determined by the 
17 System and expressed as a percentage of salary, and shall 
18 be no lower than 0% of salary. The State shall adjust this 
19 rate annually.
20  (4) The defined contribution plan shall require 5
years 
21 of participation in the defined contribution plan before 
22 vesting in State contributions. If the participant fails to 
23 vest in them, the State contributions, and the earnings 
24 thereon, shall be forfeited.
25  (5) The defined contribution plan may provide for

26 participants in the plan to be eligible for the defined 
 
 
10000SB0011sam002- 208 -LRB100 06001 RPS 18499 a


1 disability benefits available to other participants under 
2 this Article. If it does, the System shall reduce the 
3 employee contributions credited to the member's defined 
4 contribution plan account by an amount determined by the 
5 System to cover the cost of offering such benefits.
6  (6) The defined contribution plan shall provide a

7 variety of options for investments. These options shall 
8 include investments in a fund created by the System and 
9 managed in accordance with legal and fiduciary standards, 
10 as well as investment options otherwise available.
11  (7) The defined contribution plan shall provide a

12 variety of options for payouts to retirees and their 
13 survivors.
14  (8) To the extent authorized under federal law and
as 
15 authorized by the System, the plan shall allow former 
16 participants in the plan to transfer or roll over employee 
17 and vested State contributions, and the earnings thereon, 
18 into other qualified retirement plans.
19  (9) The System shall reduce the employee
contributions 
20 credited to the member's defined contribution plan account 
21 by an amount determined by the System to cover the cost of 
22 offering these benefits and any applicable administrative 
23 fees.
24 (b) Only persons who are active Tier 1 employees of the 
25System on the effective date of this Section are eligible to 
26participate in the defined contribution plan. Participation in 
 
 
10000SB0011sam002- 209 -LRB100 06001 RPS 18499 a


1the defined contribution plan shall be limited to the first 5% 
2of eligible persons who elect to participate. The election to 
3participate in the defined contribution plan is voluntary and 
4irrevocable.
5 (c) An eligible Tier 1 employee may irrevocably elect to 
6participate in the defined contribution plan by filing with the 
7System a written application to participate that is received by 
8the System prior to its determination that 5% of eligible 
9persons have elected to participate in the defined contribution 
10plan.
11 When the System first determines that 5% of eligible 
12persons have elected to participate in the defined contribution 
13plan, the System shall provide notice to previously eligible 
14employees that the plan is no longer available and shall cease 
15accepting applications to participate.
16 (d) The System shall make a good faith effort to contact 
17each active Tier 1 employee who is eligible to participate in 
18the defined contribution plan. The System shall mail 
19information describing the option to join the defined 
20contribution plan to each of these employees to his or her last 
21known address on file with the System. If the employee is not 
22responsive to other means of contact, it is sufficient for the 
23System to publish the details of the option on its website.
24 Upon request for further information describing the 
25option, the System shall provide employees with information 
26from the System before exercising the option to join the plan, 
 
 
10000SB0011sam002- 210 -LRB100 06001 RPS 18499 a


1including information on the impact to their vested benefits or 
2non-vested service. The individual consultation shall include 
3projections of the member's defined benefits at retirement or 
4earlier termination of service and the value of the member's 
5account at retirement or earlier termination of service. The 
6System shall not provide advice or counseling with respect to 
7whether the employee should exercise the option. The System 
8shall inform Tier 1 employees who are eligible to participate 
9in the defined contribution plan that they may also wish to 
10obtain information and counsel relating to their option from 
11any other available source, including but not limited to labor 
12organizations, private counsel, and financial advisors.
13 (e) In no event shall the System, its staff, its authorized 
14representatives, or the Board be liable for any information 
15given to an employee under this Section. The System may 
16coordinate with the Illinois Department of Central Management 
17Services and other retirement systems administering a defined 
18contribution plan in accordance with this amendatory Act of the 
19100th General Assembly to provide information concerning the 
20impact of the option set forth in this Section.
21 (f) Notwithstanding any other provision of this Section, no 
22person shall begin participating in the defined contribution 
23plan until it has attained qualified plan status and received 
24all necessary approvals from the U.S. Internal Revenue Service.
25 (g) The System shall report on its progress under this 
26Section, including the available details of the defined 
 
 
10000SB0011sam002- 211 -LRB100 06001 RPS 18499 a


1contribution plan and the System's plans for informing eligible 
2Tier 1 employees about the plan, to the Governor and the 
3General Assembly on or before January 15, 2018.
4 (h) The intent of this amendatory Act of the 100th General 
5Assembly is to ensure that the State's normal cost of 
6participation in the defined contribution plan is similar, and 
7if possible equal, to the State's normal cost of participation 
8in the defined benefit plan, unless a lower State's normal cost 
9is necessary to ensure cost neutrality.
10 (i) If Section 16-122.9 is determined to be 
11unconstitutional or otherwise invalid by a final unappealable 
12decision of an Illinois court or a court of competent 
13jurisdiction, then this Section shall not take effect and is 
14repealed by operation of law. 

15 (40 ILCS 5/16-206.1 new)
16 Sec. 16-206.1. Defined contribution plan; termination. If 
17the defined contribution plan is terminated or becomes 
18inoperative pursuant to law, then each participant in the plan 
19shall automatically be deemed to have been a contributing Tier 
201 employee in the System's defined benefit plan during the time 
21in which he or she participated in the defined contribution 
22plan, and for that purpose the System shall be entitled to 
23recover the amounts in the participant's defined contribution 
24accounts.

 
 
10000SB0011sam002- 212 -LRB100 06001 RPS 18499 a


1 (40 ILCS 5/17-106.05 new)
2 Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A

3teacher under this Article who first became a member or

4participant before January 1, 2011 under any reciprocal

5retirement system or pension fund established under this Code

6other than a retirement system or pension fund established

7under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for

8the purposes of the election under Section 17-115.5, "Tier 1 
9employee" does
not include a teacher under this Article who 
10would qualify as a
Tier 1 employee but who has made an 
11irrevocable election on or
before June 1, 2017 to retire from 
12service pursuant to the terms of a collective bargaining 
13agreement in effect on June 1,
2017, excluding any extension, 
14amendment, or renewal of that
agreement on or after that date, 
15and has notified the Fund of
that election.

16 (40 ILCS 5/17-113.4 new)
17 Sec. 17-113.4. Salary. "Salary" means any income in any 
18form that qualifies as "average salary" or "annual rate of 
19salary" for purposes of paragraph (1) of subsection (c) of 
20Section 17-116 and "salary" for payroll deduction purposes 
21under Sections 17-130, 17-131, and 17-132.
22 Notwithstanding any other provision of this Section, 
23"salary" does not include any future increase in income that is

24offered by an employer for service as a Tier 1 employee under

25this Article pursuant to the condition set forth in subsection 
 
 
10000SB0011sam002- 213 -LRB100 06001 RPS 18499 a


1(c) of
Section 17-115.5 and accepted under that condition by a 
2Tier 1 employee who has made
the election under paragraph (2) 
3of subsection (a) of Section
17-115.5. 

4 (40 ILCS 5/17-113.5 new)
5 Sec. 17-113.5. Future increase in income. "Future increase

6in income" means an increase in income in any form offered by

7an employer to a Tier 1 employee for service under this Article

8after June 30, 2018 that qualifies as "salary", as defined in

9Section 17-113.4, or would qualify as "salary" but for the fact

10that it was offered to and accepted by a Tier 1 employee under 
11the condition set forth in subsection (c) of
Section 17-115.5. 
12The term "future increase in income" does not
include an 
13increase in income in any form that is paid to a
Tier 1 
14employee under an employment contract or a collective

15bargaining agreement that is in effect on the effective date of

16this Section, but does include an increase in income in any

17form pursuant to an extension, amendment, or renewal of any

18such employment contract or collective bargaining agreement on

19or after the effective date of this Section.

20 (40 ILCS 5/17-115.5 new)
21 Sec. 17-115.5. Election by Tier 1 employees. 
22 (a) Each active Tier 1 employee shall make an irrevocable 
23election either: 
24  (1) to agree to delay his or her eligibility for 
 
 
10000SB0011sam002- 214 -LRB100 06001 RPS 18499 a


1 automatic annual increases in service retirement pension 
2 as provided in Section 17-119.2 and to have the amount of 
3 the automatic annual increases in his or her service 
4 retirement pension and survivor's pension that are 
5 otherwise provided for in this Article calculated, 
6 instead, as provided in Section 17-119.2; or
7  (2) to not agree to paragraph (1) of this subsection. 
8 The election required under this subsection (a) shall be 
9made by each active Tier 1 employee no earlier than January 1, 
102018 and no later than March 31, 2018, except that:
11  (i) a person who becomes a Tier 1 employee under this 
12 Article on or after January 1, 2018 must make the election 
13 under this subsection (a) within 60 days after becoming a 
14 Tier 1 employee; and
15  (ii) a person who returns to active service as a Tier 1 
16 employee under this Article on or after January 1, 2018 and 
17 has not yet made an election under this Section must make 
18 the election under this subsection (a) within 60 days after 
19 returning to active service as a Tier 1 employee.
20 If a Tier 1 employee fails for any reason to make a 
21required election under this subsection within the time 
22specified, then the employee shall be deemed to have made the 
23election under paragraph (2) of this subsection. 
24 (a-5) If this Section is enjoined or stayed by an Illinois 
25court or a court of competent jurisdiction pending the entry of 
26a final and unappealable decision, and this Section is 
 
 
10000SB0011sam002- 215 -LRB100 06001 RPS 18499 a


1determined to be constitutional or otherwise valid by a final 
2unappealable decision of an Illinois court or a court of 
3competent jurisdiction, then the election procedure set forth 
4in subsection (a) of this Section shall commence on the 180th 
5calendar day after the date of the issuance of the final 
6unappealable decision and shall conclude at the end of the 
7270th calendar day after that date. 
8 (a-10) All elections under subsection (a) that are made or 
9deemed to be made before July 1, 2018 shall take effect on July 
101, 2018. Elections that are made or deemed to be made on or 
11after July 1, 2018 shall take effect on the first day of the 
12month following the month in which the election is made or 
13deemed to be made. 
14 (b) As adequate and legal consideration provided under this 
15amendatory Act of the 100th General Assembly for making an 
16election under paragraph (1) of subsection (a) of this Section, 
17an employer shall be expressly and irrevocably prohibited from 
18offering any future increases in income to a Tier 1 employee 
19who has made an election under paragraph (1) of subsection (a) 
20of this Section on the condition of not constituting salary 
21under Section 17-113.4. 
22 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, 
25each Tier 1 employee who has made an election under paragraph 
26(1) of subsection (a) of this Section shall receive a 
 
 
10000SB0011sam002- 216 -LRB100 06001 RPS 18499 a


1consideration payment equal to 10% of the contributions made by 
2or on behalf of the employee under Section 17-130 before the 
3effective date of that election. The Fund shall certify to the 
4State Comptroller the amount of the consideration payment to 
5the Tier 1 employee, and the State Comptroller shall make the 
6consideration payment to the Tier 1 employee. 
7 (c) A Tier 1 employee who makes the election under 
8paragraph (2) of subsection (a) of this Section shall not be 
9subject to paragraph (1) of subsection (a) of this Section. 
10However, each future increase in income offered by an employer 
11under this Article to a Tier 1 employee who has made the 
12election under paragraph (2) of subsection (a) of this Section 
13shall be offered by the employer expressly and irrevocably on 
14the condition of not constituting salary under Section 17-113.4 
15and that the Tier 1 employee's acceptance of the offered future 
16increase in income shall constitute his or her agreement to 
17that condition. 
18 (d) The Fund shall make a good faith effort to contact each 
19Tier 1 employee subject to this Section. The Fund shall mail 
20information describing the required election to each Tier 1 
21employee by United States Postal Service mail to his or her 
22last known address on file with the Fund. If the Tier 1 
23employee is not responsive to other means of contact, it is 
24sufficient for the Fund to publish the details of any required 
25elections on its website or to publish those details in a 
26regularly published newsletter or other existing public forum. 
 
 
10000SB0011sam002- 217 -LRB100 06001 RPS 18499 a


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 Fund shall offer Tier 
51 employees an opportunity to receive information from the Fund 
6before making the required election. The information may 
7consist of video materials, group presentations, individual 
8consultation with a member or authorized representative of the 
9Fund in person or by telephone or other electronic means, or 
10any combination of those methods. The Fund shall not provide 
11advice or counseling with respect to which election a Tier 1 
12employee should make or specific to the legal or tax 
13circumstances of or consequences to the Tier 1 employee. 
14 The Fund shall inform Tier 1 employees in the election 
15packet required under this subsection that the Tier 1 employee 
16may also wish to obtain information and counsel relating to the 
17election required under this Section from any other available 
18source, including, but not limited to, labor organizations and 
19private counsel. 
20 In no event shall the Fund, its staff, or the Board be held 
21liable for any information given to a member regarding the 
22elections under this Section. The Fund shall coordinate with 
23the Illinois Department of Central Management Services and each 
24other retirement system administering an election in 
25accordance with this amendatory Act of the 100th General 
26Assembly to provide information concerning the impact of the 
 
 
10000SB0011sam002- 218 -LRB100 06001 RPS 18499 a


1election set forth in this Section. 
2 (e) Notwithstanding any other provision of law, an employer 
3under this Article is required to offer each future increase in 
4income expressly and irrevocably on the condition of not 
5constituting "salary" under Section 17-113.4 to any Tier 1 
6employee who has made an election under paragraph (2) of 
7subsection (a) of this Section. The offer shall also provide 
8that the Tier 1 employee's acceptance of the offered future 
9increase in income shall constitute his or her agreement to the 
10condition set forth in this subsection. 
11 For purposes of legislative intent, the condition set forth 
12in this subsection shall be construed in a manner that ensures 
13that the condition is not violated or circumvented through any 
14contrivance of any kind. 
15 (f) A member's election under this Section is not a 
16prohibited election under subdivision (j)(1) of Section 1-119 
17of this Code. 
18 (g) No provision of this Section shall be interpreted in a 
19way that would cause the Fund to cease to be a qualified plan 
20under Section 401(a) of the Internal Revenue Code of 1986. 
21 (h) If an election created by this amendatory Act in any 
22other Article of this Code or any change deriving from that 
23election is determined to be unconstitutional or otherwise 
24invalid by a final unappealable decision of an Illinois court 
25or a court of competent jurisdiction, the invalidity of that 
26provision shall not in any way affect the validity of this 
 
 
10000SB0011sam002- 219 -LRB100 06001 RPS 18499 a


1Section or the changes deriving from the election required 
2under this Section. 



3 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)



4 Sec. 17-116. Service retirement pension. 

5 (a) Each teacher having 20 years of service upon attainment 
6of age 55,
or who thereafter attains age 55 shall be entitled 
7to a service retirement
pension upon or after attainment of age 
855; and each teacher in service on or
after July 1, 1971, with 
95 or more but less than 20 years of service shall be
entitled 
10to receive a service retirement pension upon or after 
11attainment of
age 62. 

12 (b) The service retirement pension
for a teacher who 
13retires on or after June 25, 1971, at age
60 or over, shall be 
14calculated as follows:

15  (1) For creditable service earned before July 1, 1998 
16 that has not been
augmented under Section 17-119.1: 1.67% 
17 for each of the first 10 years
of service; 1.90% for each 
18 of the next 10 years of service; 2.10% for
each year of 
19 service in excess of 20 but not exceeding 30; and 2.30% for

20 each year of service in excess of 30, based upon average 
21 salary as
herein defined.

22  (2) For creditable service earned on or after July 1, 
23 1998 by a member
who has at least 30 years of creditable 
24 service on July 1, 1998 and who does
not elect to augment 
25 service under Section 17-119.1: 2.3% of average salary
for 
 
 
10000SB0011sam002- 220 -LRB100 06001 RPS 18499 a


1 each year of creditable service earned on or after July 1, 
2 1998.

3  (3) For all other creditable service: 2.2% of average 
4 salary
for each year of creditable service.

5 (c) When computing such service retirement pensions, the

6following conditions shall apply:

7  1. Average salary shall consist of the average annual 
8 rate of salary
for the 4 consecutive years of validated 
9 service within the last 10 years
of service when such 
10 average annual rate was highest. In the determination
of 
11 average salary for retirement allowance purposes, for 
12 members who
commenced employment after August 31, 1979, 
13 that part of the salary for any
year shall be excluded 
14 which exceeds the annual full-time salary rate for
the 
15 preceding year by more than 20%. In the case of a member 
16 who commenced
employment before August 31, 1979 and who 
17 receives salary during any year
after September 1, 1983 
18 which exceeds the annual full time salary rate for
the 
19 preceding year by more than 20%,
an Employer and other 
20 employers of
eligible contributors as defined in Section 
21 17-106
shall pay to the Fund an amount equal to the present 
22 value of the
additional service retirement pension 
23 resulting from such excess salary.
The present value of the 
24 additional service retirement pension shall be
computed by 
25 the Board on the basis of actuarial tables adopted by the

26 Board. If a member elects to receive a pension from this 
 
 
10000SB0011sam002- 221 -LRB100 06001 RPS 18499 a


1 Fund
provided by
Section 20-121, his salary under the State 
2 Universities Retirement System
and the Teachers' 
3 Retirement System of the State of Illinois shall be

4 considered in determining such average salary. Amounts 
5 paid after the
effective date of this amendatory Act of 
6 1991 for unused vacation time
earned after that effective 
7 date shall not under any circumstances be
included in the 
8 calculation of average salary or the annual rate of salary

9 for the purposes of this Article.

10  2. Proportionate credit shall be given for validated 
11 service of less
than one year.

12  3. For retirement at age 60 or over the pension shall 
13 be payable at
the full rate.

14  4. For separation from service below age 60 to a 
15 minimum age of 55,
the pension shall be discounted at the 
16 rate of 1/2 of one per cent for
each month that the age of 
17 the contributor is less than 60, but a
teacher may elect to 
18 defer the effective date of pension in order to
eliminate 
19 or reduce this discount. This discount shall not be 
20 applicable
to any participant who has at least 34 years of 
21 service or a
retirement pension of at least 74.6% of 
22 average salary on the date the
retirement annuity begins.

23  5. No additional pension shall be granted for service 
24 exceeding 45
years. Beginning June 26, 1971 no pension 
25 shall exceed the greater of
$1,500 per month or 75% of 
26 average salary as herein defined.

 
 
10000SB0011sam002- 222 -LRB100 06001 RPS 18499 a


1  6. Service retirement pensions shall begin on the 
2 effective date of
resignation, retirement, the day 
3 following the close of the payroll
period for which service 
4 credit was validated, or the time the person
resigning or 
5 retiring attains age 55, or on a date elected by the

6 teacher, whichever shall be latest; provided that, for a 
7 person who first becomes a member after the effective date 
8 of this amendatory Act of the 99th General Assembly, the 
9 benefit shall not commence more than one year prior to the 
10 date of the Fund's receipt of an application for the 
11 benefit.

12  7. A member who is eligible to receive a retirement 
13 pension of at least
74.6% of average salary and will attain 
14 age 55 on or before December 31
during the year which 
15 commences on July 1 shall be deemed to attain age 55 on
the 
16 preceding June 1.

17  8. A member retiring after the effective date of this 
18 amendatory Act
of 1998 shall receive a pension equal to 75% 
19 of average salary if the
member is qualified to receive a 
20 retirement pension equal to at least 74.6%
of average 
21 salary under this Article or as proportional annuities 
22 under
Article 20 of this Code.

23 (d) Notwithstanding any other provision of this Section, 
24annual salary does not include any future increase in income 
25that is
offered for service to a Tier 1 employee under this 
26Article pursuant to the condition set forth in subsection (c) 
 
 
10000SB0011sam002- 223 -LRB100 06001 RPS 18499 a


1of Section
17-115.5 and accepted under that condition by a Tier 
21 employee who has made the
election under paragraph (2) of 
3subsection (a) of Section
17-115.5.
4 Notwithstanding any other provision of this Section,

5annual salary does not include any consideration payment made 
6to a
Tier 1 employee. 
7(Source: P.A. 99-702, eff. 7-29-16.)


8 (40 ILCS 5/17-119.2 new)
9 Sec. 17-119.2. Automatic annual increases in service 
10retirement pension and survivor's pension for certain Tier 1 
11employees. Notwithstanding any other provision of this 
12Article, for a Tier 1 employee who made the election under 
13paragraph (1) of subsection (a) of Section 17-115.5:
14  (1) The initial increase in service retirement pension 
15 shall occur on the January 1 occurring either on or after 
16 the attainment of age 67 or the fifth anniversary of the 
17 pension start date, whichever is earlier.
18  (2) The amount of each automatic annual increase in 
19 service retirement pension or survivor's pension occurring 
20 on or after the effective date of that election shall be 
21 calculated as a percentage of the originally granted 
22 service retirement pension or survivor's pension, equal to 
23 3% or one-half the annual unadjusted percentage increase 
24 (but
not less than zero) in the consumer price index-u for 
25 the
12 months ending with the September preceding each 
 
 
10000SB0011sam002- 224 -LRB100 06001 RPS 18499 a


1 November
1, whichever is less. If the annual unadjusted 
2 percentage
change in the consumer price index-u for the 12 
3 months ending with the September preceding each November 1 
4 is zero
or there is a decrease, then the annuity shall not 
5 be
increased. 
6 For the purposes of this Section, "consumer price index-u"

7means the index published by the Bureau of Labor Statistics of

8the United States Department of Labor that measures the average

9change in prices of goods and services purchased by all urban

10consumers, United States city average, all items, 1982-84 =

11100. The new amount resulting from each annual adjustment shall

12be determined by the Public Pension Division of the Department

13of Insurance and made available to the Board by November 1 of 
14each year. 

15 (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
16 Sec. 17-129. Employer contributions; deficiency in Fund. 
17 (a) If in any fiscal year of the Board of Education ending 
18prior to 1997 the
total amounts paid to the Fund from the Board 
19of Education (other than under
this subsection, and other than 
20amounts used for making or "picking up"
contributions on behalf 
21of teachers) and from the State do not equal the total

22contributions made by or on behalf of the teachers for such 
23year, or if the
total income of the Fund in any such fiscal 
24year of the Board of Education from
all sources is less than 
25the total such expenditures by the Fund for such year,
the 
 
 
10000SB0011sam002- 225 -LRB100 06001 RPS 18499 a


1Board of Education shall, in the next succeeding year, in 
2addition to any
other payment to the Fund set apart and 
3appropriate from moneys from its tax
levy for educational 
4purposes, a sum sufficient to remove such deficiency or

5deficiencies, and promptly pay such sum into the Fund in order 
6to restore any
of the reserves of the Fund that may have been 
7so temporarily applied. Any
amounts received by the Fund after 
8December 4, 1997 from State appropriations, including under 
9Section
17-127, shall be a credit against and shall fully 
10satisfy any obligation that
may have arisen, or be claimed to 
11have arisen, under this subsection (a) as a
result of any 
12deficiency or deficiencies in the fiscal year of the Board of

13Education ending in calendar year 1997.
14 (b) (i) Notwithstanding any other provision of this 
15Section, and notwithstanding any prior certification by the 
16Board under subsection (c) for fiscal year 2011, the Board of 
17Education's total required contribution to the Fund for fiscal 
18year 2011 under this Section is $187,000,000.
19 (ii) Notwithstanding any other provision of this Section, 
20the Board of Education's total required contribution to the 
21Fund for fiscal year 2012 under this Section is $192,000,000.
22 (iii) Notwithstanding any other provision of this Section, 
23the Board of Education's total required contribution to the 
24Fund for fiscal year 2013 under this Section is $196,000,000.
25 (iv) For fiscal years 2014 through 2059, the minimum 
26contribution to the Fund to be made by the Board of Education 
 
 
10000SB0011sam002- 226 -LRB100 06001 RPS 18499 a


1in each fiscal year shall be an amount determined by the Fund 
2to be sufficient to bring the total assets of the Fund up to 
390% of the total actuarial liabilities of the Fund by the end 
4of fiscal year 2059. In making these determinations, the 
5required Board of Education contribution shall be calculated 
6each year as a level percentage of the applicable employee 
7payrolls over the years remaining to and including fiscal year 
82059 and shall be determined under the projected unit credit 
9actuarial cost method.
10 (v) Beginning in fiscal year 2060, the minimum Board of 
11Education contribution for each fiscal year shall be the amount 
12needed to maintain the total assets of the Fund at 90% of the 
13total actuarial liabilities of the Fund.
14 (vi) Notwithstanding any other provision of this 
15subsection (b), for any fiscal year, the contribution to the 
16Fund from the Board of Education shall not be required to be in 
17excess of the amount calculated as needed to maintain the 
18assets (or cause the assets to be) at the 90% level by the end 
19of the fiscal year.
20 (vii) Any contribution by the State to or for the benefit 
21of the Fund, including, without limitation, as referred to 
22under Section 17-127, shall be a credit against any 
23contribution required to be made by the Board of Education 
24under this subsection (b).
25 (c) The Board shall determine the amount of Board of 
26Education
contributions required for each fiscal year on the 
 
 
10000SB0011sam002- 227 -LRB100 06001 RPS 18499 a


1basis of the actuarial
tables and other assumptions adopted by 
2the Board and the recommendations of
the actuary, in order to 
3meet the minimum contribution requirements of
subsections (a) 
4and (b). Annually, on or before February 28, the Board shall

5certify to the Board of Education the amount of the required 
6Board of Education
contribution for the coming fiscal year. The 
7certification shall include a
copy of the actuarial 
8recommendations upon which it is based.
9 (d) On or before May 1, 2018, the Board shall recalculate 
10and
recertify to the Board of Education the amount of the 
11required Board of Education contribution to the Fund for State 
12fiscal year 2019, taking into account the effect on the Fund's 
13liabilities of the elections made under Section 17-115.5.
14(Source: P.A. 96-889, eff. 4-14-10.)



15 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)



16 Sec. 17-130. Participants' contributions by payroll 
17deductions. 

18 (a) Except as provided in subsection (a-5), there There 
19shall be deducted from the salary of each teacher 7.50% of his 
20salary for service or disability retirement pension and
0.5% of 
21salary for the annual increase in base pension.

22 In addition, there shall be deducted from the salary of 
23each teacher
1% of his salary for survivors' and children's 
24pensions.

25 (a-5) Beginning on July 1, 2018 or the effective date of 
 
 
10000SB0011sam002- 228 -LRB100 06001 RPS 18499 a


1the Tier 1 employee's election under paragraph (1) of Section 
217-115.5, whichever is later, in lieu of the contributions 
3otherwise required under subsection (a), each Tier 1 employee 
4who made the election under paragraph (1) of Section 17-115.5 
5shall make contributions of 7.50% of salary for service or 
6disability retirement pension and 0.6% of salary for survivors' 
7and children's pensions. 
8 (b) An Employer and any employer of eligible contributors 
9as defined in
Section 17-106 is authorized to make the 
10necessary deductions from the salaries
of its teachers. Such 
11amounts shall be included as a part of the Fund. An
Employer 
12and any employer of eligible contributors as defined in Section 
1317-106
shall formulate such rules and regulations as may be 
14necessary to give effect
to the provisions of this Section.

15 (c) All persons employed as teachers shall, by such 
16employment,
accept the provisions of this Article and of 
17Sections 34-83 to 34-85,
inclusive, of "The School Code", 
18approved March 18, 1961, as amended,
and thereupon become 
19contributors to the Fund in accordance with the
terms thereof. 
20The provisions of this Article and of those Sections
shall 
21become a part of the contract of employment.

22 (d) A person who (i) was a member before July 1, 1998, (ii) 
23retires with
more than 34 years of creditable service, and 
24(iii) does not elect to qualify
for the augmented rate under 
25Section 17-119.1 shall be entitled, at the time of
retirement, 
26to receive a partial refund of contributions made under this

 
 
10000SB0011sam002- 229 -LRB100 06001 RPS 18499 a


1Section for service occurring after the later of June 30, 1998 
2or attainment of
34 years of creditable service, in an amount 
3equal to 1.00% of the salary upon
which those contributions 
4were based.

5(Source: P.A. 97-8, eff. 6-13-11.)





6 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)


7 Sec. 18-131. Financing; employer contributions. 

8 (a) The State of Illinois shall make contributions to this 
9System by
appropriations of the amounts which, together with 
10the contributions of
participants, net earnings on 
11investments, and other income, will meet the
costs of 
12maintaining and administering this System on a 90% funded basis 
13in
accordance with actuarial recommendations.

14 (b) The Board shall determine the amount of State 
15contributions
required for each fiscal year on the basis of the 
16actuarial tables and other
assumptions adopted by the Board and 
17the prescribed rate of interest, using
the formula in 
18subsection (c).

19 (c) For State fiscal years 2018 through 2045, the minimum 
20contribution to the System to be made by the State for each 
21fiscal year shall be an amount determined by the System to be 
22sufficient to bring the total assets of the System up to 90% of 
23the total actuarial liabilities of the System by the end of 
24State fiscal year 2045. In making these determinations, the 
25required State contribution shall be calculated each year as a 
 
 
10000SB0011sam002- 230 -LRB100 06001 RPS 18499 a


1level percentage of total payroll, including payroll that is 
2not deemed pensionable, over the years remaining to and 
3including fiscal year 2045 and shall be determined under the 
4projected unit credit actuarial cost method.
5 Beginning in State fiscal year 2018, any increase or 
6decrease in State contribution over the prior fiscal year due 
7exclusively to changes in actuarial or investment assumptions 
8adopted by the Board shall be included in the State 
9contribution to the System, as a percentage of the applicable 
10employee payroll, and shall be increased in equal annual 
11increments so that by the State fiscal year occurring 5 years 
12after the adoption of the actuarial or investment assumptions, 
13the State is contributing at the rate otherwise required under 
14this Section.
15 If Section 2-110.3, 15-132.9, 16-122.9, or 17-115.5 is 
16determined to be unconstitutional or
otherwise invalid by a 
17final unappealable decision of an
Illinois court or a court of 
18competent jurisdiction, then the
changes made to this Section 
19by this amendatory Act of the 100th
General Assembly shall not 
20take effect and are repealed by
operation of law. 
21 For State fiscal years 2012 through 2017 2045, the minimum 
22contribution
to the System to be made by the State for each 
23fiscal year shall be an amount
determined by the System to be 
24sufficient to bring the total assets of the
System up to 90% of 
25the total actuarial liabilities of the System by the end of

26State fiscal year 2045. In making these determinations, the 
 
 
10000SB0011sam002- 231 -LRB100 06001 RPS 18499 a


1required State
contribution shall be calculated each year as a 
2level percentage of payroll
over the years remaining to and 
3including fiscal year 2045 and shall be
determined under the 
4projected unit credit actuarial cost method.

5 For State fiscal years 1996 through 2005, the State 
6contribution to
the System, as a percentage of the applicable 
7employee payroll, shall be
increased in equal annual increments 
8so that by State fiscal year 2011, the
State is contributing at 
9the rate required under this Section.

10 Notwithstanding any other provision of this Article, the 
11total required State
contribution for State fiscal year 2006 is 
12$29,189,400.

13 Notwithstanding any other provision of this Article, the 
14total required State
contribution for State fiscal year 2007 is 
15$35,236,800.

16 For each of State fiscal years 2008 through 2009, the State 
17contribution to
the System, as a percentage of the applicable 
18employee payroll, shall be
increased in equal annual increments 
19from the required State contribution for State fiscal year 
202007, so that by State fiscal year 2011, the
State is 
21contributing at the rate otherwise required under this Section.

22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2010 is 
24$78,832,000 and shall be made from the proceeds of bonds sold 
25in fiscal year 2010 pursuant to Section 7.2 of the General 
26Obligation Bond Act, less (i) the pro rata share of bond sale 
 
 
10000SB0011sam002- 232 -LRB100 06001 RPS 18499 a


1expenses determined by the System's share of total bond 
2proceeds, (ii) any amounts received from the General Revenue 
3Fund in fiscal year 2010, and (iii) any reduction in bond 
4proceeds due to the issuance of discounted bonds, if 
5applicable. 
6 Notwithstanding any other provision of this Article, the 
7total required State contribution for State fiscal year 2011 is

8the amount recertified by the System on or before April 1, 2011 
9pursuant to Section 18-140 and shall be made from the proceeds 
10of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of 
11the General
Obligation Bond Act, less (i) the pro rata share of 
12bond sale
expenses determined by the System's share of total 
13bond
proceeds, (ii) any amounts received from the General 
14Revenue
Fund in fiscal year 2011, and (iii) any reduction in 
15bond
proceeds due to the issuance of discounted bonds, if

16applicable. 
17 Beginning in State fiscal year 2046, the minimum State 
18contribution for
each fiscal year shall be the amount needed to 
19maintain the total assets of
the System at 90% of the total 
20actuarial liabilities of the System.

21 Amounts received by the System pursuant to Section 25 of 
22the Budget Stabilization Act or Section 8.12 of the State 
23Finance Act in any fiscal year do not reduce and do not 
24constitute payment of any portion of the minimum State 
25contribution required under this Article in that fiscal year. 
26Such amounts shall not reduce, and shall not be included in the 
 
 
10000SB0011sam002- 233 -LRB100 06001 RPS 18499 a


1calculation of, the required State contributions under this 
2Article in any future year until the System has reached a 
3funding ratio of at least 90%. A reference in this Article to 
4the "required State contribution" or any substantially similar 
5term does not include or apply to any amounts payable to the 
6System under Section 25 of the Budget Stabilization Act.

7 Notwithstanding any other provision of this Section, the 
8required State
contribution for State fiscal year 2005 and for 
9fiscal year 2008 and each fiscal year thereafter, as
calculated 
10under this Section and
certified under Section 18-140, shall 
11not exceed an amount equal to (i) the
amount of the required 
12State contribution that would have been calculated under
this 
13Section for that fiscal year if the System had not received any 
14payments
under subsection (d) of Section 7.2 of the General 
15Obligation Bond Act, minus
(ii) the portion of the State's 
16total debt service payments for that fiscal
year on the bonds 
17issued in fiscal year 2003 for the purposes of that Section 
187.2, as determined
and certified by the Comptroller, that is 
19the same as the System's portion of
the total moneys 
20distributed under subsection (d) of Section 7.2 of the General

21Obligation Bond Act. In determining this maximum for State 
22fiscal years 2008 through 2010, however, the amount referred to 
23in item (i) shall be increased, as a percentage of the 
24applicable employee payroll, in equal increments calculated 
25from the sum of the required State contribution for State 
26fiscal year 2007 plus the applicable portion of the State's 
 
 
10000SB0011sam002- 234 -LRB100 06001 RPS 18499 a


1total debt service payments for fiscal year 2007 on the bonds 
2issued in fiscal year 2003 for the purposes of Section 7.2 of 
3the General
Obligation Bond Act, so that, by State fiscal year 
42011, the
State is contributing at the rate otherwise required 
5under this Section.

6 (d) For purposes of determining the required State 
7contribution to the System, the value of the System's assets 
8shall be equal to the actuarial value of the System's assets, 
9which shall be calculated as follows:
10 As of June 30, 2008, the actuarial value of the System's 
11assets shall be equal to the market value of the assets as of 
12that date. In determining the actuarial value of the System's 
13assets for fiscal years after June 30, 2008, any actuarial 
14gains or losses from investment return incurred in a fiscal 
15year shall be recognized in equal annual amounts over the 
165-year period following that fiscal year. 
17 (e) For purposes of determining the required State 
18contribution to the system for a particular year, the actuarial 
19value of assets shall be assumed to earn a rate of return equal 
20to the system's actuarially assumed rate of return. 
21(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 
2296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. 
237-13-12.)





24 (40 ILCS 5/18-140)
 (from Ch. 108 1/2, par. 18-140)


25 Sec. 18-140. To certify required State contributions and 
 
 
10000SB0011sam002- 235 -LRB100 06001 RPS 18499 a


1submit vouchers. 

2 (a) The Board shall certify to the Governor, on or before 
3November 15 of
each year until November 15, 2011, the amount of 
4the required State contribution to the System for the
following 
5fiscal year and shall specifically identify the System's 
6projected State normal cost for that fiscal year. The 
7certification shall include a copy of the actuarial

8recommendations upon which it is based and shall specifically 
9identify the System's projected State normal cost for that 
10fiscal year.

11 On or before November 1 of each year, beginning November 1, 
122012, the Board shall submit to the State Actuary, the 
13Governor, and the General Assembly a proposed certification of 
14the amount of the required State contribution to the System for 
15the next fiscal year, along with all of the actuarial 
16assumptions, calculations, and data upon which that proposed 
17certification is based. On or before January 1 of each year 
18beginning January 1, 2013, the State Actuary shall issue a 
19preliminary report concerning the proposed certification and 
20identifying, if necessary, recommended changes in actuarial 
21assumptions that the Board must consider before finalizing its 
22certification of the required State contributions. On or before 
23January 15, 2013 and every January 15 thereafter, the Board 
24shall certify to the Governor and the General Assembly the 
25amount of the required State contribution for the next fiscal 
26year. The Board's certification must note any deviations from 
 
 
10000SB0011sam002- 236 -LRB100 06001 RPS 18499 a


1the State Actuary's recommended changes, the reason or reasons 
2for not following the State Actuary's recommended changes, and 
3the fiscal impact of not following the State Actuary's 
4recommended changes on the required State contribution. 
5 On or before May 1, 2004, the Board shall recalculate and 
6recertify to
the Governor the amount of the required State 
7contribution to the System for
State fiscal year 2005, taking 
8into account the amounts appropriated to and
received by the 
9System under subsection (d) of Section 7.2 of the General

10Obligation Bond Act.

11 On or before July 1, 2005, the Board shall recalculate and 
12recertify
to the Governor the amount of the required State

13contribution to the System for State fiscal year 2006, taking 
14into account the changes in required State contributions made 
15by this amendatory Act of the 94th General Assembly.

16 On or before April 1, 2011, the Board shall recalculate and 
17recertify to the Governor the amount of the required State 
18contribution to the System for State fiscal year 2011, applying 
19the changes made by Public Act 96-889 to the System's assets 
20and liabilities as of June 30, 2009 as though Public Act 96-889 
21was approved on that date. 
22 As soon as practical after the effective date of this 
23amendatory Act of the 100th General Assembly, the State Actuary 
24and the Board shall recalculate and recertify to the Governor 
25and the General Assembly the amount of the State contribution 
26to the System for State fiscal year 2017, taking into account 
 
 
10000SB0011sam002- 237 -LRB100 06001 RPS 18499 a


1the changes in required State contributions made by this 
2amendatory Act of the 100th General Assembly. 
3 (b) Beginning in State fiscal year 1996, on or as soon as 
4possible after
the 15th day of each month the Board shall 
5submit vouchers for payment of State
contributions to the 
6System, in a total monthly amount of one-twelfth of the

7required annual State contribution certified under subsection 
8(a).
From the effective date of this amendatory Act
of the 93rd 
9General Assembly through June 30, 2004, the Board shall not

10submit vouchers for the remainder of fiscal year 2004 in excess 
11of the
fiscal year 2004 certified contribution amount 
12determined
under this Section after taking into consideration 
13the transfer to the
System under subsection (c) of Section 
146z-61 of the State Finance Act.
These
vouchers shall be paid by 
15the State Comptroller and Treasurer by warrants drawn
on the 
16funds appropriated to the System for that fiscal year.

17 If in any month the amount remaining unexpended from all 
18other
appropriations to the System for the applicable fiscal 
19year (including the
appropriations to the System under Section 
208.12 of the State Finance Act and
Section 1 of the State 
21Pension Funds Continuing Appropriation Act) is less than
the 
22amount lawfully vouchered under this Section, the difference 
23shall be paid
from the General Revenue Fund under the 
24continuing appropriation authority
provided in Section 1.1 of 
25the State Pension Funds Continuing Appropriation
Act.

26(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 
 
 
10000SB0011sam002- 238 -LRB100 06001 RPS 18499 a


197-694, eff. 6-18-12.)




2 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)



3 (Text of Section WITHOUT the changes made by P.A. 98-599, 
4which has been held unconstitutional)

5 Sec. 20-121. Calculation of proportional retirement 
6annuities. 
7 (a) Upon
retirement of the employee, a proportional 
8retirement annuity shall be computed
by each participating 
9system in which pension credit has been established on
the 
10basis of pension credits under each system. The computation 
11shall be in
accordance with the formula or method prescribed by 
12each participating system
which is in effect at the date of the 
13employee's latest withdrawal from service
covered by any of the 
14systems in which he has pension credits which he elects
to have 
15considered under this Article. However, the amount of any 
16retirement
annuity payable under the self-managed plan 
17established under Section 15-158.2
of this Code or under the 
18defined contribution plan established under Article 2, 15, or 
1916 of this Code depends solely on the value of the 
20participant's vested account
balances and is not subject to any 
21proportional adjustment under this
Section.

22 (a-5) For persons who participate in a defined contribution 
23plan established under Article 2, 15, or 16 of this Code to 
24whom the provisions of this Article apply, the pension credits 
25established under the defined contribution plan may be 
 
 
10000SB0011sam002- 239 -LRB100 06001 RPS 18499 a


1considered in
determining eligibility for or the amount of the 
2defined benefit retirement annuity that is
payable by any other 
3participating system.
4 (b) Combined pension credit under all retirement systems 
5subject to this
Article shall be considered in determining 
6whether the minimum qualification
has been met and the formula 
7or method of computation which shall be applied, except as may 
8be otherwise provided with respect to vesting in State or 
9employer contributions in a defined contribution plan.
If a 
10system has a step-rate formula for calculation of the 
11retirement annuity,
pension credits covering previous service 
12which have been established under
another system shall be 
13considered in determining which range or ranges of
the 
14step-rate formula are to be applicable to the employee.

15 (c) Interest on pension credit shall continue to accumulate 
16in accordance with
the provisions of the law governing the 
17retirement system in which the same
has been established during 
18the time an employee is in the service of another
employer, on 
19the assumption such employee, for interest purposes for pension

20credit, is continuing in the service covered by such retirement 
21system.

22(Source: P.A. 91-887, eff. 7-6-00.)




23 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)



24 (Text of Section WITHOUT the changes made by P.A. 98-599, 
25which has been held unconstitutional)

 
 
10000SB0011sam002- 240 -LRB100 06001 RPS 18499 a


1 Sec. 20-123. Survivor's annuity. The provisions governing 
2a retirement
annuity shall be applicable to a survivor's 
3annuity. Appropriate credits shall
be established for 
4survivor's annuity purposes in those participating systems

5which provide survivor's annuities, according to the same 
6conditions and
subject to the same limitations and restrictions 
7herein prescribed for a
retirement annuity. If a participating 
8system has no survivor's annuity
benefit, or if the survivor's 
9annuity benefit under that system is waived,
pension credit 
10established in that system shall not be considered
in 
11determining eligibility for or the amount of the survivor's 
12annuity which
may be payable by any other participating system.

13 For persons who participate in the self-managed plan 
14established under
Section 15-158.2 or the portable benefit 
15package established under Section
15-136.4, pension credit 
16established under Article 15 may be considered in
determining 
17eligibility for or the amount of the survivor's annuity that is

18payable by any other participating system, but pension credit 
19established in
any other system shall not result in any right 
20to a survivor's annuity under
the Article 15 system.

21 For persons who participate in a defined contribution plan 
22established under Article 2, 15, or 16 of this Code to whom the 
23provisions of this Article apply, the pension credits 
24established under the defined contribution plan may be 
25considered in
determining eligibility for or the amount of the 
26defined benefit survivor's annuity that is
payable by any other 
 
 
10000SB0011sam002- 241 -LRB100 06001 RPS 18499 a


1participating system, but pension credits established in
any 
2other system shall not result in any right to or increase in 
3the value of a survivor's annuity under
the defined 
4contribution plan, which depends solely on the options chosen 
5and the value of the participant's vested account
balances and 
6is not subject to any proportional adjustment under this

7Section. 
8(Source: P.A. 91-887, eff. 7-6-00.)




9 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)



10 (Text of Section WITHOUT the changes made by P.A. 98-599, 
11which has been held unconstitutional)

12 Sec. 20-124. Maximum benefits. 
13 (a) In no event shall the combined retirement
or survivors 
14annuities exceed the highest annuity which would have been 
15payable
by any participating system in which the employee has 
16pension credits, if all
of his pension credits had been 
17validated in that system.

18 If the combined annuities should exceed the highest maximum 
19as determined
in accordance with this Section, the respective 
20annuities shall be reduced
proportionately according to the 
21ratio which the amount of each proportional
annuity bears to 
22the aggregate of all such annuities.

23 (b) In the case of a participant in the self-managed plan 
24established under
Section 15-158.2 of this Code to whom the 
25provisions of this Article apply:


 
 
10000SB0011sam002- 242 -LRB100 06001 RPS 18499 a


1  (i) For purposes of calculating the combined 
2 retirement annuity and
the proportionate reduction, if 
3 any, in a retirement annuity other than one
payable under 
4 the self-managed plan, the amount of the Article 15 
5 retirement
annuity shall be deemed to be the highest 
6 annuity to which the annuitant would
have been entitled if 
7 he or she had participated in the traditional benefit

8 package as defined in Section 15-103.1 rather than the 
9 self-managed plan.


10  (ii) For purposes of calculating the combined 
11 survivor's annuity and
the proportionate reduction, if 
12 any, in a survivor's annuity other than one
payable under 
13 the self-managed plan, the amount of the Article 15 
14 survivor's
annuity shall be deemed to be the highest 
15 survivor's annuity to which the
survivor would have been 
16 entitled if the deceased employee had participated in
the 
17 traditional benefit package as defined in Section 15-103.1 
18 rather than the
self-managed plan.


19  (iii) Benefits payable under the self-managed plan are 
20 not subject to
proportionate reduction under this Section.

21 (c) In the case of a participant in a defined contribution 
22plan established under
Article 2, 15, or 16 of this Code to 
23whom the provisions of this Article apply: 
24  (i) For purposes of calculating the combined 
25 retirement annuity and
the proportionate reduction, if 
26 any, in a defined benefit retirement annuity, any benefit 
 
 
10000SB0011sam002- 243 -LRB100 06001 RPS 18499 a


1 payable under the defined contribution plan shall not be 
2 considered. 
3  (ii) For purposes of calculating the combined 
4 survivor's annuity and
the proportionate reduction, if 
5 any, in a defined benefit survivor's annuity, any benefit 
6 payable under the defined contribution plan shall not be 
7 considered. 
8  (iii) Benefits payable under a defined contribution 
9 plan established under Article 2, 15, or 16 of this Code 
10 are not subject to
proportionate reduction under this 
11 Section. 
12(Source: P.A. 91-887, eff. 7-6-00.)




13 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)



14 (Text of Section WITHOUT the changes made by P.A. 98-599, 
15which has been held unconstitutional)

16 Sec. 20-125. Return to employment - suspension of benefits. 
17If a retired
employee returns to employment which is covered by 
18a system from which he is
receiving a proportional annuity 
19under this Article, his proportional annuity
from all 
20participating systems shall be suspended during the period of

21re-employment, except that this suspension does not apply to 
22any
distributions payable under the self-managed plan 
23established under Section
15-158.2 or under a defined 
24contribution plan established under Article 2, 15, or 16 of 
25this Code.

 
 
10000SB0011sam002- 244 -LRB100 06001 RPS 18499 a


1 The provisions of the Article under which such employment 
2would be
covered shall govern the determination of whether the 
3employee has returned
to employment, and if applicable the 
4exemption of temporary employment or
employment not exceeding a 
5specified duration or frequency, for all
participating systems 
6from which the retired employee is receiving a
proportional 
7annuity under this Article, notwithstanding any contrary

8provisions in the other Articles governing such systems.

9(Source: P.A. 91-887, eff. 7-6-00.)


10 (40 ILCS 5/2-165 rep.)
11 (40 ILCS 5/2-166 rep.)
12 (40 ILCS 5/15-200 rep.)
13 (40 ILCS 5/15-201 rep.)
14 (40 ILCS 5/16-205 rep.)
15 (40 ILCS 5/16-206 rep.)
16 Section 25. The Illinois Pension Code is amended by 
17repealing Sections 2-165, 2-166, 15-200, 15-201, 16-205, and 
1816-206.

19 Section 30. The State Pension Funds Continuing 
20Appropriation Act is amended by adding Section 1.9 as follows:

21 (40 ILCS 15/1.9 new)
22 Sec. 1.9. Appropriation for consideration payment. There 
23is hereby appropriated from the General Revenue Fund to the 
 
 
10000SB0011sam002- 245 -LRB100 06001 RPS 18499 a


1State Comptroller, on a continuing basis, all amounts necessary 
2for the payment of consideration payments under subsection (b) 
3of Sections 2-110.3, 15-132.9, 16-122.9, and 17-115.5 of the 
4Illinois Pension Code, in the amounts certified to the State 
5Comptroller by the respective retirement system or pension 
6fund.

7 Section 35. The School Code is amended by changing Sections 
824-1, 24-8, and 34-18.53 as follows:




9 (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)



10 Sec. 24-1. 
Appointment-Salaries-Payment-School 
11month-School term.)
School boards shall appoint all teachers, 
12determine qualifications of
employment
and fix the amount of 
13their
salaries subject to any limitation set forth in this Act 
14and subject to any applicable restrictions in Section 16-122.9 
15of the Illinois Pension Code. They shall pay
the wages of 
16teachers monthly, subject, however, to the provisions of

17Section 24-21. The school month shall be the same as the 
18calendar month
but by resolution the school board may adopt for 
19its use a month of 20
days, including holidays. The school term 
20shall consist of at least the
minimum number of pupil 
21attendance days required by Section 10-19, any
additional legal 
22school holidays, days of teachers' institutes, or
equivalent 
23professional educational experiences, and one or two days at

24the beginning of the school term when used as a teachers' 
 
 
10000SB0011sam002- 246 -LRB100 06001 RPS 18499 a


1workshop.

2(Source: P.A. 80-249.)





3 (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)



4 Sec. 24-8. Minimum salary. In fixing the salaries of 
5teachers, school boards shall pay those who
serve on a 
6full-time basis not less than a rate for the school year that

7is based upon training completed in a recognized institution of 
8higher
learning, as follows: for the school year beginning July 
91, 1980 and
thereafter, less than a bachelor's degree, $9,000; 
10120 semester hours or
more and a bachelor's degree, $10,000; 
11150 semester hours or more and a
master's degree, $11,000.

12 Based upon previous public school
experience in this State 
13or any other State, territory, dependency or
possession of the 
14United States, or in schools operated by or under the
auspices 
15of the United States, teachers who serve on a full-time basis

16shall have their salaries increased to at least the following 
17amounts
above the starting salary for a teacher in such 
18district in the same
classification: with less than a 
19bachelor's degree, $750 after 5 years;
with 120 semester hours 
20or more and a bachelor's degree, $1,000 after 5
years and 
21$1,600 after 8 years; with 150 semester hours or more and a 
22master's
degree, $1,250 after 5 years, $2,000 after 8 years and 
23$2,750 after 13 years. However, any salary increase is subject 
24to any applicable restrictions in Section 16-122.9 of the 
25Illinois Pension Code.

 
 
10000SB0011sam002- 247 -LRB100 06001 RPS 18499 a


1 For the purpose of this Section a teacher's salary shall 
2include any amount
paid by the school district on behalf of the 
3teacher, as teacher contributions,
to the Teachers' Retirement 
4System of the State of Illinois.

5 If a school board establishes a schedule for teachers' 
6salaries based
on education and experience, not inconsistent 
7with this Section, all certificated
nurses employed by that 
8board shall be paid in accordance with the provisions
of such 
9schedule (subject to any applicable restrictions in Section 
1016-122.9 of the Illinois Pension Code).

11 For purposes of this Section, a teacher who submits a 
12certificate of
completion to the school office prior to the 
13first day of the school
term shall be considered to have the 
14degree stated in such certificate.

15(Source: P.A. 83-913.)


16 (105 ILCS 5/34-18.53 new)
17 Sec. 34-18.53. Future increase in income. The Board of 
18Education must not pay, offer, or agree to pay any future 
19increase in income, as that term is defined in Section 17-113.5 
20of the Illinois Pension Code, to any person in a manner that 
21violates Section 17-115.5 of the Illinois Pension Code.

22 Section 40. The State Universities Civil Service Act is 
23amended by changing Section 36d as follows:




 
 
10000SB0011sam002- 248 -LRB100 06001 RPS 18499 a


1 (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)



2 Sec. 36d. Powers and duties of the Merit Board. The Merit 
3Board shall have the power and duty-

4  (1) To approve a classification plan prepared under its 
5 direction,
assigning to each class positions of 
6 substantially similar duties. The
Merit Board shall have 
7 power to delegate to its Director the duty of
assigning 
8 each position in the classified service to the appropriate

9 class in the classification plan approved by the Merit 
10 Board.

11  (2) To prescribe the duties of each class of positions 
12 and the
qualifications required by employment in that 
13 class.

14  (3) To prescribe the range of compensation for each 
15 class or to fix
a single rate of compensation for employees 
16 in a particular class; and
to establish other conditions of 
17 employment which an employer and
employee representatives 
18 have agreed upon as fair and equitable. The
Merit Board 
19 shall direct the payment of the "prevailing rate of wages"

20 in those classifications in which, on January 1, 1952, any 
21 employer is
paying such prevailing rate and in such other 
22 classes as the Merit Board
may thereafter determine. 
23 "Prevailing rate of wages" as used herein
shall be the 
24 wages paid generally in the locality in which the work is

25 being performed to employees engaged in work of a similar 
26 character.
Subject to any applicable restrictions in 
 
 
10000SB0011sam002- 249 -LRB100 06001 RPS 18499 a


1 Section 15-132.9 or 16-122.9 of the Illinois Pension Code, 
2 each Each employer covered by the University System shall 
3 be authorized to
negotiate with representatives of 
4 employees to determine appropriate
ranges or rates of 
5 compensation or other conditions of employment and
may 
6 recommend to the Merit Board for establishment the rates or 
7 ranges
or other conditions of employment which the employer 
8 and employee
representatives have agreed upon as fair and 
9 equitable, but excluding the changes, the impact of 
10 changes, and the implementation of the changes set forth in 
11 this amendatory Act of the 100th General Assembly. Any 
12 rates or
ranges established prior to January 1, 1952, and 
13 hereafter, shall not be
changed except in accordance with 
14 the procedures herein provided.

15  (4) To recommend to the institutions and agencies 
16 specified in
Section 36e standards for hours of work, 
17 holidays, sick leave, overtime
compensation and vacation 
18 for the purpose of improving conditions of
employment 
19 covered therein and for the purpose of insuring conformity

20 with the prevailing rate principal.

21  (5) To prescribe standards of examination for each 
22 class, the
examinations to be related to the duties of such 
23 class. The Merit Board
shall have power to delegate to the 
24 Director and his staff the
preparation, conduct and grading 
25 of examinations. Examinations may be
written, oral, by 
26 statement of training and experience, in the form of
tests 
 
 
10000SB0011sam002- 250 -LRB100 06001 RPS 18499 a


1 of knowledge, skill, capacity, intellect, aptitude; or, by 
2 any
other method, which in the judgment of the Merit Board 
3 is reasonable and
practical for any particular 
4 classification. Different examining
procedures may be 
5 determined for the examinations in different

6 classifications but all examinations in the same 
7 classification shall be
uniform.

8  (6) To authorize the continuous recruitment of 
9 personnel and to that
end, to delegate to the Director and 
10 his staff the power and the duty to
conduct open and 
11 continuous competitive examinations for all

12 classifications of employment.

13  (7) To cause to be established from the results of 
14 examinations
registers for each class of positions in the 
15 classified service of the
State Universities Civil Service 
16 System, of the persons who shall
attain the minimum mark 
17 fixed by the Merit Board for the examination;
and such 
18 persons shall take rank upon the registers as candidates in 
19 the
order of their relative excellence as determined by 
20 examination, without
reference to priority of time of 
21 examination.

22  (8) To provide by its rules for promotions in the 
23 classified
service. Vacancies shall be filled by promotion 
24 whenever practicable.
For the purpose of this paragraph, an 
25 advancement in class shall
constitute a promotion.

26  (9) To set a probationary period of employment of no 
 
 
10000SB0011sam002- 251 -LRB100 06001 RPS 18499 a


1 less than 6 months
and no longer than 12 months for each 
2 class of positions in the classification
plan, the length 
3 of the probationary period for each class to be determined

4 by the Director.

5  (10) To provide by its rules for employment at regular 
6 rates of
compensation of persons with physical 
7 disabilities in positions in which the
disability does not 
8 prevent the individual from furnishing satisfactory

9 service.

10  (11) To make and publish rules, to carry out the 
11 purpose of the
State Universities Civil Service System and 
12 for examination, appointments,
transfers and removals and 
13 for maintaining and keeping records of the
efficiency of 
14 officers and employees and groups of officers and
employees 
15 in accordance with the provisions of Sections 36b to 36q,

16 inclusive, and said Merit Board may from time to time make 
17 changes in
such rules.

18  (12) To appoint a Director and such assistants and 
19 other clerical
and technical help as may be necessary 
20 efficiently to administer
Sections 36b to 36q, inclusive. 
21 To authorize the Director to appoint an
assistant resident 
22 at the place of employment of each employer specified
in 
23 Section 36e and this assistant may be authorized to give 
24 examinations
and to certify names from the regional 
25 registers provided in Section
36k.

26  (13) To submit to the Governor of this state on or 
 
 
10000SB0011sam002- 252 -LRB100 06001 RPS 18499 a


1 before November 1
of each year prior to the regular session 
2 of the General Assembly a
report of the University System's 
3 business and an estimate of the amount
of appropriation 
4 from state funds required for the purpose of
administering 
5 the University System.

6(Source: P.A. 99-143, eff. 7-27-15.)


7 Section 45. The University of Illinois Act is amended by 
8adding Section 100 as follows:

9 (110 ILCS 305/100 new)
10 Sec. 100. Future increases in income. The University of 
11Illinois must not pay, offer, or agree to pay any future 
12increase in income, as that term is defined in Section 15-112.1 
13or 16-121.1 of the Illinois Pension Code, to any person in a 
14manner that violates Section 15-132.9 or 16-122.9 of the 
15Illinois Pension Code.

16 Section 50. The Southern Illinois University Management 
17Act is amended by adding Section 85 as follows:

18 (110 ILCS 520/85 new)
19 Sec. 85. Future increases in income. Southern Illinois 
20University must not pay, offer, or agree to pay any future 
21increase in income, as that term is defined in Section 15-112.1 
22or 16-121.1 of the Illinois Pension Code, to any person in a 
 
 
10000SB0011sam002- 253 -LRB100 06001 RPS 18499 a


1manner that violates Section 15-132.9 or 16-122.9 of the 
2Illinois Pension Code. 

3 Section 55. The Chicago State University Law is amended by 
4adding Section 5-195 as follows:

5 (110 ILCS 660/5-195 new)
6 Sec. 5-195. Future increases in income. Chicago State 
7University must not pay, offer, or agree to pay any future 
8increase in income, as that term is defined in Section 15-112.1 
9or 16-121.1 of the Illinois Pension Code, to any person in a 
10manner that violates Section 15-132.9 or 16-122.9 of the 
11Illinois Pension Code. 

12 Section 60. The Eastern Illinois University Law is amended 
13by adding Section 10-195 as follows:

14 (110 ILCS 665/10-195 new)
15 Sec. 10-195. Future increases in income. Eastern Illinois 
16University must not pay, offer, or agree to pay any future 
17increase in income, as that term is defined in Section 15-112.1 
18or 16-121.1 of the Illinois Pension Code, to any person in a 
19manner that violates Section 15-132.9 or 16-122.9 of the 
20Illinois Pension Code. 

21 Section 65. The Governors State University Law is amended 
 
 
10000SB0011sam002- 254 -LRB100 06001 RPS 18499 a


1by adding Section 15-195 as follows:

2 (110 ILCS 670/15-195 new)
3 Sec. 15-195. Future increases in income. Governors State 
4University must not pay, offer, or agree to pay any future 
5increase in income, as that term is defined in Section 15-112.1 
6or 16-121.1 of the Illinois Pension Code, to any person in a 
7manner that violates Section 15-132.9 or 16-122.9 of the 
8Illinois Pension Code. 

9 Section 70. The Illinois State University Law is amended by 
10adding Section 20-200 as follows:

11 (110 ILCS 675/20-200 new)
12 Sec. 20-200. Future increases in income. Illinois State 
13University must not pay, offer, or agree to pay any future 
14increase in income, as that term is defined in Section 15-112.1 
15or 16-121.1 of the Illinois Pension Code, to any person in a 
16manner that violates Section 15-132.9 or 16-122.9 of the 
17Illinois Pension Code. 

18 Section 75. The Northeastern Illinois University Law is 
19amended by adding Section 25-195 as follows:

20 (110 ILCS 680/25-195 new)
21 Sec. 25-195. Future increases in income. Northeastern 
 
 
10000SB0011sam002- 255 -LRB100 06001 RPS 18499 a


1Illinois University must not pay, offer, or agree to pay any 
2future increase in income, as that term is defined in Section 
315-112.1 or 16-121.1 of the Illinois Pension Code, to any 
4person in a manner that violates Section 15-132.9 or 16-122.9 
5of the Illinois Pension Code. 

6 Section 80. The Northern Illinois University Law is amended 
7by adding Section 30-205 as follows:

8 (110 ILCS 685/30-205 new)
9 Sec. 30-205. Future increases in income. Northern Illinois 
10University must not pay, offer, or agree to pay any future 
11increase in income, as that term is defined in Section 15-112.1 
12or 16-121.1 of the Illinois Pension Code, to any person in a 
13manner that violates Section 15-132.9 or 16-122.9 of the 
14Illinois Pension Code. 

15 Section 85. The Western Illinois University Law is amended 
16by adding Section 35-200 as follows:

17 (110 ILCS 690/35-200 new)
18 Sec. 35-200. Future increases in income. Western Illinois 
19University must not pay, offer, or agree to pay any future 
20increase in income, as that term is defined in Section 15-112.1 
21or 16-121.1 of the Illinois Pension Code, to any person in a 
22manner that violates Section 15-132.9 or 16-122.9 of the 
 
 
10000SB0011sam002- 256 -LRB100 06001 RPS 18499 a


1Illinois Pension Code. 

2 Section 90. The Public Community College Act is amended by 
3changing Sections 3-26 and 3-42 as follows:




4 (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)



5 Sec. 3-26. 
(a) To make appointments and fix the salaries of 
6a
chief administrative officer, who shall be the executive

7officer of the board, other administrative personnel, and all 
8teachers, but subject to any applicable restrictions in Section 
915-132.9 or 16-122.9 of the Illinois Pension Code.
In making 
10these appointments and fixing the salaries, the board may
make 
11no discrimination on account of sex, race, creed, color or 
12national origin.

13 (b) Upon the written request of an employee, to
withhold 
14from the compensation of that employee the membership
dues of 
15such employee
payable to any specified labor organization
as 
16defined in the Illinois Educational Labor Relations Act. Under 
17such
arrangement, an amount shall be withheld for each regular 
18payroll period
which is equal to the prorata share of the 
19annual membership dues plus
any payments or contributions and 
20the
board shall pay such withholding to the specified labor 
21organization
within 10 working days from the time of the 
22withholding.

23(Source: P.A. 83-1014.)





 
 
10000SB0011sam002- 257 -LRB100 06001 RPS 18499 a


1 (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)



2 Sec. 3-42. 
To employ such personnel as may be needed, to 
3establish policies
governing their employment and dismissal, 
4and to fix the amount of their
compensation, subject to any 
5applicable restrictions in Section 15-132.9 or 16-122.9 of the 
6Illinois Pension Code. In the employment, establishment of 
7policies and fixing of
compensation the board may make no 
8discrimination on account of sex, race,
creed, color or 
9national origin.

10 Residence within any community college district or outside 
11any community
college district shall not be considered:

12  (a) in determining whether to retain or not retain any 
13 employee of a community
college employed prior to July 1, 
14 1977 or prior to the adoption by the community
college 
15 board of a resolution making residency within the community 
16 college
district of some or all employees a condition of 
17 employment, whichever is later;

18  (b) in assigning, promoting or transferring any 
19 employee of a community
college to an office or position 
20 employed prior to July 1, 1977 or prior
to the adoption by 
21 the community college board of a resolution making 
22 residency
within the community college district of some or 
23 all employees a condition
of employment, whichever is 
24 later; or

25  (c) in determining the salary or other compensation of 
26 any employee of
a community college.

 
 
10000SB0011sam002- 258 -LRB100 06001 RPS 18499 a


1(Source: P.A. 80-248.)


2 Section 95. The Illinois Educational Labor Relations Act is 
3amended by changing Sections 4, 14, and 17 and by adding 
4Section 10.6 as follows:




5 (115 ILCS 5/4) (from Ch. 48, par. 1704)



6 Sec. 4. Employer rights. Employers shall not be required to 
7bargain over matters of inherent
managerial policy, which shall 
8include such areas of discretion or policy
as the functions of 
9the employer, standards of services, its overall
budget, the 
10organizational structure and selection of new employees and

11direction of employees. Employers, however, shall be required 
12to bargain
collectively with regard to policy matters directly 
13affecting wages (but subject to any applicable restrictions in 
14Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois Pension 
15Code), hours
and terms and conditions of employment as well as 
16the impact thereon upon
request by employee representatives, 
17but excluding the changes, the impact of changes, and the 
18implementation of the changes set forth in this amendatory Act 
19of the 100th General Assembly. To preserve the rights of 
20employers
and exclusive representatives which have established 
21collective bargaining
relationships or negotiated collective 
22bargaining agreements prior to the
effective date of this Act, 
23employers shall be required to bargain
collectively with regard 
24to any matter concerning wages (but subject to any applicable 
 
 
10000SB0011sam002- 259 -LRB100 06001 RPS 18499 a


1restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the 
2Illinois Pension Code), hours or
conditions of employment about 
3which they have bargained for and agreed to
in a collective 
4bargaining agreement prior to the effective date of this Act, 
5but excluding the changes, the impact of changes, and the 
6implementation of the changes set forth in this amendatory Act 
7of the 100th General Assembly.

8(Source: P.A. 83-1014.)


9 (115 ILCS 5/10.6 new)
10 Sec. 10.6. No collective bargaining or interest 
11arbitration regarding certain changes to the Illinois Pension 
12Code.
13 (a) Notwithstanding any other provision of this Act, 
14employers shall not be required to bargain over matters 
15affected by the changes, the impact of the changes, and the 
16implementation of the changes to Article 15, 16, or 17 of the 
17Illinois Pension Code made by this amendatory Act of the 100th 
18General Assembly, which are deemed to be prohibited subjects of 
19bargaining. Notwithstanding any provision of this Act, the 
20changes, impact of the changes, or implementation of the 
21changes to Article 15, 16, or 17 of the Illinois Pension Code 
22made by this amendatory Act of the 100th General Assembly shall 
23not be subject to interest arbitration or any award issued 
24pursuant to interest arbitration. The provisions of this 
25Section shall not apply to an employment contract or collective 
 
 
10000SB0011sam002- 260 -LRB100 06001 RPS 18499 a


1bargaining agreement that is in effect on the effective date of 
2this amendatory Act of the 100th General Assembly. However, any 
3such contract or agreement that is modified, amended, renewed, 
4or superseded after the effective date of this amendatory Act 
5of the 100th General Assembly shall be subject to the 
6provisions of this Section. The provisions of this Section 
7shall not apply to the ability of any employer and employee 
8representative to bargain collectively with regard to the pick 
9up of employee contributions pursuant to Section 15-157.1, 
1016-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code.
11 (b) Nothing in this Section shall be construed as otherwise 
12limiting any of the obligations and requirements applicable to 
13employers under any of the provisions of this Act, including, 
14but not limited to, the requirement to bargain collectively 
15with regard to policy matters directly affecting wages, hours, 
16and terms and conditions of employment as well as the impact 
17thereon upon request by employee representatives, except for 
18the matters set forth in subsection (a) of this Section that 
19are deemed prohibited subjects of bargaining. Nothing in this 
20Section shall be construed as otherwise limiting any of the 
21rights of employees or employee representatives under the 
22provisions of this Act, except for the matters set forth in 
23subsection (a) of this Section that are deemed prohibited 
24subjects of bargaining.
25 (c) In case of any conflict between this Section and any 
26other provisions of this Act or any other law, the provisions 
 
 
10000SB0011sam002- 261 -LRB100 06001 RPS 18499 a


1of this Section shall control.




2 (115 ILCS 5/14) (from Ch. 48, par. 1714)



3 Sec. 14. Unfair labor practices. 

4 (a) Educational employers, their agents
or representatives 
5are prohibited from:


6  (1) Interfering, restraining or coercing employees in 
7 the exercise of
the rights guaranteed under this Act.


8  (2) Dominating or interfering with the formation, 
9 existence or
administration of any employee organization.


10  (3) Discriminating in regard to hire or tenure of 
11 employment or any term
or condition of employment to 
12 encourage or discourage membership in any
employee 
13 organization.


14  (4) Discharging or otherwise discriminating against an 
15 employee because
he or she has signed or filed an 
16 affidavit, authorization card, petition or
complaint or 
17 given any information or testimony under this Act.


18  (5) Subject to and except as provided in Section 10.6, 
19 refusing Refusing to bargain collectively in good faith 
20 with an employee
representative which is the exclusive 
21 representative of employees in an
appropriate unit, 
22 including but not limited to the discussing of grievances

23 with the exclusive representative; provided, however, that 
24 if an alleged
unfair labor practice involves 
25 interpretation or application of the terms
of a collective 
 
 
10000SB0011sam002- 262 -LRB100 06001 RPS 18499 a


1 bargaining agreement and said agreement contains a

2 grievance and arbitration procedure, the Board may defer 
3 the resolution of
such dispute to the grievance and 
4 arbitration procedure contained in said
agreement. 
5 However, no actions of the employer taken to implement or 
6 otherwise comply with the provisions of subsection (a) of 
7 Section 10.6 shall constitute or give rise to an unfair 
8 labor practice under this Act.


9  (6) Refusing to reduce a collective bargaining 
10 agreement to writing and
signing such agreement.


11  (7) Violating any of the rules and regulations 
12 promulgated by the Board
regulating the conduct of 
13 representation elections.


14  (8) Refusing to comply with the provisions of a binding 
15 arbitration award.


16  (9) Expending or causing the expenditure of public 
17 funds to any
external agent, individual, firm, agency, 
18 partnership or association in any
attempt to influence the 
19 outcome of representational elections held
pursuant to 
20 paragraph (c) of Section 7 of this Act; provided, that 
21 nothing
in this subsection shall be construed to limit an 
22 employer's right to be
represented on any matter pertaining 
23 to unit determinations, unfair labor
practice charges or 
24 pre-election conferences in any formal or informal

25 proceeding before the Board, or to seek or obtain advice 
26 from legal counsel.
Nothing in this paragraph shall be 
 
 
10000SB0011sam002- 263 -LRB100 06001 RPS 18499 a


1 construed to prohibit an employer from
expending or causing 
2 the expenditure of public funds on, or seeking or
obtaining 
3 services or advice from, any organization, group or 
4 association
established by, and including educational or 
5 public employers, whether or
not covered by this Act, the 
6 Illinois Public Labor Relations Act or the
public 
7 employment labor relations law of any other state or the 
8 federal
government, provided that such services or advice 
9 are generally available
to the membership of the 
10 organization, group, or association, and are not
offered 
11 solely in an attempt to influence the outcome of a 
12 particular
representational election.

13 (b) Employee organizations, their agents or 
14representatives or educational
employees are prohibited from:


15  (1) Restraining or coercing employees in the exercise 
16 of the rights
guaranteed under this Act, provided that a 
17 labor organization or its
agents shall commit an unfair 
18 labor practice under this paragraph in duty
of fair 
19 representation cases only by intentional misconduct in 
20 representing
employees under this Act.


21  (2) Restraining or coercing an educational employer in 
22 the selection of
his representative for the purposes of 
23 collective bargaining or the adjustment
of grievances.


24  (3) Refusing to bargain collectively in good faith with 
25 an educational
employer, if they have been designated in 
26 accordance with the provisions
of this Act as the exclusive 
 
 
10000SB0011sam002- 264 -LRB100 06001 RPS 18499 a


1 representative of employees in an appropriate
unit.


2  (4) Violating any of the rules and regulations 
3 promulgated by the Board
regulating the conduct of 
4 representation elections.


5  (5) Refusing to reduce a collective bargaining 
6 agreement to writing and
signing such agreement.


7  (6) Refusing to comply with the provisions of a binding 
8 arbitration award.

9 (c) The expressing of any views, argument, opinion or the

10dissemination thereof, whether in written, printed, graphic or 
11visual form,
shall not constitute or be evidence of an unfair 
12labor practice under any
of the provisions of this Act, if such 
13expression contains no threat of
reprisal or force or promise 
14of benefit.

15 (d) The actions of a Financial Oversight Panel created 
16pursuant to Section
1A-8
of the School Code due to a district 
17violating a financial plan shall not
constitute or be evidence 
18of an unfair labor practice under any of the
provisions of this 
19Act. Such actions include, but are not limited to,
reviewing, 
20approving, or rejecting a school district budget or a 
21collective
bargaining agreement.

22(Source: P.A. 89-572, eff. 7-30-96.)





23 (115 ILCS 5/17) (from Ch. 48, par. 1717)



24 Sec. 17. Effect on other laws. In case of any conflict 
25between the
provisions of this Act and any other law (other 
 
 
10000SB0011sam002- 265 -LRB100 06001 RPS 18499 a


1than Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois 
2Pension Code), executive order or administrative
regulation, 
3the provisions of this Act shall prevail and control.
The 
4provisions of this Act are subject to any applicable 
5restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the 
6Illinois Pension Code, as well as the changes, impact of 
7changes, and implementation of changes set forth in this 
8amendatory Act of the 100th General Assembly. Nothing in this 
9Act shall be construed to replace or diminish the rights
of 
10employees established by Section 36d of "An Act to create the 
11State Universities
Civil Service System", approved May 11, 
121905, as amended or modified.

13(Source: P.A. 83-1014.)


14 Section 900. The State Mandates Act is amended by adding 
15Section 8.41 as follows:

16 (30 ILCS 805/8.41 new)
17 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 
18of this Act, no reimbursement by the State is required for the 
19implementation of any mandate created by this amendatory Act of 
20the 100th General Assembly.

21 Section 970. Severability. Except as otherwise provided in 
22this Act, the provisions of this Act are severable under 
23Section 1.31 of the Statute on Statutes.

 
 
10000SB0011sam002- 266 -LRB100 06001 RPS 18499 a


1 Section 999. Effective date. This Act takes effect upon

2becoming law, but this Act does not take effect at all unless

3Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the

4100th General Assembly become law.".