Rep. Elaine Nekritz
Filed: 3/13/2013
 
 


 




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1
AMENDMENT TO HOUSE BILL 1166




2 AMENDMENT NO. ______. Amend House Bill 1166, AS AMENDED, by 
3inserting after the end of Section 1 the following:


4 "Section 5. The Illinois Pension Code is amended by 
5changing Sections 2-126, 14-133, 15-136, 15-157, 16-133, and 
616-152 and by adding Sections 2-105.1, 14-103.40, 15-107.1, and 
716-106.4 as follows:

8 (40 ILCS 5/2-105.1 new)
9 Sec. 2-105.1. Tier I participant."Tier I participant": A 
10participant who first became a participant before January 1, 
112011.




12 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)



13 Sec. 2-126. Contributions by participants. 

14 (a) Each participant shall contribute toward the cost of 
15his or her
retirement annuity a percentage of each payment of 
 
 
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1salary received by him or
her for service as a member as 
2follows: for service between October 31, 1947
and January 1, 
31959, 5%; for service between January 1, 1959 and June 30, 
41969,
6%; for service between July 1, 1969 and January 10, 
51973, 6 1/2%; for service
after January 10, 1973, 7%; for 
6service after December 31, 1981, 8 1/2%.

7 (a-5) Beginning July 1, 2013, in addition to the 
8contributions otherwise required under this Article, each Tier 
9I participant shall contribute 3% of salary toward the cost of 
10his or her retirement annuity.
11 (b) Beginning August 2, 1949, each male participant, and 
12from July 1,
1971, each female participant shall contribute 
13towards the cost of the
survivor's annuity 2% of salary.

14 A participant who has no eligible survivor's annuity 
15beneficiary may elect
to cease making contributions for 
16survivor's annuity under this subsection.
A survivor's annuity 
17shall not be payable upon the death of a person who has
made 
18this election, unless prior to that death the election has been 
19revoked
and the amount of the contributions that would have 
20been paid under this
subsection in the absence of the election 
21is paid to the System, together
with interest at the rate of 4% 
22per year from the date the contributions
would have been made 
23to the date of payment.

24 (c) Beginning July 1, 1967, each participant shall 
25contribute 1% of
salary towards the cost of automatic increase 
26in annuity provided in
Section 2-119.1. These contributions 
 
 
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1shall be made concurrently with
contributions for retirement 
2annuity purposes.

3 (d) In addition, each participant serving as an officer of 
4the General
Assembly shall contribute, for the same purposes 
5and at the same rates
as are required of a regular participant, 
6on each additional payment
received as an officer. If the 
7participant serves as an
officer for at least 2 but less than 4 
8years, he or she shall
contribute an amount equal to the amount 
9that would have been contributed
had the participant served as 
10an officer for 4 years. Persons who serve
as officers in the 
1187th General Assembly but cannot receive the additional
payment 
12to officers because of the ban on increases in salary during 
13their
terms may nonetheless make contributions based on those 
14additional payments
for the purpose of having the additional 
15payments included in their highest
salary for annuity purposes; 
16however, persons electing to make these
additional 
17contributions must also pay an amount representing the

18corresponding employer contributions, as calculated by the 
19System.

20 (e) Notwithstanding any other provision of this Article, 
21the required contribution of a participant who first becomes a 
22participant on or after January 1, 2011 shall not exceed the 
23contribution that would be due under this Article if that 
24participant's highest salary for annuity purposes were 
25$106,800, plus any increases in that amount under Section 
262-108.1. 
 
 
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1(Source: P.A. 96-1490, eff. 1-1-11.)


2 (40 ILCS 5/14-103.40 new)
3 Sec. 14-103.40. Tier I member. "Tier I member": A member of 
4this System who first became a member or participant before 
5January 1, 2011 under any reciprocal retirement system or 
6pension fund established under this Code other than a 
7retirement system or pension fund established under Article 2, 
83, 4, 5, 6, or 18 of this Code.




9 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)



10 Sec. 14-133. Contributions on behalf of members. 

11 (a) Each participating employee shall make contributions 
12to the System,
based on the employee's compensation, as 
13follows:


14  (1) Covered employees, except as indicated below, 3.5% 
15 for
retirement annuity, and 0.5% for a widow or survivors

16 annuity;


17  (2) Noncovered employees, except as indicated below, 
18 7% for retirement
annuity and 1% for a widow or survivors 
19 annuity;


20  (3) Noncovered employees serving in a position in which 
21 "eligible
creditable service" as defined in Section 14-110 
22 may be earned, 1% for a widow
or survivors annuity
plus the 
23 following amount for retirement annuity: 8.5% through 
24 December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% 
 
 
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1 in 2004 and thereafter;


2  (4) Covered employees serving in a position in which 
3 "eligible creditable
service" as defined in Section 14-110 
4 may be earned, 0.5% for a widow or survivors annuity
plus 
5 the following amount for retirement annuity: 5% through 
6 December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 
7 and thereafter;


8  (5) Each security employee of the Department of 
9 Corrections
or of the Department of Human Services who is a 
10 covered employee, 0.5% for a widow or survivors annuity

11 plus the following amount for retirement annuity: 5% 
12 through December 31,
2001; 6% in 2002; 7% in 2003; and 8% 
13 in 2004 and thereafter;


14  (6) Each security employee of the Department of 
15 Corrections
or of the Department of Human Services who is 
16 not a covered employee, 1% for a widow or survivors annuity

17 plus the following amount for retirement annuity: 8.5% 
18 through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 
19 11.5% in 2004 and thereafter.

20 (a-5) Beginning July 1, 2013, in addition to the 
21contributions otherwise required under this Article, each Tier 
22I member shall contribute toward the cost of his or her 
23retirement annuity 3% of each payment
of compensation received 
24by him or her for service as a member.
25 (b) Contributions shall be in the form of a deduction from

26compensation and shall be made notwithstanding that the 
 
 
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1compensation
paid in cash to the employee shall be reduced 
2thereby below the minimum
prescribed by law or regulation. Each 
3member is deemed to consent and
agree to the deductions from 
4compensation provided for in this Article,
and shall receipt in 
5full for salary or compensation.

6(Source: P.A. 92-14, eff. 6-28-01.)


7 (40 ILCS 5/15-107.1 new)
8 Sec. 15-107.1. Tier I participant. "Tier I participant": A 
9participant under this Article, other than a participant in the 
10self-managed plan under Section 15-158.2, who first became a 
11member or participant before January 1, 2011 under any 
12reciprocal retirement system or pension fund established under 
13this Code other than a retirement system or pension fund 
14established under Article 2, 3, 4, 5, 6, or 18 of this Code.




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


16 Sec. 15-136. Retirement annuities - Amount. The provisions 
17of this
Section 15-136 apply only to those participants who are 
18participating in the
traditional benefit package or the 
19portable benefit package and do not
apply to participants who 
20are participating in the self-managed plan.

21 (a) The amount of a participant's retirement annuity, 
22expressed in the form
of a single-life annuity, shall be 
23determined by whichever of the following
rules is applicable 
24and provides the largest annuity:

 
 
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1 Rule 1: The retirement annuity shall be 1.67% of final rate 
2of earnings for
each of the first 10 years of service, 1.90% 
3for each of the next 10 years of
service, 2.10% for each year 
4of service in excess of 20 but not exceeding 30,
and 2.30% for 
5each year in excess of 30; or for persons who retire on or

6after January 1, 1998, 2.2% of the final rate of earnings for 
7each year of
service.

8 Rule 2: The retirement annuity shall be the sum of the 
9following,
determined from amounts credited to the participant 
10in accordance with the
actuarial tables and the effective rate 
11of interest in effect at the
time the retirement annuity 
12begins:


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


16  (ii) an annuity from employer contributions of an 
17 amount equal to that
which can be provided on an 
18 actuarially equivalent basis from the accumulated
normal 
19 contributions made by the participant under Section 
20 15-113.6 and Section
15-113.7 plus 1.4 times all other 
21 accumulated normal contributions made by
the participant; 
22 and


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

26 For the purpose of calculating an annuity under this Rule 
 
 
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12, the contribution required under subsection (c-5) of Section 
215-157 shall not be considered when determining the 
3participant's accumulated normal contributions under clause 
4(i) or the employer contribution under clause (ii). 
5 With respect to a police officer or firefighter who retires 
6on or after
August 14, 1998, the accumulated normal 
7contributions taken into account under
clauses (i) and (ii) of 
8this Rule 2 shall include the additional normal
contributions 
9made by the police officer or firefighter under Section

1015-157(a).

11 The amount of a retirement annuity calculated under this 
12Rule 2 shall
be computed solely on the basis of the 
13participant's accumulated normal
contributions, as specified 
14in this Rule and defined in Section 15-116.
Neither an employee 
15or employer contribution for early retirement under
Section 
1615-136.2 nor any other employer contribution shall be used in 
17the
calculation of the amount of a retirement annuity under 
18this Rule 2.

19 This amendatory Act of the 91st General Assembly is a 
20clarification of
existing law and applies to every participant 
21and annuitant without regard to
whether status as an employee 
22terminates before the effective date of this
amendatory Act.

23 This Rule 2 does not apply to a person who first becomes an 
24employee under this Article on or after July 1, 2005.

25 Rule 3: The retirement annuity of a participant who is 
26employed
at least one-half time during the period on which his 
 
 
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1or her final rate of
earnings is based, shall be equal to the 
2participant's years of service
not to exceed 30, multiplied by 
3(1) $96 if the participant's final rate
of earnings is less 
4than $3,500, (2) $108 if the final rate of earnings is
at least 
5$3,500 but less than $4,500, (3) $120 if the final rate of 
6earnings
is at least $4,500 but less than $5,500, (4) $132 if 
7the final rate
of earnings is at least $5,500 but less than 
8$6,500, (5)
$144 if the final rate of earnings is at least 
9$6,500 but less than
$7,500, (6) $156 if the final rate of 
10earnings is at least $7,500 but less
than $8,500, (7) $168 if 
11the final rate of earnings is at least $8,500 but
less than 
12$9,500, and (8) $180 if the final rate of earnings is $9,500 or

13more, except that the annuity for those persons having made an 
14election under
Section 15-154(a-1) shall be calculated and 
15payable under the portable
retirement benefit program pursuant 
16to the provisions of Section 15-136.4.

17 Rule 4: A participant who is at least age 50 and has 25 or 
18more years of
service as a police officer or firefighter, and a 
19participant who is age 55 or
over and has at least 20 but less 
20than 25 years of service as a police officer
or firefighter, 
21shall be entitled to a retirement annuity of 2 1/4% of the

22final rate of earnings for each of the first 10 years of 
23service as a police
officer or firefighter, 2 1/2% for each of 
24the next 10 years of service as a
police officer or 
25firefighter, and 2 3/4% for each year of service as a police

26officer or firefighter in excess of 20. The retirement annuity 
 
 
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1for all other
service shall be computed under Rule 1.

2 For purposes of this Rule 4, a participant's service as a 
3firefighter
shall also include the following:


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


6  (ii) in the case of an individual who was a 
7 participating employee
employed in the fire department of 
8 the University of Illinois's
Champaign-Urbana campus 
9 immediately prior to the elimination of that fire

10 department and who immediately after the elimination of 
11 that fire department
transferred to another job with the 
12 University of Illinois, service performed
as an employee of 
13 the University of Illinois in a position other than police

14 officer or firefighter, from the date of that transfer 
15 until the employee's
next termination of service with the 
16 University of Illinois.

17 Rule 5: The retirement annuity of a participant who elected 
18early
retirement under the provisions of Section 15-136.2 and 
19who, on or before
February 16, 1995, brought administrative 
20proceedings pursuant to the
administrative rules adopted by the 
21System to challenge the calculation of his
or her retirement 
22annuity shall be the sum of the following, determined from

23amounts credited to the participant in accordance with the 
24actuarial tables and
the prescribed rate of interest in effect 
25at the time the retirement annuity
begins:


26  (i) the normal annuity which can be provided on an 
 
 
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1 actuarially equivalent
basis, by the accumulated normal 
2 contributions as of the date the annuity
begins; and


3  (ii) an annuity from employer contributions of an 
4 amount equal to that
which can be provided on an 
5 actuarially equivalent basis from the accumulated
normal 
6 contributions made by the participant under Section 
7 15-113.6 and Section
15-113.7 plus 1.4 times all other 
8 accumulated normal contributions made by the
participant; 
9 and


10  (iii) an annuity which can be provided on an 
11 actuarially equivalent basis
from the employee 
12 contribution for early retirement under Section 15-136.2, 
13 and
an annuity from employer contributions of an amount 
14 equal to that which can be
provided on an actuarially 
15 equivalent basis from the employee contribution for
early 
16 retirement under Section 15-136.2.

17 In no event shall a retirement annuity under this Rule 5 be 
18lower than the
amount obtained by adding (1) the monthly amount 
19obtained by dividing the
combined employee and employer 
20contributions made under Section 15-136.2 by the
System's 
21annuity factor for the age of the participant at the beginning 
22of the
annuity payment period and (2) the amount equal to the 
23participant's annuity if
calculated under Rule 1, reduced under 
24Section 15-136(b) as if no
contributions had been made under 
25Section 15-136.2.

26 With respect to a participant who is qualified for a 
 
 
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1retirement annuity under
this Rule 5 whose retirement annuity 
2began before the effective date of this
amendatory Act of the 
391st General Assembly, and for whom an employee
contribution 
4was made under Section 15-136.2, the System shall recalculate 
5the
retirement annuity under this Rule 5 and shall pay any 
6additional amounts due
in the manner provided in Section 
715-186.1 for benefits mistakenly set too low.

8 The amount of a retirement annuity calculated under this 
9Rule 5 shall be
computed solely on the basis of those 
10contributions specifically set forth in
this Rule 5. Except as 
11provided in clause (iii) of this Rule 5, neither an
employee 
12nor employer contribution for early retirement under Section 
1315-136.2,
nor any other employer contribution, shall be used in 
14the calculation of the
amount of a retirement annuity under 
15this Rule 5.

16 The General Assembly has adopted the changes set forth in 
17Section 25 of this
amendatory Act of the 91st General Assembly 
18in recognition that the decision of
the Appellate Court for the 
19Fourth District in Mattis v. State Universities
Retirement 
20System et al. might be deemed to give some right to the 
21plaintiff in
that case. The changes made by Section 25 of this 
22amendatory Act of the 91st
General Assembly are a legislative 
23implementation of the decision of the
Appellate Court for the 
24Fourth District in Mattis v. State Universities
Retirement 
25System et al. with respect to that plaintiff.

26 The changes made by Section 25 of this amendatory Act of 
 
 
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1the 91st General
Assembly apply without regard to whether the 
2person is in service as an
employee on or after its effective 
3date.

4 (b) The retirement annuity provided under Rules 1 and 3 
5above shall be
reduced by 1/2 of 1% for each month the 
6participant is under age 60 at the
time of retirement. However, 
7this reduction shall not apply in the following
cases:


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


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


15  (3) For that portion of a retirement annuity which has 
16 been provided on
account of service of the participant 
17 during periods when he or she performed
the duties of a 
18 police officer or firefighter, if these duties were 
19 performed
for at least 5 years immediately preceding the 
20 date the retirement annuity
is to begin.

21 (c) The maximum retirement annuity provided under Rules 1, 
222, 4,
and 5
shall be the lesser of (1) the annual limit of 
23benefits as specified in
Section 415 of the Internal Revenue 
24Code of 1986, as such Section may be
amended from time to time 
25and as such benefit limits shall be adjusted by
the 
26Commissioner of Internal Revenue, and (2) 80% of final rate of

 
 
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1earnings.

2 (d) An annuitant whose status as an employee terminates 
3after August 14,
1969 shall receive automatic increases in his 
4or her retirement annuity as
follows:

5 Effective January 1 immediately following the date the 
6retirement annuity
begins, the annuitant shall receive an 
7increase in his or her monthly
retirement annuity of 0.125% of 
8the monthly retirement annuity provided under
Rule 1, Rule 2, 
9Rule 3, Rule 4, or Rule 5, contained in this
Section, 
10multiplied by
the number of full months which elapsed from the 
11date the retirement annuity
payments began to January 1, 1972, 
12plus 0.1667% of such annuity, multiplied by
the number of full 
13months which elapsed from January 1, 1972, or the date the

14retirement annuity payments began, whichever is later, to 
15January 1, 1978, plus
0.25% of such annuity multiplied by the 
16number of full months which elapsed
from January 1, 1978, or 
17the date the retirement annuity payments began,
whichever is 
18later, to the effective date of the increase.

19 The annuitant shall receive an increase in his or her 
20monthly retirement
annuity on each January 1 thereafter during 
21the annuitant's life of 3% of
the monthly annuity provided 
22under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in 
23this Section. The change made under this subsection by P.A. 
2481-970 is
effective January 1, 1980 and applies to each 
25annuitant whose status as
an employee terminates before or 
26after that date.

 
 
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1 Beginning January 1, 1990, all automatic annual increases 
2payable under
this Section shall be calculated as a percentage 
3of the total annuity
payable at the time of the increase, 
4including all increases previously
granted under this Article.

5 The change made in this subsection by P.A. 85-1008 is 
6effective January
26, 1988, and is applicable without regard to 
7whether status as an employee
terminated before that date.

8 (e) If, on January 1, 1987, or the date the retirement 
9annuity payment
period begins, whichever is later, the sum of 
10the retirement annuity
provided under Rule 1 or Rule 2 of this 
11Section
and the automatic annual increases provided under the 
12preceding subsection
or Section 15-136.1, amounts to less than 
13the retirement
annuity which would be provided by Rule 3, the 
14retirement
annuity shall be increased as of January 1, 1987, or 
15the date the
retirement annuity payment period begins, 
16whichever is later, to the amount
which would be provided by 
17Rule 3 of this Section. Such increased
amount shall be 
18considered as the retirement annuity in determining
benefits 
19provided under other Sections of this Article. This paragraph

20applies without regard to whether status as an employee 
21terminated before the
effective date of this amendatory Act of 
221987, provided that the annuitant was
employed at least 
23one-half time during the period on which the final rate of

24earnings was based.

25 (f) A participant is entitled to such additional annuity as 
26may be provided
on an actuarially equivalent basis, by any 
 
 
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1accumulated
additional contributions to his or her credit. 
2However,
the additional contributions made by the participant 
3toward the automatic
increases in annuity provided under this 
4Section and the contributions made under subsection (c-5) of 
5Section 15-157 by this amendatory Act of the 98th General 
6Assembly shall not be taken into
account in determining the 
7amount of such additional annuity.

8 (g) If, (1) by law, a function of a governmental unit, as 
9defined by Section
20-107 of this Code, is transferred in whole 
10or in part to an employer, and (2)
a participant transfers 
11employment from such governmental unit to such employer
within 
126 months after the transfer of the function, and (3) the sum of 
13(A) the
annuity payable to the participant under Rule 1, 2, or 
143 of this Section (B)
all proportional annuities payable to the 
15participant by all other retirement
systems covered by Article 
1620, and (C) the initial primary insurance amount to
which the 
17participant is entitled under the Social Security Act, is less 
18than
the retirement annuity which would have been payable if 
19all of the
participant's pension credits validated under 
20Section 20-109 had been validated
under this system, a 
21supplemental annuity equal to the difference in such
amounts 
22shall be payable to the participant.

23 (h) On January 1, 1981, an annuitant who was receiving
a 
24retirement annuity on or before January 1, 1971 shall have his 
25or her
retirement annuity then being paid increased $1 per 
26month for
each year of creditable service. On January 1, 1982, 
 
 
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1an annuitant whose
retirement annuity began on or before 
2January 1, 1977, shall have his or her
retirement annuity then 
3being paid increased $1 per month for each year of
creditable 
4service.

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

10(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)





11 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)



12 Sec. 15-157. Employee Contributions. 

13 (a) Each participating employee
shall make contributions 
14towards the retirement
benefits payable under the retirement 
15program applicable to the
employee from each payment
of 
16earnings applicable to employment under this system on and 
17after the
date of becoming a participant as follows: Prior to 
18September 1, 1949,
3 1/2% of earnings; from September 1, 1949 
19to August 31, 1955, 5%; from
September 1, 1955 to August 31, 
201969, 6%; from September 1, 1969, 6 1/2%.
These contributions 
21are to be considered as normal contributions for purposes
of 
22this Article.

23 Each participant who is a police officer or firefighter 
24shall make normal
contributions of 8% of each payment of 
25earnings applicable to employment as a
police officer or 
 
 
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1firefighter under this system on or after September 1, 1981,

2unless he or she files with the board within 60 days after the 
3effective date
of this amendatory Act of 1991 or 60 days after 
4the board receives notice that
he or she is employed as a 
5police officer or firefighter, whichever is later,
a written 
6notice waiving the retirement formula provided by Rule 4 of 
7Section
15-136. This waiver shall be irrevocable. If a 
8participant had met the
conditions set forth in Section 
915-132.1 prior to the effective date of this
amendatory Act of 
101991 but failed to make the additional normal contributions

11required by this paragraph, he or she may elect to pay the 
12additional
contributions plus compound interest at the 
13effective rate. If such payment
is received by the board, the 
14service shall be considered as police officer
service in 
15calculating the retirement annuity under Rule 4 of Section 
1615-136.
While performing service described in clause (i) or 
17(ii) of Rule 4 of Section
15-136, a participating employee 
18shall be deemed to be employed as a
firefighter for the purpose 
19of determining the rate of employee contributions
under this 
20Section.

21 (b) Starting September 1, 1969, each participating 
22employee shall make
additional contributions of 1/2 of 1% of 
23earnings to finance a portion
of the cost of the annual 
24increases in retirement annuity provided under
Section 15-136, 
25except that with respect to participants in the
self-managed 
26plan this additional contribution shall be used to finance the

 
 
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1benefits obtained under that retirement program.

2 (c) In addition to the amounts described in subsections (a) 
3and (b) of this
Section, each participating employee shall make 
4contributions of 1% of earnings
applicable under this system on 
5and after August 1, 1959. The contributions
made under this 
6subsection (c) shall be considered as survivor's insurance

7contributions for purposes of this Article if the employee is 
8covered under
the traditional benefit package, and such 
9contributions shall be considered
as additional contributions 
10for purposes of this Article if the employee is
participating 
11in the self-managed plan or has elected to participate in the

12portable benefit package and has completed the applicable 
13one-year waiting
period. Contributions in excess of $80 during 
14any fiscal year beginning before
August 31, 1969 and in excess 
15of $120 during any fiscal year thereafter until
September 1, 
161971 shall be considered as additional contributions for 
17purposes
of this Article.

18 (c-5) Beginning July 1, 2013, in addition to the 
19contributions otherwise required under this Article, each Tier 
20I participant other than a participant in the self-managed plan 
21shall contribute 3% of each payment
of earnings applicable to 
22employment under this System toward the retirement
benefits 
23payable under the retirement program applicable to the

24participant.
25 (d) If the board by board rule so permits and subject to 
26such conditions
and limitations as may be specified in its 
 
 
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1rules, a participant may make
other additional contributions of 
2such percentage of earnings or amounts as
the participant shall 
3elect in a written notice thereof received by the board.

4 (e) That fraction of a participant's total accumulated 
5normal
contributions, the numerator of which is equal to the 
6number of years of
service in excess of that which is required 
7to qualify for the maximum
retirement annuity, and the 
8denominator of which is equal to the total
service of the 
9participant, shall be considered as accumulated additional

10contributions. The determination of the applicable maximum 
11annuity and
the adjustment in contributions required by this 
12provision shall be made
as of the date of the participant's 
13retirement.

14 (f) Notwithstanding the foregoing, a participating 
15employee shall not
be required to make contributions under this 
16Section after the date upon
which continuance of such 
17contributions would otherwise cause his or her
retirement 
18annuity to exceed the maximum retirement annuity as specified 
19in
clause (1) of subsection (c) of Section 15-136.

20 (g) A participating employee may make contributions for the 
21purchase of
service credit under this Article.

22(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, 
23eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; 
2490-655, eff. 7-30-98; 90-766, eff.
8-14-98.)


25 (40 ILCS 5/16-106.4 new)
 
 
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1 Sec. 16-106.4. Tier I member. "Tier I member": A member 
2under this Article who first became a member or participant 
3before January 1, 2011 under any reciprocal retirement system 
4or pension fund established under this Code other than a 
5retirement system or pension fund established under Article 2, 
63, 4, 5, 6, or 18 of this Code.




7 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)


8 Sec. 16-133. Retirement annuity; amount. 

9 (a) The amount of the retirement annuity shall be (i) in 
10the case of a person who first became a teacher under this 
11Article before July 1, 2005, the larger of the
amounts 
12determined under paragraphs (A) and (B) below, or (ii) in the 
13case of a person who first becomes a teacher under this Article 
14on or after July 1, 2005, the amount determined under the 
15applicable provisions of paragraph (B):


16  (A) An amount consisting of the sum of the following:


17   (1) An amount that can be provided on an 
18 actuarially equivalent basis
by the member's 
19 accumulated contributions at the time of retirement; 
20 and


21   (2) The sum of (i) the amount that can be provided 
22 on an actuarially
equivalent basis by the member's 
23 accumulated contributions representing
service prior 
24 to July 1, 1947, and (ii) the amount that can be 
25 provided on
an actuarially equivalent basis by the 
 
 
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1 amount obtained by multiplying 1.4
times the member's 
2 accumulated contributions covering service subsequent 
3 to
June 30, 1947; and


4   (3) If there is prior service, 2 times the amount 
5 that would have been
determined under subparagraph (2) 
6 of paragraph (A) above on account of
contributions 
7 which would have been made during the period of prior 
8 service
creditable to the member had the System been in 
9 operation and had the
member made contributions at the 
10 contribution rate in effect prior to
July 1, 1947.

11  For the purpose of calculating the sum provided under 
12 this paragraph (A), the contribution required under 
13 subsection (a-5) of Section 16-152 shall not be considered 
14 when determining the amount of the member's accumulated 
15 contributions under subparagraph (1) or (2). 
16  This paragraph (A) does not apply to a person who first 
17 becomes a teacher under this Article on or after July 1, 
18 2005.


19  (B) An amount consisting of the greater of the 
20 following:


21   (1) For creditable service earned before July 1, 
22 1998 that has not
been augmented under Section 
23 16-129.1: 1.67% of final average salary for
each of the 
24 first 10 years of creditable service, 1.90% of final 
25 average salary
for each year in excess of 10 but not 
26 exceeding 20, 2.10% of final average
salary for each 
 
 
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1 year in excess of 20 but not exceeding 30, and 2.30% of 
2 final
average salary for each year in excess of 30; and


3   For creditable service earned on or after July 1, 
4 1998 by a member who
has at least 24 years of 
5 creditable service on July 1, 1998 and who
does not 
6 elect to augment service under Section 16-129.1: 2.2% 
7 of final
average salary for each year of creditable 
8 service earned on or after July 1,
1998 but before the 
9 member reaches a total of 30 years of creditable 
10 service
and 2.3% of final average salary for each year 
11 of creditable service earned
on or after July 1, 1998 
12 and after the member reaches a total of 30 years of

13 creditable service; and


14   For all other creditable service: 2.2% of final 
15 average salary
for each year of creditable service; or


16   (2) 1.5% of final average salary for each year of

17 creditable service plus the sum $7.50 for each of the 
18 first 20 years of
creditable service.


19 The amount of the retirement annuity determined under this 
20 paragraph (B)
shall be reduced by 1/2 of 1% for each month 
21 that the member is less than
age 60 at the time the 
22 retirement annuity begins. However, this reduction
shall 
23 not apply (i) if the member has at least 35 years of 
24 creditable service,
or (ii) if the member retires on 
25 account of disability under Section 16-149.2
of this 
26 Article with at least 20 years of creditable service, or 
 
 
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1 (iii) if
the member (1) has earned during the period 
2 immediately preceding the last
day of service at least one 
3 year of contributing creditable service as an
employee of a 
4 department as defined in Section 14-103.04, (2) has earned 
5 at
least 5 years of contributing creditable service as an 
6 employee of a department
as defined in Section 14-103.04, 
7 (3) retires on or after January 1, 2001, and
(4) retires 
8 having attained an age which, when added to the number of 
9 years of
his or her total creditable service, equals at 
10 least 85. Portions of years
shall be counted as decimal 
11 equivalents.

12 (b) For purposes of this Section, final average salary 
13shall be the
average salary for the highest 4 consecutive years 
14within the last 10 years
of creditable service as determined 
15under rules of the board. The minimum
final average salary 
16shall be considered to be $2,400 per year.

17 In the determination of final average salary for members 
18other than
elected officials and their appointees when such 
19appointees are allowed by
statute, that part of a member's 
20salary for any year beginning after June
30, 1979 which exceeds 
21the member's annual full-time salary rate with the
same 
22employer for the preceding year by more than 20% shall be 
23excluded.
The exclusion shall not apply in any year in which 
24the member's creditable
earnings are less than 50% of the 
25preceding year's mean salary for downstate
teachers as 
26determined by the survey of school district salaries provided 
 
 
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1in
Section 2-3.103 of the School Code.

2 (c) In determining the amount of the retirement annuity 
3under paragraph
(B) of this Section, a fractional year shall be 
4granted proportional credit.

5 (d) The retirement annuity determined under paragraph (B) 
6of this Section
shall be available only to members who render 
7teaching service after July
1, 1947 for which member 
8contributions are required, and to annuitants who
re-enter 
9under the provisions of Section 16-150.

10 (e) The maximum retirement annuity provided under 
11paragraph (B) of this
Section shall be 75% of final average 
12salary.

13 (f) A member retiring after the effective date of this 
14amendatory Act
of 1998 shall receive a pension equal to 75% of 
15final average salary if the
member is qualified to receive a 
16retirement annuity equal to at least 74.6%
of final average 
17salary under this Article or as proportional annuities under

18Article 20 of this Code.

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





20 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)



21 Sec. 16-152. Contributions by members. 

22 (a) Each member shall make contributions for membership 
23service to this
System as follows:


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


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


5  (3) Effective July 24, 1959, contributions of 1% of 
6 salary towards the
cost of survivor benefits. Such 
7 contributions shall not be credited to
the individual 
8 account of the member and shall not be subject to refund

9 except as provided under Section 16-143.2.

10  (4) Effective July 1, 2005, contributions of 0.40% of 
11 salary toward the cost of the early retirement without 
12 discount option provided under Section 16-133.2. This 
13 contribution shall cease upon termination of the early 
14 retirement without discount option as provided in Section 
15 16-176.

16 (a-5) Beginning July 1, 2013, in addition to the 
17contributions otherwise required under this Article, each Tier 
18I member shall contribute 3% of each payment
of salary received 
19by him or her for service as a member toward the cost of his or 
20her retirement annuity.
21 (b) The minimum required contribution for any year of 
22full-time
teaching service shall be $192.

23 (c) Contributions shall not be required of any annuitant 
24receiving
a retirement annuity who is given employment as 
25permitted under Section 16-118 or 16-150.1.

26 (d) A person who (i) was a member before July 1, 1998, (ii) 
 
 
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1retires with
more than 34 years of creditable service, and 
2(iii) does not elect to qualify
for the augmented rate under 
3Section 16-129.1 shall be entitled, at the time
of retirement, 
4to receive a partial refund of contributions made under this

5Section for service occurring after the later of June 30, 1998 
6or attainment
of 34 years of creditable service, in an amount 
7equal to 1.00% of the salary
upon which those contributions 
8were based.

9 (e) A member's contributions toward the cost of early 
10retirement without discount made under item (a)(4) of this 
11Section shall not be refunded if the member has elected early 
12retirement without discount under Section 16-133.2 and has 
13begun to receive a retirement annuity under this Article 
14calculated in accordance with that election. Otherwise, a 
15member's contributions toward the cost of early retirement 
16without discount made under item (a)(4) of this Section shall 
17be refunded according to whichever one of the following 
18circumstances occurs first:
19  (1) The contributions shall be refunded to the member, 
20 without interest, within 120 days after the member's 
21 retirement annuity commences, if the member does not elect 
22 early retirement without discount under Section 16-133.2.
23  (2) The contributions shall be included, without 
24 interest, in any refund claimed by the member under Section 
25 16-151.
26  (3) The contributions shall be refunded to the member's 
 
 
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1 designated beneficiary (or if there is no beneficiary, to 
2 the member's estate), without interest, if the member dies 
3 without having begun to receive a retirement annuity under 
4 this Article.
5  (4) The contributions shall be refunded to the member, 
6 without interest, within 120 days after the early 
7 retirement without discount option provided under Section 
8 16-133.2 is terminated under Section 16-176.

9(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)".