Bill Text: IL HB2589 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to implement a Tier 3 plan by July 1, 2024 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a person who becomes a participant of a System on or after July 1, 2024 shall participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to participate in the Tier 3 plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Makes related changes in the State Employees Group Insurance Act of 1971. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-02-15 - Referred to Rules Committee [HB2589 Detail]
Download: Illinois-2023-HB2589-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Employees Group Insurance Act of 1971 | |||||||||||||||||||
5 | is amended by changing Sections 3 and 10 as follows:
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6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
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7 | Sec. 3. Definitions. Unless the context otherwise | |||||||||||||||||||
8 | requires, the
following words and phrases as used in this Act | |||||||||||||||||||
9 | shall have the following
meanings. The Department may define | |||||||||||||||||||
10 | these and other words and phrases
separately for the purpose | |||||||||||||||||||
11 | of implementing specific programs providing benefits
under | |||||||||||||||||||
12 | this Act.
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13 | (a) "Administrative service organization" means any | |||||||||||||||||||
14 | person, firm or
corporation experienced in the handling of | |||||||||||||||||||
15 | claims which is
fully qualified, financially sound and capable | |||||||||||||||||||
16 | of meeting the service
requirements of a contract of | |||||||||||||||||||
17 | administration executed with the Department.
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18 | (b) "Annuitant" means (1) an employee who retires, or has | |||||||||||||||||||
19 | retired,
on or after January 1, 1966 on an immediate annuity | |||||||||||||||||||
20 | under the provisions
of Article Articles 2 (including an
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21 | employee who, in lieu of receiving an annuity under that
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22 | Article, has retired under the Tier 3 plan established under
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23 | Section 2-165.5 of that Article) , 14 (including an employee |
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1 | who has elected to receive an alternative retirement | ||||||
2 | cancellation payment under Section 14-108.5 of the Illinois | ||||||
3 | Pension Code in lieu of an annuity ; an employee who, in lieu of
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4 | receiving an annuity under that Article, has retired under the
| ||||||
5 | Tier 3 plan established under Section 14-155.5 of that
| ||||||
6 | Article; or an employee who meets the criteria for retirement, | ||||||
7 | but in lieu of receiving an annuity under that Article has | ||||||
8 | elected to receive an accelerated pension benefit payment | ||||||
9 | under Section 14-147.5 of that Article), or 15 (including an | ||||||
10 | employee who has retired under the optional
retirement program | ||||||
11 | established under Section 15-158.2 or the Tier 3 plan
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12 | established under Section 15-200.5 of the Illinois Pension
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13 | Code or who meets the criteria for retirement but in lieu of | ||||||
14 | receiving an annuity under that Article has elected to receive | ||||||
15 | an accelerated pension benefit payment under Section 15-185.5 | ||||||
16 | of the Article), paragraph
(2), (3), or (5) of Section 16-106 | ||||||
17 | (including an employee who meets the criteria for retirement, | ||||||
18 | but in lieu of receiving an annuity under that Article has | ||||||
19 | elected to receive an accelerated pension benefit payment | ||||||
20 | under Section 16-190.5 of the Illinois Pension Code or an
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21 | employee who, in lieu of receiving an annuity under that
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22 | Article, has retired under the Tier 3 plan established under
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23 | Section 16-205.5 of the Illinois Pension Code ), or
Article 18 | ||||||
24 | (including an employee who, in lieu of receiving an annuity
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25 | under that Article, has retired under the Tier 3 plan
| ||||||
26 | established under Section 18-121.5 of that Article) of the |
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1 | Illinois Pension Code; (2) any person who was receiving
group | ||||||
2 | insurance coverage under this Act as of March 31, 1978 by
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3 | reason of his status as an annuitant, even though the annuity | ||||||
4 | in relation
to which such coverage was provided is a | ||||||
5 | proportional annuity based on less
than the minimum period of | ||||||
6 | service required for a retirement annuity in
the system | ||||||
7 | involved; (3) any person not otherwise covered by this Act
who | ||||||
8 | has retired as a participating member under Article 2 of the | ||||||
9 | Illinois
Pension Code but is ineligible for the retirement | ||||||
10 | annuity under Section
2-119 of the Illinois Pension Code; (4) | ||||||
11 | the spouse of any person who
is receiving a retirement annuity | ||||||
12 | under Article 18 of the Illinois Pension
Code and who is | ||||||
13 | covered under a group health insurance program sponsored
by a | ||||||
14 | governmental employer other than the State of Illinois and who | ||||||
15 | has
irrevocably elected to waive his or her coverage under | ||||||
16 | this Act and to have
his or her spouse considered as the | ||||||
17 | "annuitant" under this Act and not as
a "dependent"; or (5) an | ||||||
18 | employee who retires, or has retired, from a
qualified | ||||||
19 | position, as determined according to rules promulgated by the
| ||||||
20 | Director, under a qualified local government, a qualified | ||||||
21 | rehabilitation
facility, a qualified domestic violence shelter | ||||||
22 | or service, or a qualified child advocacy center. (For | ||||||
23 | definition
of "retired employee", see (p) post).
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24 | (b-5) (Blank).
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25 | (b-6) (Blank).
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26 | (b-7) (Blank).
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1 | (c) "Carrier" means (1) an insurance company, a | ||||||
2 | corporation organized
under the Limited Health Service | ||||||
3 | Organization Act or the Voluntary Health
Services Plans Act, a | ||||||
4 | partnership, or other nongovernmental organization,
which is | ||||||
5 | authorized to do group life or group health insurance business | ||||||
6 | in
Illinois, or (2) the State of Illinois as a self-insurer.
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7 | (d) "Compensation" means salary or wages payable on a | ||||||
8 | regular
payroll by the State Treasurer on a warrant of the | ||||||
9 | State Comptroller out
of any State, trust or federal fund, or | ||||||
10 | by the Governor of the State
through a disbursing officer of | ||||||
11 | the State out of a trust or out of
federal funds, or by any | ||||||
12 | Department out of State, trust, federal or
other funds held by | ||||||
13 | the State Treasurer or the Department, to any person
for | ||||||
14 | personal services currently performed, and ordinary or | ||||||
15 | accidental
disability benefits under Articles 2, 14, or 15 | ||||||
16 | (including ordinary or accidental
disability benefits under | ||||||
17 | the optional retirement program established under
Section | ||||||
18 | 15-158.2), paragraph (2), (3), or (5) of
Section 16-106, or | ||||||
19 | Article 18 of the Illinois Pension Code, for disability
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20 | incurred after January 1, 1966, or benefits payable under the | ||||||
21 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
22 | payable under a sick
pay plan established in accordance with | ||||||
23 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
24 | salary or wages paid to an employee of any
qualified local | ||||||
25 | government, qualified rehabilitation facility,
qualified | ||||||
26 | domestic violence shelter or service, or qualified child |
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1 | advocacy center.
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2 | (e) "Commission" means the State Employees Group Insurance | ||||||
3 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
4 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
5 | Government Forecasting and Accountability as
established by | ||||||
6 | the Legislative Commission Reorganization Act of 1984.
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7 | (f) "Contributory", when referred to as contributory | ||||||
8 | coverage, shall
mean optional coverages or benefits elected by | ||||||
9 | the member toward the cost of
which such member makes | ||||||
10 | contribution, or which are funded in whole or in part
through | ||||||
11 | the acceptance of a reduction in earnings or the foregoing of | ||||||
12 | an
increase in earnings by an employee, as distinguished from | ||||||
13 | noncontributory
coverage or benefits which are paid entirely | ||||||
14 | by the State of Illinois
without reduction of the member's | ||||||
15 | salary.
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16 | (g) "Department" means any department, institution, board,
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17 | commission, officer, court or any agency of the State | ||||||
18 | government
receiving appropriations and having power to | ||||||
19 | certify payrolls to the
Comptroller authorizing payments of | ||||||
20 | salary and wages against such
appropriations as are made by | ||||||
21 | the General Assembly from any State fund, or
against trust | ||||||
22 | funds held by the State Treasurer and includes boards of
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23 | trustees of the retirement systems created by Articles 2, 14, | ||||||
24 | 15, 16, and
18 of the Illinois Pension Code. "Department" also | ||||||
25 | includes the Illinois
Comprehensive Health Insurance Board, | ||||||
26 | the Board of Examiners established under
the Illinois Public |
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1 | Accounting Act, and the Illinois Finance Authority.
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2 | (h) "Dependent", when the term is used in the context of | ||||||
3 | the health
and life plan, means a member's spouse and any child | ||||||
4 | (1) from
birth to age 26 including an adopted child, a child | ||||||
5 | who lives with the
member from the time of the placement for | ||||||
6 | adoption until entry
of an order of adoption, a stepchild or | ||||||
7 | adjudicated child, or a child who lives with the member
if such | ||||||
8 | member is a court appointed guardian of the child or (2)
age 19 | ||||||
9 | or over who has a mental or physical disability from a cause | ||||||
10 | originating prior to the age of 19 (age 26 if enrolled as an | ||||||
11 | adult child dependent). For
the health plan only, the term | ||||||
12 | "dependent" also includes (1) any person
enrolled prior to the | ||||||
13 | effective date of this Section who is dependent upon
the | ||||||
14 | member to the extent that the member may claim such person as a
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15 | dependent for income tax deduction purposes and (2) any person | ||||||
16 | who
has received after June 30, 2000 an organ transplant and | ||||||
17 | who is financially
dependent upon the member and eligible to | ||||||
18 | be claimed as a dependent for income
tax purposes. A member | ||||||
19 | requesting to cover any dependent must provide documentation | ||||||
20 | as requested by the Department of Central Management Services | ||||||
21 | and file with the Department any and all forms required by the | ||||||
22 | Department.
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23 | (i) "Director" means the Director of the Illinois | ||||||
24 | Department of Central
Management Services.
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25 | (j) "Eligibility period" means the period of time a member | ||||||
26 | has to
elect enrollment in programs or to select benefits |
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1 | without regard to
age, sex or health.
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2 | (k) "Employee" means and includes each officer or employee | ||||||
3 | in the
service of a department who (1) receives his | ||||||
4 | compensation for
service rendered to the department on a | ||||||
5 | warrant issued pursuant to a payroll
certified by a department | ||||||
6 | or on a warrant or check issued and drawn by a
department upon | ||||||
7 | a trust, federal or other fund or on a warrant issued
pursuant | ||||||
8 | to a payroll certified by an elected or duly appointed officer
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9 | of the State or who receives payment of the performance of | ||||||
10 | personal
services on a warrant issued pursuant to a payroll | ||||||
11 | certified by a
Department and drawn by the Comptroller upon | ||||||
12 | the State Treasurer against
appropriations made by the General | ||||||
13 | Assembly from any fund or against
trust funds held by the State | ||||||
14 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
15 | position normally requiring actual performance of duty
during | ||||||
16 | not less than 1/2 of a normal work period, as established by | ||||||
17 | the
Director in cooperation with each department, except that | ||||||
18 | persons elected
by popular vote will be considered employees | ||||||
19 | during the entire
term for which they are elected regardless | ||||||
20 | of hours devoted to the
service of the State, and (3) except | ||||||
21 | that "employee" does not include any
person who is not | ||||||
22 | eligible by reason of such person's employment to
participate | ||||||
23 | in one of the State retirement systems under Articles 2, 14, 15
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24 | (either the regular Article 15 system or the optional | ||||||
25 | retirement program
established under Section 15-158.2), or 18, | ||||||
26 | or under paragraph (2), (3), or
(5) of Section 16-106, of the |
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1 | Illinois
Pension Code, but such term does include persons who | ||||||
2 | are employed during
the 6-month qualifying period under | ||||||
3 | Article 14 of the Illinois Pension
Code. Such term also | ||||||
4 | includes any person who (1) after January 1, 1966,
is | ||||||
5 | receiving ordinary or accidental disability benefits under | ||||||
6 | Articles
2, 14, 15 (including ordinary or accidental | ||||||
7 | disability benefits under the
optional retirement program | ||||||
8 | established under Section 15-158.2), paragraph
(2), (3), or | ||||||
9 | (5) of Section 16-106, or Article 18 of the
Illinois Pension | ||||||
10 | Code, for disability incurred after January 1, 1966, (2)
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11 | receives total permanent or total temporary disability under | ||||||
12 | the Workers'
Compensation Act or Occupational Disease Act as a | ||||||
13 | result of injuries
sustained or illness contracted in the | ||||||
14 | course of employment with the
State of Illinois, or (3) is not | ||||||
15 | otherwise covered under this Act and has
retired as a | ||||||
16 | participating member under Article 2 of the Illinois Pension
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17 | Code but is ineligible for the retirement annuity under | ||||||
18 | Section 2-119 of
the Illinois Pension Code. However, a person | ||||||
19 | who satisfies the criteria
of the foregoing definition of | ||||||
20 | "employee" except that such person is made
ineligible to | ||||||
21 | participate in the State Universities Retirement System by
| ||||||
22 | clause (4) of subsection (a) of Section 15-107 of the Illinois | ||||||
23 | Pension
Code is also an "employee" for the purposes of this | ||||||
24 | Act. "Employee" also
includes any person receiving or eligible | ||||||
25 | for benefits under a sick pay
plan established in accordance | ||||||
26 | with Section 36 of the State Finance Act.
"Employee" also |
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1 | includes (i) each officer or employee in the service of a
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2 | qualified local government, including persons appointed as | ||||||
3 | trustees of
sanitary districts regardless of hours devoted to | ||||||
4 | the service of the
sanitary district, (ii) each employee in | ||||||
5 | the service of a qualified
rehabilitation facility, (iii) each | ||||||
6 | full-time employee in the service of a
qualified domestic | ||||||
7 | violence shelter or service, and (iv) each full-time employee | ||||||
8 | in the service of a qualified child advocacy center, as | ||||||
9 | determined according to
rules promulgated by the Director.
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10 | (l) "Member" means an employee, annuitant, retired | ||||||
11 | employee, or survivor. In the case of an annuitant or retired | ||||||
12 | employee who first becomes an annuitant or retired employee on | ||||||
13 | or after January 13, 2012 (the effective date of Public Act | ||||||
14 | 97-668), the individual must meet the minimum vesting | ||||||
15 | requirements of the applicable retirement system in order to | ||||||
16 | be eligible for group insurance benefits under that system. In | ||||||
17 | the case of a survivor who is not entitled to occupational | ||||||
18 | death benefits pursuant to an applicable retirement system or | ||||||
19 | death benefits pursuant to the Illinois Workers' Compensation | ||||||
20 | Act, and who first becomes a survivor on or after January 13, | ||||||
21 | 2012 (the effective date of Public Act 97-668), the deceased | ||||||
22 | employee, annuitant, or retired employee upon whom the annuity | ||||||
23 | is based must have been eligible to participate in the group | ||||||
24 | insurance system under the applicable retirement system in | ||||||
25 | order for the survivor to be eligible for group insurance | ||||||
26 | benefits under that system. |
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1 | In the case of a survivor who is entitled to occupational | ||||||
2 | death benefits pursuant to the deceased employee's applicable | ||||||
3 | retirement system or death benefits pursuant to the Illinois | ||||||
4 | Workers' Compensation Act, and first becomes a survivor on or | ||||||
5 | after January 1, 2022, the survivor is eligible for group | ||||||
6 | health insurance benefits regardless of the deceased | ||||||
7 | employee's minimum vesting requirements under the applicable | ||||||
8 | retirement system, with a State contribution rate of 100%, | ||||||
9 | until an unmarried child dependent reaches the age of 18, or | ||||||
10 | the age of 22 if the dependent child is a full-time student, or | ||||||
11 | until the adult survivor becomes eligible for benefits under | ||||||
12 | the federal Medicare health insurance program (Title XVIII of | ||||||
13 | the Social Security Act, as added by Public Law 89-97). In the | ||||||
14 | case of a survivor currently receiving occupational death | ||||||
15 | benefits pursuant to the deceased employee's applicable | ||||||
16 | retirement system or has received death benefits pursuant to | ||||||
17 | the Illinois Workers' Compensation Act, who first became a | ||||||
18 | survivor prior to January 1, 2022, the survivor is eligible | ||||||
19 | for group health insurance benefits regardless of the deceased | ||||||
20 | employee's minimum vesting requirements under the applicable | ||||||
21 | retirement system, with a State contribution rate of 100%, | ||||||
22 | until an unmarried child dependent reaches the age of 18, or | ||||||
23 | the age of 22 if the dependent child is a full-time student, or | ||||||
24 | until the adult survivor becomes eligible for benefits under | ||||||
25 | the federal Medicare health insurance program (Title XVIII of | ||||||
26 | the Social Security Act, as added by Public Law 89-97). The |
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1 | changes made by this amendatory Act of the 102nd General | ||||||
2 | Assembly with respect to survivors who first became survivors | ||||||
3 | prior to January 1, 2022 shall apply upon request of the | ||||||
4 | survivor on or after the effective date of this amendatory Act | ||||||
5 | of the 102nd General Assembly.
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6 | (m) "Optional coverages or benefits" means those coverages | ||||||
7 | or
benefits available to the member on his or her voluntary | ||||||
8 | election, and at
his or her own expense.
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9 | (n) "Program" means the group life insurance, health | ||||||
10 | benefits and other
employee benefits designed and contracted | ||||||
11 | for by the Director under this Act.
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12 | (o) "Health plan" means a health benefits
program offered
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13 | by the State of Illinois for persons eligible for the plan.
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14 | (p) "Retired employee" means any person who would be an | ||||||
15 | annuitant as
that term is defined herein but for the fact that | ||||||
16 | such person retired prior to
January 1, 1966. Such term also | ||||||
17 | includes any person formerly employed by
the University of | ||||||
18 | Illinois in the Cooperative Extension Service who would
be an | ||||||
19 | annuitant but for the fact that such person was made | ||||||
20 | ineligible to
participate in the State Universities Retirement | ||||||
21 | System by clause (4) of
subsection (a) of Section 15-107 of the | ||||||
22 | Illinois
Pension Code.
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23 | (q) "Survivor" means a person receiving an annuity as a | ||||||
24 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
25 | includes: (1) the surviving
dependent of a person who | ||||||
26 | satisfies the definition of "employee" except that
such person |
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1 | is made ineligible to participate in the State Universities
| ||||||
2 | Retirement System by clause (4) of subsection (a)
of Section | ||||||
3 | 15-107 of the Illinois Pension Code; (2) the surviving
| ||||||
4 | dependent of any person formerly employed by the University of | ||||||
5 | Illinois in
the Cooperative Extension Service who would be an | ||||||
6 | annuitant except for the
fact that such person was made | ||||||
7 | ineligible to participate in the State
Universities Retirement | ||||||
8 | System by clause (4) of subsection (a) of Section
15-107 of the | ||||||
9 | Illinois Pension Code; (3) the surviving dependent of a person | ||||||
10 | who was an annuitant under this Act by virtue of receiving an | ||||||
11 | alternative retirement cancellation payment under Section | ||||||
12 | 14-108.5 of the Illinois Pension Code; and (4) a person who | ||||||
13 | would be receiving an annuity as a survivor of an annuitant | ||||||
14 | except that the annuitant elected on or after June 4, 2018 to | ||||||
15 | receive an accelerated pension benefit payment under Section | ||||||
16 | 14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code | ||||||
17 | in lieu of receiving an annuity.
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18 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
19 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
20 | Code.
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21 | (q-3) "SURS" means the State Universities Retirement | ||||||
22 | System, created under Article 15 of the Illinois Pension Code.
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23 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
24 | State of Illinois, created under Article 16 of the Illinois | ||||||
25 | Pension Code.
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26 | (q-5) (Blank).
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1 | (q-6) (Blank).
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2 | (q-7) (Blank).
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3 | (r) "Medical services" means the services provided within | ||||||
4 | the scope
of their licenses by practitioners in all categories | ||||||
5 | licensed under the
Medical Practice Act of 1987.
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6 | (s) "Unit of local government" means any county, | ||||||
7 | municipality,
township, school district (including a | ||||||
8 | combination of school districts under
the Intergovernmental | ||||||
9 | Cooperation Act), special district or other unit,
designated | ||||||
10 | as a
unit of local government by law, which exercises limited | ||||||
11 | governmental
powers or powers in respect to limited | ||||||
12 | governmental subjects, any
not-for-profit association with a | ||||||
13 | membership that primarily includes
townships and township | ||||||
14 | officials, that has duties that include provision of
research | ||||||
15 | service, dissemination of information, and other acts for the
| ||||||
16 | purpose of improving township government, and that is funded | ||||||
17 | wholly or
partly in accordance with Section 85-15 of the | ||||||
18 | Township Code; any
not-for-profit corporation or association, | ||||||
19 | with a membership consisting
primarily of municipalities, that | ||||||
20 | operates its own utility system, and
provides research, | ||||||
21 | training, dissemination of information, or other acts to
| ||||||
22 | promote cooperation between and among municipalities that | ||||||
23 | provide utility
services and for the advancement of the goals | ||||||
24 | and purposes of its
membership;
the Southern Illinois | ||||||
25 | Collegiate Common Market, which is a consortium of higher
| ||||||
26 | education institutions in Southern Illinois; the Illinois |
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1 | Association of
Park Districts; and any hospital provider that | ||||||
2 | is owned by a county that has 100 or fewer hospital beds and | ||||||
3 | has not already joined the program. "Qualified
local | ||||||
4 | government" means a unit of local government approved by the | ||||||
5 | Director and
participating in a program created under | ||||||
6 | subsection (i) of Section 10 of this
Act.
| ||||||
7 | (t) "Qualified rehabilitation facility" means any | ||||||
8 | not-for-profit
organization that is accredited by the | ||||||
9 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
10 | certified by the Department
of Human Services (as successor to | ||||||
11 | the Department of Mental Health
and Developmental | ||||||
12 | Disabilities) to provide services to persons with
disabilities
| ||||||
13 | and which receives funds from the State of Illinois for | ||||||
14 | providing those
services, approved by the Director and | ||||||
15 | participating in a program created
under subsection (j) of | ||||||
16 | Section 10 of this Act.
| ||||||
17 | (u) "Qualified domestic violence shelter or service" means | ||||||
18 | any Illinois
domestic violence shelter or service and its | ||||||
19 | administrative offices funded
by the Department of Human | ||||||
20 | Services (as successor to the Illinois Department of
Public | ||||||
21 | Aid),
approved by the Director and
participating in a program | ||||||
22 | created under subsection (k) of Section 10.
| ||||||
23 | (v) "TRS benefit recipient" means a person who:
| ||||||
24 | (1) is not a "member" as defined in this Section; and
| ||||||
25 | (2) is receiving a monthly benefit or retirement | ||||||
26 | annuity
under Article 16 of the Illinois Pension Code or |
| |||||||
| |||||||
1 | would be receiving such monthly benefit or retirement | ||||||
2 | annuity except that the benefit recipient elected on or | ||||||
3 | after June 4, 2018 to receive an accelerated pension | ||||||
4 | benefit payment under Section 16-190.5 of the Illinois | ||||||
5 | Pension Code in lieu of receiving an annuity; and
| ||||||
6 | (3) either (i) has at least 8 years of creditable | ||||||
7 | service under Article
16 of the Illinois Pension Code, or | ||||||
8 | (ii) was enrolled in the health insurance
program offered | ||||||
9 | under that Article on January 1, 1996, or (iii) is the | ||||||
10 | survivor
of a benefit recipient who had at least 8
years of | ||||||
11 | creditable service under Article 16 of the Illinois | ||||||
12 | Pension Code or
was enrolled in the health insurance | ||||||
13 | program offered under that Article on June 21, 1995 (the | ||||||
14 | effective date of Public Act 89-25), or (iv) is a | ||||||
15 | recipient or
survivor of a recipient of a disability | ||||||
16 | benefit under Article 16 of the
Illinois Pension Code.
| ||||||
17 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
18 | (1) is not a "member" or "dependent" as defined in | ||||||
19 | this Section; and
| ||||||
20 | (2) is a TRS benefit recipient's: (A) spouse, (B) | ||||||
21 | dependent parent who
is receiving at least half of his or | ||||||
22 | her support from the TRS benefit
recipient, or (C) | ||||||
23 | natural, step, adjudicated, or adopted child who is (i) | ||||||
24 | under age 26, (ii) was, on January 1, 1996, participating | ||||||
25 | as a dependent
beneficiary in the health insurance program | ||||||
26 | offered under Article 16 of the
Illinois Pension Code, or |
| |||||||
| |||||||
1 | (iii) age 19 or over who has a mental or physical | ||||||
2 | disability from a cause originating prior to the age of 19 | ||||||
3 | (age 26 if enrolled as an adult child).
| ||||||
4 | "TRS dependent beneficiary" does not include, as indicated | ||||||
5 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
6 | survivor of a TRS benefit recipient who first becomes a | ||||||
7 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
8 | January 13, 2012 (the effective date of Public Act 97-668) | ||||||
9 | unless that dependent would have been eligible for coverage as | ||||||
10 | a dependent of the deceased TRS benefit recipient upon whom | ||||||
11 | the survivor benefit is based. | ||||||
12 | (x) "Military leave" refers to individuals in basic
| ||||||
13 | training for reserves, special/advanced training, annual | ||||||
14 | training, emergency
call up, activation by the President of | ||||||
15 | the United States, or any other training or duty in service to | ||||||
16 | the United States Armed Forces.
| ||||||
17 | (y) (Blank).
| ||||||
18 | (z) "Community college benefit recipient" means a person | ||||||
19 | who:
| ||||||
20 | (1) is not a "member" as defined in this Section; and
| ||||||
21 | (2) is receiving a monthly survivor's annuity or | ||||||
22 | retirement annuity
under Article 15 of the Illinois | ||||||
23 | Pension Code or would be receiving such monthly survivor's | ||||||
24 | annuity or retirement annuity except that the benefit | ||||||
25 | recipient elected on or after June 4, 2018 to receive an | ||||||
26 | accelerated pension benefit payment under Section 15-185.5 |
| |||||||
| |||||||
1 | of the Illinois Pension Code in lieu of receiving an | ||||||
2 | annuity; and
| ||||||
3 | (3) either (i) was a full-time employee of a community | ||||||
4 | college district or
an association of community college | ||||||
5 | boards created under the Public Community
College Act | ||||||
6 | (other than an employee whose last employer under Article | ||||||
7 | 15 of the
Illinois Pension Code was a community college | ||||||
8 | district subject to Article VII
of the Public Community | ||||||
9 | College Act) and was eligible to participate in a group
| ||||||
10 | health benefit plan as an employee during the time of | ||||||
11 | employment with a
community college district (other than a | ||||||
12 | community college district subject to
Article VII of the | ||||||
13 | Public Community College Act) or an association of | ||||||
14 | community
college boards, or (ii) is the survivor of a | ||||||
15 | person described in item (i).
| ||||||
16 | (aa) "Community college dependent beneficiary" means a | ||||||
17 | person who:
| ||||||
18 | (1) is not a "member" or "dependent" as defined in | ||||||
19 | this Section; and
| ||||||
20 | (2) is a community college benefit recipient's: (A) | ||||||
21 | spouse, (B) dependent
parent who is receiving at least | ||||||
22 | half of his or her support from the community
college | ||||||
23 | benefit recipient, or (C) natural, step, adjudicated, or | ||||||
24 | adopted child who is (i)
under age 26, or (ii)
age 19 or | ||||||
25 | over and has a mental or physical disability from a cause | ||||||
26 | originating prior to the age of 19 (age 26 if enrolled as |
| |||||||
| |||||||
1 | an adult child).
| ||||||
2 | "Community college dependent beneficiary" does not | ||||||
3 | include, as indicated under paragraph (2) of this subsection | ||||||
4 | (aa), a dependent of the survivor of a community college | ||||||
5 | benefit recipient who first becomes a dependent of a survivor | ||||||
6 | of a community college benefit recipient on or after January | ||||||
7 | 13, 2012 (the effective date of Public Act 97-668) unless that | ||||||
8 | dependent would have been eligible for coverage as a dependent | ||||||
9 | of the deceased community college benefit recipient upon whom | ||||||
10 | the survivor annuity is based. | ||||||
11 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
12 | child advocacy center and its administrative offices funded by | ||||||
13 | the Department of Children and Family Services, as defined by | ||||||
14 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
15 | the Director and participating in a program created under | ||||||
16 | subsection (n) of Section 10.
| ||||||
17 | (cc) "Placement for adoption" means the assumption and | ||||||
18 | retention by a member of a legal obligation for total or | ||||||
19 | partial support of a child in anticipation of adoption of the | ||||||
20 | child. The child's placement with the member terminates upon | ||||||
21 | the termination of such legal obligation. | ||||||
22 | (Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21; | ||||||
23 | 102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
| ||||||
24 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
25 | Sec. 10. Contributions by the State and members.
|
| |||||||
| |||||||
1 | (a) The State shall pay the cost of basic non-contributory | ||||||
2 | group life
insurance and, subject to member paid contributions | ||||||
3 | set by the Department or
required by this Section and except as | ||||||
4 | provided in this Section, the basic program of group health | ||||||
5 | benefits on each
eligible member, except a member, not | ||||||
6 | otherwise
covered by this Act, who has retired as a | ||||||
7 | participating member under Article 2
of the Illinois Pension | ||||||
8 | Code but is ineligible for the retirement annuity under
| ||||||
9 | Section 2-119 of the Illinois Pension Code, and part of each | ||||||
10 | eligible member's
and retired member's premiums for health | ||||||
11 | insurance coverage for enrolled
dependents as provided by | ||||||
12 | Section 9. The State shall pay the cost of the basic
program of | ||||||
13 | group health benefits only after benefits are reduced by the | ||||||
14 | amount
of benefits covered by Medicare for all members and | ||||||
15 | dependents
who are eligible for benefits under Social Security | ||||||
16 | or
the Railroad Retirement system or who had sufficient | ||||||
17 | Medicare-covered
government employment, except that such | ||||||
18 | reduction in benefits shall apply only
to those members and | ||||||
19 | dependents who (1) first become eligible
for such Medicare | ||||||
20 | coverage on or after July 1, 1992; or (2) are
| ||||||
21 | Medicare-eligible members or dependents of a local government | ||||||
22 | unit which began
participation in the program on or after July | ||||||
23 | 1, 1992; or (3) remain eligible
for, but no longer receive | ||||||
24 | Medicare coverage which they had been receiving on
or after | ||||||
25 | July 1, 1992. The Department may determine the aggregate level | ||||||
26 | of the
State's contribution on the basis of actual cost of |
| |||||||
| |||||||
1 | medical services adjusted
for age, sex or geographic or other | ||||||
2 | demographic characteristics which affect
the costs of such | ||||||
3 | programs.
| ||||||
4 | The cost of participation in the basic program of group | ||||||
5 | health benefits
for the dependent or survivor of a living or | ||||||
6 | deceased retired employee who was
formerly employed by the | ||||||
7 | University of Illinois in the Cooperative Extension
Service | ||||||
8 | and would be an annuitant but for the fact that he or she was | ||||||
9 | made
ineligible to participate in the State Universities | ||||||
10 | Retirement System by clause
(4) of subsection (a) of Section | ||||||
11 | 15-107 of the Illinois Pension Code shall not
be greater than | ||||||
12 | the cost of participation that would otherwise apply to that
| ||||||
13 | dependent or survivor if he or she were the dependent or | ||||||
14 | survivor of an
annuitant under the State Universities | ||||||
15 | Retirement System.
| ||||||
16 | (a-1) (Blank).
| ||||||
17 | (a-2) (Blank).
| ||||||
18 | (a-3) (Blank).
| ||||||
19 | (a-4) (Blank).
| ||||||
20 | (a-5) (Blank).
| ||||||
21 | (a-6) (Blank).
| ||||||
22 | (a-7) (Blank).
| ||||||
23 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
24 | waive or terminate coverage in
the program of group health | ||||||
25 | benefits. Any such annuitant, survivor, or retired employee
| ||||||
26 | who has waived or terminated coverage may enroll or re-enroll |
| |||||||
| |||||||
1 | in the
program of group health benefits only during the annual | ||||||
2 | benefit choice period,
as determined by the Director; except | ||||||
3 | that in the event of termination of
coverage due to nonpayment | ||||||
4 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
5 | not re-enroll in the program.
| ||||||
6 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
7 | Act of the 97th General Assembly, the Director of Central | ||||||
8 | Management Services shall, on an annual basis, determine the | ||||||
9 | amount that the State shall contribute toward the basic | ||||||
10 | program of group health benefits on behalf of annuitants | ||||||
11 | (including individuals who (i) participated in the General | ||||||
12 | Assembly Retirement System, the State Employees' Retirement | ||||||
13 | System of Illinois, the State Universities Retirement System, | ||||||
14 | the Teachers' Retirement System of the State of Illinois, or | ||||||
15 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
16 | annuitants under subsection (b) of Section 3 of this Act), | ||||||
17 | survivors (including individuals who (i) receive an annuity as | ||||||
18 | a survivor of an individual who participated in the General | ||||||
19 | Assembly Retirement System, the State Employees' Retirement | ||||||
20 | System of Illinois, the State Universities Retirement System, | ||||||
21 | the Teachers' Retirement System of the State of Illinois, or | ||||||
22 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
23 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
24 | retired employees (as defined in subsection (p) of Section 3 | ||||||
25 | of this Act). The remainder of the cost of coverage for each | ||||||
26 | annuitant, survivor, or retired employee, as determined by the |
| |||||||
| |||||||
1 | Director of Central Management Services, shall be the | ||||||
2 | responsibility of that annuitant, survivor, or retired | ||||||
3 | employee. | ||||||
4 | Contributions required of annuitants, survivors, and | ||||||
5 | retired employees shall be the same for all retirement systems | ||||||
6 | and shall also be based on whether an individual has made an | ||||||
7 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
8 | Contributions may be based on annuitants', survivors', or | ||||||
9 | retired employees' Medicare eligibility, but may not be based | ||||||
10 | on Social Security eligibility. | ||||||
11 | (a-9) No later than May 1 of each calendar year, the | ||||||
12 | Director
of Central Management Services shall certify in | ||||||
13 | writing to the Executive
Secretary of the State Employees' | ||||||
14 | Retirement System of Illinois the amounts
of the Medicare | ||||||
15 | supplement health care premiums and the amounts of the
health | ||||||
16 | care premiums for all other retirees who are not Medicare | ||||||
17 | eligible.
| ||||||
18 | A separate calculation of the premiums based upon the | ||||||
19 | actual cost of each
health care plan shall be so certified.
| ||||||
20 | The Director of Central Management Services shall provide | ||||||
21 | to the
Executive Secretary of the State Employees' Retirement | ||||||
22 | System of
Illinois such information, statistics, and other | ||||||
23 | data as he or she
may require to review the premium amounts | ||||||
24 | certified by the Director
of Central Management Services.
| ||||||
25 | The Department of Central Management Services, or any | ||||||
26 | successor agency designated to procure healthcare contracts |
| |||||||
| |||||||
1 | pursuant to this Act, is authorized to establish funds, | ||||||
2 | separate accounts provided by any bank or banks as defined by | ||||||
3 | the Illinois Banking Act, or separate accounts provided by any | ||||||
4 | savings and loan association or associations as defined by the | ||||||
5 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
6 | Director, outside the State treasury, for the purpose of | ||||||
7 | receiving the transfer of moneys from the Local Government | ||||||
8 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
9 | rules further defining the methodology for the transfers. Any | ||||||
10 | interest earned by moneys in the funds or accounts shall inure | ||||||
11 | to the Local Government Health Insurance Reserve Fund. The | ||||||
12 | transferred moneys, and interest accrued thereon, shall be | ||||||
13 | used exclusively for transfers to administrative service | ||||||
14 | organizations or their financial institutions for payments of | ||||||
15 | claims to claimants and providers under the self-insurance | ||||||
16 | health plan. The transferred moneys, and interest accrued | ||||||
17 | thereon, shall not be used for any other purpose including, | ||||||
18 | but not limited to, reimbursement of administration fees due | ||||||
19 | the administrative service organization pursuant to its | ||||||
20 | contract or contracts with the Department.
| ||||||
21 | (a-10) To the extent that participation, benefits, or | ||||||
22 | premiums under this Act are based on a person's service credit | ||||||
23 | under an Article of the Illinois Pension Code, service credit | ||||||
24 | terminated in exchange for an accelerated pension benefit | ||||||
25 | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that | ||||||
26 | Code shall be included in determining a person's service |
| |||||||
| |||||||
1 | credit for the purposes of this Act. | ||||||
2 | (a-15) For purposes of determining State contributions | ||||||
3 | under this Section, service established under a Tier 3 plan | ||||||
4 | under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code | ||||||
5 | shall be included in determining an employee's creditable | ||||||
6 | service. Any credit terminated as part of a transfer of | ||||||
7 | contributions to a Tier 3 plan under Article 2, 14, 15, 16, or | ||||||
8 | 18 of the Illinois Pension Code shall also be included in | ||||||
9 | determining an employee's creditable service. | ||||||
10 | (b) State employees who become eligible for this program | ||||||
11 | on or after January
1, 1980 in positions normally requiring | ||||||
12 | actual performance of duty not less
than 1/2 of a normal work | ||||||
13 | period but not equal to that of a normal work period,
shall be | ||||||
14 | given the option of participating in the available program. If | ||||||
15 | the
employee elects coverage, the State shall contribute on | ||||||
16 | behalf of such employee
to the cost of the employee's benefit | ||||||
17 | and any applicable dependent supplement,
that sum which bears | ||||||
18 | the same percentage as that percentage of time the
employee | ||||||
19 | regularly works when compared to normal work period.
| ||||||
20 | (c) The basic non-contributory coverage from the basic | ||||||
21 | program of
group health benefits shall be continued for each | ||||||
22 | employee not in pay status or
on active service by reason of | ||||||
23 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
24 | educational leave of absence or sabbatical leave, or (3)
| ||||||
25 | military leave. This coverage shall continue until
expiration | ||||||
26 | of authorized leave and return to active service, but not to |
| |||||||
| |||||||
1 | exceed
24 months for leaves under item (1) or (2). This | ||||||
2 | 24-month limitation and the
requirement of returning to active | ||||||
3 | service shall not apply to persons receiving
ordinary or | ||||||
4 | accidental disability benefits or retirement benefits through | ||||||
5 | the
appropriate State retirement system or benefits under the | ||||||
6 | Workers' Compensation
or Occupational Disease Act.
| ||||||
7 | (d) The basic group life insurance coverage shall | ||||||
8 | continue, with
full State contribution, where such person is | ||||||
9 | (1) absent from active
service by reason of disability arising | ||||||
10 | from any cause other than
self-inflicted, (2) on authorized | ||||||
11 | educational leave of absence or
sabbatical leave, or (3) on | ||||||
12 | military leave.
| ||||||
13 | (e) Where the person is in non-pay status for a period in | ||||||
14 | excess of
30 days or on leave of absence, other than by reason | ||||||
15 | of disability,
educational or sabbatical leave, or military | ||||||
16 | leave, such
person may continue coverage only by making | ||||||
17 | personal
payment equal to the amount normally contributed by | ||||||
18 | the State on such person's
behalf. Such payments and coverage | ||||||
19 | may be continued: (1) until such time as
the person returns to | ||||||
20 | a status eligible for coverage at State expense, but not
to | ||||||
21 | exceed 24 months or (2) until such person's employment or | ||||||
22 | annuitant status
with the State is terminated (exclusive of | ||||||
23 | any additional service imposed pursuant to law).
| ||||||
24 | (f) The Department shall establish by rule the extent to | ||||||
25 | which other
employee benefits will continue for persons in | ||||||
26 | non-pay status or who are
not in active service.
|
| |||||||
| |||||||
1 | (g) The State shall not pay the cost of the basic | ||||||
2 | non-contributory
group life insurance, program of health | ||||||
3 | benefits and other employee benefits
for members who are | ||||||
4 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
5 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
6 | survivors shall be paid by the survivors or by the University | ||||||
7 | of Illinois
Cooperative Extension Service, or any combination | ||||||
8 | thereof.
However, the State shall pay the amount of the | ||||||
9 | reduction in the cost of
participation, if any, resulting from | ||||||
10 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
11 | the 91st General Assembly.
| ||||||
12 | (h) Those persons occupying positions with any department | ||||||
13 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
14 | of the Personnel Code
who are not considered employees under | ||||||
15 | this Act shall be given the option
of participating in the | ||||||
16 | programs of group life insurance, health benefits and
other | ||||||
17 | employee benefits. Such persons electing coverage may | ||||||
18 | participate only
by making payment equal to the amount | ||||||
19 | normally contributed by the State for
similarly situated | ||||||
20 | employees. Such amounts shall be determined by the
Director. | ||||||
21 | Such payments and coverage may be continued until such time as | ||||||
22 | the
person becomes an employee pursuant to this Act or such | ||||||
23 | person's appointment is
terminated.
| ||||||
24 | (i) Any unit of local government within the State of | ||||||
25 | Illinois
may apply to the Director to have its employees, | ||||||
26 | annuitants, and their
dependents provided group health |
| |||||||
| |||||||
1 | coverage under this Act on a non-insured
basis. To | ||||||
2 | participate, a unit of local government must agree to enroll
| ||||||
3 | all of its employees, who may select coverage under any group
| ||||||
4 | health benefits plan made available by the Department under | ||||||
5 | the health benefits program established under this Section or | ||||||
6 | a health maintenance organization that has
contracted with the | ||||||
7 | State to be available as a health care provider for
employees | ||||||
8 | as defined in this Act. A unit of local government must remit | ||||||
9 | the
entire cost of providing coverage under the health | ||||||
10 | benefits program established under this Section
or, for | ||||||
11 | coverage under a health maintenance organization, an amount | ||||||
12 | determined
by the Director based on an analysis of the sex, | ||||||
13 | age, geographic location, or
other relevant demographic | ||||||
14 | variables for its employees, except that the unit of
local | ||||||
15 | government shall not be required to enroll those of its | ||||||
16 | employees who are
covered spouses or dependents under the | ||||||
17 | State group health benefits plan or another group policy or | ||||||
18 | plan
providing health benefits as long as (1) an appropriate | ||||||
19 | official from the unit
of local government attests that each | ||||||
20 | employee not enrolled is a covered spouse
or dependent under | ||||||
21 | this plan or another group policy or plan, and (2) at least
50% | ||||||
22 | of the employees are enrolled and the unit of local government | ||||||
23 | remits
the entire cost of providing coverage to those | ||||||
24 | employees, except that a
participating school district must | ||||||
25 | have enrolled at least 50% of its full-time
employees who have | ||||||
26 | not waived coverage under the district's group health
plan by |
| |||||||
| |||||||
1 | participating in a component of the district's cafeteria plan. | ||||||
2 | A
participating school district is not required to enroll a | ||||||
3 | full-time employee
who has waived coverage under the | ||||||
4 | district's health plan, provided that an
appropriate official | ||||||
5 | from the participating school district attests that the
| ||||||
6 | full-time employee has waived coverage by participating in a | ||||||
7 | component of the
district's cafeteria plan. For the purposes | ||||||
8 | of this subsection, "participating
school district" includes a | ||||||
9 | unit of local government whose primary purpose is
education as | ||||||
10 | defined by the Department's rules.
| ||||||
11 | Employees of a participating unit of local government who | ||||||
12 | are not enrolled
due to coverage under another group health | ||||||
13 | policy or plan may enroll in
the event of a qualifying change | ||||||
14 | in status, special enrollment, special
circumstance as defined | ||||||
15 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
16 | participating unit of local government may also elect to cover | ||||||
17 | its
annuitants. Dependent coverage shall be offered on an | ||||||
18 | optional basis, with the
costs paid by the unit of local | ||||||
19 | government, its employees, or some combination
of the two as | ||||||
20 | determined by the unit of local government. The unit of local
| ||||||
21 | government shall be responsible for timely collection and | ||||||
22 | transmission of
dependent premiums.
| ||||||
23 | The Director shall annually determine monthly rates of | ||||||
24 | payment, subject
to the following constraints:
| ||||||
25 | (1) In the first year of coverage, the rates shall be | ||||||
26 | equal to the
amount normally charged to State employees |
| |||||||
| |||||||
1 | for elected optional coverages
or for enrolled dependents | ||||||
2 | coverages or other contributory coverages, or
contributed | ||||||
3 | by the State for basic insurance coverages on behalf of | ||||||
4 | its
employees, adjusted for differences between State | ||||||
5 | employees and employees
of the local government in age, | ||||||
6 | sex, geographic location or other relevant
demographic | ||||||
7 | variables, plus an amount sufficient to pay for the | ||||||
8 | additional
administrative costs of providing coverage to | ||||||
9 | employees of the unit of
local government and their | ||||||
10 | dependents.
| ||||||
11 | (2) In subsequent years, a further adjustment shall be | ||||||
12 | made to reflect
the actual prior years' claims experience | ||||||
13 | of the employees of the unit of
local government.
| ||||||
14 | In the case of coverage of local government employees | ||||||
15 | under a health
maintenance organization, the Director shall | ||||||
16 | annually determine for each
participating unit of local | ||||||
17 | government the maximum monthly amount the unit
may contribute | ||||||
18 | toward that coverage, based on an analysis of (i) the age,
sex, | ||||||
19 | geographic location, and other relevant demographic variables | ||||||
20 | of the
unit's employees and (ii) the cost to cover those | ||||||
21 | employees under the State
group health benefits plan. The | ||||||
22 | Director may similarly determine the
maximum monthly amount | ||||||
23 | each unit of local government may contribute toward
coverage | ||||||
24 | of its employees' dependents under a health maintenance | ||||||
25 | organization.
| ||||||
26 | Monthly payments by the unit of local government or its |
| |||||||
| |||||||
1 | employees for
group health benefits plan or health maintenance | ||||||
2 | organization coverage shall
be deposited in the Local | ||||||
3 | Government Health Insurance Reserve Fund.
| ||||||
4 | The Local Government Health Insurance Reserve Fund is | ||||||
5 | hereby created as a nonappropriated trust fund to be held | ||||||
6 | outside the State Treasury, with the State Treasurer as | ||||||
7 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
8 | shall be a continuing
fund not subject to fiscal year | ||||||
9 | limitations. The Local Government Health Insurance Reserve | ||||||
10 | Fund is not subject to administrative charges or charge-backs, | ||||||
11 | including but not limited to those authorized under Section 8h | ||||||
12 | of the State Finance Act. All revenues arising from the | ||||||
13 | administration of the health benefits program established | ||||||
14 | under this Section shall be deposited into the Local | ||||||
15 | Government Health Insurance Reserve Fund. Any interest earned | ||||||
16 | on moneys in the Local Government Health Insurance Reserve | ||||||
17 | Fund shall be deposited into the Fund. All expenditures from | ||||||
18 | this Fund
shall be used for payments for health care benefits | ||||||
19 | for local government and rehabilitation facility
employees, | ||||||
20 | annuitants, and dependents, and to reimburse the Department or
| ||||||
21 | its administrative service organization for all expenses | ||||||
22 | incurred in the
administration of benefits. No other State | ||||||
23 | funds may be used for these
purposes.
| ||||||
24 | A local government employer's participation or desire to | ||||||
25 | participate
in a program created under this subsection shall | ||||||
26 | not limit that employer's
duty to bargain with the |
| |||||||
| |||||||
1 | representative of any collective bargaining unit
of its | ||||||
2 | employees.
| ||||||
3 | (j) Any rehabilitation facility within the State of | ||||||
4 | Illinois may apply
to the Director to have its employees, | ||||||
5 | annuitants, and their eligible
dependents provided group | ||||||
6 | health coverage under this Act on a non-insured
basis. To | ||||||
7 | participate, a rehabilitation facility must agree to enroll | ||||||
8 | all
of its employees and remit the entire cost of providing | ||||||
9 | such coverage for
its employees, except that the | ||||||
10 | rehabilitation facility shall not be
required to enroll those | ||||||
11 | of its employees who are covered spouses or
dependents under | ||||||
12 | this plan or another group policy or plan providing health
| ||||||
13 | benefits as long as (1) an appropriate official from the | ||||||
14 | rehabilitation
facility attests that each employee not | ||||||
15 | enrolled is a covered spouse or
dependent under this plan or | ||||||
16 | another group policy or plan, and (2) at least
50% of the | ||||||
17 | employees are enrolled and the rehabilitation facility remits
| ||||||
18 | the entire cost of providing coverage to those employees. | ||||||
19 | Employees of a
participating rehabilitation facility who are | ||||||
20 | not enrolled due to coverage
under another group health policy | ||||||
21 | or plan may enroll
in the event of a qualifying change in | ||||||
22 | status, special enrollment, special
circumstance as defined by | ||||||
23 | the Director, or during the annual Benefit Choice
Period. A | ||||||
24 | participating rehabilitation facility may also elect
to cover | ||||||
25 | its annuitants. Dependent coverage shall be offered on an | ||||||
26 | optional
basis, with the costs paid by the rehabilitation |
| |||||||
| |||||||
1 | facility, its employees, or
some combination of the 2 as | ||||||
2 | determined by the rehabilitation facility. The
rehabilitation | ||||||
3 | facility shall be responsible for timely collection and
| ||||||
4 | transmission of dependent premiums.
| ||||||
5 | The Director shall annually determine quarterly rates of | ||||||
6 | payment, subject
to the following constraints:
| ||||||
7 | (1) In the first year of coverage, the rates shall be | ||||||
8 | equal to the amount
normally charged to State employees | ||||||
9 | for elected optional coverages or for
enrolled dependents | ||||||
10 | coverages or other contributory coverages on behalf of
its | ||||||
11 | employees, adjusted for differences between State | ||||||
12 | employees and
employees of the rehabilitation facility in | ||||||
13 | age, sex, geographic location
or other relevant | ||||||
14 | demographic variables, plus an amount sufficient to pay
| ||||||
15 | for the additional administrative costs of providing | ||||||
16 | coverage to employees
of the rehabilitation facility and | ||||||
17 | their dependents.
| ||||||
18 | (2) In subsequent years, a further adjustment shall be | ||||||
19 | made to reflect
the actual prior years' claims experience | ||||||
20 | of the employees of the
rehabilitation facility.
| ||||||
21 | Monthly payments by the rehabilitation facility or its | ||||||
22 | employees for
group health benefits shall be deposited in the | ||||||
23 | Local Government Health
Insurance Reserve Fund.
| ||||||
24 | (k) Any domestic violence shelter or service within the | ||||||
25 | State of Illinois
may apply to the Director to have its | ||||||
26 | employees, annuitants, and their
dependents provided group |
| |||||||
| |||||||
1 | health coverage under this Act on a non-insured
basis. To | ||||||
2 | participate, a domestic violence shelter or service must agree | ||||||
3 | to
enroll all of its employees and pay the entire cost of | ||||||
4 | providing such coverage
for its employees. The domestic | ||||||
5 | violence shelter shall not be required to enroll those of its | ||||||
6 | employees who are covered spouses or dependents under this | ||||||
7 | plan or another group policy or plan providing health benefits | ||||||
8 | as long as (1) an appropriate official from the domestic | ||||||
9 | violence shelter attests that each employee not enrolled is a | ||||||
10 | covered spouse or dependent under this plan or another group | ||||||
11 | policy or plan and (2) at least 50% of the employees are | ||||||
12 | enrolled and the domestic violence shelter remits the entire | ||||||
13 | cost of providing coverage to those employees. Employees of a | ||||||
14 | participating domestic violence shelter who are not enrolled | ||||||
15 | due to coverage under another group health policy or plan may | ||||||
16 | enroll in the event of a qualifying change in status, special | ||||||
17 | enrollment, or special circumstance as defined by the Director | ||||||
18 | or during the annual Benefit Choice Period. A participating | ||||||
19 | domestic violence shelter may also elect
to cover its | ||||||
20 | annuitants. Dependent coverage shall be offered on an optional
| ||||||
21 | basis, with
employees, or some combination of the 2 as | ||||||
22 | determined by the domestic violence
shelter or service. The | ||||||
23 | domestic violence shelter or service shall be
responsible for | ||||||
24 | timely collection and transmission of dependent premiums.
| ||||||
25 | The Director shall annually determine rates of payment,
| ||||||
26 | subject to the following constraints:
|
| |||||||
| |||||||
1 | (1) In the first year of coverage, the rates shall be | ||||||
2 | equal to the
amount normally charged to State employees | ||||||
3 | for elected optional coverages
or for enrolled dependents | ||||||
4 | coverages or other contributory coverages on
behalf of its | ||||||
5 | employees, adjusted for differences between State | ||||||
6 | employees and
employees of the domestic violence shelter | ||||||
7 | or service in age, sex, geographic
location or other | ||||||
8 | relevant demographic variables, plus an amount sufficient
| ||||||
9 | to pay for the additional administrative costs of | ||||||
10 | providing coverage to
employees of the domestic violence | ||||||
11 | shelter or service and their dependents.
| ||||||
12 | (2) In subsequent years, a further adjustment shall be | ||||||
13 | made to reflect
the actual prior years' claims experience | ||||||
14 | of the employees of the domestic
violence shelter or | ||||||
15 | service.
| ||||||
16 | Monthly payments by the domestic violence shelter or | ||||||
17 | service or its employees
for group health insurance shall be | ||||||
18 | deposited in the Local Government Health
Insurance Reserve | ||||||
19 | Fund.
| ||||||
20 | (l) A public community college or entity organized | ||||||
21 | pursuant to the
Public Community College Act may apply to the | ||||||
22 | Director initially to have
only annuitants not covered prior | ||||||
23 | to July 1, 1992 by the district's health
plan provided health | ||||||
24 | coverage under this Act on a non-insured basis. The
community | ||||||
25 | college must execute a 2-year contract to participate in the
| ||||||
26 | Local Government Health Plan.
Any annuitant may enroll in the |
| |||||||
| |||||||
1 | event of a qualifying change in status, special
enrollment, | ||||||
2 | special circumstance as defined by the Director, or during the
| ||||||
3 | annual Benefit Choice Period.
| ||||||
4 | The Director shall annually determine monthly rates of | ||||||
5 | payment subject to
the following constraints: for those | ||||||
6 | community colleges with annuitants
only enrolled, first year | ||||||
7 | rates shall be equal to the average cost to cover
claims for a | ||||||
8 | State member adjusted for demographics, Medicare
| ||||||
9 | participation, and other factors; and in the second year, a | ||||||
10 | further adjustment
of rates shall be made to reflect the | ||||||
11 | actual first year's claims experience
of the covered | ||||||
12 | annuitants.
| ||||||
13 | (l-5) The provisions of subsection (l) become inoperative | ||||||
14 | on July 1, 1999.
| ||||||
15 | (m) The Director shall adopt any rules deemed necessary | ||||||
16 | for
implementation of this amendatory Act of 1989 (Public Act | ||||||
17 | 86-978).
| ||||||
18 | (n) Any child advocacy center within the State of Illinois | ||||||
19 | may apply to the Director to have its employees, annuitants, | ||||||
20 | and their dependents provided group health coverage under this | ||||||
21 | Act on a non-insured basis. To participate, a child advocacy | ||||||
22 | center must agree to enroll all of its employees and pay the | ||||||
23 | entire cost of providing coverage for its employees. The child
| ||||||
24 | advocacy center shall not be required to enroll those of its
| ||||||
25 | employees who are covered spouses or dependents under this | ||||||
26 | plan
or another group policy or plan providing health benefits |
| |||||||
| |||||||
1 | as
long as (1) an appropriate official from the child advocacy
| ||||||
2 | center attests that each employee not enrolled is a covered
| ||||||
3 | spouse or dependent under this plan or another group policy or
| ||||||
4 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
5 | child advocacy center remits the entire cost of providing | ||||||
6 | coverage to those employees. Employees of a participating | ||||||
7 | child advocacy center who are not enrolled due to coverage | ||||||
8 | under another group health policy or plan may enroll in the | ||||||
9 | event of a qualifying change in status, special enrollment, or | ||||||
10 | special circumstance as defined by the Director or during the | ||||||
11 | annual Benefit Choice Period. A participating child advocacy | ||||||
12 | center may also elect to cover its annuitants. Dependent | ||||||
13 | coverage shall be offered on an optional basis, with the costs | ||||||
14 | paid by the child advocacy center, its employees, or some | ||||||
15 | combination of the 2 as determined by the child advocacy | ||||||
16 | center. The child advocacy center shall be responsible for | ||||||
17 | timely collection and transmission of dependent premiums. | ||||||
18 | The Director shall annually determine rates of payment, | ||||||
19 | subject to the following constraints: | ||||||
20 | (1) In the first year of coverage, the rates shall be | ||||||
21 | equal to the amount normally charged to State employees | ||||||
22 | for elected optional coverages or for enrolled dependents | ||||||
23 | coverages or other contributory coverages on behalf of its | ||||||
24 | employees, adjusted for differences between State | ||||||
25 | employees and employees of the child advocacy center in | ||||||
26 | age, sex, geographic location, or other relevant |
| |||||||
| |||||||
1 | demographic variables, plus an amount sufficient to pay | ||||||
2 | for the additional administrative costs of providing | ||||||
3 | coverage to employees of the child advocacy center and | ||||||
4 | their dependents. | ||||||
5 | (2) In subsequent years, a further adjustment shall be | ||||||
6 | made to reflect the actual prior years' claims experience | ||||||
7 | of the employees of the child advocacy center. | ||||||
8 | Monthly payments by the child advocacy center or its | ||||||
9 | employees for group health insurance shall be deposited into | ||||||
10 | the Local Government Health Insurance Reserve Fund. | ||||||
11 | (Source: P.A. 102-19, eff. 7-1-21.)
| ||||||
12 | Section 10. The Illinois Pension Code is amended by | ||||||
13 | changing Sections 1-160, 1-161, 2-162, 14-103.41, 14-152.1, | ||||||
14 | 15-108.1, 15-108.2, 15-198, 16-106.41, 16-203, 18-124, 18-125, | ||||||
15 | 18-125.1, 18-127, 18-128.01, 18-133, 18-169, 20-121, 20-123, | ||||||
16 | 20-124, and 20-125 and by adding Sections 2-105.3, 2-165.5, | ||||||
17 | 14-103.44, 14-103.45, 14-155.5, 15-108.3, 15-200.5, 16-106.42, | ||||||
18 | 16-106.43, 16-205.5, 18-110.1, 18-110.2, 18-110.3, and | ||||||
19 | 18-121.5 as follows:
| ||||||
20 | (40 ILCS 5/1-160)
| ||||||
21 | (Text of Section from P.A. 102-719) | ||||||
22 | Sec. 1-160. Provisions applicable to new hires. | ||||||
23 | (a) The provisions of this Section apply to a person who, | ||||||
24 | on or after January 1, 2011, first becomes a member or a |
| |||||||
| |||||||
1 | participant under any reciprocal retirement system or pension | ||||||
2 | fund established under this Code, other than a retirement | ||||||
3 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
4 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
5 | of this Code to the contrary, but do not apply to any | ||||||
6 | self-managed plan established under this Code or to any | ||||||
7 | participant of the retirement plan established under Section | ||||||
8 | 22-101; except that this Section applies to a person who | ||||||
9 | elected to establish alternative credits by electing in | ||||||
10 | writing after January 1, 2011, but before August 8, 2011, | ||||||
11 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
12 | to the contrary in this Section, for purposes of this Section, | ||||||
13 | a person who is a Tier 1 regular employee as defined in Section | ||||||
14 | 7-109.4 of this Code or who participated in a retirement | ||||||
15 | system under Article 15 prior to January 1, 2011 shall be | ||||||
16 | deemed a person who first became a member or participant prior | ||||||
17 | to January 1, 2011 under any retirement system or pension fund | ||||||
18 | subject to this Section. The changes made to this Section by | ||||||
19 | Public Act 98-596 are a clarification of existing law and are | ||||||
20 | intended to be retroactive to January 1, 2011 (the effective | ||||||
21 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
22 | Section 1-103.1 of this Code. | ||||||
23 | The provisions of this Section do not apply to service | ||||||
24 | under a Tier 3 plan established under Article 14, 15, or 16 of | ||||||
25 | this Code. | ||||||
26 | This Section does not apply to a person who first becomes a |
| |||||||
| |||||||
1 | noncovered employee under Article 14 on or after the | ||||||
2 | implementation date of the plan created under Section 1-161 | ||||||
3 | for that Article, unless that person elects under subsection | ||||||
4 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
5 | under this Section and the applicable provisions of that | ||||||
6 | Article. | ||||||
7 | This Section does not apply to a person who first becomes a | ||||||
8 | member or participant under Article 16 on or after the | ||||||
9 | implementation date of the plan created under Section 1-161 | ||||||
10 | for that Article, unless that person elects under subsection | ||||||
11 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
12 | under this Section and the applicable provisions of that | ||||||
13 | Article. | ||||||
14 | This Section does not apply to a person who elects under | ||||||
15 | subsection (c-5) of Section 1-161 to receive the benefits | ||||||
16 | under Section 1-161. | ||||||
17 | This Section does not apply to a person who first becomes a | ||||||
18 | member or participant of an affected pension fund on or after 6 | ||||||
19 | months after the resolution or ordinance date, as defined in | ||||||
20 | Section 1-162, unless that person elects under subsection (c) | ||||||
21 | of Section 1-162 to receive the benefits provided under this | ||||||
22 | Section and the applicable provisions of the Article under | ||||||
23 | which he or she is a member or participant. | ||||||
24 | (b) "Final average salary" means, except as otherwise | ||||||
25 | provided in this subsection, the average monthly (or annual) | ||||||
26 | salary obtained by dividing the total salary or earnings |
| |||||||
| |||||||
1 | calculated under the Article applicable to the member or | ||||||
2 | participant during the 96 consecutive months (or 8 consecutive | ||||||
3 | years) of service within the last 120 months (or 10 years) of | ||||||
4 | service in which the total salary or earnings calculated under | ||||||
5 | the applicable Article was the highest by the number of months | ||||||
6 | (or years) of service in that period. For the purposes of a | ||||||
7 | person who first becomes a member or participant of any | ||||||
8 | retirement system or pension fund to which this Section | ||||||
9 | applies on or after January 1, 2011, in this Code, "final | ||||||
10 | average salary" shall be substituted for the following: | ||||||
11 | (1) (Blank). | ||||||
12 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
13 | annual salary for any 4 consecutive years within the last | ||||||
14 | 10 years of service immediately preceding the date of | ||||||
15 | withdrawal". | ||||||
16 | (3) In Article 13, "average final salary". | ||||||
17 | (4) In Article 14, "final average compensation". | ||||||
18 | (5) In Article 17, "average salary". | ||||||
19 | (6) In Section 22-207, "wages or salary received by | ||||||
20 | him at the date of retirement or discharge". | ||||||
21 | A member of the Teachers' Retirement System of the State | ||||||
22 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
23 | the 2020-2021 school year is used in the calculation of the | ||||||
24 | member's final average salary shall use the higher of the | ||||||
25 | following for the purpose of determining the member's final | ||||||
26 | average salary: |
| |||||||
| |||||||
1 | (A) the amount otherwise calculated under the first | ||||||
2 | paragraph of this subsection; or | ||||||
3 | (B) an amount calculated by the Teachers' Retirement | ||||||
4 | System of the State of Illinois using the average of the | ||||||
5 | monthly (or annual) salary obtained by dividing the total | ||||||
6 | salary or earnings calculated under Article 16 applicable | ||||||
7 | to the member or participant during the 96 months (or 8 | ||||||
8 | years) of service within the last 120 months (or 10 years) | ||||||
9 | of service in which the total salary or earnings | ||||||
10 | calculated under the Article was the highest by the number | ||||||
11 | of months (or years) of service in that period. | ||||||
12 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
13 | this Code (including without limitation the calculation of | ||||||
14 | benefits and employee contributions), the annual earnings, | ||||||
15 | salary, or wages (based on the plan year) of a member or | ||||||
16 | participant to whom this Section applies shall not exceed | ||||||
17 | $106,800; however, that amount shall annually thereafter be | ||||||
18 | increased by the lesser of (i) 3% of that amount, including all | ||||||
19 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
20 | percentage increase (but not less than zero) in the consumer | ||||||
21 | price index-u
for the 12 months ending with the September | ||||||
22 | preceding each November 1, including all previous adjustments. | ||||||
23 | For the purposes of this Section, "consumer price index-u" | ||||||
24 | means
the index published by the Bureau of Labor Statistics of | ||||||
25 | the United States
Department of Labor that measures the | ||||||
26 | average change in prices of goods and
services purchased by |
| |||||||
| |||||||
1 | all urban consumers, United States city average, all
items, | ||||||
2 | 1982-84 = 100. The new amount resulting from each annual | ||||||
3 | adjustment
shall be determined by the Public Pension Division | ||||||
4 | of the Department of Insurance and made available to the | ||||||
5 | boards of the retirement systems and pension funds by November | ||||||
6 | 1 of each year. | ||||||
7 | (c) A member or participant is entitled to a retirement
| ||||||
8 | annuity upon written application if he or she has attained age | ||||||
9 | 67 (age 65, with respect to service under Article 12 that is | ||||||
10 | subject to this Section, for a member or participant under | ||||||
11 | Article 12 who first becomes a member or participant under | ||||||
12 | Article 12 on or after January 1, 2022 or who makes the | ||||||
13 | election under item (i) of subsection (d-15) of this Section) | ||||||
14 | and has at least 10 years of service credit and is otherwise | ||||||
15 | eligible under the requirements of the applicable Article. | ||||||
16 | A member or participant who has attained age 62 (age 60, | ||||||
17 | with respect to service under Article 12 that is subject to | ||||||
18 | this Section, for a member or participant under Article 12 who | ||||||
19 | first becomes a member or participant under Article 12 on or | ||||||
20 | after January 1, 2022 or who makes the election under item (i) | ||||||
21 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
22 | of service credit and is otherwise eligible under the | ||||||
23 | requirements of the applicable Article may elect to receive | ||||||
24 | the lower retirement annuity provided
in subsection (d) of | ||||||
25 | this Section. | ||||||
26 | (c-5) A person who first becomes a member or a participant |
| |||||||
| |||||||
1 | subject to this Section on or after July 6, 2017 (the effective | ||||||
2 | date of Public Act 100-23), notwithstanding any other | ||||||
3 | provision of this Code to the contrary, is entitled to a | ||||||
4 | retirement annuity under Article 8 or Article 11 upon written | ||||||
5 | application if he or she has attained age 65 and has at least | ||||||
6 | 10 years of service credit and is otherwise eligible under the | ||||||
7 | requirements of Article 8 or Article 11 of this Code, | ||||||
8 | whichever is applicable. | ||||||
9 | (d) The retirement annuity of a member or participant who | ||||||
10 | is retiring after attaining age 62 (age 60, with respect to | ||||||
11 | service under Article 12 that is subject to this Section, for a | ||||||
12 | member or participant under Article 12 who first becomes a | ||||||
13 | member or participant under Article 12 on or after January 1, | ||||||
14 | 2022 or who makes the election under item (i) of subsection | ||||||
15 | (d-15) of this Section) with at least 10 years of service | ||||||
16 | credit shall be reduced by one-half
of 1% for each full month | ||||||
17 | that the member's age is under age 67 (age 65, with respect to | ||||||
18 | service under Article 12 that is subject to this Section, for a | ||||||
19 | member or participant under Article 12 who first becomes a | ||||||
20 | member or participant under Article 12 on or after January 1, | ||||||
21 | 2022 or who makes the election under item (i) of subsection | ||||||
22 | (d-15) of this Section). | ||||||
23 | (d-5) The retirement annuity payable under Article 8 or | ||||||
24 | Article 11 to an eligible person subject to subsection (c-5) | ||||||
25 | of this Section who is retiring at age 60 with at least 10 | ||||||
26 | years of service credit shall be reduced by one-half of 1% for |
| |||||||
| |||||||
1 | each full month that the member's age is under age 65. | ||||||
2 | (d-10) Each person who first became a member or | ||||||
3 | participant under Article 8 or Article 11 of this Code on or | ||||||
4 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
5 | date of Public Act 100-23) shall make an irrevocable election | ||||||
6 | either: | ||||||
7 | (i) to be eligible for the reduced retirement age | ||||||
8 | provided in subsections (c-5)
and (d-5) of this Section, | ||||||
9 | the eligibility for which is conditioned upon the member | ||||||
10 | or participant agreeing to the increases in employee | ||||||
11 | contributions for age and service annuities provided in | ||||||
12 | subsection (a-5) of Section 8-174 of this Code (for | ||||||
13 | service under Article 8) or subsection (a-5) of Section | ||||||
14 | 11-170 of this Code (for service under Article 11); or | ||||||
15 | (ii) to not agree to item (i) of this subsection | ||||||
16 | (d-10), in which case the member or participant shall | ||||||
17 | continue to be subject to the retirement age provisions in | ||||||
18 | subsections (c) and (d) of this Section and the employee | ||||||
19 | contributions for age and service annuity as provided in | ||||||
20 | subsection (a) of Section 8-174 of this Code (for service | ||||||
21 | under Article 8) or subsection (a) of Section 11-170 of | ||||||
22 | this Code (for service under Article 11). | ||||||
23 | The election provided for in this subsection shall be made | ||||||
24 | between October 1, 2017 and November 15, 2017. A person | ||||||
25 | subject to this subsection who makes the required election | ||||||
26 | shall remain bound by that election. A person subject to this |
| |||||||
| |||||||
1 | subsection who fails for any reason to make the required | ||||||
2 | election within the time specified in this subsection shall be | ||||||
3 | deemed to have made the election under item (ii). | ||||||
4 | (d-15) Each person who first becomes a member or | ||||||
5 | participant under Article 12 on or after January 1, 2011 and | ||||||
6 | prior to January 1, 2022 shall make an irrevocable election | ||||||
7 | either: | ||||||
8 | (i) to be eligible for the reduced retirement age | ||||||
9 | specified in subsections (c) and (d) of this Section, the | ||||||
10 | eligibility for which is conditioned upon the member or | ||||||
11 | participant agreeing to the increase in employee | ||||||
12 | contributions for service annuities specified in | ||||||
13 | subsection (b) of Section 12-150; or | ||||||
14 | (ii) to not agree to item (i) of this subsection | ||||||
15 | (d-15), in which case the member or participant shall not | ||||||
16 | be eligible for the reduced retirement age specified in | ||||||
17 | subsections (c) and (d) of this Section and shall not be | ||||||
18 | subject to the increase in employee contributions for | ||||||
19 | service annuities specified in subsection (b) of Section | ||||||
20 | 12-150. | ||||||
21 | The election provided for in this subsection shall be made | ||||||
22 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
23 | this subsection who makes the required election shall remain | ||||||
24 | bound by that election. A person subject to this subsection | ||||||
25 | who fails for any reason to make the required election within | ||||||
26 | the time specified in this subsection shall be deemed to have |
| |||||||
| |||||||
1 | made the election under item (ii). | ||||||
2 | (e) Any retirement annuity or supplemental annuity shall | ||||||
3 | be subject to annual increases on the January 1 occurring | ||||||
4 | either on or after the attainment of age 67 (age 65, with | ||||||
5 | respect to service under Article 12 that is subject to this | ||||||
6 | Section, for a member or participant under Article 12 who | ||||||
7 | first becomes a member or participant under Article 12 on or | ||||||
8 | after January 1, 2022 or who makes the election under item (i) | ||||||
9 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
10 | effective date of Public Act 100-23), age 65 with respect to | ||||||
11 | service under Article 8 or Article 11 for eligible persons | ||||||
12 | who: (i) are subject to subsection (c-5) of this Section; or | ||||||
13 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
14 | this Section) or the first anniversary of the annuity start | ||||||
15 | date, whichever is later. Each annual increase shall be | ||||||
16 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
17 | increase (but not less than zero) in the consumer price | ||||||
18 | index-u for the 12 months ending with the September preceding | ||||||
19 | each November 1, whichever is less, of the originally granted | ||||||
20 | retirement annuity. If the annual unadjusted percentage change | ||||||
21 | in the consumer price index-u for the 12 months ending with the | ||||||
22 | September preceding each November 1 is zero or there is a | ||||||
23 | decrease, then the annuity shall not be increased. | ||||||
24 | For the purposes of Section 1-103.1 of this Code, the | ||||||
25 | changes made to this Section by Public Act 102-263 are | ||||||
26 | applicable without regard to whether the employee was in |
| |||||||
| |||||||
1 | active service on or after August 6, 2021 (the effective date | ||||||
2 | of Public Act 102-263). | ||||||
3 | For the purposes of Section 1-103.1 of this Code, the | ||||||
4 | changes made to this Section by Public Act 100-23 are | ||||||
5 | applicable without regard to whether the employee was in | ||||||
6 | active service on or after July 6, 2017 (the effective date of | ||||||
7 | Public Act 100-23). | ||||||
8 | (f) The initial survivor's or widow's annuity of an | ||||||
9 | otherwise eligible survivor or widow of a retired member or | ||||||
10 | participant who first became a member or participant on or | ||||||
11 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
12 | retired member's or participant's retirement annuity at the | ||||||
13 | date of death. In the case of the death of a member or | ||||||
14 | participant who has not retired and who first became a member | ||||||
15 | or participant on or after January 1, 2011, eligibility for a | ||||||
16 | survivor's or widow's annuity shall be determined by the | ||||||
17 | applicable Article of this Code. The initial benefit shall be | ||||||
18 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
19 | child's annuity of an otherwise eligible child shall be in the | ||||||
20 | amount prescribed under each Article if applicable. Any | ||||||
21 | survivor's or widow's annuity shall be increased (1) on each | ||||||
22 | January 1 occurring on or after the commencement of the | ||||||
23 | annuity if
the deceased member died while receiving a | ||||||
24 | retirement annuity or (2) in
other cases, on each January 1 | ||||||
25 | occurring after the first anniversary
of the commencement of | ||||||
26 | the annuity. Each annual increase shall be calculated at 3% or |
| |||||||
| |||||||
1 | one-half the annual unadjusted percentage increase (but not | ||||||
2 | less than zero) in the consumer price index-u for the 12 months | ||||||
3 | ending with the September preceding each November 1, whichever | ||||||
4 | is less, of the originally granted survivor's annuity. If the | ||||||
5 | annual unadjusted percentage change in the consumer price | ||||||
6 | index-u for the 12 months ending with the September preceding | ||||||
7 | each November 1 is zero or there is a decrease, then the | ||||||
8 | annuity shall not be increased. | ||||||
9 | (g) The benefits in Section 14-110 apply if the person is a | ||||||
10 | fire fighter in the fire protection service of a department, a | ||||||
11 | security employee of the Department of Corrections or the | ||||||
12 | Department of Juvenile Justice, or a security employee of the | ||||||
13 | Department of Innovation and Technology, as those terms are | ||||||
14 | defined in subsection (b) and subsection (c) of Section | ||||||
15 | 14-110. A person who meets the requirements of this Section is | ||||||
16 | entitled to an annuity calculated under the provisions of | ||||||
17 | Section 14-110, in lieu of the regular or minimum retirement | ||||||
18 | annuity, only if the person has withdrawn from service with | ||||||
19 | not less than 20
years of eligible creditable service and has | ||||||
20 | attained age 60, regardless of whether
the attainment of age | ||||||
21 | 60 occurs while the person is
still in service. | ||||||
22 | (g-5) The benefits in Section 14-110 apply if the person | ||||||
23 | is a State policeman, investigator for the Secretary of State, | ||||||
24 | conservation police officer, investigator for the Department | ||||||
25 | of Revenue or the
Illinois Gaming Board, investigator for the | ||||||
26 | Office of the Attorney
General, Commerce Commission police |
| |||||||
| |||||||
1 | officer, or arson investigator, as those terms are defined in | ||||||
2 | subsection (b) and subsection (c) of Section 14-110. A person | ||||||
3 | who meets the requirements of this Section is entitled to an | ||||||
4 | annuity calculated under the provisions of Section 14-110, in | ||||||
5 | lieu of the regular or minimum retirement annuity, only if the | ||||||
6 | person has withdrawn from service with not less than 20 years | ||||||
7 | of eligible creditable service and has attained age 55, | ||||||
8 | regardless of whether the attainment of age 55 occurs while | ||||||
9 | the person is still in service. | ||||||
10 | (h) If a person who first becomes a member or a participant | ||||||
11 | of a retirement system or pension fund subject to this Section | ||||||
12 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
13 | or retirement pension under that system or fund and becomes a | ||||||
14 | member or participant under any other system or fund created | ||||||
15 | by this Code and is employed on a full-time basis, except for | ||||||
16 | those members or participants exempted from the provisions of | ||||||
17 | this Section under subsection (a) of this Section, then the | ||||||
18 | person's retirement annuity or retirement pension under that | ||||||
19 | system or fund shall be suspended during that employment. Upon | ||||||
20 | termination of that employment, the person's retirement | ||||||
21 | annuity or retirement pension payments shall resume and be | ||||||
22 | recalculated if recalculation is provided for under the | ||||||
23 | applicable Article of this Code. | ||||||
24 | If a person who first becomes a member of a retirement | ||||||
25 | system or pension fund subject to this Section on or after | ||||||
26 | January 1, 2012 and is receiving a retirement annuity or |
| |||||||
| |||||||
1 | retirement pension under that system or fund and accepts on a | ||||||
2 | contractual basis a position to provide services to a | ||||||
3 | governmental entity from which he or she has retired, then | ||||||
4 | that person's annuity or retirement pension earned as an | ||||||
5 | active employee of the employer shall be suspended during that | ||||||
6 | contractual service. A person receiving an annuity or | ||||||
7 | retirement pension under this Code shall notify the pension | ||||||
8 | fund or retirement system from which he or she is receiving an | ||||||
9 | annuity or retirement pension, as well as his or her | ||||||
10 | contractual employer, of his or her retirement status before | ||||||
11 | accepting contractual employment. A person who fails to submit | ||||||
12 | such notification shall be guilty of a Class A misdemeanor and | ||||||
13 | required to pay a fine of $1,000. Upon termination of that | ||||||
14 | contractual employment, the person's retirement annuity or | ||||||
15 | retirement pension payments shall resume and, if appropriate, | ||||||
16 | be recalculated under the applicable provisions of this Code. | ||||||
17 | (i) (Blank). | ||||||
18 | (j) In the case of a conflict between the provisions of | ||||||
19 | this Section and any other provision of this Code, the | ||||||
20 | provisions of this Section shall control.
| ||||||
21 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | ||||||
22 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. | ||||||
23 | 5-6-22.)
| ||||||
24 | (Text of Section from P.A. 102-813) | ||||||
25 | Sec. 1-160. Provisions applicable to new hires. |
| |||||||
| |||||||
1 | (a) The provisions of this Section apply to a person who, | ||||||
2 | on or after January 1, 2011, first becomes a member or a | ||||||
3 | participant under any reciprocal retirement system or pension | ||||||
4 | fund established under this Code, other than a retirement | ||||||
5 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
6 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
7 | of this Code to the contrary, but do not apply to any | ||||||
8 | self-managed plan established under this Code or to any | ||||||
9 | participant of the retirement plan established under Section | ||||||
10 | 22-101; except that this Section applies to a person who | ||||||
11 | elected to establish alternative credits by electing in | ||||||
12 | writing after January 1, 2011, but before August 8, 2011, | ||||||
13 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
14 | to the contrary in this Section, for purposes of this Section, | ||||||
15 | a person who is a Tier 1 regular employee as defined in Section | ||||||
16 | 7-109.4 of this Code or who participated in a retirement | ||||||
17 | system under Article 15 prior to January 1, 2011 shall be | ||||||
18 | deemed a person who first became a member or participant prior | ||||||
19 | to January 1, 2011 under any retirement system or pension fund | ||||||
20 | subject to this Section. The changes made to this Section by | ||||||
21 | Public Act 98-596 are a clarification of existing law and are | ||||||
22 | intended to be retroactive to January 1, 2011 (the effective | ||||||
23 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
24 | Section 1-103.1 of this Code. | ||||||
25 | The provisions of this Section do not apply to service | ||||||
26 | under a Tier 3 plan established under Article 14, 15, or 16 of |
| |||||||
| |||||||
1 | this Code. | ||||||
2 | This Section does not apply to a person who first becomes a | ||||||
3 | noncovered employee under Article 14 on or after the | ||||||
4 | implementation date of the plan created under Section 1-161 | ||||||
5 | for that Article, unless that person elects under subsection | ||||||
6 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
7 | under this Section and the applicable provisions of that | ||||||
8 | Article. | ||||||
9 | This Section does not apply to a person who first becomes a | ||||||
10 | member or participant under Article 16 on or after the | ||||||
11 | implementation date of the plan created under Section 1-161 | ||||||
12 | for that Article, unless that person elects under subsection | ||||||
13 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
14 | under this Section and the applicable provisions of that | ||||||
15 | Article. | ||||||
16 | This Section does not apply to a person who elects under | ||||||
17 | subsection (c-5) of Section 1-161 to receive the benefits | ||||||
18 | under Section 1-161. | ||||||
19 | This Section does not apply to a person who first becomes a | ||||||
20 | member or participant of an affected pension fund on or after 6 | ||||||
21 | months after the resolution or ordinance date, as defined in | ||||||
22 | Section 1-162, unless that person elects under subsection (c) | ||||||
23 | of Section 1-162 to receive the benefits provided under this | ||||||
24 | Section and the applicable provisions of the Article under | ||||||
25 | which he or she is a member or participant. | ||||||
26 | (b) "Final average salary" means, except as otherwise |
| |||||||
| |||||||
1 | provided in this subsection, the average monthly (or annual) | ||||||
2 | salary obtained by dividing the total salary or earnings | ||||||
3 | calculated under the Article applicable to the member or | ||||||
4 | participant during the 96 consecutive months (or 8 consecutive | ||||||
5 | years) of service within the last 120 months (or 10 years) of | ||||||
6 | service in which the total salary or earnings calculated under | ||||||
7 | the applicable Article was the highest by the number of months | ||||||
8 | (or years) of service in that period. For the purposes of a | ||||||
9 | person who first becomes a member or participant of any | ||||||
10 | retirement system or pension fund to which this Section | ||||||
11 | applies on or after January 1, 2011, in this Code, "final | ||||||
12 | average salary" shall be substituted for the following: | ||||||
13 | (1) (Blank). | ||||||
14 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
15 | annual salary for any 4 consecutive years within the last | ||||||
16 | 10 years of service immediately preceding the date of | ||||||
17 | withdrawal". | ||||||
18 | (3) In Article 13, "average final salary". | ||||||
19 | (4) In Article 14, "final average compensation". | ||||||
20 | (5) In Article 17, "average salary". | ||||||
21 | (6) In Section 22-207, "wages or salary received by | ||||||
22 | him at the date of retirement or discharge". | ||||||
23 | A member of the Teachers' Retirement System of the State | ||||||
24 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
25 | the 2020-2021 school year is used in the calculation of the | ||||||
26 | member's final average salary shall use the higher of the |
| |||||||
| |||||||
1 | following for the purpose of determining the member's final | ||||||
2 | average salary: | ||||||
3 | (A) the amount otherwise calculated under the first | ||||||
4 | paragraph of this subsection; or | ||||||
5 | (B) an amount calculated by the Teachers' Retirement | ||||||
6 | System of the State of Illinois using the average of the | ||||||
7 | monthly (or annual) salary obtained by dividing the total | ||||||
8 | salary or earnings calculated under Article 16 applicable | ||||||
9 | to the member or participant during the 96 months (or 8 | ||||||
10 | years) of service within the last 120 months (or 10 years) | ||||||
11 | of service in which the total salary or earnings | ||||||
12 | calculated under the Article was the highest by the number | ||||||
13 | of months (or years) of service in that period. | ||||||
14 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
15 | this Code (including without limitation the calculation of | ||||||
16 | benefits and employee contributions), the annual earnings, | ||||||
17 | salary, or wages (based on the plan year) of a member or | ||||||
18 | participant to whom this Section applies shall not exceed | ||||||
19 | $106,800; however, that amount shall annually thereafter be | ||||||
20 | increased by the lesser of (i) 3% of that amount, including all | ||||||
21 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
22 | percentage increase (but not less than zero) in the consumer | ||||||
23 | price index-u
for the 12 months ending with the September | ||||||
24 | preceding each November 1, including all previous adjustments. | ||||||
25 | For the purposes of this Section, "consumer price index-u" | ||||||
26 | means
the index published by the Bureau of Labor Statistics of |
| |||||||
| |||||||
1 | the United States
Department of Labor that measures the | ||||||
2 | average change in prices of goods and
services purchased by | ||||||
3 | all urban consumers, United States city average, all
items, | ||||||
4 | 1982-84 = 100. The new amount resulting from each annual | ||||||
5 | adjustment
shall be determined by the Public Pension Division | ||||||
6 | of the Department of Insurance and made available to the | ||||||
7 | boards of the retirement systems and pension funds by November | ||||||
8 | 1 of each year. | ||||||
9 | (c) A member or participant is entitled to a retirement
| ||||||
10 | annuity upon written application if he or she has attained age | ||||||
11 | 67 (age 65, with respect to service under Article 12 that is | ||||||
12 | subject to this Section, for a member or participant under | ||||||
13 | Article 12 who first becomes a member or participant under | ||||||
14 | Article 12 on or after January 1, 2022 or who makes the | ||||||
15 | election under item (i) of subsection (d-15) of this Section) | ||||||
16 | and has at least 10 years of service credit and is otherwise | ||||||
17 | eligible under the requirements of the applicable Article. | ||||||
18 | A member or participant who has attained age 62 (age 60, | ||||||
19 | with respect to service under Article 12 that is subject to | ||||||
20 | this Section, for a member or participant under Article 12 who | ||||||
21 | first becomes a member or participant under Article 12 on or | ||||||
22 | after January 1, 2022 or who makes the election under item (i) | ||||||
23 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
24 | of service credit and is otherwise eligible under the | ||||||
25 | requirements of the applicable Article may elect to receive | ||||||
26 | the lower retirement annuity provided
in subsection (d) of |
| |||||||
| |||||||
1 | this Section. | ||||||
2 | (c-5) A person who first becomes a member or a participant | ||||||
3 | subject to this Section on or after July 6, 2017 (the effective | ||||||
4 | date of Public Act 100-23), notwithstanding any other | ||||||
5 | provision of this Code to the contrary, is entitled to a | ||||||
6 | retirement annuity under Article 8 or Article 11 upon written | ||||||
7 | application if he or she has attained age 65 and has at least | ||||||
8 | 10 years of service credit and is otherwise eligible under the | ||||||
9 | requirements of Article 8 or Article 11 of this Code, | ||||||
10 | whichever is applicable. | ||||||
11 | (d) The retirement annuity of a member or participant who | ||||||
12 | is retiring after attaining age 62 (age 60, with respect to | ||||||
13 | service under Article 12 that is subject to this Section, for a | ||||||
14 | member or participant under Article 12 who first becomes a | ||||||
15 | member or participant under Article 12 on or after January 1, | ||||||
16 | 2022 or who makes the election under item (i) of subsection | ||||||
17 | (d-15) of this Section) with at least 10 years of service | ||||||
18 | credit shall be reduced by one-half
of 1% for each full month | ||||||
19 | that the member's age is under age 67 (age 65, with respect to | ||||||
20 | service under Article 12 that is subject to this Section, for a | ||||||
21 | member or participant under Article 12 who first becomes a | ||||||
22 | member or participant under Article 12 on or after January 1, | ||||||
23 | 2022 or who makes the election under item (i) of subsection | ||||||
24 | (d-15) of this Section). | ||||||
25 | (d-5) The retirement annuity payable under Article 8 or | ||||||
26 | Article 11 to an eligible person subject to subsection (c-5) |
| |||||||
| |||||||
1 | of this Section who is retiring at age 60 with at least 10 | ||||||
2 | years of service credit shall be reduced by one-half of 1% for | ||||||
3 | each full month that the member's age is under age 65. | ||||||
4 | (d-10) Each person who first became a member or | ||||||
5 | participant under Article 8 or Article 11 of this Code on or | ||||||
6 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
7 | date of Public Act 100-23) shall make an irrevocable election | ||||||
8 | either: | ||||||
9 | (i) to be eligible for the reduced retirement age | ||||||
10 | provided in subsections (c-5)
and (d-5) of this Section, | ||||||
11 | the eligibility for which is conditioned upon the member | ||||||
12 | or participant agreeing to the increases in employee | ||||||
13 | contributions for age and service annuities provided in | ||||||
14 | subsection (a-5) of Section 8-174 of this Code (for | ||||||
15 | service under Article 8) or subsection (a-5) of Section | ||||||
16 | 11-170 of this Code (for service under Article 11); or | ||||||
17 | (ii) to not agree to item (i) of this subsection | ||||||
18 | (d-10), in which case the member or participant shall | ||||||
19 | continue to be subject to the retirement age provisions in | ||||||
20 | subsections (c) and (d) of this Section and the employee | ||||||
21 | contributions for age and service annuity as provided in | ||||||
22 | subsection (a) of Section 8-174 of this Code (for service | ||||||
23 | under Article 8) or subsection (a) of Section 11-170 of | ||||||
24 | this Code (for service under Article 11). | ||||||
25 | The election provided for in this subsection shall be made | ||||||
26 | between October 1, 2017 and November 15, 2017. A person |
| |||||||
| |||||||
1 | subject to this subsection who makes the required election | ||||||
2 | shall remain bound by that election. A person subject to this | ||||||
3 | subsection who fails for any reason to make the required | ||||||
4 | election within the time specified in this subsection shall be | ||||||
5 | deemed to have made the election under item (ii). | ||||||
6 | (d-15) Each person who first becomes a member or | ||||||
7 | participant under Article 12 on or after January 1, 2011 and | ||||||
8 | prior to January 1, 2022 shall make an irrevocable election | ||||||
9 | either: | ||||||
10 | (i) to be eligible for the reduced retirement age | ||||||
11 | specified in subsections (c) and (d) of this Section, the | ||||||
12 | eligibility for which is conditioned upon the member or | ||||||
13 | participant agreeing to the increase in employee | ||||||
14 | contributions for service annuities specified in | ||||||
15 | subsection (b) of Section 12-150; or | ||||||
16 | (ii) to not agree to item (i) of this subsection | ||||||
17 | (d-15), in which case the member or participant shall not | ||||||
18 | be eligible for the reduced retirement age specified in | ||||||
19 | subsections (c) and (d) of this Section and shall not be | ||||||
20 | subject to the increase in employee contributions for | ||||||
21 | service annuities specified in subsection (b) of Section | ||||||
22 | 12-150. | ||||||
23 | The election provided for in this subsection shall be made | ||||||
24 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
25 | this subsection who makes the required election shall remain | ||||||
26 | bound by that election. A person subject to this subsection |
| |||||||
| |||||||
1 | who fails for any reason to make the required election within | ||||||
2 | the time specified in this subsection shall be deemed to have | ||||||
3 | made the election under item (ii). | ||||||
4 | (e) Any retirement annuity or supplemental annuity shall | ||||||
5 | be subject to annual increases on the January 1 occurring | ||||||
6 | either on or after the attainment of age 67 (age 65, with | ||||||
7 | respect to service under Article 12 that is subject to this | ||||||
8 | Section, for a member or participant under Article 12 who | ||||||
9 | first becomes a member or participant under Article 12 on or | ||||||
10 | after January 1, 2022 or who makes the election under item (i) | ||||||
11 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
12 | effective date of Public Act 100-23), age 65 with respect to | ||||||
13 | service under Article 8 or Article 11 for eligible persons | ||||||
14 | who: (i) are subject to subsection (c-5) of this Section; or | ||||||
15 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
16 | this Section) or the first anniversary of the annuity start | ||||||
17 | date, whichever is later. Each annual increase shall be | ||||||
18 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
19 | increase (but not less than zero) in the consumer price | ||||||
20 | index-u for the 12 months ending with the September preceding | ||||||
21 | each November 1, whichever is less, of the originally granted | ||||||
22 | retirement annuity. If the annual unadjusted percentage change | ||||||
23 | in the consumer price index-u for the 12 months ending with the | ||||||
24 | September preceding each November 1 is zero or there is a | ||||||
25 | decrease, then the annuity shall not be increased. | ||||||
26 | For the purposes of Section 1-103.1 of this Code, the |
| |||||||
| |||||||
1 | changes made to this Section by Public Act 102-263 are | ||||||
2 | applicable without regard to whether the employee was in | ||||||
3 | active service on or after August 6, 2021 (the effective date | ||||||
4 | of Public Act 102-263). | ||||||
5 | For the purposes of Section 1-103.1 of this Code, the | ||||||
6 | changes made to this Section by Public Act 100-23 are | ||||||
7 | applicable without regard to whether the employee was in | ||||||
8 | active service on or after July 6, 2017 (the effective date of | ||||||
9 | Public Act 100-23). | ||||||
10 | (f) The initial survivor's or widow's annuity of an | ||||||
11 | otherwise eligible survivor or widow of a retired member or | ||||||
12 | participant who first became a member or participant on or | ||||||
13 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
14 | retired member's or participant's retirement annuity at the | ||||||
15 | date of death. In the case of the death of a member or | ||||||
16 | participant who has not retired and who first became a member | ||||||
17 | or participant on or after January 1, 2011, eligibility for a | ||||||
18 | survivor's or widow's annuity shall be determined by the | ||||||
19 | applicable Article of this Code. The initial benefit shall be | ||||||
20 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
21 | child's annuity of an otherwise eligible child shall be in the | ||||||
22 | amount prescribed under each Article if applicable. Any | ||||||
23 | survivor's or widow's annuity shall be increased (1) on each | ||||||
24 | January 1 occurring on or after the commencement of the | ||||||
25 | annuity if
the deceased member died while receiving a | ||||||
26 | retirement annuity or (2) in
other cases, on each January 1 |
| |||||||
| |||||||
1 | occurring after the first anniversary
of the commencement of | ||||||
2 | the annuity. Each annual increase shall be calculated at 3% or | ||||||
3 | one-half the annual unadjusted percentage increase (but not | ||||||
4 | less than zero) in the consumer price index-u for the 12 months | ||||||
5 | ending with the September preceding each November 1, whichever | ||||||
6 | is less, of the originally granted survivor's annuity. If the | ||||||
7 | annual unadjusted percentage change in the consumer price | ||||||
8 | index-u for the 12 months ending with the September preceding | ||||||
9 | each November 1 is zero or there is a decrease, then the | ||||||
10 | annuity shall not be increased. | ||||||
11 | (g) The benefits in Section 14-110 apply only if the | ||||||
12 | person is a State policeman, a fire fighter in the fire | ||||||
13 | protection service of a department, a conservation police | ||||||
14 | officer, an investigator for the Secretary of State, an arson | ||||||
15 | investigator, a Commerce Commission police officer, | ||||||
16 | investigator for the Department of Revenue or the
Illinois | ||||||
17 | Gaming Board, a security employee of the Department of | ||||||
18 | Corrections or the Department of Juvenile Justice, or a | ||||||
19 | security employee of the Department of Innovation and | ||||||
20 | Technology, as those terms are defined in subsection (b) and | ||||||
21 | subsection (c) of Section 14-110. A person who meets the | ||||||
22 | requirements of this Section is entitled to an annuity | ||||||
23 | calculated under the provisions of Section 14-110, in lieu of | ||||||
24 | the regular or minimum retirement annuity, only if the person | ||||||
25 | has withdrawn from service with not less than 20
years of | ||||||
26 | eligible creditable service and has attained age 60, |
| |||||||
| |||||||
1 | regardless of whether
the attainment of age 60 occurs while | ||||||
2 | the person is
still in service. | ||||||
3 | (h) If a person who first becomes a member or a participant | ||||||
4 | of a retirement system or pension fund subject to this Section | ||||||
5 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
6 | or retirement pension under that system or fund and becomes a | ||||||
7 | member or participant under any other system or fund created | ||||||
8 | by this Code and is employed on a full-time basis, except for | ||||||
9 | those members or participants exempted from the provisions of | ||||||
10 | this Section under subsection (a) of this Section, then the | ||||||
11 | person's retirement annuity or retirement pension under that | ||||||
12 | system or fund shall be suspended during that employment. Upon | ||||||
13 | termination of that employment, the person's retirement | ||||||
14 | annuity or retirement pension payments shall resume and be | ||||||
15 | recalculated if recalculation is provided for under the | ||||||
16 | applicable Article of this Code. | ||||||
17 | If a person who first becomes a member of a retirement | ||||||
18 | system or pension fund subject to this Section on or after | ||||||
19 | January 1, 2012 and is receiving a retirement annuity or | ||||||
20 | retirement pension under that system or fund and accepts on a | ||||||
21 | contractual basis a position to provide services to a | ||||||
22 | governmental entity from which he or she has retired, then | ||||||
23 | that person's annuity or retirement pension earned as an | ||||||
24 | active employee of the employer shall be suspended during that | ||||||
25 | contractual service. A person receiving an annuity or | ||||||
26 | retirement pension under this Code shall notify the pension |
| |||||||
| |||||||
1 | fund or retirement system from which he or she is receiving an | ||||||
2 | annuity or retirement pension, as well as his or her | ||||||
3 | contractual employer, of his or her retirement status before | ||||||
4 | accepting contractual employment. A person who fails to submit | ||||||
5 | such notification shall be guilty of a Class A misdemeanor and | ||||||
6 | required to pay a fine of $1,000. Upon termination of that | ||||||
7 | contractual employment, the person's retirement annuity or | ||||||
8 | retirement pension payments shall resume and, if appropriate, | ||||||
9 | be recalculated under the applicable provisions of this Code. | ||||||
10 | (i) (Blank). | ||||||
11 | (j) In the case of a conflict between the provisions of | ||||||
12 | this Section and any other provision of this Code, the | ||||||
13 | provisions of this Section shall control.
| ||||||
14 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | ||||||
15 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. | ||||||
16 | 5-13-22.)
| ||||||
17 | (Text of Section from P.A. 102-956) | ||||||
18 | Sec. 1-160. Provisions applicable to new hires. | ||||||
19 | (a) The provisions of this Section apply to a person who, | ||||||
20 | on or after January 1, 2011, first becomes a member or a | ||||||
21 | participant under any reciprocal retirement system or pension | ||||||
22 | fund established under this Code, other than a retirement | ||||||
23 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
24 | 7, 15, or 18 of this Code, notwithstanding any other provision | ||||||
25 | of this Code to the contrary, but do not apply to any |
| |||||||
| |||||||
1 | self-managed plan established under this Code or to any | ||||||
2 | participant of the retirement plan established under Section | ||||||
3 | 22-101; except that this Section applies to a person who | ||||||
4 | elected to establish alternative credits by electing in | ||||||
5 | writing after January 1, 2011, but before August 8, 2011, | ||||||
6 | under Section 7-145.1 of this Code. Notwithstanding anything | ||||||
7 | to the contrary in this Section, for purposes of this Section, | ||||||
8 | a person who is a Tier 1 regular employee as defined in Section | ||||||
9 | 7-109.4 of this Code or who participated in a retirement | ||||||
10 | system under Article 15 prior to January 1, 2011 shall be | ||||||
11 | deemed a person who first became a member or participant prior | ||||||
12 | to January 1, 2011 under any retirement system or pension fund | ||||||
13 | subject to this Section. The changes made to this Section by | ||||||
14 | Public Act 98-596 are a clarification of existing law and are | ||||||
15 | intended to be retroactive to January 1, 2011 (the effective | ||||||
16 | date of Public Act 96-889), notwithstanding the provisions of | ||||||
17 | Section 1-103.1 of this Code. | ||||||
18 | The provisions of this Section do not apply to service | ||||||
19 | under a Tier 3 plan established under Article 14, 15, or 16 of | ||||||
20 | this Code. | ||||||
21 | This Section does not apply to a person who first becomes a | ||||||
22 | noncovered employee under Article 14 on or after the | ||||||
23 | implementation date of the plan created under Section 1-161 | ||||||
24 | for that Article, unless that person elects under subsection | ||||||
25 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
26 | under this Section and the applicable provisions of that |
| |||||||
| |||||||
1 | Article. | ||||||
2 | This Section does not apply to a person who first becomes a | ||||||
3 | member or participant under Article 16 on or after the | ||||||
4 | implementation date of the plan created under Section 1-161 | ||||||
5 | for that Article, unless that person elects under subsection | ||||||
6 | (b) of Section 1-161 to instead receive the benefits provided | ||||||
7 | under this Section and the applicable provisions of that | ||||||
8 | Article. | ||||||
9 | This Section does not apply to a person who elects under | ||||||
10 | subsection (c-5) of Section 1-161 to receive the benefits | ||||||
11 | under Section 1-161. | ||||||
12 | This Section does not apply to a person who first becomes a | ||||||
13 | member or participant of an affected pension fund on or after 6 | ||||||
14 | months after the resolution or ordinance date, as defined in | ||||||
15 | Section 1-162, unless that person elects under subsection (c) | ||||||
16 | of Section 1-162 to receive the benefits provided under this | ||||||
17 | Section and the applicable provisions of the Article under | ||||||
18 | which he or she is a member or participant. | ||||||
19 | (b) "Final average salary" means, except as otherwise | ||||||
20 | provided in this subsection, the average monthly (or annual) | ||||||
21 | salary obtained by dividing the total salary or earnings | ||||||
22 | calculated under the Article applicable to the member or | ||||||
23 | participant during the 96 consecutive months (or 8 consecutive | ||||||
24 | years) of service within the last 120 months (or 10 years) of | ||||||
25 | service in which the total salary or earnings calculated under | ||||||
26 | the applicable Article was the highest by the number of months |
| |||||||
| |||||||
1 | (or years) of service in that period. For the purposes of a | ||||||
2 | person who first becomes a member or participant of any | ||||||
3 | retirement system or pension fund to which this Section | ||||||
4 | applies on or after January 1, 2011, in this Code, "final | ||||||
5 | average salary" shall be substituted for the following: | ||||||
6 | (1) (Blank). | ||||||
7 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
8 | annual salary for any 4 consecutive years within the last | ||||||
9 | 10 years of service immediately preceding the date of | ||||||
10 | withdrawal". | ||||||
11 | (3) In Article 13, "average final salary". | ||||||
12 | (4) In Article 14, "final average compensation". | ||||||
13 | (5) In Article 17, "average salary". | ||||||
14 | (6) In Section 22-207, "wages or salary received by | ||||||
15 | him at the date of retirement or discharge". | ||||||
16 | A member of the Teachers' Retirement System of the State | ||||||
17 | of Illinois who retires on or after June 1, 2021 and for whom | ||||||
18 | the 2020-2021 school year is used in the calculation of the | ||||||
19 | member's final average salary shall use the higher of the | ||||||
20 | following for the purpose of determining the member's final | ||||||
21 | average salary: | ||||||
22 | (A) the amount otherwise calculated under the first | ||||||
23 | paragraph of this subsection; or | ||||||
24 | (B) an amount calculated by the Teachers' Retirement | ||||||
25 | System of the State of Illinois using the average of the | ||||||
26 | monthly (or annual) salary obtained by dividing the total |
| |||||||
| |||||||
1 | salary or earnings calculated under Article 16 applicable | ||||||
2 | to the member or participant during the 96 months (or 8 | ||||||
3 | years) of service within the last 120 months (or 10 years) | ||||||
4 | of service in which the total salary or earnings | ||||||
5 | calculated under the Article was the highest by the number | ||||||
6 | of months (or years) of service in that period. | ||||||
7 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
8 | this Code (including without limitation the calculation of | ||||||
9 | benefits and employee contributions), the annual earnings, | ||||||
10 | salary, or wages (based on the plan year) of a member or | ||||||
11 | participant to whom this Section applies shall not exceed | ||||||
12 | $106,800; however, that amount shall annually thereafter be | ||||||
13 | increased by the lesser of (i) 3% of that amount, including all | ||||||
14 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
15 | percentage increase (but not less than zero) in the consumer | ||||||
16 | price index-u
for the 12 months ending with the September | ||||||
17 | preceding each November 1, including all previous adjustments. | ||||||
18 | For the purposes of this Section, "consumer price index-u" | ||||||
19 | means
the index published by the Bureau of Labor Statistics of | ||||||
20 | the United States
Department of Labor that measures the | ||||||
21 | average change in prices of goods and
services purchased by | ||||||
22 | all urban consumers, United States city average, all
items, | ||||||
23 | 1982-84 = 100. The new amount resulting from each annual | ||||||
24 | adjustment
shall be determined by the Public Pension Division | ||||||
25 | of the Department of Insurance and made available to the | ||||||
26 | boards of the retirement systems and pension funds by November |
| |||||||
| |||||||
1 | 1 of each year. | ||||||
2 | (c) A member or participant is entitled to a retirement
| ||||||
3 | annuity upon written application if he or she has attained age | ||||||
4 | 67 (age 65, with respect to service under Article 12 that is | ||||||
5 | subject to this Section, for a member or participant under | ||||||
6 | Article 12 who first becomes a member or participant under | ||||||
7 | Article 12 on or after January 1, 2022 or who makes the | ||||||
8 | election under item (i) of subsection (d-15) of this Section) | ||||||
9 | and has at least 10 years of service credit and is otherwise | ||||||
10 | eligible under the requirements of the applicable Article. | ||||||
11 | A member or participant who has attained age 62 (age 60, | ||||||
12 | with respect to service under Article 12 that is subject to | ||||||
13 | this Section, for a member or participant under Article 12 who | ||||||
14 | first becomes a member or participant under Article 12 on or | ||||||
15 | after January 1, 2022 or who makes the election under item (i) | ||||||
16 | of subsection (d-15) of this Section) and has at least 10 years | ||||||
17 | of service credit and is otherwise eligible under the | ||||||
18 | requirements of the applicable Article may elect to receive | ||||||
19 | the lower retirement annuity provided
in subsection (d) of | ||||||
20 | this Section. | ||||||
21 | (c-5) A person who first becomes a member or a participant | ||||||
22 | subject to this Section on or after July 6, 2017 (the effective | ||||||
23 | date of Public Act 100-23), notwithstanding any other | ||||||
24 | provision of this Code to the contrary, is entitled to a | ||||||
25 | retirement annuity under Article 8 or Article 11 upon written | ||||||
26 | application if he or she has attained age 65 and has at least |
| |||||||
| |||||||
1 | 10 years of service credit and is otherwise eligible under the | ||||||
2 | requirements of Article 8 or Article 11 of this Code, | ||||||
3 | whichever is applicable. | ||||||
4 | (d) The retirement annuity of a member or participant who | ||||||
5 | is retiring after attaining age 62 (age 60, with respect to | ||||||
6 | service under Article 12 that is subject to this Section, for a | ||||||
7 | member or participant under Article 12 who first becomes a | ||||||
8 | member or participant under Article 12 on or after January 1, | ||||||
9 | 2022 or who makes the election under item (i) of subsection | ||||||
10 | (d-15) of this Section) with at least 10 years of service | ||||||
11 | credit shall be reduced by one-half
of 1% for each full month | ||||||
12 | that the member's age is under age 67 (age 65, with respect to | ||||||
13 | service under Article 12 that is subject to this Section, for a | ||||||
14 | member or participant under Article 12 who first becomes a | ||||||
15 | member or participant under Article 12 on or after January 1, | ||||||
16 | 2022 or who makes the election under item (i) of subsection | ||||||
17 | (d-15) of this Section). | ||||||
18 | (d-5) The retirement annuity payable under Article 8 or | ||||||
19 | Article 11 to an eligible person subject to subsection (c-5) | ||||||
20 | of this Section who is retiring at age 60 with at least 10 | ||||||
21 | years of service credit shall be reduced by one-half of 1% for | ||||||
22 | each full month that the member's age is under age 65. | ||||||
23 | (d-10) Each person who first became a member or | ||||||
24 | participant under Article 8 or Article 11 of this Code on or | ||||||
25 | after January 1, 2011 and prior to July 6, 2017 (the effective | ||||||
26 | date of Public Act 100-23) shall make an irrevocable election |
| |||||||
| |||||||
1 | either: | ||||||
2 | (i) to be eligible for the reduced retirement age | ||||||
3 | provided in subsections (c-5)
and (d-5) of this Section, | ||||||
4 | the eligibility for which is conditioned upon the member | ||||||
5 | or participant agreeing to the increases in employee | ||||||
6 | contributions for age and service annuities provided in | ||||||
7 | subsection (a-5) of Section 8-174 of this Code (for | ||||||
8 | service under Article 8) or subsection (a-5) of Section | ||||||
9 | 11-170 of this Code (for service under Article 11); or | ||||||
10 | (ii) to not agree to item (i) of this subsection | ||||||
11 | (d-10), in which case the member or participant shall | ||||||
12 | continue to be subject to the retirement age provisions in | ||||||
13 | subsections (c) and (d) of this Section and the employee | ||||||
14 | contributions for age and service annuity as provided in | ||||||
15 | subsection (a) of Section 8-174 of this Code (for service | ||||||
16 | under Article 8) or subsection (a) of Section 11-170 of | ||||||
17 | this Code (for service under Article 11). | ||||||
18 | The election provided for in this subsection shall be made | ||||||
19 | between October 1, 2017 and November 15, 2017. A person | ||||||
20 | subject to this subsection who makes the required election | ||||||
21 | shall remain bound by that election. A person subject to this | ||||||
22 | subsection who fails for any reason to make the required | ||||||
23 | election within the time specified in this subsection shall be | ||||||
24 | deemed to have made the election under item (ii). | ||||||
25 | (d-15) Each person who first becomes a member or | ||||||
26 | participant under Article 12 on or after January 1, 2011 and |
| |||||||
| |||||||
1 | prior to January 1, 2022 shall make an irrevocable election | ||||||
2 | either: | ||||||
3 | (i) to be eligible for the reduced retirement age | ||||||
4 | specified in subsections (c) and (d) of this Section, the | ||||||
5 | eligibility for which is conditioned upon the member or | ||||||
6 | participant agreeing to the increase in employee | ||||||
7 | contributions for service annuities specified in | ||||||
8 | subsection (b) of Section 12-150; or | ||||||
9 | (ii) to not agree to item (i) of this subsection | ||||||
10 | (d-15), in which case the member or participant shall not | ||||||
11 | be eligible for the reduced retirement age specified in | ||||||
12 | subsections (c) and (d) of this Section and shall not be | ||||||
13 | subject to the increase in employee contributions for | ||||||
14 | service annuities specified in subsection (b) of Section | ||||||
15 | 12-150. | ||||||
16 | The election provided for in this subsection shall be made | ||||||
17 | between January 1, 2022 and April 1, 2022. A person subject to | ||||||
18 | this subsection who makes the required election shall remain | ||||||
19 | bound by that election. A person subject to this subsection | ||||||
20 | who fails for any reason to make the required election within | ||||||
21 | the time specified in this subsection shall be deemed to have | ||||||
22 | made the election under item (ii). | ||||||
23 | (e) Any retirement annuity or supplemental annuity shall | ||||||
24 | be subject to annual increases on the January 1 occurring | ||||||
25 | either on or after the attainment of age 67 (age 65, with | ||||||
26 | respect to service under Article 12 that is subject to this |
| |||||||
| |||||||
1 | Section, for a member or participant under Article 12 who | ||||||
2 | first becomes a member or participant under Article 12 on or | ||||||
3 | after January 1, 2022 or who makes the election under item (i) | ||||||
4 | of subsection (d-15); and beginning on July 6, 2017 (the | ||||||
5 | effective date of Public Act 100-23), age 65 with respect to | ||||||
6 | service under Article 8 or Article 11 for eligible persons | ||||||
7 | who: (i) are subject to subsection (c-5) of this Section; or | ||||||
8 | (ii) made the election under item (i) of subsection (d-10) of | ||||||
9 | this Section) or the first anniversary of the annuity start | ||||||
10 | date, whichever is later. Each annual increase shall be | ||||||
11 | calculated at 3% or one-half the annual unadjusted percentage | ||||||
12 | increase (but not less than zero) in the consumer price | ||||||
13 | index-u for the 12 months ending with the September preceding | ||||||
14 | each November 1, whichever is less, of the originally granted | ||||||
15 | retirement annuity. If the annual unadjusted percentage change | ||||||
16 | in the consumer price index-u for the 12 months ending with the | ||||||
17 | September preceding each November 1 is zero or there is a | ||||||
18 | decrease, then the annuity shall not be increased. | ||||||
19 | For the purposes of Section 1-103.1 of this Code, the | ||||||
20 | changes made to this Section by Public Act 102-263 are | ||||||
21 | applicable without regard to whether the employee was in | ||||||
22 | active service on or after August 6, 2021 (the effective date | ||||||
23 | of Public Act 102-263). | ||||||
24 | For the purposes of Section 1-103.1 of this Code, the | ||||||
25 | changes made to this Section by Public Act 100-23 are | ||||||
26 | applicable without regard to whether the employee was in |
| |||||||
| |||||||
1 | active service on or after July 6, 2017 (the effective date of | ||||||
2 | Public Act 100-23). | ||||||
3 | (f) The initial survivor's or widow's annuity of an | ||||||
4 | otherwise eligible survivor or widow of a retired member or | ||||||
5 | participant who first became a member or participant on or | ||||||
6 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
7 | retired member's or participant's retirement annuity at the | ||||||
8 | date of death. In the case of the death of a member or | ||||||
9 | participant who has not retired and who first became a member | ||||||
10 | or participant on or after January 1, 2011, eligibility for a | ||||||
11 | survivor's or widow's annuity shall be determined by the | ||||||
12 | applicable Article of this Code. The initial benefit shall be | ||||||
13 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
14 | child's annuity of an otherwise eligible child shall be in the | ||||||
15 | amount prescribed under each Article if applicable. Any | ||||||
16 | survivor's or widow's annuity shall be increased (1) on each | ||||||
17 | January 1 occurring on or after the commencement of the | ||||||
18 | annuity if
the deceased member died while receiving a | ||||||
19 | retirement annuity or (2) in
other cases, on each January 1 | ||||||
20 | occurring after the first anniversary
of the commencement of | ||||||
21 | the annuity. Each annual increase shall be calculated at 3% or | ||||||
22 | one-half the annual unadjusted percentage increase (but not | ||||||
23 | less than zero) in the consumer price index-u for the 12 months | ||||||
24 | ending with the September preceding each November 1, whichever | ||||||
25 | is less, of the originally granted survivor's annuity. If the | ||||||
26 | annual unadjusted percentage change in the consumer price |
| |||||||
| |||||||
1 | index-u for the 12 months ending with the September preceding | ||||||
2 | each November 1 is zero or there is a decrease, then the | ||||||
3 | annuity shall not be increased. | ||||||
4 | (g) The benefits in Section 14-110 apply only if the | ||||||
5 | person is a State policeman, a fire fighter in the fire | ||||||
6 | protection service of a department, a conservation police | ||||||
7 | officer, an investigator for the Secretary of State, an | ||||||
8 | investigator for the Office of the Attorney General, an arson | ||||||
9 | investigator, a Commerce Commission police officer, | ||||||
10 | investigator for the Department of Revenue or the
Illinois | ||||||
11 | Gaming Board, a security employee of the Department of | ||||||
12 | Corrections or the Department of Juvenile Justice, or a | ||||||
13 | security employee of the Department of Innovation and | ||||||
14 | Technology, as those terms are defined in subsection (b) and | ||||||
15 | subsection (c) of Section 14-110. A person who meets the | ||||||
16 | requirements of this Section is entitled to an annuity | ||||||
17 | calculated under the provisions of Section 14-110, in lieu of | ||||||
18 | the regular or minimum retirement annuity, only if the person | ||||||
19 | has withdrawn from service with not less than 20
years of | ||||||
20 | eligible creditable service and has attained age 60, | ||||||
21 | regardless of whether
the attainment of age 60 occurs while | ||||||
22 | the person is
still in service. | ||||||
23 | (h) If a person who first becomes a member or a participant | ||||||
24 | of a retirement system or pension fund subject to this Section | ||||||
25 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
26 | or retirement pension under that system or fund and becomes a |
| |||||||
| |||||||
1 | member or participant under any other system or fund created | ||||||
2 | by this Code and is employed on a full-time basis, except for | ||||||
3 | those members or participants exempted from the provisions of | ||||||
4 | this Section under subsection (a) of this Section, then the | ||||||
5 | person's retirement annuity or retirement pension under that | ||||||
6 | system or fund shall be suspended during that employment. Upon | ||||||
7 | termination of that employment, the person's retirement | ||||||
8 | annuity or retirement pension payments shall resume and be | ||||||
9 | recalculated if recalculation is provided for under the | ||||||
10 | applicable Article of this Code. | ||||||
11 | If a person who first becomes a member of a retirement | ||||||
12 | system or pension fund subject to this Section on or after | ||||||
13 | January 1, 2012 and is receiving a retirement annuity or | ||||||
14 | retirement pension under that system or fund and accepts on a | ||||||
15 | contractual basis a position to provide services to a | ||||||
16 | governmental entity from which he or she has retired, then | ||||||
17 | that person's annuity or retirement pension earned as an | ||||||
18 | active employee of the employer shall be suspended during that | ||||||
19 | contractual service. A person receiving an annuity or | ||||||
20 | retirement pension under this Code shall notify the pension | ||||||
21 | fund or retirement system from which he or she is receiving an | ||||||
22 | annuity or retirement pension, as well as his or her | ||||||
23 | contractual employer, of his or her retirement status before | ||||||
24 | accepting contractual employment. A person who fails to submit | ||||||
25 | such notification shall be guilty of a Class A misdemeanor and | ||||||
26 | required to pay a fine of $1,000. Upon termination of that |
| |||||||
| |||||||
1 | contractual employment, the person's retirement annuity or | ||||||
2 | retirement pension payments shall resume and, if appropriate, | ||||||
3 | be recalculated under the applicable provisions of this Code. | ||||||
4 | (i) (Blank). | ||||||
5 | (j) In the case of a conflict between the provisions of | ||||||
6 | this Section and any other provision of this Code, the | ||||||
7 | provisions of this Section shall control.
| ||||||
8 | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | ||||||
9 | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff. | ||||||
10 | 5-27-22 .)
| ||||||
11 | (40 ILCS 5/1-161) | ||||||
12 | Sec. 1-161. Optional benefits for certain Tier 2 members | ||||||
13 | under Articles 14, 15, and 16. | ||||||
14 | (a) Notwithstanding any other provision of this Code to | ||||||
15 | the contrary, the provisions of this Section apply to a person | ||||||
16 | who first becomes a member or a participant under Article 14, | ||||||
17 | 15, or 16 on or after the implementation date under this | ||||||
18 | Section for the applicable Article and who does not make the | ||||||
19 | election under subsection (b) or (c), whichever applies. The | ||||||
20 | provisions of this Section also apply to a person who makes the | ||||||
21 | election under subsection (c-5). However, the provisions of | ||||||
22 | this Section do not apply to any participant in a self-managed | ||||||
23 | plan, nor to a covered employee under Article 14. The | ||||||
24 | provisions of this Section do not apply to service under a Tier | ||||||
25 | 3 plan established under Article 14, 15, or 16 of this Code. |
| |||||||
| |||||||
1 | As used in this Section and Section 1-160, the | ||||||
2 | "implementation date" under this Section means the earliest | ||||||
3 | date upon which the board of a retirement system authorizes | ||||||
4 | members of that system to begin participating in accordance | ||||||
5 | with this Section, as determined by the board of that | ||||||
6 | retirement system. Each of the retirement systems subject to | ||||||
7 | this Section shall endeavor to make such participation | ||||||
8 | available as soon as possible after the effective date of this | ||||||
9 | Section and shall establish an implementation date by board | ||||||
10 | resolution. | ||||||
11 | (b) In lieu of the benefits provided under this Section, a | ||||||
12 | member or participant, except for a participant under Article | ||||||
13 | 15, may irrevocably elect the benefits under Section 1-160 and | ||||||
14 | the benefits otherwise applicable to that member or | ||||||
15 | participant. The election must be made within 30 days after | ||||||
16 | becoming a member or participant. Each retirement system shall | ||||||
17 | establish procedures for making this election. | ||||||
18 | (c) A participant under Article 15 may irrevocably elect | ||||||
19 | the benefits otherwise provided to a Tier 2 member under | ||||||
20 | Article 15. The election must be made within 30 days after | ||||||
21 | becoming a member. The retirement system under Article 15 | ||||||
22 | shall establish procedures for making this election. | ||||||
23 | (c-5) A non-covered participant under Article 14 to whom | ||||||
24 | Section 1-160 applies, a Tier 2 member under Article 15, or a | ||||||
25 | participant under Article 16 to whom Section 1-160 applies may | ||||||
26 | irrevocably elect to receive the benefits under this Section |
| |||||||
| |||||||
1 | in lieu of the benefits under Section 1-160 or the benefits | ||||||
2 | otherwise available to a Tier 2 member under Article 15, | ||||||
3 | whichever is applicable. Each retirement System shall | ||||||
4 | establish procedures for making this election. | ||||||
5 | (d) "Final average salary" means the average monthly (or | ||||||
6 | annual) salary obtained by dividing the total salary or | ||||||
7 | earnings calculated under the Article applicable to the member | ||||||
8 | or participant during the last 120 months (or 10 years) of | ||||||
9 | service in which the total salary or earnings calculated under | ||||||
10 | the applicable Article was the highest by the number of months | ||||||
11 | (or years) of service in that period. For the purposes of a | ||||||
12 | person to whom this Section applies, in this Code, "final | ||||||
13 | average salary" shall be substituted for "final average | ||||||
14 | compensation" in Article 14. | ||||||
15 | (e) Beginning on the implementation date, for all purposes | ||||||
16 | under this Code (including without limitation the calculation | ||||||
17 | of benefits and employee contributions), the annual earnings, | ||||||
18 | salary, compensation, or wages (based on the plan year) of a | ||||||
19 | member or participant to whom this Section applies shall not | ||||||
20 | at any time exceed the federal Social Security Wage Base then | ||||||
21 | in effect. | ||||||
22 | (f) A member or participant is entitled to a retirement
| ||||||
23 | annuity upon written application if he or she has attained the | ||||||
24 | normal retirement age determined by the Social Security | ||||||
25 | Administration for that member or participant's year of birth, | ||||||
26 | but no earlier than 67 years of age, and has at least 10 years |
| |||||||
| |||||||
1 | of service credit and is otherwise eligible under the | ||||||
2 | requirements of the applicable Article. | ||||||
3 | (g) The amount of the retirement annuity to which a member | ||||||
4 | or participant is entitled shall be computed by multiplying | ||||||
5 | 1.25% for each year of service credit by his or her final | ||||||
6 | average salary. | ||||||
7 | (h) Any retirement annuity or supplemental annuity shall | ||||||
8 | be subject to annual increases on the first anniversary of the | ||||||
9 | annuity start date. Each annual increase shall be one-half the | ||||||
10 | annual unadjusted percentage increase (but not less than zero) | ||||||
11 | in the consumer price index-w for the 12 months ending with the | ||||||
12 | September preceding each November 1 of the originally granted | ||||||
13 | retirement annuity. If the annual unadjusted percentage change | ||||||
14 | in the consumer price index-w for the 12 months ending with the | ||||||
15 | September preceding each November 1 is zero or there is a | ||||||
16 | decrease, then the annuity shall not be increased. | ||||||
17 | For the purposes of this Section, "consumer price index-w" | ||||||
18 | means the index published by the Bureau of Labor Statistics of | ||||||
19 | the United States Department of Labor that measures the | ||||||
20 | average change in prices of goods and services purchased by | ||||||
21 | Urban Wage Earners and Clerical Workers, United States city | ||||||
22 | average, all items, 1982-84 = 100. The new amount resulting | ||||||
23 | from each annual adjustment shall be determined by the Public | ||||||
24 | Pension Division of the Department of Insurance and made | ||||||
25 | available to the boards of the retirement systems and pension | ||||||
26 | funds by November 1 of each year. |
| |||||||
| |||||||
1 | (i) The initial survivor's or widow's annuity of an | ||||||
2 | otherwise eligible survivor or widow of a retired member or | ||||||
3 | participant to whom this Section applies shall be in the | ||||||
4 | amount of 66 2/3% of the retired member's or participant's | ||||||
5 | retirement annuity at the date of death. In the case of the | ||||||
6 | death of a member or participant who has not retired and to | ||||||
7 | whom this Section applies, eligibility for a survivor's or | ||||||
8 | widow's annuity shall be determined by the applicable Article | ||||||
9 | of this Code. The benefit shall be 66 2/3% of the earned | ||||||
10 | annuity without a reduction due to age. A child's annuity of an | ||||||
11 | otherwise eligible child shall be in the amount prescribed | ||||||
12 | under each Article if applicable. | ||||||
13 | (j) In lieu of any other employee contributions, except | ||||||
14 | for the contribution to the defined contribution plan under | ||||||
15 | subsection (k) of this Section, each employee shall contribute | ||||||
16 | 6.2% of his her or salary to the retirement system. However, | ||||||
17 | the employee contribution under this subsection shall not | ||||||
18 | exceed the amount of the total normal cost of the benefits for | ||||||
19 | all members making contributions under this Section (except | ||||||
20 | for the defined contribution plan under subsection (k) of this | ||||||
21 | Section), expressed as a percentage of payroll and certified | ||||||
22 | on or before January 15 of each year by the board of trustees | ||||||
23 | of the retirement system. If the board of trustees of the | ||||||
24 | retirement system certifies that the 6.2% employee | ||||||
25 | contribution rate exceeds the normal cost of the benefits | ||||||
26 | under this Section (except for the defined contribution plan |
| |||||||
| |||||||
1 | under subsection (k) of this Section), then on or before | ||||||
2 | December 1 of that year, the board of trustees shall certify | ||||||
3 | the amount of the normal cost of the benefits under this | ||||||
4 | Section (except for the defined contribution plan under | ||||||
5 | subsection (k) of this Section), expressed as a percentage of | ||||||
6 | payroll, to the State Actuary and the Commission on Government | ||||||
7 | Forecasting and Accountability, and the employee contribution | ||||||
8 | under this subsection shall be reduced to that amount | ||||||
9 | beginning July 1 of that year. Thereafter, if the normal cost | ||||||
10 | of the benefits under this Section (except for the defined | ||||||
11 | contribution plan under subsection (k) of this Section), | ||||||
12 | expressed as a percentage of payroll and certified on or | ||||||
13 | before January 1 of each year by the board of trustees of the | ||||||
14 | retirement system, exceeds 6.2% of salary, then on or before | ||||||
15 | January 15 of that year, the board of trustees shall certify | ||||||
16 | the normal cost to the State Actuary and the Commission on | ||||||
17 | Government Forecasting and Accountability, and the employee | ||||||
18 | contributions shall revert back to 6.2% of salary beginning | ||||||
19 | January 1 of the following year. | ||||||
20 | (k) In accordance with each retirement system's | ||||||
21 | implementation date, each retirement system under Article 14, | ||||||
22 | 15, or 16 shall prepare and implement a defined contribution | ||||||
23 | plan for members or participants who are subject to this | ||||||
24 | Section. The defined contribution plan developed under this | ||||||
25 | subsection shall be a plan that aggregates employer and | ||||||
26 | employee contributions in individual participant accounts |
| |||||||
| |||||||
1 | which, after meeting any other requirements, are used for | ||||||
2 | payouts after retirement in accordance with this subsection | ||||||
3 | and any other applicable laws. | ||||||
4 | (1) Each member or participant shall contribute a | ||||||
5 | minimum of 4% of his or her salary to the defined | ||||||
6 | contribution plan. | ||||||
7 | (2) For each participant in the defined contribution | ||||||
8 | plan who has been employed with the same employer for at | ||||||
9 | least one year, employer contributions shall be paid into | ||||||
10 | that participant's accounts at a rate expressed as a | ||||||
11 | percentage of salary. This rate may be set for individual | ||||||
12 | employees, but shall be no higher than 6% of salary and | ||||||
13 | shall be no lower than 2% of salary. | ||||||
14 | (3) Employer contributions shall vest when those | ||||||
15 | contributions are paid into a member's or participant's | ||||||
16 | account. | ||||||
17 | (4) The defined contribution plan shall provide a | ||||||
18 | variety of options for investments. These options shall | ||||||
19 | include investments handled by the Illinois State Board of | ||||||
20 | Investment as well as private sector investment options. | ||||||
21 | (5) The defined contribution plan shall provide a | ||||||
22 | variety of options for payouts to retirees and their | ||||||
23 | survivors. | ||||||
24 | (6) To the extent authorized under federal law and as | ||||||
25 | authorized by the retirement system, the defined | ||||||
26 | contribution plan shall allow former participants in the |
| |||||||
| |||||||
1 | plan to transfer or roll over employee and employer | ||||||
2 | contributions, and the earnings thereon, into other | ||||||
3 | qualified retirement plans. | ||||||
4 | (7) Each retirement system shall reduce the employee | ||||||
5 | contributions credited to the member's defined | ||||||
6 | contribution plan account by an amount determined by that | ||||||
7 | retirement system to cover the cost of offering the | ||||||
8 | benefits under this subsection and any applicable | ||||||
9 | administrative fees. | ||||||
10 | (8) No person shall begin participating in the defined | ||||||
11 | contribution plan until it has attained qualified plan | ||||||
12 | status and received all necessary approvals from the U.S. | ||||||
13 | Internal Revenue Service. | ||||||
14 | (l) In the case of a conflict between the provisions of | ||||||
15 | this Section and any other provision of this Code, the | ||||||
16 | provisions of this Section shall control.
| ||||||
17 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
18 | (40 ILCS 5/2-105.3 new) | ||||||
19 | Sec. 2-105.3. Tier 1 participant; Tier 2 participant; Tier | ||||||
20 | 3 participant. | ||||||
21 | "Tier 1 participant": A participant who first became a | ||||||
22 | participant before January 1, 2011. | ||||||
23 | In the case of a Tier 1 participant who elects to | ||||||
24 | participate in the Tier 3 plan under Section 2-165.5 of this | ||||||
25 | Code, that participant shall be deemed a Tier 1 participant |
| |||||||
| |||||||
1 | only with respect to service performed or established before | ||||||
2 | the effective date of that election. | ||||||
3 | "Tier 2 participant": A participant who first became a | ||||||
4 | participant on or after January 1, 2011. | ||||||
5 | In the case of a Tier 2 participant who elects to | ||||||
6 | participate in the Tier 3 plan under Section 2-165.5 of this | ||||||
7 | Code, that Tier 2 member shall be deemed a Tier 2 member only | ||||||
8 | with respect to service performed or established before the | ||||||
9 | effective date of that election. | ||||||
10 | "Tier 3 participant": A participant who first becomes a | ||||||
11 | participant on or after July 1, 2024 or a Tier 1 or Tier 2 | ||||||
12 | participant who elects to participate in the Tier 3 plan under | ||||||
13 | Section 2-165.5 of this Code, but only with respect to service | ||||||
14 | performed on or after the effective date of that election.
| ||||||
15 | (40 ILCS 5/2-162) | ||||||
16 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
17 | which has been
held unconstitutional)
| ||||||
18 | Sec. 2-162. Application and expiration of new benefit | ||||||
19 | increases. | ||||||
20 | (a) As used in this Section, "new benefit increase" means | ||||||
21 | an increase in the amount of any benefit provided under this | ||||||
22 | Article, or an expansion of the conditions of eligibility for | ||||||
23 | any benefit under this Article, that results from an amendment | ||||||
24 | to this Code that takes effect after the effective date of this | ||||||
25 | amendatory Act of the 94th General Assembly. "New benefit
|
| |||||||
| |||||||
1 | increase", however, does not include any benefit increase
| ||||||
2 | resulting from the changes made to this Article by this | ||||||
3 | amendatory Act of the 103rd General Assembly. | ||||||
4 | (b) Notwithstanding any other provision of this Code or | ||||||
5 | any subsequent amendment to this Code, every new benefit | ||||||
6 | increase is subject to this Section and shall be deemed to be | ||||||
7 | granted only in conformance with and contingent upon | ||||||
8 | compliance with the provisions of this Section.
| ||||||
9 | (c) The Public Act enacting a new benefit increase must | ||||||
10 | identify and provide for payment to the System of additional | ||||||
11 | funding at least sufficient to fund the resulting annual | ||||||
12 | increase in cost to the System as it accrues. | ||||||
13 | Every new benefit increase is contingent upon the General | ||||||
14 | Assembly providing the additional funding required under this | ||||||
15 | subsection. The Commission on Government Forecasting and | ||||||
16 | Accountability shall analyze whether adequate additional | ||||||
17 | funding has been provided for the new benefit increase and | ||||||
18 | shall report its analysis to the Public Pension Division of | ||||||
19 | the Department of Financial and Professional Regulation. A new | ||||||
20 | benefit increase created by a Public Act that does not include | ||||||
21 | the additional funding required under this subsection is null | ||||||
22 | and void. If the Public Pension Division determines that the | ||||||
23 | additional funding provided for a new benefit increase under | ||||||
24 | this subsection is or has become inadequate, it may so certify | ||||||
25 | to the Governor and the State Comptroller and, in the absence | ||||||
26 | of corrective action by the General Assembly, the new benefit |
| |||||||
| |||||||
1 | increase shall expire at the end of the fiscal year in which | ||||||
2 | the certification is made.
| ||||||
3 | (d) Every new benefit increase shall expire 5 years after | ||||||
4 | its effective date or on such earlier date as may be specified | ||||||
5 | in the language enacting the new benefit increase or provided | ||||||
6 | under subsection (c). This does not prevent the General | ||||||
7 | Assembly from extending or re-creating a new benefit increase | ||||||
8 | by law. | ||||||
9 | (e) Except as otherwise provided in the language creating | ||||||
10 | the new benefit increase, a new benefit increase that expires | ||||||
11 | under this Section continues to apply to persons who applied | ||||||
12 | and qualified for the affected benefit while the new benefit | ||||||
13 | increase was in effect and to the affected beneficiaries and | ||||||
14 | alternate payees of such persons, but does not apply to any | ||||||
15 | other person, including without limitation a person who | ||||||
16 | continues in service after the expiration date and did not | ||||||
17 | apply and qualify for the affected benefit while the new | ||||||
18 | benefit increase was in effect.
| ||||||
19 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
20 | (40 ILCS 5/2-165.5 new) | ||||||
21 | Sec. 2-165.5. Tier 3 plan. | ||||||
22 | (a) By July 1, 2024, the System shall prepare and | ||||||
23 | implement a Tier 3 plan. The Tier 3 plan developed under this | ||||||
24 | Section shall be a plan that aggregates State and employee | ||||||
25 | contributions in individual participant accounts that, after |
| |||||||
| |||||||
1 | meeting any other requirements, are used for payouts after | ||||||
2 | retirement in accordance with this Section and any other | ||||||
3 | applicable laws. In developing, preparing, and implementing | ||||||
4 | the Tier 3 plan and adopting rules concerning the Tier 3 plan, | ||||||
5 | the System shall utilize the framework of the self-managed | ||||||
6 | plan offered under Article 15 and shall endeavor to adapt the | ||||||
7 | benefits and structure of the self-managed plan. The System | ||||||
8 | shall consult with the State Universities Retirement System in | ||||||
9 | developing the Tier 3 plan. | ||||||
10 | As used in this Section, "defined benefit plan" means the | ||||||
11 | retirement plan available under this Article to Tier 1 or Tier | ||||||
12 | 2 participants who have not made the election authorized under | ||||||
13 | this Section. | ||||||
14 | (1) All persons who begin to participate in this | ||||||
15 | System on or after July 1, 2024 shall participate in the | ||||||
16 | Tier 3 plan rather than the defined benefit plan. | ||||||
17 | (2) A participant in the Tier 3 plan shall pay | ||||||
18 | employee contributions at a rate of 8% of salary. | ||||||
19 | (3) State contributions shall be paid into the | ||||||
20 | accounts of all participants in the Tier 3 plan at a rate | ||||||
21 | of 7.6% of salary. | ||||||
22 | (4) The Tier 3 plan shall require 5 years of | ||||||
23 | participation in the Tier 3 plan before vesting in State | ||||||
24 | contributions. If the participant fails to vest in them, | ||||||
25 | the State contributions, and the earnings thereon, shall | ||||||
26 | be forfeited. |
| |||||||
| |||||||
1 | (5) The Tier 3 plan shall provide a variety of options | ||||||
2 | for investments. These options shall include investments | ||||||
3 | handled by the Illinois State Board of Investment as well | ||||||
4 | as private sector investment options. | ||||||
5 | (6) The Tier 3 plan shall provide a variety of options | ||||||
6 | for payouts to participants in the Tier 3 plan who are no | ||||||
7 | longer active in the System and their survivors. | ||||||
8 | (7) 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 | from the Tier 3 plan into other qualified retirement | ||||||
13 | plans. | ||||||
14 | (8) The System shall reduce the employee contributions | ||||||
15 | credited to the participant's Tier 3 plan account by an | ||||||
16 | amount determined by the System to cover the cost of | ||||||
17 | offering these benefits and any applicable administrative | ||||||
18 | fees. | ||||||
19 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
20 | participant of this System may elect, in writing, to cease | ||||||
21 | accruing benefits in the defined benefit plan and begin | ||||||
22 | accruing benefits for future service in the Tier 3 plan. The | ||||||
23 | election to participate in the Tier 3 plan is voluntary and | ||||||
24 | irrevocable. | ||||||
25 | (1) Service credit under the Tier 3 plan may be used | ||||||
26 | for determining retirement eligibility under the defined |
| |||||||
| |||||||
1 | benefit plan. | ||||||
2 | (2) The System shall make a good faith effort to | ||||||
3 | contact all active Tier 1 and Tier 2 participants who are | ||||||
4 | eligible to participate in the Tier 3 plan. The System | ||||||
5 | shall mail information describing the option to join the | ||||||
6 | Tier 3 plan to each of these employees to his or her last | ||||||
7 | known address on file with
the System. If the employee is | ||||||
8 | not responsive to other means of contact, it is sufficient | ||||||
9 | for the System to publish the details of the option on its | ||||||
10 | website. | ||||||
11 | (3) Upon request for further information describing | ||||||
12 | the option, the System shall provide employees with | ||||||
13 | information from the System before exercising the option | ||||||
14 | to join the plan, including information on the impact to | ||||||
15 | their benefits and service. The individual consultation | ||||||
16 | shall include projections of the participant's defined | ||||||
17 | benefits at retirement or earlier termination of service | ||||||
18 | and the value of the participant's account at retirement | ||||||
19 | or earlier termination of service. The System shall not | ||||||
20 | provide advice or counseling with respect to whether the | ||||||
21 | employee should exercise the option. The System shall | ||||||
22 | inform Tier 1 and Tier 2 participants who are eligible to | ||||||
23 | participate in the Tier 3 plan that they may also wish to | ||||||
24 | obtain information and counsel relating to their option | ||||||
25 | from any other available source, including, but not | ||||||
26 | limited to, private counsel and financial advisors. |
| |||||||
| |||||||
1 | (b-5) A Tier 1 or Tier 2 participant who elects to | ||||||
2 | participate in the Tier 3 plan may irrevocably elect to | ||||||
3 | terminate all participation in the defined benefit plan. Upon | ||||||
4 | that election, the System shall transfer to the participant's | ||||||
5 | individual account an amount equal to the amount of | ||||||
6 | contribution refund that the participant would be eligible to | ||||||
7 | receive if the member terminated employment on that date and | ||||||
8 | elected a refund of contributions, including the prescribed | ||||||
9 | rate of interest for the respective years. The System shall | ||||||
10 | make the transfer as a tax-free transfer in accordance with | ||||||
11 | Internal Revenue Service guidelines, for purposes of funding | ||||||
12 | the amount credited to the participant's individual account. | ||||||
13 | (c) In no event shall the System, its staff, its | ||||||
14 | authorized representatives, or the Board be liable for any | ||||||
15 | information given to an employee under this Section. The | ||||||
16 | System may coordinate with the Illinois Department of Central | ||||||
17 | Management Services and other retirement systems administering | ||||||
18 | a Tier 3 plan in accordance with this amendatory Act of the | ||||||
19 | 103rd General Assembly to provide information concerning the | ||||||
20 | impact of the Tier 3 plan set forth in this Section. | ||||||
21 | (c-5) The System shall solicit proposals to provide
| ||||||
22 | administrative services and funding vehicles for the Tier 3 | ||||||
23 | plan from
insurance and annuity companies and mutual fund | ||||||
24 | companies, banks, trust
companies, or other financial | ||||||
25 | institutions authorized to do business in this
State. In | ||||||
26 | reviewing the proposals received and approving and contracting |
| |||||||
| |||||||
1 | with
no fewer than 2 and no more than 7 companies, the Board of | ||||||
2 | Trustees of the System shall
consider, among other things, the | ||||||
3 | following criteria: | ||||||
4 | (1) the nature and extent of the benefits that would | ||||||
5 | be provided
to the participants; | ||||||
6 | (2) the reasonableness of the benefits in relation to | ||||||
7 | the premium
charged; | ||||||
8 | (3) the suitability of the benefits to the needs and
| ||||||
9 | interests of the participating employees and the employer; | ||||||
10 | (4) the ability of the company to provide benefits | ||||||
11 | under the contract and
the financial stability of the | ||||||
12 | company; and | ||||||
13 | (5) the efficacy of the contract in the recruitment | ||||||
14 | and retention of
employees. | ||||||
15 | The System shall periodically review
each approved | ||||||
16 | company. A company may continue to provide administrative
| ||||||
17 | services and funding vehicles for the Tier 3 plan only so long | ||||||
18 | as
it continues to be an approved company under contract with | ||||||
19 | the Board. | ||||||
20 | (d) Notwithstanding any other provision of this Section, | ||||||
21 | no person shall begin participating in the Tier 3 plan until it | ||||||
22 | has attained qualified plan status and received all necessary | ||||||
23 | approvals from the U.S. Internal Revenue Service. | ||||||
24 | (e) The System shall report on its progress under this | ||||||
25 | Section, including the available details of the Tier 3 plan | ||||||
26 | and the System's plans for informing eligible Tier 1 and Tier 2 |
| |||||||
| |||||||
1 | participants about the plan, to the Governor and the General | ||||||
2 | Assembly on or before January 15, 2024. | ||||||
3 | (f) The Illinois State Board of Investment shall be the | ||||||
4 | plan sponsor for the Tier 3 plan established under this | ||||||
5 | Section.
| ||||||
6 | (40 ILCS 5/14-103.41) | ||||||
7 | Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member | ||||||
8 | of this System who first became a member or participant before | ||||||
9 | January 1, 2011 under any reciprocal retirement system or | ||||||
10 | pension fund established under this Code other than a | ||||||
11 | retirement system or pension fund established under Article 2, | ||||||
12 | 3, 4, 5, 6, or 18 of this Code.
| ||||||
13 | In the case of a Tier 1 member who elects to participate in | ||||||
14 | the Tier 3 plan under Section 14-155.5 of this Code, that Tier | ||||||
15 | 1 member shall be deemed a Tier 1 member only with respect to | ||||||
16 | service performed or established before the effective date of | ||||||
17 | that election. | ||||||
18 | (Source: P.A. 100-587, eff. 6-4-18.)
| ||||||
19 | (40 ILCS 5/14-103.44 new) | ||||||
20 | Sec. 14-103.44. Tier 2 member. "Tier 2 member": A member | ||||||
21 | of this System who first becomes a member under this Article on | ||||||
22 | or after January 1, 2011 and who is not a Tier 1 member. | ||||||
23 | In the case of a Tier 2 member who elects to participate in | ||||||
24 | the Tier 3 plan under Section 14-155.5 of this Code, that Tier |
| |||||||
| |||||||
1 | 2 member shall be deemed a Tier 2 member only with respect to | ||||||
2 | service performed or established before the effective date of | ||||||
3 | that election.
| ||||||
4 | (40 ILCS 5/14-103.45 new) | ||||||
5 | Sec. 14-103.45. Tier 3 member. "Tier 3 member": A member | ||||||
6 | of this System who first becomes a member on or after July 1, | ||||||
7 | 2024 or a Tier 1 or Tier 2 member who elects to participate in | ||||||
8 | the Tier 3 plan under Section 14-155.5 of this Code, but only | ||||||
9 | with respect to service performed on or after the effective | ||||||
10 | date of that election.
| ||||||
11 | (40 ILCS 5/14-152.1) | ||||||
12 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
13 | increases. | ||||||
14 | (a) As used in this Section, "new benefit increase" means | ||||||
15 | an increase in the amount of any benefit provided under this | ||||||
16 | Article, or an expansion of the conditions of eligibility for | ||||||
17 | any benefit under this Article, that results from an amendment | ||||||
18 | to this Code that takes effect after June 1, 2005 (the | ||||||
19 | effective date of Public Act 94-4). "New benefit increase", | ||||||
20 | however, does not include any benefit increase resulting from | ||||||
21 | the changes made to Article 1 or this Article by Public Act | ||||||
22 | 96-37, Public Act 100-23, Public Act 100-587, Public Act | ||||||
23 | 100-611, Public Act 101-10, Public Act 101-610, Public Act | ||||||
24 | 102-210, Public Act 102-856, Public Act 102-956, or this |
| |||||||
| |||||||
1 | amendatory Act of the 103rd General Assembly this amendatory | ||||||
2 | Act of the 102nd General Assembly .
| ||||||
3 | (b) Notwithstanding any other provision of this Code or | ||||||
4 | any subsequent amendment to this Code, every new benefit | ||||||
5 | increase is subject to this Section and shall be deemed to be | ||||||
6 | granted only in conformance with and contingent upon | ||||||
7 | compliance with the provisions of this Section.
| ||||||
8 | (c) The Public Act enacting a new benefit increase must | ||||||
9 | identify and provide for payment to the System of additional | ||||||
10 | funding at least sufficient to fund the resulting annual | ||||||
11 | increase in cost to the System as it accrues. | ||||||
12 | Every new benefit increase is contingent upon the General | ||||||
13 | Assembly providing the additional funding required under this | ||||||
14 | subsection. The Commission on Government Forecasting and | ||||||
15 | Accountability shall analyze whether adequate additional | ||||||
16 | funding has been provided for the new benefit increase and | ||||||
17 | shall report its analysis to the Public Pension Division of | ||||||
18 | the Department of Insurance. A new benefit increase created by | ||||||
19 | a Public Act that does not include the additional funding | ||||||
20 | required under this subsection is null and void. If the Public | ||||||
21 | Pension Division determines that the additional funding | ||||||
22 | provided for a new benefit increase under this subsection is | ||||||
23 | or has become inadequate, it may so certify to the Governor and | ||||||
24 | the State Comptroller and, in the absence of corrective action | ||||||
25 | by the General Assembly, the new benefit increase shall expire | ||||||
26 | at the end of the fiscal year in which the certification is |
| |||||||
| |||||||
1 | made.
| ||||||
2 | (d) Every new benefit increase shall expire 5 years after | ||||||
3 | its effective date or on such earlier date as may be specified | ||||||
4 | in the language enacting the new benefit increase or provided | ||||||
5 | under subsection (c). This does not prevent the General | ||||||
6 | Assembly from extending or re-creating a new benefit increase | ||||||
7 | by law. | ||||||
8 | (e) Except as otherwise provided in the language creating | ||||||
9 | the new benefit increase, a new benefit increase that expires | ||||||
10 | under this Section continues to apply to persons who applied | ||||||
11 | and qualified for the affected benefit while the new benefit | ||||||
12 | increase was in effect and to the affected beneficiaries and | ||||||
13 | alternate payees of such persons, but does not apply to any | ||||||
14 | other person, including, without limitation, a person who | ||||||
15 | continues in service after the expiration date and did not | ||||||
16 | apply and qualify for the affected benefit while the new | ||||||
17 | benefit increase was in effect.
| ||||||
18 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
19 | 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. | ||||||
20 | 1-1-23; 102-956, eff. 5-27-22 .)
| ||||||
21 | (40 ILCS 5/14-155.5 new) | ||||||
22 | Sec. 14-155.5. Tier 3 plan. | ||||||
23 | (a) By July 1, 2024, the System shall prepare and | ||||||
24 | implement a Tier 3 plan. The Tier 3 plan developed under this | ||||||
25 | Section shall be a plan that aggregates State and employee |
| |||||||
| |||||||
1 | contributions in individual participant accounts that, after | ||||||
2 | meeting any other requirements, are used for payouts after | ||||||
3 | retirement in accordance with this Section and any other | ||||||
4 | applicable laws. In developing, preparing, and implementing | ||||||
5 | the Tier 3 plan and adopting rules concerning the Tier 3 plan, | ||||||
6 | the System shall utilize the framework of the self-managed | ||||||
7 | plan offered under Article 15 and shall endeavor to adapt the | ||||||
8 | benefits and structure of the self-managed plan. The System | ||||||
9 | shall consult with the State Universities Retirement System in | ||||||
10 | developing the Tier 3 plan. | ||||||
11 | As used in this Section, "defined benefit plan" means the | ||||||
12 | retirement plan available under this Article to Tier 1 or Tier | ||||||
13 | 2 members who have not made the election authorized under this | ||||||
14 | Section. | ||||||
15 | (1) All persons who begin to participate in this | ||||||
16 | System on or after July 1, 2024 shall participate in the | ||||||
17 | Tier 3 plan rather than the defined benefit plan. | ||||||
18 | (2) A non-covered employee who participates in the | ||||||
19 | Tier 3 plan shall pay employee contributions at a rate of | ||||||
20 | 8% of compensation. A covered employee who participates in | ||||||
21 | the Tier 3 plan shall pay employee contributions at a rate | ||||||
22 | of 3% of compensation. | ||||||
23 | (3) State contributions shall be paid into the | ||||||
24 | accounts of non-covered employees who participate in the | ||||||
25 | Tier 3 plan at a rate of 7.6% of compensation, less the | ||||||
26 | amount determined annually by the Board to cover the cost |
| |||||||
| |||||||
1 | of offering the defined disability benefits available to | ||||||
2 | other participants under this Article if the Tier 3 plan | ||||||
3 | offers such benefits. State contributions shall be paid | ||||||
4 | into the accounts of covered employees who participate in | ||||||
5 | the Tier 3 plan at a rate of 3% of compensation. | ||||||
6 | (4) The Tier 3 plan shall require 5 years of | ||||||
7 | participation in the Tier 3 plan before vesting in State | ||||||
8 | contributions. If the participant fails to vest in them, | ||||||
9 | the State contributions, and the earnings thereon, shall | ||||||
10 | be forfeited. | ||||||
11 | (5) The Tier 3 plan may provide for participants in | ||||||
12 | the plan to be eligible for the defined disability | ||||||
13 | benefits available to other participants under this | ||||||
14 | Article. If it does, for non-covered employees, the System | ||||||
15 | shall reduce the State contributions credited to the | ||||||
16 | member's Tier 3 plan account by an amount, not to exceed 1% | ||||||
17 | of compensation, determined annually by the Board to cover | ||||||
18 | the cost of offering such benefits. For covered employees, | ||||||
19 | the State shall contribute an amount, not to exceed 1% of | ||||||
20 | compensation, determined annually by the Board to cover | ||||||
21 | the cost of offering such benefits, which is in addition | ||||||
22 | to the 3% State contribution credited to the member's Tier | ||||||
23 | 3 plan account. | ||||||
24 | (6) The Tier 3 plan shall provide a variety of options | ||||||
25 | for investments. These options shall include investments | ||||||
26 | handled by the Illinois State Board of Investment as well |
| |||||||
| |||||||
1 | as private sector investment options. | ||||||
2 | (7) The Tier 3 plan shall provide a variety of options | ||||||
3 | for payouts to participants in the Tier 3 plan who are no | ||||||
4 | longer active in the System and their survivors. | ||||||
5 | (8) To the extent authorized under federal law and as | ||||||
6 | authorized by the System, the plan shall allow former | ||||||
7 | participants in the plan to transfer or roll over employee | ||||||
8 | and vested State contributions, and the earnings thereon, | ||||||
9 | from the Tier 3 plan into other qualified retirement | ||||||
10 | plans. | ||||||
11 | (9) The System shall reduce the employee contributions | ||||||
12 | credited to the member's Tier 3 plan account by an amount | ||||||
13 | determined by the System to cover the cost of offering | ||||||
14 | these benefits and any applicable administrative fees. | ||||||
15 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
16 | member of this System may elect, in writing, to cease accruing | ||||||
17 | benefits in the defined benefit plan and begin accruing | ||||||
18 | benefits for future service in the Tier 3 plan. The election to | ||||||
19 | participate in the Tier 3 plan is voluntary and irrevocable. | ||||||
20 | (1) Service credit under the Tier 3 plan may be used | ||||||
21 | for determining retirement eligibility under the defined | ||||||
22 | benefit plan. | ||||||
23 | (2) The System shall make a good faith effort to | ||||||
24 | contact all active Tier 1 and Tier 2 members who are | ||||||
25 | eligible to participate in the Tier 3 plan. The System | ||||||
26 | shall mail information describing the option to join the |
| |||||||
| |||||||
1 | Tier 3 plan to each of these employees to his or her last | ||||||
2 | known address on file with the System. If the employee is | ||||||
3 | not responsive to other means of contact, it is sufficient | ||||||
4 | for the System to publish the details of the option on its | ||||||
5 | website. | ||||||
6 | (3) Upon request for further information describing | ||||||
7 | the option, the System shall provide employees with | ||||||
8 | information from the System before exercising the option | ||||||
9 | to join the plan, including information on the impact to | ||||||
10 | their benefits and service. The individual consultation | ||||||
11 | shall include projections of the member's defined benefits | ||||||
12 | at retirement or earlier termination of service and the | ||||||
13 | value of the member's account at retirement or earlier | ||||||
14 | termination of service. The System shall not provide | ||||||
15 | advice or counseling with respect to whether the employee | ||||||
16 | should exercise the option. The System shall inform Tier 1 | ||||||
17 | and Tier 2 members who are eligible to participate in the | ||||||
18 | Tier 3 plan that they may also wish to obtain information | ||||||
19 | and counsel relating to their option from any other | ||||||
20 | available source, including, but not limited to, labor | ||||||
21 | organizations, private counsel, and financial advisors. | ||||||
22 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
23 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
24 | participation in the defined benefit plan. Upon that election, | ||||||
25 | the System shall transfer to the member's individual account | ||||||
26 | an amount equal to the amount of contribution refund that the |
| |||||||
| |||||||
1 | member would be eligible to receive if the member terminated | ||||||
2 | employment on that date and elected a refund of contributions, | ||||||
3 | including regular interest for the respective years. The | ||||||
4 | System shall make the transfer as a tax-free transfer in | ||||||
5 | accordance with Internal Revenue Service guidelines, for | ||||||
6 | purposes of funding the amount credited to the member's | ||||||
7 | individual account. | ||||||
8 | (c) In no event shall the System, its staff, its | ||||||
9 | authorized representatives, or the Board be liable for any | ||||||
10 | information given to an employee under this Section. The | ||||||
11 | System may coordinate with the Illinois Department of Central | ||||||
12 | Management Services and other retirement systems administering | ||||||
13 | a Tier 3 plan in accordance with this amendatory Act of the | ||||||
14 | 103rd General Assembly to provide information concerning the | ||||||
15 | impact of the Tier 3 plan set forth in this Section. | ||||||
16 | (c-5) The System shall solicit proposals to provide
| ||||||
17 | administrative services and funding vehicles for the Tier 3 | ||||||
18 | plan from
insurance and annuity companies and mutual fund | ||||||
19 | companies, banks, trust
companies, or other financial | ||||||
20 | institutions authorized to do business in this
State. In | ||||||
21 | reviewing the proposals received and approving and contracting | ||||||
22 | with
no fewer than 2 and no more than 7 companies, the Board of | ||||||
23 | Trustees of the System shall
consider, among other things, the | ||||||
24 | following criteria: | ||||||
25 | (1) the nature and extent of the benefits that would | ||||||
26 | be provided
to the participants; |
| |||||||
| |||||||
1 | (2) the reasonableness of the benefits in relation to | ||||||
2 | the premium
charged; | ||||||
3 | (3) the suitability of the benefits to the needs and
| ||||||
4 | interests of the participating employees and the employer; | ||||||
5 | (4) the ability of the company to provide benefits | ||||||
6 | under the contract and
the financial stability of the | ||||||
7 | company; and | ||||||
8 | (5) the efficacy of the contract in the recruitment | ||||||
9 | and retention of
employees. | ||||||
10 | The System shall periodically review
each approved | ||||||
11 | company. A company may continue to provide administrative
| ||||||
12 | services and funding vehicles for the Tier 3 plan only so long | ||||||
13 | as
it continues to be an approved company under contract with | ||||||
14 | the Board. | ||||||
15 | (d) Notwithstanding any other provision of this Section, | ||||||
16 | no person shall begin participating in the Tier 3 plan until it | ||||||
17 | has attained qualified plan status and received all necessary | ||||||
18 | approvals from the U.S. Internal Revenue Service. | ||||||
19 | (e) The System shall report on its progress under this | ||||||
20 | Section, including the available details of the Tier 3 plan | ||||||
21 | and the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
22 | members about the plan, to the Governor and the General | ||||||
23 | Assembly on or before January 15, 2024. | ||||||
24 | (f) The Illinois State Board of Investment shall be the | ||||||
25 | plan sponsor for the Tier 3 plan established under this | ||||||
26 | Section.
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-108.1) | ||||||
2 | Sec. 15-108.1. Tier 1 member. "Tier 1 member": A | ||||||
3 | participant or an annuitant of a retirement annuity under this | ||||||
4 | Article, other than a participant in the self-managed plan | ||||||
5 | under Section 15-158.2, who first became a participant or | ||||||
6 | member before January 1, 2011 under any reciprocal retirement | ||||||
7 | system or pension fund established under this Code, other than | ||||||
8 | a retirement system or pension fund established under Articles | ||||||
9 | 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a | ||||||
10 | person who first became a participant under this System before | ||||||
11 | January 1, 2011 and who accepts a refund and is subsequently | ||||||
12 | reemployed by an employer on or after January 1, 2011.
| ||||||
13 | In the case of a Tier 1 member who elects to participate in | ||||||
14 | the Tier 3 plan under Section 15-200.5 of this Code, that Tier | ||||||
15 | 1 member shall be deemed a Tier 1 member only with respect to | ||||||
16 | service performed or established before the effective date of | ||||||
17 | that election. | ||||||
18 | (Source: P.A. 98-92, eff. 7-16-13.)
| ||||||
19 | (40 ILCS 5/15-108.2) | ||||||
20 | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person | ||||||
21 | who first becomes a participant under this Article on or after | ||||||
22 | January 1, 2011 and before the implementation date, as defined | ||||||
23 | under subsection (a) of Section 1-161, determined by the | ||||||
24 | Board, other than a person in the self-managed plan |
| |||||||
| |||||||
1 | established under Section 15-158.2 or a person who makes the | ||||||
2 | election under subsection (c) of Section 1-161, unless the | ||||||
3 | person is otherwise a Tier 1 member. The changes made to this | ||||||
4 | Section by this amendatory Act of the 98th General Assembly | ||||||
5 | are a correction of existing law and are intended to be | ||||||
6 | retroactive to the effective date of Public Act 96-889, | ||||||
7 | notwithstanding the provisions of Section 1-103.1 of this | ||||||
8 | Code.
| ||||||
9 | In the case of a Tier 2 member who elects to participate in | ||||||
10 | the Tier 3 plan under Section 15-200.5 of this Code, that Tier | ||||||
11 | 2 member shall be deemed a Tier 2 member only with respect to | ||||||
12 | service performed or established before the effective date of | ||||||
13 | that election. | ||||||
14 | (Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
| ||||||
15 | (40 ILCS 5/15-108.3 new) | ||||||
16 | Sec. 15-108.3. Tier 3 member. "Tier 3 member": A person | ||||||
17 | who first becomes a participant under this Article on or after | ||||||
18 | July 1, 2024 or a Tier 1 or Tier 2 member who elects to | ||||||
19 | participate in the Tier 3 plan under Section 15-200.5 of this | ||||||
20 | Code, but only with respect to service performed on or after | ||||||
21 | the effective date of that election.
| ||||||
22 | (40 ILCS 5/15-198)
| ||||||
23 | Sec. 15-198. Application and expiration of new benefit | ||||||
24 | increases. |
| |||||||
| |||||||
1 | (a) As used in this Section, "new benefit increase" means | ||||||
2 | an increase in the amount of any benefit provided under this | ||||||
3 | Article, or an expansion of the conditions of eligibility for | ||||||
4 | any benefit under this Article, that results from an amendment | ||||||
5 | to this Code that takes effect after June 1, 2005 (the | ||||||
6 | effective date of Public Act 94-4). "New benefit increase", | ||||||
7 | however, does not include any benefit increase resulting from | ||||||
8 | the changes made to Article 1 or this Article by Public Act | ||||||
9 | 100-23, Public Act 100-587, Public Act 100-769, Public Act | ||||||
10 | 101-10, Public Act 101-610, Public Act 102-16, or this | ||||||
11 | amendatory Act of the 103rd General Assembly or this | ||||||
12 | amendatory Act of the 102nd General Assembly . | ||||||
13 | (b) Notwithstanding any other provision of this Code or | ||||||
14 | any subsequent amendment to this Code, every new benefit | ||||||
15 | increase is subject to this Section and shall be deemed to be | ||||||
16 | granted only in conformance with and contingent upon | ||||||
17 | compliance with the provisions of this Section.
| ||||||
18 | (c) The Public Act enacting a new benefit increase must | ||||||
19 | identify and provide for payment to the System of additional | ||||||
20 | funding at least sufficient to fund the resulting annual | ||||||
21 | increase in cost to the System as it accrues. | ||||||
22 | Every new benefit increase is contingent upon the General | ||||||
23 | Assembly providing the additional funding required under this | ||||||
24 | subsection. The Commission on Government Forecasting and | ||||||
25 | Accountability shall analyze whether adequate additional | ||||||
26 | funding has been provided for the new benefit increase and |
| |||||||
| |||||||
1 | shall report its analysis to the Public Pension Division of | ||||||
2 | the Department of Insurance. A new benefit increase created by | ||||||
3 | a Public Act that does not include the additional funding | ||||||
4 | required under this subsection is null and void. If the Public | ||||||
5 | Pension Division determines that the additional funding | ||||||
6 | provided for a new benefit increase under this subsection is | ||||||
7 | or has become inadequate, it may so certify to the Governor and | ||||||
8 | the State Comptroller and, in the absence of corrective action | ||||||
9 | by the General Assembly, the new benefit increase shall expire | ||||||
10 | at the end of the fiscal year in which the certification is | ||||||
11 | made.
| ||||||
12 | (d) Every new benefit increase shall expire 5 years after | ||||||
13 | its effective date or on such earlier date as may be specified | ||||||
14 | in the language enacting the new benefit increase or provided | ||||||
15 | under subsection (c). This does not prevent the General | ||||||
16 | Assembly from extending or re-creating a new benefit increase | ||||||
17 | by law. | ||||||
18 | (e) Except as otherwise provided in the language creating | ||||||
19 | the new benefit increase, a new benefit increase that expires | ||||||
20 | under this Section continues to apply to persons who applied | ||||||
21 | and qualified for the affected benefit while the new benefit | ||||||
22 | increase was in effect and to the affected beneficiaries and | ||||||
23 | alternate payees of such persons, but does not apply to any | ||||||
24 | other person, including, without limitation, a person who | ||||||
25 | continues in service after the expiration date and did not | ||||||
26 | apply and qualify for the affected benefit while the new |
| |||||||
| |||||||
1 | benefit increase was in effect.
| ||||||
2 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
3 | 101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)
| ||||||
4 | (40 ILCS 5/15-200.5 new) | ||||||
5 | Sec. 15-200.5. Tier 3 plan. | ||||||
6 | (a) By July 1, 2024, the System shall prepare and | ||||||
7 | implement a Tier 3 plan. The Tier 3 plan developed under this | ||||||
8 | Section shall be a plan that aggregates State and employee | ||||||
9 | contributions in individual participant accounts that, after | ||||||
10 | meeting any other requirements, are used for payouts after | ||||||
11 | retirement in accordance with this Section and any other | ||||||
12 | applicable laws. In developing, preparing, and implementing | ||||||
13 | the Tier 3 plan and adopting rules concerning the Tier 3 plan, | ||||||
14 | the System shall utilize the framework of the self-managed | ||||||
15 | plan and shall endeavor to adapt the benefits and structure of | ||||||
16 | the self-managed plan. | ||||||
17 | As used in this Section, "defined benefit plan" means the | ||||||
18 | traditional benefit package or the portable benefit package | ||||||
19 | available under this Article to Tier 1 or Tier 2 members who | ||||||
20 | have not made the election authorized under this Section and | ||||||
21 | do not participate in the self-managed plan under Section | ||||||
22 | 15-158.2. | ||||||
23 | (1) All persons who begin to participate in this | ||||||
24 | System on or after July 1, 2024 shall participate in the | ||||||
25 | Tier 3 plan rather than the defined benefit plan or the |
| |||||||
| |||||||
1 | self-managed plan under Section 15-158.2. | ||||||
2 | (2) A participant in the Tier 3 plan shall pay | ||||||
3 | employee contributions at a rate of 8% of earnings. | ||||||
4 | (3) State contributions shall be paid into the | ||||||
5 | accounts of all participants in the Tier 3 plan at a rate | ||||||
6 | of 7.6% of earnings, less the amount determined annually | ||||||
7 | by the Board to cover the cost of offering the defined | ||||||
8 | disability benefits available to other participants under | ||||||
9 | this Article if the Tier 3 plan offers such benefits. | ||||||
10 | (4) The Tier 3 plan shall require 5 years of | ||||||
11 | participation in the Tier 3 plan before vesting in State | ||||||
12 | contributions. If the participant fails to vest in them, | ||||||
13 | the State contributions, and the earnings thereon, shall | ||||||
14 | be forfeited. | ||||||
15 | (5) The Tier 3 plan may provide for participants in | ||||||
16 | the plan to be eligible for the defined disability | ||||||
17 | benefits available to other participants under this | ||||||
18 | Article. If it does, the System shall reduce the employee | ||||||
19 | contributions credited to the member's Tier 3 plan account | ||||||
20 | by an amount, not to exceed 1% of earnings, determined | ||||||
21 | annually by the Board to cover the cost of offering such | ||||||
22 | benefits. | ||||||
23 | (6) The Tier 3 plan shall provide a variety of options | ||||||
24 | for investments. These options shall include investments | ||||||
25 | handled by the System as well as private sector investment | ||||||
26 | options. |
| |||||||
| |||||||
1 | (7) The Tier 3 plan shall provide a variety of options | ||||||
2 | for payouts to participants in the Tier 3 plan who are no | ||||||
3 | longer active in the System and their survivors. | ||||||
4 | (8) To the extent authorized under federal law and as | ||||||
5 | authorized by the System, the plan shall allow former | ||||||
6 | participants in the plan to transfer or roll over employee | ||||||
7 | and vested State contributions, and the earnings thereon, | ||||||
8 | from the Tier 3 plan into other qualified retirement | ||||||
9 | plans. | ||||||
10 | (9) The System shall reduce the employee contributions | ||||||
11 | credited to the member's Tier 3 plan account by an amount | ||||||
12 | determined by the System to cover the cost of offering | ||||||
13 | these benefits and any applicable administrative fees. | ||||||
14 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
15 | member of this System may elect, in writing, to cease accruing | ||||||
16 | benefits in the defined benefit plan and begin accruing | ||||||
17 | benefits for future service in the Tier 3 plan. An active Tier | ||||||
18 | 1 or Tier 2 member who elects to cease accruing benefits in his | ||||||
19 | or her defined benefit plan shall be prohibited from | ||||||
20 | purchasing service credit on or after the date of his or her | ||||||
21 | election. A Tier 1 or Tier 2 member who elects to participate | ||||||
22 | in the Tier 3 plan shall not receive interest accruals to his | ||||||
23 | or her Rule 2 benefit on or after the date of his or her | ||||||
24 | election. The election to participate in the Tier 3 plan is | ||||||
25 | voluntary and irrevocable. | ||||||
26 | (1) Service credit under the Tier 3 plan may be used |
| |||||||
| |||||||
1 | for determining retirement eligibility under the defined | ||||||
2 | benefit plan. | ||||||
3 | (2) The System shall make a good faith effort to | ||||||
4 | contact all active Tier 1 and Tier 2 members who are | ||||||
5 | eligible to participate in the Tier 3 plan. The System | ||||||
6 | shall mail information describing the option to join the | ||||||
7 | Tier 3 plan to each of these employees to his or her last | ||||||
8 | known address on file with the System. If the employee is | ||||||
9 | not responsive to other means of contact, it is sufficient | ||||||
10 | for the System to publish the details of the option on its | ||||||
11 | website. | ||||||
12 | (3) Upon request for further information describing | ||||||
13 | the option, the System shall provide employees with | ||||||
14 | information from the System before exercising the option | ||||||
15 | to join the plan, including information on the impact to | ||||||
16 | their benefits and service. The individual consultation | ||||||
17 | shall include projections of the member's defined benefits | ||||||
18 | at retirement or earlier termination of service and the | ||||||
19 | value of the member's account at retirement or earlier | ||||||
20 | termination of service. The System shall not provide | ||||||
21 | advice or counseling with respect to whether the employee | ||||||
22 | should exercise the option. The System shall inform Tier 1 | ||||||
23 | and Tier 2 members who are eligible to participate in the | ||||||
24 | Tier 3 plan that they may also wish to obtain information | ||||||
25 | and counsel relating to their option from any other | ||||||
26 | available source, including, but not limited to, labor |
| |||||||
| |||||||
1 | organizations, private counsel, and financial advisors. | ||||||
2 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
3 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
4 | participation in the defined benefit plan. Upon that election, | ||||||
5 | the System shall transfer to the member's individual account | ||||||
6 | an amount equal to the amount of contribution refund that the | ||||||
7 | member would be eligible to receive if the member terminated | ||||||
8 | employment on that date and elected a refund of contributions, | ||||||
9 | including interest at the effective rate for the respective | ||||||
10 | years. The System shall make the transfer as a tax-free | ||||||
11 | transfer in accordance with Internal Revenue Service | ||||||
12 | guidelines, for purposes of funding the amount credited to the | ||||||
13 | member's individual account. | ||||||
14 | (c) In no event shall the System, its staff, its | ||||||
15 | authorized representatives, or the Board be liable for any | ||||||
16 | information given to an employee under this Section. The | ||||||
17 | System may coordinate with the Illinois Department of Central | ||||||
18 | Management Services and other retirement systems administering | ||||||
19 | a Tier 3 plan in accordance with this amendatory Act of the | ||||||
20 | 103rd General Assembly to provide information concerning the | ||||||
21 | impact of the Tier 3 plan set forth in this Section. | ||||||
22 | (c-5) The System, in
consultation with the employers, | ||||||
23 | shall solicit proposals to provide
administrative services and | ||||||
24 | funding vehicles for the Tier 3 plan from
insurance and | ||||||
25 | annuity companies and mutual fund companies, banks, trust
| ||||||
26 | companies, or other financial institutions authorized to do |
| |||||||
| |||||||
1 | business in this
State. In reviewing the proposals received | ||||||
2 | and approving and contracting with
no fewer than 2 and no more | ||||||
3 | than 7 companies, the Board of Trustees of the System shall
| ||||||
4 | consider, among other things, the following criteria: | ||||||
5 | (1) the nature and extent of the benefits that would | ||||||
6 | be provided
to the participants; | ||||||
7 | (2) the reasonableness of the benefits in relation to | ||||||
8 | the premium
charged; | ||||||
9 | (3) the suitability of the benefits to the needs and
| ||||||
10 | interests of the participating employees and the employer; | ||||||
11 | (4) the ability of the company to provide benefits | ||||||
12 | under the contract and
the financial stability of the | ||||||
13 | company; and | ||||||
14 | (5) the efficacy of the contract in the recruitment | ||||||
15 | and retention of
employees. | ||||||
16 | The System, in consultation with the employers, shall | ||||||
17 | periodically review
each approved company. A company may | ||||||
18 | continue to provide administrative
services and funding | ||||||
19 | vehicles for the Tier 3 plan only so long as
it continues to be | ||||||
20 | an approved company under contract with the Board. | ||||||
21 | (d) Notwithstanding any other provision of this Section, | ||||||
22 | no person shall begin participating in the Tier 3 plan until it | ||||||
23 | has attained qualified plan status and received all necessary | ||||||
24 | approvals from the U.S. Internal Revenue Service. | ||||||
25 | (e) The System shall report on its progress under this | ||||||
26 | Section, including the available details of the Tier 3 plan |
| |||||||
| |||||||
1 | and the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
2 | members about the plan, to the Governor and the General | ||||||
3 | Assembly on or before January 15, 2024.
| ||||||
4 | (40 ILCS 5/16-106.41) | ||||||
5 | Sec. 16-106.41. Tier 1 member. "Tier 1 member": A member | ||||||
6 | under this Article who first became a member or participant | ||||||
7 | before January 1, 2011 under any reciprocal retirement system | ||||||
8 | or pension fund established under this Code other than a | ||||||
9 | retirement system or pension fund established under Article 2, | ||||||
10 | 3, 4, 5, 6, or 18 of this Code.
| ||||||
11 | In the case of a Tier 1 member who elects to participate in | ||||||
12 | the Tier 3 plan under Section 16-205.5 of this Code, that Tier | ||||||
13 | 1 member shall be deemed a Tier 1 member only with respect to | ||||||
14 | service performed or established before the effective date of | ||||||
15 | that election. | ||||||
16 | (Source: P.A. 100-587, eff. 6-4-18.)
| ||||||
17 | (40 ILCS 5/16-106.42 new) | ||||||
18 | Sec. 16-106.42. Tier 2 member. "Tier 2 member": A member | ||||||
19 | of the System who first becomes a member under this Article on | ||||||
20 | or after January 1, 2011 and who is not a Tier 1 member. | ||||||
21 | In the case of a Tier 2 member who elects to participate in | ||||||
22 | the Tier 3 plan under Section 16-205.5 of this Code, the Tier 2 | ||||||
23 | member shall be deemed a Tier 2 member only with respect to | ||||||
24 | service performed or established before the effective date of |
| |||||||
| |||||||
1 | that election.
| ||||||
2 | (40 ILCS 5/16-106.43 new) | ||||||
3 | Sec. 16-106.43. Tier 3 member. "Tier 3 member": A member | ||||||
4 | of the System who first becomes a member under this Article on | ||||||
5 | or after July 1, 2024 or a Tier 1 or Tier 2 member who elects | ||||||
6 | to participate in the Tier 3 plan under Section 16-205.5 of | ||||||
7 | this Code, but only with respect to service performed on or | ||||||
8 | after the effective date of that election.
| ||||||
9 | (40 ILCS 5/16-203)
| ||||||
10 | Sec. 16-203. Application and expiration of new benefit | ||||||
11 | increases. | ||||||
12 | (a) As used in this Section, "new benefit increase" means | ||||||
13 | an increase in the amount of any benefit provided under this | ||||||
14 | Article, or an expansion of the conditions of eligibility for | ||||||
15 | any benefit under this Article, that results from an amendment | ||||||
16 | to this Code that takes effect after June 1, 2005 (the | ||||||
17 | effective date of Public Act 94-4). "New benefit increase", | ||||||
18 | however, does not include any benefit increase resulting from | ||||||
19 | the changes made to Article 1 or this Article by Public Act | ||||||
20 | 95-910, Public Act 100-23, Public Act 100-587, Public Act | ||||||
21 | 100-743, Public Act 100-769, Public Act 101-10, Public Act | ||||||
22 | 101-49, Public Act 102-16, Public Act 102-871, or this | ||||||
23 | amendatory Act of the 103rd General Assembly Public Act 102-16 | ||||||
24 | this amendatory Act of the 102nd General Assembly . |
| |||||||
| |||||||
1 | (b) Notwithstanding any other provision of this Code or | ||||||
2 | any subsequent amendment to this Code, every new benefit | ||||||
3 | increase is subject to this Section and shall be deemed to be | ||||||
4 | granted only in conformance with and contingent upon | ||||||
5 | compliance with the provisions of this Section.
| ||||||
6 | (c) The Public Act enacting a new benefit increase must | ||||||
7 | identify and provide for payment to the System of additional | ||||||
8 | funding at least sufficient to fund the resulting annual | ||||||
9 | increase in cost to the System as it accrues. | ||||||
10 | Every new benefit increase is contingent upon the General | ||||||
11 | Assembly providing the additional funding required under this | ||||||
12 | subsection. The Commission on Government Forecasting and | ||||||
13 | Accountability shall analyze whether adequate additional | ||||||
14 | funding has been provided for the new benefit increase and | ||||||
15 | shall report its analysis to the Public Pension Division of | ||||||
16 | the Department of Insurance. A new benefit increase created by | ||||||
17 | a Public Act that does not include the additional funding | ||||||
18 | required under this subsection is null and void. If the Public | ||||||
19 | Pension Division determines that the additional funding | ||||||
20 | provided for a new benefit increase under this subsection is | ||||||
21 | or has become inadequate, it may so certify to the Governor and | ||||||
22 | the State Comptroller and, in the absence of corrective action | ||||||
23 | by the General Assembly, the new benefit increase shall expire | ||||||
24 | at the end of the fiscal year in which the certification is | ||||||
25 | made.
| ||||||
26 | (d) Every new benefit increase shall expire 5 years after |
| |||||||
| |||||||
1 | its effective date or on such earlier date as may be specified | ||||||
2 | in the language enacting the new benefit increase or provided | ||||||
3 | under subsection (c). This does not prevent the General | ||||||
4 | Assembly from extending or re-creating a new benefit increase | ||||||
5 | by law. | ||||||
6 | (e) Except as otherwise provided in the language creating | ||||||
7 | the new benefit increase, a new benefit increase that expires | ||||||
8 | under this Section continues to apply to persons who applied | ||||||
9 | and qualified for the affected benefit while the new benefit | ||||||
10 | increase was in effect and to the affected beneficiaries and | ||||||
11 | alternate payees of such persons, but does not apply to any | ||||||
12 | other person, including, without limitation, a person who | ||||||
13 | continues in service after the expiration date and did not | ||||||
14 | apply and qualify for the affected benefit while the new | ||||||
15 | benefit increase was in effect.
| ||||||
16 | (Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19; | ||||||
17 | 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff. | ||||||
18 | 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; revised | ||||||
19 | 7-26-22.)
| ||||||
20 | (40 ILCS 5/16-205.5 new) | ||||||
21 | Sec. 16-205.5. Tier 3 plan. | ||||||
22 | (a) By July 1, 2024, the System shall prepare and | ||||||
23 | implement a Tier 3 plan. The Tier 3 plan developed under this | ||||||
24 | Section shall be a plan that aggregates State and employee | ||||||
25 | contributions in individual participant accounts that, after |
| |||||||
| |||||||
1 | meeting any other requirements, are used for payouts after | ||||||
2 | retirement in accordance with this Section and any other | ||||||
3 | applicable laws. In developing, preparing, and implementing | ||||||
4 | the Tier 3 plan and adopting rules concerning the Tier 3 plan, | ||||||
5 | the System shall utilize the framework of the self-managed | ||||||
6 | plan offered under Article 15 and shall endeavor to adapt the | ||||||
7 | benefits and structure of the self-managed plan. The System | ||||||
8 | shall consult with the State Universities Retirement System in | ||||||
9 | developing the Tier 3 plan. | ||||||
10 | As used in this Section, "defined benefit plan" means the | ||||||
11 | retirement plan available under this Article to Tier 1 or Tier | ||||||
12 | 2 members who have not made the election authorized under this | ||||||
13 | Section. | ||||||
14 | (1) All persons who begin to participate in this | ||||||
15 | System on or after July 1, 2024 shall participate in the | ||||||
16 | Tier 3 plan rather than the defined benefit plan. | ||||||
17 | (2) A participant in the Tier 3 plan shall pay | ||||||
18 | employee contributions at a rate of 8% of salary. | ||||||
19 | (3) State contributions shall be paid into the | ||||||
20 | accounts of all participants in the Tier 3 plan at a rate | ||||||
21 | of 7.6% of salary, less the amount determined annually by | ||||||
22 | the Board to cover the cost of offering the defined | ||||||
23 | disability benefits available to other participants under | ||||||
24 | this Article if the Tier 3 plan offers such benefits. | ||||||
25 | (4) The Tier 3 plan shall require 5 years of | ||||||
26 | participation in the Tier 3 plan before vesting in State |
| |||||||
| |||||||
1 | contributions. If the participant fails to vest in them, | ||||||
2 | the State contributions, and the earnings thereon, shall | ||||||
3 | be forfeited. | ||||||
4 | (5) The Tier 3 plan may provide for participants in | ||||||
5 | the plan to be eligible for the defined disability | ||||||
6 | benefits available to other participants under this | ||||||
7 | Article. If it does, the System shall reduce the employee | ||||||
8 | contributions credited to the member's Tier 3 plan account | ||||||
9 | by an amount, not to exceed 1% of salary, determined | ||||||
10 | annually by the Board to cover the cost of offering such | ||||||
11 | benefits. | ||||||
12 | (6) The Tier 3 plan shall provide a variety of options | ||||||
13 | for investments. These options shall include investments | ||||||
14 | in a fund created by the System and managed in accordance | ||||||
15 | with legal and fiduciary standards, as well as investment | ||||||
16 | options otherwise available. | ||||||
17 | (7) The Tier 3 plan shall provide a variety of options | ||||||
18 | for payouts to participants in the Tier 3 plan who are no | ||||||
19 | longer active in the System and their survivors. | ||||||
20 | (8) To the extent authorized under federal law and as | ||||||
21 | authorized by the System, the plan shall allow former | ||||||
22 | participants in the plan to transfer or roll over employee | ||||||
23 | and vested State contributions, and the earnings thereon, | ||||||
24 | from the Tier 3 plan into other qualified retirement | ||||||
25 | plans. | ||||||
26 | (9) The System shall reduce the employee contributions |
| |||||||
| |||||||
1 | credited to the member's Tier 3 plan account by an amount | ||||||
2 | determined by the System to cover the cost of offering | ||||||
3 | these benefits and any applicable administrative fees. | ||||||
4 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
5 | member of this System may elect, in writing, to cease accruing | ||||||
6 | benefits in the defined benefit plan and begin accruing | ||||||
7 | benefits for future service in the Tier 3 plan. An active Tier | ||||||
8 | 1 or Tier 2 member who elects to cease accruing benefits in his | ||||||
9 | or her defined benefit plan shall be prohibited from | ||||||
10 | purchasing service credit on or after the date of his or her | ||||||
11 | election. A Tier 1 or Tier 2 member making the irrevocable | ||||||
12 | election provided under this subsection shall not receive | ||||||
13 | interest accruals to his or her benefit under paragraph (A) of | ||||||
14 | subsection (a) of Section 16-133 of this Code on or after the | ||||||
15 | date of his or her election. The election to participate in the | ||||||
16 | Tier 3 plan is voluntary and irrevocable. | ||||||
17 | (1) Service credit under the Tier 3 plan may be used | ||||||
18 | for determining retirement eligibility under the defined | ||||||
19 | benefit plan. | ||||||
20 | (2) The System shall make a good faith effort to | ||||||
21 | contact all active Tier 1 and Tier 2 members who are | ||||||
22 | eligible to participate in the Tier 3 plan. The System | ||||||
23 | shall mail information describing the option to join the | ||||||
24 | Tier 3 plan to each of these employees to his or her last | ||||||
25 | known address on file with the System. If the employee is | ||||||
26 | not responsive to other means of contact, it is sufficient |
| |||||||
| |||||||
1 | for the System to publish the details of the option on its | ||||||
2 | website. | ||||||
3 | (3) Upon request for further information describing | ||||||
4 | the option, the System shall provide employees with | ||||||
5 | information from the System before exercising the option | ||||||
6 | to join the plan, including information on the impact to | ||||||
7 | their benefits and service. The individual consultation | ||||||
8 | shall include projections of the member's defined benefits | ||||||
9 | at retirement or earlier termination of service and the | ||||||
10 | value of the member's account at retirement or earlier | ||||||
11 | termination of service. The System shall not provide | ||||||
12 | advice or counseling with respect to whether the employee | ||||||
13 | should exercise the option. The System shall inform Tier 1 | ||||||
14 | and Tier 2 members who are eligible to participate in the | ||||||
15 | Tier 3 plan that they may also wish to obtain information | ||||||
16 | and counsel relating to their option from any other | ||||||
17 | available source, including, but not limited to, labor | ||||||
18 | organizations, private counsel, and financial advisors. | ||||||
19 | (b-5) A Tier 1 or Tier 2 member who elects to participate | ||||||
20 | in the Tier 3 plan may irrevocably elect to terminate all | ||||||
21 | participation in the defined benefit plan. Upon that election, | ||||||
22 | the System shall transfer to the member's individual account | ||||||
23 | an amount equal to the amount of contribution refund that the | ||||||
24 | member would be eligible to receive if the member terminated | ||||||
25 | employment on that date and elected a refund of contributions, | ||||||
26 | including regular interest for the respective years. The |
| |||||||
| |||||||
1 | System shall make the transfer as a tax-free transfer in | ||||||
2 | accordance with Internal Revenue Service guidelines, for | ||||||
3 | purposes of funding the amount credited to the member's | ||||||
4 | individual account. | ||||||
5 | (c) In no event shall the System, its staff, its | ||||||
6 | authorized representatives, or the Board be liable for any | ||||||
7 | information given to an employee under this Section. The | ||||||
8 | System may coordinate with the Illinois Department of Central | ||||||
9 | Management Services and other retirement systems administering | ||||||
10 | a Tier 3 plan in accordance with this amendatory Act of the | ||||||
11 | 103rd General Assembly to provide information concerning the | ||||||
12 | impact of the Tier 3 plan set forth in this Section. | ||||||
13 | (c-5) The System, in
consultation with the employers, | ||||||
14 | shall solicit proposals to provide
administrative services and | ||||||
15 | funding vehicles for the Tier 3 plan from
insurance and | ||||||
16 | annuity companies and mutual fund companies, banks, trust
| ||||||
17 | companies, or other financial institutions authorized to do | ||||||
18 | business in this
State. In reviewing the proposals received | ||||||
19 | and approving and contracting with
no fewer than 2 and no more | ||||||
20 | than 7 companies, the Board of Trustees of the System shall
| ||||||
21 | consider, among other things, the following criteria: | ||||||
22 | (1) the nature and extent of the benefits that would | ||||||
23 | be provided
to the participants; | ||||||
24 | (2) the reasonableness of the benefits in relation to | ||||||
25 | the premium
charged; | ||||||
26 | (3) the suitability of the benefits to the needs and
|
| |||||||
| |||||||
1 | interests of the participating employees and the employer; | ||||||
2 | (4) the ability of the company to provide benefits | ||||||
3 | under the contract and
the financial stability of the | ||||||
4 | company; and | ||||||
5 | (5) the efficacy of the contract in the recruitment | ||||||
6 | and retention of
employees. | ||||||
7 | The System, in consultation with the employers, shall | ||||||
8 | periodically review
each approved company. A company may | ||||||
9 | continue to provide administrative
services and funding | ||||||
10 | vehicles for the Tier 3 plan only so long as
it continues to be | ||||||
11 | an approved company under contract with the Board. | ||||||
12 | (d) Notwithstanding any other provision of this Section, | ||||||
13 | no person shall begin participating in the Tier 3 plan until it | ||||||
14 | has attained qualified plan status and received all necessary | ||||||
15 | approvals from the U.S. Internal Revenue Service. | ||||||
16 | (e) The System shall report on its progress under this | ||||||
17 | Section, including the available details of the Tier 3 plan | ||||||
18 | and the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
19 | members about the plan, to the Governor and the General | ||||||
20 | Assembly on or before January 15, 2024.
| ||||||
21 | (40 ILCS 5/18-110.1 new) | ||||||
22 | Sec. 18-110.1. Tier 1 participant. "Tier 1 participant": | ||||||
23 | A participant who first became a participant of this System | ||||||
24 | before January 1, 2011. | ||||||
25 | In the case of a Tier 1 participant who elects to |
| |||||||
| |||||||
1 | participate in the Tier 3 plan under Section 18-121.5 of this | ||||||
2 | Code, that Tier 1 participant shall be deemed a Tier 1 | ||||||
3 | participant only with respect to service performed or | ||||||
4 | established before the effective date of that election.
| ||||||
5 | (40 ILCS 5/18-110.2 new) | ||||||
6 | Sec. 18-110.2. Tier 2 participant. "Tier 2 participant": | ||||||
7 | A participant who first becomes a participant of this System | ||||||
8 | on or after January 1, 2011. | ||||||
9 | In the case of a Tier 2 participant who elects to | ||||||
10 | participate in the Tier 3 plan under Section 18-121.5 of this | ||||||
11 | Code, that Tier 2 participant shall be deemed a Tier 2 | ||||||
12 | participant only with respect to service performed or | ||||||
13 | established before the effective date of that election.
| ||||||
14 | (40 ILCS 5/18-110.3 new) | ||||||
15 | Sec. 18-110.3. Tier 3 participant. "Tier 3 participant": A | ||||||
16 | participant who first becomes a participant of this System on | ||||||
17 | or after July 1, 2024 or a Tier 1 or Tier 2 participant who | ||||||
18 | elects to participate in the Tier 3 plan under Section | ||||||
19 | 18-121.5 of this Code, but only with respect to service | ||||||
20 | performed on or after the effective date of that election.
| ||||||
21 | (40 ILCS 5/18-121.5 new) | ||||||
22 | Sec. 18-121.5. Tier 3 plan. | ||||||
23 | (a) By July 1, 2024, the System shall prepare and |
| |||||||
| |||||||
1 | implement a Tier 3 plan. The Tier 3 plan developed under this | ||||||
2 | Section shall be a plan that aggregates State and employee | ||||||
3 | contributions in individual participant accounts that, after | ||||||
4 | meeting any other requirements, are used for payouts after | ||||||
5 | retirement in accordance with this Section and any other | ||||||
6 | applicable laws. In developing, preparing, and implementing | ||||||
7 | the Tier 3 plan and adopting rules concerning the Tier 3 plan, | ||||||
8 | the System shall utilize the framework of the self-managed | ||||||
9 | plan offered under Article 15 and shall endeavor to adapt the | ||||||
10 | benefits and structure of the self-managed plan. The System | ||||||
11 | shall consult with the State Universities Retirement System in | ||||||
12 | developing the Tier 3 plan. | ||||||
13 | As used in this Section, "defined benefit plan" means the | ||||||
14 | retirement plan available under this Article to Tier 1 or Tier | ||||||
15 | 2 participants who have not made the election authorized under | ||||||
16 | this Section. | ||||||
17 | (1) All persons who begin to participate in this | ||||||
18 | System on or after July 1, 2024 shall participate in the | ||||||
19 | Tier 3 plan rather than the defined benefit plan. | ||||||
20 | (2) A participant in the Tier 3 plan shall pay | ||||||
21 | employee contributions at a rate of 8% of salary. | ||||||
22 | (3) State contributions shall be paid into the | ||||||
23 | accounts of all participants in the Tier 3 plan at a rate | ||||||
24 | of 7.6% of salary, less the amount determined annually by | ||||||
25 | the Board to cover the cost of offering the defined | ||||||
26 | disability benefits available to other participants under |
| |||||||
| |||||||
1 | this Article if the Tier 3 plan offers such benefits. | ||||||
2 | (4) The Tier 3 plan shall require 5 years of | ||||||
3 | participation in the Tier 3 plan before vesting in State | ||||||
4 | contributions. If the participant fails to vest in them, | ||||||
5 | the State contributions, and the earnings thereon, shall | ||||||
6 | be forfeited. | ||||||
7 | (5) The Tier 3 plan may provide for participants in | ||||||
8 | the plan to be eligible for the defined disability | ||||||
9 | benefits available to other participants under this | ||||||
10 | Article. If it does, the System shall reduce the employee | ||||||
11 | contributions credited to the member's Tier 3 plan account | ||||||
12 | by an amount, not to exceed 1% of salary, determined | ||||||
13 | annually by the Board to cover the cost of offering such | ||||||
14 | benefits. | ||||||
15 | (6) The Tier 3 plan shall provide a variety of options | ||||||
16 | for investments. These options shall include investments | ||||||
17 | handled by the Illinois State Board of Investment as well | ||||||
18 | as private sector investment options. | ||||||
19 | (7) The Tier 3 plan shall provide a variety of options | ||||||
20 | for payouts to participants in the Tier 3 plan who are no | ||||||
21 | longer active in the System and their survivors. | ||||||
22 | (8) To the extent authorized under federal law and as | ||||||
23 | authorized by the System, the plan shall allow former | ||||||
24 | participants in the plan to transfer or roll over employee | ||||||
25 | and vested State contributions, and the earnings thereon, | ||||||
26 | into other qualified retirement plans. |
| |||||||
| |||||||
1 | (9) The System shall reduce the employee contributions | ||||||
2 | credited to the participant's Tier 3 plan account by an | ||||||
3 | amount determined by the System to cover the cost of | ||||||
4 | offering these benefits and any applicable administrative | ||||||
5 | fees. | ||||||
6 | (b) Under the Tier 3 plan, an active Tier 1 or Tier 2 | ||||||
7 | participant of this System may elect, in writing, to cease | ||||||
8 | accruing benefits in the defined benefit plan and begin | ||||||
9 | accruing benefits for future service in the Tier 3 plan. The | ||||||
10 | election to participate in the Tier 3 plan is voluntary and | ||||||
11 | irrevocable. | ||||||
12 | (1) Service credit under the Tier 3 plan may be used | ||||||
13 | for determining retirement eligibility under the defined | ||||||
14 | benefit plan. | ||||||
15 | (2) The System shall make a good faith effort to | ||||||
16 | contact all active Tier 1 and Tier 2 participants who are | ||||||
17 | eligible to participate in the Tier 3 plan. The System | ||||||
18 | shall mail information describing the option to join the | ||||||
19 | Tier 3 plan to each of these employees to his or her last | ||||||
20 | known address on file with the System. If the employee is | ||||||
21 | not responsive to other means of contact, it is sufficient | ||||||
22 | for the System to publish the details of the option on its | ||||||
23 | website. | ||||||
24 | (3) Upon request for further information describing | ||||||
25 | the option, the System shall provide employees with | ||||||
26 | information from the System before exercising the option |
| |||||||
| |||||||
1 | to join the plan, including information on the impact to | ||||||
2 | their benefits and service. The individual consultation | ||||||
3 | shall include projections of the participant's defined | ||||||
4 | benefits at retirement or earlier termination of service | ||||||
5 | and the value of the participant's account at retirement | ||||||
6 | or earlier termination of service. The System shall not | ||||||
7 | provide advice or counseling with respect to whether the | ||||||
8 | employee should exercise the option. The System shall | ||||||
9 | inform Tier 1 and Tier 2 participants who are eligible to | ||||||
10 | participate in the Tier 3 plan that they may also wish to | ||||||
11 | obtain information and counsel relating to their option | ||||||
12 | from any other available source, including, but not | ||||||
13 | limited to, private counsel and financial advisors. | ||||||
14 | (b-5) A Tier 1 or Tier 2 participant who elects to | ||||||
15 | participate in the Tier 3 plan may irrevocably elect to | ||||||
16 | terminate all participation in the defined benefit plan. Upon | ||||||
17 | that election, the System shall transfer to the participant's | ||||||
18 | individual account an amount equal to the amount of | ||||||
19 | contribution refund that the participant would be eligible to | ||||||
20 | receive if the participant terminated employment on that date | ||||||
21 | and elected a refund of contributions, including interest at | ||||||
22 | the prescribed rate of interest for the respective years. The | ||||||
23 | System shall make the transfer as a tax-free transfer in | ||||||
24 | accordance with Internal Revenue Service guidelines, for | ||||||
25 | purposes of funding the amount credited to the participant's | ||||||
26 | individual account. |
| |||||||
| |||||||
1 | (c) In no event shall the System, its staff, its | ||||||
2 | authorized representatives, or the Board be liable for any | ||||||
3 | information given to an employee under this Section. The | ||||||
4 | System may coordinate with the Illinois Department of Central | ||||||
5 | Management Services and other retirement systems administering | ||||||
6 | a Tier 3 plan in accordance with this amendatory Act of the | ||||||
7 | 103rd General Assembly to provide information concerning the | ||||||
8 | impact of the Tier 3 plan set forth in this Section. | ||||||
9 | (c-5) The System shall solicit proposals to provide
| ||||||
10 | administrative services and funding vehicles for the Tier 3 | ||||||
11 | plan from
insurance and annuity companies and mutual fund | ||||||
12 | companies, banks, trust
companies, or other financial | ||||||
13 | institutions authorized to do business in this
State. In | ||||||
14 | reviewing the proposals received and approving and contracting | ||||||
15 | with
no fewer than 2 and no more than 7 companies, the Board of | ||||||
16 | Trustees of the System shall
consider, among other things, the | ||||||
17 | following criteria: | ||||||
18 | (1) the nature and extent of the benefits that would | ||||||
19 | be provided
to the participants; | ||||||
20 | (2) the reasonableness of the benefits in relation to | ||||||
21 | the premium
charged; | ||||||
22 | (3) the suitability of the benefits to the needs and
| ||||||
23 | interests of the participating employees and the employer; | ||||||
24 | (4) the ability of the company to provide benefits | ||||||
25 | under the contract and
the financial stability of the | ||||||
26 | company; and |
| |||||||
| |||||||
1 | (5) the efficacy of the contract in the recruitment | ||||||
2 | and retention of
employees. | ||||||
3 | The System shall periodically review
each approved | ||||||
4 | company. A company may continue to provide administrative
| ||||||
5 | services and funding vehicles for the Tier 3 plan only so long | ||||||
6 | as
it continues to be an approved company under contract with | ||||||
7 | the Board. | ||||||
8 | (d) Notwithstanding any other provision of this Section, | ||||||
9 | no person shall begin participating in the Tier 3 plan until it | ||||||
10 | has attained qualified plan status and received all necessary | ||||||
11 | approvals from the U.S. Internal Revenue Service. | ||||||
12 | (e) The System shall report on its progress under this | ||||||
13 | Section, including the available details of the Tier 3 plan | ||||||
14 | and the System's plans for informing eligible Tier 1 and Tier 2 | ||||||
15 | participants about the plan, to the Governor and the General | ||||||
16 | Assembly on or before January 15, 2024. | ||||||
17 | (f) The Illinois State Board of Investment shall be the | ||||||
18 | plan sponsor for the Tier 3 plan established under this | ||||||
19 | Section.
| ||||||
20 | (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
| ||||||
21 | Sec. 18-124. Retirement annuities - conditions for | ||||||
22 | eligibility. | ||||||
23 | (a) This subsection (a) applies to a Tier 1 participant | ||||||
24 | who first serves as a judge before the effective date of this | ||||||
25 | amendatory Act of the 96th General Assembly . |
| |||||||
| |||||||
1 | A
participant whose employment as a judge is terminated, | ||||||
2 | regardless of age
or cause is entitled to a retirement annuity | ||||||
3 | beginning on
the date specified in a written application | ||||||
4 | subject to the
following:
| ||||||
5 | (1) the date the annuity begins is subsequent
to the | ||||||
6 | date of final
termination of employment, or the date 30 | ||||||
7 | days prior to the receipt of
the application by the board | ||||||
8 | for annuities based on
disability, or one year before the | ||||||
9 | receipt of the application by the
board for annuities | ||||||
10 | based on attained age;
| ||||||
11 | (2) the participant is at least age 55, or has
become | ||||||
12 | permanently disabled and as
a consequence is unable to | ||||||
13 | perform the duties of his or her office;
| ||||||
14 | (3) the participant has at least 10 years of service
| ||||||
15 | credit except that a participant terminating service after | ||||||
16 | June
30 1975, with at least 6 years of service credit, | ||||||
17 | shall be entitled to
a retirement annuity at age 62 or | ||||||
18 | over;
| ||||||
19 | (4) the participant is not receiving or entitled
to | ||||||
20 | receive, at the date of
retirement, any salary from an | ||||||
21 | employer for service currently performed.
| ||||||
22 | (b) This subsection (b) applies to a Tier 2 participant | ||||||
23 | who first serves as a judge on or after the effective date of | ||||||
24 | this amendatory Act of the 96th General Assembly . | ||||||
25 | A participant who has at least 8 years of creditable | ||||||
26 | service is
entitled to a retirement annuity when he or she has |
| |||||||
| |||||||
1 | attained age 67. | ||||||
2 | A member who has attained age 62 and has at least 8 years | ||||||
3 | of service credit may elect to receive the lower retirement | ||||||
4 | annuity provided
in subsection (d) of Section 18-125 of this | ||||||
5 | Code. | ||||||
6 | (Source: P.A. 96-889, eff. 1-1-11 .)
| ||||||
7 | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| ||||||
8 | Sec. 18-125. Retirement annuity amount.
| ||||||
9 | (a) The annual retirement annuity for a participant who | ||||||
10 | terminated
service as a judge prior to July 1, 1971 shall be | ||||||
11 | based on the law in
effect at the time of termination of | ||||||
12 | service.
| ||||||
13 | (b) Except as provided in subsection (b-5), effective July | ||||||
14 | 1, 1971, the retirement annuity for any participant
in service | ||||||
15 | on or after such date shall be 3 1/2% of final average salary,
| ||||||
16 | as defined in this Section, for each of the first 10 years of | ||||||
17 | service, and
5% of such final average salary for each year of | ||||||
18 | service in excess of 10.
| ||||||
19 | For purposes of this Section, final average salary for a | ||||||
20 | Tier 1 participant who first serves as a judge before August | ||||||
21 | 10, 2009 (the effective date of Public Act 96-207) shall be:
| ||||||
22 | (1) the average salary for the last 4 years of | ||||||
23 | credited service as a
judge for a participant who | ||||||
24 | terminates service before July 1, 1975.
| ||||||
25 | (2) for a participant who terminates service after |
| |||||||
| |||||||
1 | June 30, 1975
and before July 1, 1982, the salary on the | ||||||
2 | last day of employment as a judge.
| ||||||
3 | (3) for any participant who terminates service after | ||||||
4 | June 30, 1982 and
before January 1, 1990, the average | ||||||
5 | salary for the final year of service as
a judge.
| ||||||
6 | (4) for a participant who terminates service on or | ||||||
7 | after January 1,
1990 but before July 14, 1995 (the | ||||||
8 | effective date of Public Act 89-136), the
salary on the | ||||||
9 | last day of employment as a judge.
| ||||||
10 | (5) for a participant who terminates service on or | ||||||
11 | after July 14, 1995 (the effective
date of Public Act | ||||||
12 | 89-136), the salary on the last day of employment
as a | ||||||
13 | judge, or the highest salary received by the participant | ||||||
14 | for employment as
a judge in a position held by the | ||||||
15 | participant for at least 4 consecutive years,
whichever is | ||||||
16 | greater.
| ||||||
17 | However, in the case of a participant who elects to | ||||||
18 | discontinue contributions
as provided in subdivision (a)(2) of | ||||||
19 | Section 18-133, the time of such
election shall be considered | ||||||
20 | the last day of employment in the determination
of final | ||||||
21 | average salary under this subsection.
| ||||||
22 | For a Tier 1 participant who first serves as a judge on or | ||||||
23 | after August 10, 2009 (the effective date of Public Act | ||||||
24 | 96-207) and before January 1, 2011 (the effective date of | ||||||
25 | Public Act 96-889) , final average salary shall be the average | ||||||
26 | monthly salary obtained by dividing the total salary of the |
| |||||||
| |||||||
1 | participant during the period of: (1) the 48 consecutive | ||||||
2 | months of service within the last 120 months of service in | ||||||
3 | which the total compensation was the highest, or (2) the total | ||||||
4 | period of service, if less than 48 months, by the number of | ||||||
5 | months of service in that period. | ||||||
6 | The maximum retirement annuity for any participant shall | ||||||
7 | be 85% of final
average salary.
| ||||||
8 | (b-5) Notwithstanding any other provision of this Article, | ||||||
9 | for a Tier 2 participant who first serves as a judge on or | ||||||
10 | after January 1, 2011 (the effective date of Public Act | ||||||
11 | 96-889) , the annual
retirement annuity is 3% of the
| ||||||
12 | participant's final average salary for each year of service. | ||||||
13 | The maximum retirement
annuity payable shall be 60% of the | ||||||
14 | participant's final average salary. | ||||||
15 | For a Tier 2 participant who first serves as a judge on or | ||||||
16 | after January 1, 2011 (the effective date of Public Act | ||||||
17 | 96-889) , final average salary shall be the average monthly | ||||||
18 | salary obtained by dividing the total salary of the judge | ||||||
19 | during the 96 consecutive months of service within the last | ||||||
20 | 120 months of service in which the total salary was the highest | ||||||
21 | by the number of months of service in that period; however, | ||||||
22 | beginning January 1, 2011, the annual salary may not exceed | ||||||
23 | $106,800, except that that amount shall annually thereafter be | ||||||
24 | increased by the lesser of (i) 3% of that amount, including all | ||||||
25 | previous adjustments, or (ii) the annual unadjusted percentage | ||||||
26 | increase (but not less than zero) in the consumer price |
| |||||||
| |||||||
1 | index-u
for the 12 months ending with the September preceding | ||||||
2 | each November 1. "Consumer price index-u" means
the index | ||||||
3 | published by the Bureau of Labor Statistics of the United | ||||||
4 | States
Department of Labor that measures the average change in | ||||||
5 | prices of goods and
services purchased by all urban consumers, | ||||||
6 | United States city average, all
items, 1982-84 = 100. The new | ||||||
7 | amount resulting from each annual adjustment
shall be | ||||||
8 | determined by the Public Pension Division of the Department of | ||||||
9 | Insurance and made available to the Board by November 1st of | ||||||
10 | each year. | ||||||
11 | (c) The retirement annuity for a participant who retires | ||||||
12 | prior to age 60
with less than 28 years of service in the | ||||||
13 | System shall be reduced 1/2 of 1%
for each month that the | ||||||
14 | participant's age is under 60 years at the time the
annuity | ||||||
15 | commences. However, for a participant who retires on or after | ||||||
16 | December 10, 1999 (the
effective date of Public Act 91-653), | ||||||
17 | the
percentage reduction in retirement annuity imposed under | ||||||
18 | this subsection shall
be reduced by 5/12 of 1% for every month | ||||||
19 | of service in this System in excess of
20 years, and therefore | ||||||
20 | a participant with at least 26 years of service in this
System | ||||||
21 | may retire at age 55 without any reduction in annuity.
| ||||||
22 | The reduction in retirement annuity imposed by this | ||||||
23 | subsection shall not
apply in the case of retirement on | ||||||
24 | account of disability.
| ||||||
25 | (d) Notwithstanding any other provision of this Article, | ||||||
26 | for a Tier 2 participant who first serves as a judge on or |
| |||||||
| |||||||
1 | after January 1, 2011 (the effective date of Public Act | ||||||
2 | 96-889) and who is retiring after attaining age 62, the | ||||||
3 | retirement annuity shall be reduced by 1/2
of 1% for each month | ||||||
4 | that the participant's age is under age 67 at the time the | ||||||
5 | annuity commences. | ||||||
6 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
7 | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| ||||||
8 | Sec. 18-125.1. Automatic increase in retirement annuity. A | ||||||
9 | participant who
retires from service after June 30, 1969, | ||||||
10 | shall, in January of the year next
following the year in which | ||||||
11 | the first anniversary of retirement occurs, and in
January of | ||||||
12 | each year thereafter, have the amount of his or her originally
| ||||||
13 | granted retirement annuity increased as follows: for each year | ||||||
14 | up to and
including 1971, 1 1/2%; for each year from 1972 | ||||||
15 | through 1979 inclusive, 2%; and
for 1980 and each year | ||||||
16 | thereafter, 3%.
| ||||||
17 | Notwithstanding any other provision of this Article, a | ||||||
18 | retirement annuity for a Tier 2 participant who first serves | ||||||
19 | as a judge on or after January 1, 2011 (the effective date of | ||||||
20 | Public Act 96-889) shall be increased in January of the year | ||||||
21 | next
following the year in which the first anniversary of | ||||||
22 | retirement occurs, but in no event prior to age 67, and in
| ||||||
23 | January of each year thereafter, by an amount equal to 3% or | ||||||
24 | the annual percentage increase in the consumer price index-u | ||||||
25 | as determined by the Public Pension Division of the Department |
| |||||||
| |||||||
1 | of Insurance under subsection (b-5) of Section 18-125, | ||||||
2 | whichever is less, of the retirement annuity then being paid. | ||||||
3 | This Section is not applicable to a participant who | ||||||
4 | retires before he
or she has made contributions at the rate | ||||||
5 | prescribed in Section 18-133 for
automatic increases for not | ||||||
6 | less than the equivalent of one full year, unless
such a | ||||||
7 | participant arranges to pay the system the amount required to | ||||||
8 | bring
the total contributions for the automatic increase to | ||||||
9 | the equivalent of
one year's contribution based upon his or | ||||||
10 | her last year's salary.
| ||||||
11 | This Section is applicable to all participants (other than | ||||||
12 | Tier 3 participants who do not have any service credit as a | ||||||
13 | Tier 1 or Tier 2 participant) in service after June 30,
1969 | ||||||
14 | unless a participant has elected, prior to September 1,
1969, | ||||||
15 | in a written direction filed with the board not to be subject | ||||||
16 | to
the provisions of this Section. Any participant in service | ||||||
17 | on or after
July 1, 1992 shall have the option of electing | ||||||
18 | prior to April 1, 1993,
in a written direction filed with the | ||||||
19 | board, to be covered by the provisions of
the 1969 amendatory | ||||||
20 | Act. Such participant shall be required to make the
aforesaid | ||||||
21 | additional contributions with compound interest at 4% per | ||||||
22 | annum.
| ||||||
23 | Any participant who has become eligible to receive the | ||||||
24 | maximum rate of
annuity and who resumes service as a judge | ||||||
25 | after receiving a retirement
annuity under this Article shall | ||||||
26 | have the amount of his or her
retirement annuity increased by |
| |||||||
| |||||||
1 | 3% of the originally granted annuity amount
for each year of | ||||||
2 | such resumed service, beginning in January of the year
next | ||||||
3 | following the date of such resumed service, upon subsequent
| ||||||
4 | termination of such resumed service.
| ||||||
5 | Beginning January 1, 1990, all automatic annual increases | ||||||
6 | payable
under this Section shall be calculated as a percentage | ||||||
7 | of the total annuity
payable at the time of the increase, | ||||||
8 | including previous increases granted
under this Article.
| ||||||
9 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
10 | (40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
| ||||||
11 | Sec. 18-127. Retirement annuity - suspension on | ||||||
12 | reemployment.
| ||||||
13 | (a) A participant receiving a retirement annuity who is | ||||||
14 | regularly
employed for compensation by an employer other than | ||||||
15 | a county, in any
capacity, shall have his or her retirement | ||||||
16 | annuity payments suspended
during such employment. Upon | ||||||
17 | termination of such employment, retirement
annuity payments at | ||||||
18 | the previous rate shall be resumed.
| ||||||
19 | If such a participant resumes service as a judge, he or she
| ||||||
20 | shall receive credit for any additional service. Upon | ||||||
21 | subsequent
retirement, his or her retirement annuity shall be | ||||||
22 | the amount previously
granted, plus the amount earned by the | ||||||
23 | additional judicial service under
the provisions in effect | ||||||
24 | during the period of such additional service.
However, if the | ||||||
25 | participant was receiving the maximum rate of annuity at
the |
| |||||||
| |||||||
1 | time of re-employment, he or she may elect, in a written | ||||||
2 | direction
filed with the board, not to receive any additional | ||||||
3 | service credit during
the period of re-employment. In such | ||||||
4 | case, contributions shall not be
required during the period of | ||||||
5 | re-employment. Any such election shall be
irrevocable.
| ||||||
6 | (b) Beginning January 1, 1991, any participant receiving a | ||||||
7 | retirement
annuity who accepts temporary employment from an | ||||||
8 | employer other than a
county for a period not exceeding 75 | ||||||
9 | working days in any calendar year
shall not be deemed to be | ||||||
10 | regularly employed for compensation or to have
resumed service | ||||||
11 | as a judge for the purposes of this Article. A day shall
be | ||||||
12 | considered a working day if the annuitant performs on it any of | ||||||
13 | his
duties under the temporary employment agreement.
| ||||||
14 | (c) Except as provided in subsection (a), beginning | ||||||
15 | January 1, 1993,
retirement annuities shall not be subject to | ||||||
16 | suspension upon resumption of
employment for an employer, and | ||||||
17 | any retirement annuity that is then so
suspended shall be | ||||||
18 | reinstated on that date.
| ||||||
19 | (d) The changes made in this Section by this amendatory | ||||||
20 | Act of 1993
shall apply to judges no longer in service on its | ||||||
21 | effective date, as well as to
judges serving on or after that | ||||||
22 | date.
| ||||||
23 | (e) A participant receiving a retirement
annuity under | ||||||
24 | this Article who serves as a part-time employee in any of the | ||||||
25 | following positions: Legislative Inspector General, Special | ||||||
26 | Legislative Inspector General, employee of the Office of the |
| |||||||
| |||||||
1 | Legislative Inspector General, Executive Director of the | ||||||
2 | Legislative Ethics Commission, or staff of the Legislative | ||||||
3 | Ethics Commission, but has not elected to participate in the | ||||||
4 | Article 14 System with respect to that service, shall not be | ||||||
5 | deemed to be regularly employed for compensation by an | ||||||
6 | employer other than a county, nor to have
resumed service as a | ||||||
7 | judge, on the basis of that service, and the retirement | ||||||
8 | annuity payments and other benefits of that person under this | ||||||
9 | Code shall not be suspended, diminished, or otherwise impaired | ||||||
10 | solely as a consequence of that service. This subsection (e) | ||||||
11 | applies without regard to whether the person is in service as a | ||||||
12 | judge under this Article on or after the effective date of this | ||||||
13 | amendatory Act of the 93rd General Assembly. In this | ||||||
14 | subsection, a "part-time employee" is a person who is not | ||||||
15 | required to work at least 35 hours per week.
| ||||||
16 | (f) A participant receiving a retirement annuity under | ||||||
17 | this Article who has made an election under Section 1-123 and | ||||||
18 | who is serving either as legal counsel in the Office of the | ||||||
19 | Governor or as Chief Deputy Attorney General shall not be | ||||||
20 | deemed to be regularly employed for compensation by an | ||||||
21 | employer other than a county, nor to have resumed service as a | ||||||
22 | judge, on the basis of that service, and the retirement | ||||||
23 | annuity payments and other benefits of that person under this | ||||||
24 | Code shall not be suspended, diminished, or otherwise impaired | ||||||
25 | solely as a consequence of that service. This subsection (f) | ||||||
26 | applies without regard to whether the person is in service as a |
| |||||||
| |||||||
1 | judge under this Article on or after the effective date of this | ||||||
2 | amendatory Act of the 93rd General Assembly.
| ||||||
3 | (g) Notwithstanding any other provision of this Article, | ||||||
4 | if a Tier 2 participant person who first becomes a participant | ||||||
5 | under this System on or after January 1, 2011 (the effective | ||||||
6 | date of this amendatory Act of the 96th General Assembly) is | ||||||
7 | receiving a retirement annuity under this Article and becomes | ||||||
8 | a member or participant under this Article or any other | ||||||
9 | Article of this Code and is employed on a full-time basis, then | ||||||
10 | the person's retirement annuity under this System shall be | ||||||
11 | suspended during that employment. Upon termination of that | ||||||
12 | employment, the person's retirement annuity shall resume and, | ||||||
13 | if appropriate, be recalculated under the applicable | ||||||
14 | provisions of this Article. | ||||||
15 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
16 | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| ||||||
17 | Sec. 18-128.01. Amount of survivor's annuity.
| ||||||
18 | (a) Upon the death of
an annuitant, his or her surviving | ||||||
19 | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | ||||||
20 | the annuity the annuitant was receiving immediately
prior to | ||||||
21 | his or her death, inclusive of annual increases in the | ||||||
22 | retirement
annuity to the date of death.
| ||||||
23 | (b) Upon the death of an active participant, his or her | ||||||
24 | surviving spouse
shall receive a survivor's annuity of 66 2/3% | ||||||
25 | of the annuity earned by the
participant as of the date of his |
| |||||||
| |||||||
1 | or her death, determined without regard
to whether the | ||||||
2 | participant had attained age 60 as of that time, or 7 1/2%
of | ||||||
3 | the last salary of the decedent, whichever is greater.
| ||||||
4 | (c) Upon the death of a participant who had terminated | ||||||
5 | service with at
least 10 years of service, his or her surviving | ||||||
6 | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | ||||||
7 | the annuity earned by the deceased
participant at the date of | ||||||
8 | death.
| ||||||
9 | (d) Upon the death of an annuitant, active participant, or | ||||||
10 | participant
who had terminated service with at least 10 years | ||||||
11 | of service, each surviving
child under the age of 18 or | ||||||
12 | disabled as defined in Section 18-128 shall
be entitled to a | ||||||
13 | child's annuity in an amount equal to 5% of the decedent's
| ||||||
14 | final salary, not to exceed in total for all such children the | ||||||
15 | greater of
20% of the decedent's last salary or 66 2/3% of the | ||||||
16 | annuity received or
earned by the decedent as provided under | ||||||
17 | subsections (a) and (b) of this
Section. This child's annuity | ||||||
18 | shall be paid whether or not a survivor's
annuity was elected | ||||||
19 | under Section 18-123.
| ||||||
20 | (e) The changes made in the survivor's annuity provisions | ||||||
21 | by Public Act
82-306 shall apply to the survivors of a deceased | ||||||
22 | participant or annuitant
whose death occurs on or after August | ||||||
23 | 21, 1981.
| ||||||
24 | (f) Beginning January 1, 1990, every survivor's annuity | ||||||
25 | shall be
increased
(1) on each January 1 occurring on or after | ||||||
26 | the commencement of the annuity if
the deceased member died |
| |||||||
| |||||||
1 | while receiving a retirement annuity, or (2) in other cases,
| ||||||
2 | on each January 1 occurring on or after the first anniversary | ||||||
3 | of
the commencement of the annuity, by an amount equal to 3% of | ||||||
4 | the current
amount of the annuity, including any previous | ||||||
5 | increases under this Article.
Such increases shall apply | ||||||
6 | without regard to whether the deceased member
was in service | ||||||
7 | on or after the effective date of this amendatory Act of
1991, | ||||||
8 | but shall not accrue for any period prior to January 1, 1990.
| ||||||
9 | (g) Notwithstanding any other provision of this Article, | ||||||
10 | the initial survivor's annuity for a survivor of a Tier 2 | ||||||
11 | participant who first serves as a judge after January 1, 2011 | ||||||
12 | (the effective date of Public Act 96-889) shall be in the | ||||||
13 | amount of 66 2/3% of the annuity received or earned by the | ||||||
14 | decedent, and shall be increased (1) on each January 1 | ||||||
15 | occurring on or after the commencement of the annuity if
the | ||||||
16 | deceased participant died while receiving a retirement | ||||||
17 | annuity, or (2) in other cases,
on each January 1 occurring on | ||||||
18 | or after the first anniversary of
the commencement of the | ||||||
19 | annuity, but in no event prior to age 67, by an amount equal to | ||||||
20 | 3% or the annual unadjusted percentage increase in the | ||||||
21 | consumer price index-u as determined by the Public Pension | ||||||
22 | Division of the Department of Insurance under subsection (b-5) | ||||||
23 | of Section 18-125, whichever is less, of the survivor's | ||||||
24 | annuity then being paid. | ||||||
25 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| ||||||
2 | Sec. 18-133. Financing; employee contributions.
| ||||||
3 | (a) Effective July 1, 1967, each participant is required | ||||||
4 | to contribute
7 1/2% of each payment of salary toward the | ||||||
5 | retirement annuity. Such
contributions shall continue during | ||||||
6 | the entire time the participant is in
service, with the | ||||||
7 | following exceptions:
| ||||||
8 | (1) Contributions for the retirement annuity are not | ||||||
9 | required on salary
received after 18 years of service by | ||||||
10 | persons who were participants before
January 2, 1954.
| ||||||
11 | (2) A participant who continues to serve as a judge | ||||||
12 | after becoming
eligible to receive the maximum rate of | ||||||
13 | annuity may elect, through a written
direction filed with | ||||||
14 | the Board, to discontinue contributing to the System.
Any | ||||||
15 | such option elected by a judge shall be irrevocable unless | ||||||
16 | prior to
January 1, 2000, and while continuing to
serve as | ||||||
17 | judge, the judge (A) files with the Board a letter | ||||||
18 | cancelling the
direction to discontinue contributing to | ||||||
19 | the System and requesting that such
contributing resume, | ||||||
20 | and (B) pays into the System an amount equal to the total
| ||||||
21 | of the discontinued contributions plus interest thereon at | ||||||
22 | 5% per annum.
Service credits earned in any other | ||||||
23 | "participating system" as defined in
Article 20 of this | ||||||
24 | Code shall be considered for purposes of determining a
| ||||||
25 | judge's eligibility to discontinue contributions under | ||||||
26 | this subdivision
(a)(2).
|
| |||||||
| |||||||
1 | (3) A participant who (i) has attained age 60, (ii) | ||||||
2 | continues to serve
as a judge after becoming eligible to | ||||||
3 | receive the maximum rate of annuity,
and (iii) has not | ||||||
4 | elected to discontinue contributing to the System under
| ||||||
5 | subdivision (a)(2) of this Section (or has revoked any | ||||||
6 | such election) may
elect, through a written direction | ||||||
7 | filed with the Board, to make contributions
to the System | ||||||
8 | based only on the amount of the increases in salary | ||||||
9 | received by
the judge on or after the date of the election, | ||||||
10 | rather than the total salary
received. If a judge who is | ||||||
11 | making contributions to the System on the
effective date | ||||||
12 | of this amendatory Act of the 91st General Assembly makes | ||||||
13 | an
election to limit contributions under this subdivision | ||||||
14 | (a)(3) within 90 days
after that effective date, the | ||||||
15 | election shall be deemed to become
effective on that | ||||||
16 | effective date and the judge shall be entitled to receive | ||||||
17 | a
refund of any excess contributions paid to the System | ||||||
18 | during that 90-day
period; any other election under this | ||||||
19 | subdivision (a)(3) becomes effective
on the first of the | ||||||
20 | month following the date of the election. An election to
| ||||||
21 | limit contributions under this subdivision (a)(3) is | ||||||
22 | irrevocable. Service
credits earned in any other | ||||||
23 | participating system as defined in Article 20 of
this Code | ||||||
24 | shall be considered for purposes of determining a judge's | ||||||
25 | eligibility
to make an election under this subdivision | ||||||
26 | (a)(3).
|
| |||||||
| |||||||
1 | (b) Beginning July 1, 1969, each participant is required | ||||||
2 | to contribute
1% of each payment of salary towards the | ||||||
3 | automatic increase in annuity
provided in Section 18-125.1. | ||||||
4 | However, such contributions need not be made
by any | ||||||
5 | participant who has elected prior to September 15, 1969, not | ||||||
6 | to be
subject to the automatic increase in annuity provisions.
| ||||||
7 | (c) Effective July 13, 1953, each married participant | ||||||
8 | subject to the
survivor's annuity provisions is required to | ||||||
9 | contribute 2 1/2% of each
payment of salary, whether or not he | ||||||
10 | or she is required to make any other
contributions under this | ||||||
11 | Section. Such contributions shall be made
concurrently with | ||||||
12 | the contributions made for annuity purposes.
| ||||||
13 | (d) Notwithstanding any other provision of this Article, | ||||||
14 | the required contributions for a Tier 2 participant who first | ||||||
15 | becomes a participant on or after January 1, 2011 shall not | ||||||
16 | exceed the contributions that would be due under this Article | ||||||
17 | if that participant's highest salary for annuity purposes were | ||||||
18 | $106,800, plus any increase in that amount under Section | ||||||
19 | 18-125. | ||||||
20 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
21 | (40 ILCS 5/18-169)
| ||||||
22 | Sec. 18-169. Application and expiration of new benefit | ||||||
23 | increases. | ||||||
24 | (a) As used in this Section, "new benefit increase" means | ||||||
25 | an increase in the amount of any benefit provided under this |
| |||||||
| |||||||
1 | Article, or an expansion of the conditions of eligibility for | ||||||
2 | any benefit under this Article, that results from an amendment | ||||||
3 | to this Code that takes effect after the effective date of this | ||||||
4 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
5 | increase", however, does not include any benefit increase | ||||||
6 | resulting from the changes made by this amendatory Act of the | ||||||
7 | 103rd General Assembly. | ||||||
8 | (b) Notwithstanding any other provision of this Code or | ||||||
9 | any subsequent amendment to this Code, every new benefit | ||||||
10 | increase is subject to this Section and shall be deemed to be | ||||||
11 | granted only in conformance with and contingent upon | ||||||
12 | compliance with the provisions of this Section.
| ||||||
13 | (c) The Public Act enacting a new benefit increase must | ||||||
14 | identify and provide for payment to the System of additional | ||||||
15 | funding at least sufficient to fund the resulting annual | ||||||
16 | increase in cost to the System as it accrues. | ||||||
17 | Every new benefit increase is contingent upon the General | ||||||
18 | Assembly providing the additional funding required under this | ||||||
19 | subsection. The Commission on Government Forecasting and | ||||||
20 | Accountability shall analyze whether adequate additional | ||||||
21 | funding has been provided for the new benefit increase and | ||||||
22 | shall report its analysis to the Public Pension Division of | ||||||
23 | the Department of Financial and Professional Regulation. A new | ||||||
24 | benefit increase created by a Public Act that does not include | ||||||
25 | the additional funding required under this subsection is null | ||||||
26 | and void. If the Public Pension Division determines that the |
| |||||||
| |||||||
1 | additional funding provided for a new benefit increase under | ||||||
2 | this subsection is or has become inadequate, it may so certify | ||||||
3 | to the Governor and the State Comptroller and, in the absence | ||||||
4 | of corrective action by the General Assembly, the new benefit | ||||||
5 | increase shall expire at the end of the fiscal year in which | ||||||
6 | the certification is made.
| ||||||
7 | (d) Every new benefit increase shall expire 5 years after | ||||||
8 | its effective date or on such earlier date as may be specified | ||||||
9 | in the language enacting the new benefit increase or provided | ||||||
10 | under subsection (c). This does not prevent the General | ||||||
11 | Assembly from extending or re-creating a new benefit increase | ||||||
12 | by law. | ||||||
13 | (e) Except as otherwise provided in the language creating | ||||||
14 | the new benefit increase, a new benefit increase that expires | ||||||
15 | under this Section continues to apply to persons who applied | ||||||
16 | and qualified for the affected benefit while the new benefit | ||||||
17 | increase was in effect and to the affected beneficiaries and | ||||||
18 | alternate payees of such persons, but does not apply to any | ||||||
19 | other person, including without limitation a person who | ||||||
20 | continues in service after the expiration date and did not | ||||||
21 | apply and qualify for the affected benefit while the new | ||||||
22 | benefit increase was in effect.
| ||||||
23 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
24 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
25 | (Text of Section WITHOUT the changes made by P.A. 98-599, |
| |||||||
| |||||||
1 | which has been held unconstitutional)
| ||||||
2 | Sec. 20-121. Calculation of proportional retirement | ||||||
3 | annuities. | ||||||
4 | (a) Upon
retirement of the employee, a proportional | ||||||
5 | retirement annuity shall be computed
by each participating | ||||||
6 | system in which pension credit has been established on
the | ||||||
7 | basis of pension credits under each system. The computation | ||||||
8 | shall be in
accordance with the formula or method prescribed | ||||||
9 | by each participating system
which is in effect at the date of | ||||||
10 | the employee's latest withdrawal from service
covered by any | ||||||
11 | of the systems in which he has pension credits which he elects
| ||||||
12 | to have considered under this Article. However, the amount of | ||||||
13 | any retirement
annuity payable under the self-managed plan | ||||||
14 | established under Section 15-158.2
of this Code depends solely | ||||||
15 | on the value of the participant's vested account
balances and | ||||||
16 | is not subject to any proportional adjustment under this
| ||||||
17 | Section.
| ||||||
18 | (a-5) For persons who participate in a Tier 3 plan | ||||||
19 | established under Article 2, 14, 15, 16, or 18 of this Code to | ||||||
20 | whom the provisions of this Article apply, the pension credits | ||||||
21 | established under the Tier 3 plan may be considered in
| ||||||
22 | determining eligibility for or the amount of the defined | ||||||
23 | benefit retirement annuity that is
payable by any other | ||||||
24 | participating system. | ||||||
25 | (b) Combined pension credit under all retirement systems | ||||||
26 | subject to this
Article shall be considered in determining |
| |||||||
| |||||||
1 | whether the minimum qualification
has been met and the formula | ||||||
2 | or method of computation which shall be applied , except as may | ||||||
3 | be otherwise provided with respect to vesting in State or | ||||||
4 | employer contributions in a Tier 3 plan .
If a system has a | ||||||
5 | step-rate formula for calculation of the retirement annuity,
| ||||||
6 | pension credits covering previous service which have been | ||||||
7 | established under
another system shall be considered in | ||||||
8 | determining which range or ranges of
the step-rate formula are | ||||||
9 | to be applicable to the employee.
| ||||||
10 | (c) Interest on pension credit shall continue to | ||||||
11 | accumulate in accordance with
the provisions of the law | ||||||
12 | governing the retirement system in which the same
has been | ||||||
13 | established during the time an employee is in the service of | ||||||
14 | another
employer, on the assumption such employee, for | ||||||
15 | interest purposes for pension
credit, is continuing in the | ||||||
16 | service covered by such retirement system.
| ||||||
17 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
18 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
19 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
20 | which has been held unconstitutional)
| ||||||
21 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
22 | a retirement
annuity shall be applicable to a survivor's | ||||||
23 | annuity. Appropriate credits shall
be established for | ||||||
24 | survivor's annuity purposes in those participating systems
| ||||||
25 | which provide survivor's annuities, according to the same |
| |||||||
| |||||||
1 | conditions and
subject to the same limitations and | ||||||
2 | restrictions herein prescribed for a
retirement annuity. If a | ||||||
3 | participating system has no survivor's annuity
benefit, or if | ||||||
4 | the survivor's annuity benefit under that system is waived,
| ||||||
5 | pension credit established in that system shall not be | ||||||
6 | considered
in determining eligibility for or the amount of the | ||||||
7 | survivor's annuity which
may be payable by any other | ||||||
8 | participating system.
| ||||||
9 | For persons who participate in the self-managed plan | ||||||
10 | established under
Section 15-158.2 or the portable benefit | ||||||
11 | package established under Section
15-136.4, pension credit | ||||||
12 | established under Article 15 may be considered in
determining | ||||||
13 | eligibility for or the amount of the survivor's annuity that | ||||||
14 | is
payable by any other participating system, but pension | ||||||
15 | credit established in
any other system shall not result in any | ||||||
16 | right to a survivor's annuity under
the Article 15 system.
| ||||||
17 | For persons who participate in a Tier 3 plan established | ||||||
18 | under Article 2, 14, 15, 16, or 18 of this Code to whom the | ||||||
19 | provisions of this Article apply, the pension credits | ||||||
20 | established under the Tier 3 plan may be considered in
| ||||||
21 | determining eligibility for or the amount of the defined | ||||||
22 | benefit survivor's annuity that is
payable by any other | ||||||
23 | participating system, but pension credits established in
any | ||||||
24 | other system shall not result in any right to or increase in | ||||||
25 | the value of a survivor's annuity under
the Tier 3 plan, which | ||||||
26 | depends solely on the options chosen and the value of the |
| |||||||
| |||||||
1 | participant's vested account
balances and is not subject to | ||||||
2 | any proportional adjustment under this
Section. | ||||||
3 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
4 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been held unconstitutional)
| ||||||
7 | Sec. 20-124. Maximum benefits. | ||||||
8 | (a) In no event shall the combined retirement
or survivors | ||||||
9 | annuities exceed the highest annuity which would have been | ||||||
10 | payable
by any participating system in which the employee has | ||||||
11 | pension credits, if all
of his pension credits had been | ||||||
12 | validated in that system.
| ||||||
13 | If the combined annuities should exceed the highest | ||||||
14 | maximum as determined
in accordance with this Section, the | ||||||
15 | respective annuities shall be reduced
proportionately | ||||||
16 | according to the ratio which the amount of each proportional
| ||||||
17 | annuity bears to the aggregate of all such annuities.
| ||||||
18 | (b) In the case of a participant in the self-managed plan | ||||||
19 | established under
Section 15-158.2 of this Code to whom the | ||||||
20 | provisions of this Article apply:
| ||||||
21 | (i) For purposes of calculating the combined | ||||||
22 | retirement annuity and
the proportionate reduction, if | ||||||
23 | any, in a retirement annuity other than one
payable under | ||||||
24 | the self-managed plan, the amount of the Article 15 | ||||||
25 | retirement
annuity shall be deemed to be the highest |
| |||||||
| |||||||
1 | annuity to which the annuitant would
have been entitled if | ||||||
2 | he or she had participated in the traditional benefit
| ||||||
3 | package as defined in Section 15-103.1 rather than the | ||||||
4 | self-managed plan.
| ||||||
5 | (ii) For purposes of calculating the combined | ||||||
6 | survivor's annuity and
the proportionate reduction, if | ||||||
7 | any, in a survivor's annuity other than one
payable under | ||||||
8 | the self-managed plan, the amount of the Article 15 | ||||||
9 | survivor's
annuity shall be deemed to be the highest | ||||||
10 | survivor's annuity to which the
survivor would have been | ||||||
11 | entitled if the deceased employee had participated in
the | ||||||
12 | traditional benefit package as defined in Section 15-103.1 | ||||||
13 | rather than the
self-managed plan.
| ||||||
14 | (iii) Benefits payable under the self-managed plan are | ||||||
15 | not subject to
proportionate reduction under this Section.
| ||||||
16 | (c) In the case of a participant in a Tier 3 plan | ||||||
17 | established under
Article 2, 14, 15, 16, or 18 of this Code to | ||||||
18 | whom the provisions of this Article apply: | ||||||
19 | (i) For purposes of calculating the combined | ||||||
20 | retirement annuity and
the proportionate reduction, if | ||||||
21 | any, in a defined benefit retirement annuity, any benefit | ||||||
22 | payable under the Tier 3 plan shall not be considered. | ||||||
23 | (ii) For purposes of calculating the combined | ||||||
24 | survivor's annuity and
the proportionate reduction, if | ||||||
25 | any, in a defined benefit survivor's annuity, any benefit | ||||||
26 | payable under the Tier 3 plan shall not be considered. |
| |||||||
| |||||||
1 | (iii) Benefits payable under a Tier 3 plan established | ||||||
2 | under Article 2, 14, 15, 16, or 18 of this Code are not | ||||||
3 | subject to
proportionate reduction under this Section. | ||||||
4 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
5 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
6 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
7 | which has been held unconstitutional)
| ||||||
8 | Sec. 20-125. Return to employment - suspension of | ||||||
9 | benefits. If a retired
employee returns to employment which is | ||||||
10 | covered by a system from which he is
receiving a proportional | ||||||
11 | annuity under this Article, his proportional annuity
from all | ||||||
12 | participating systems shall be suspended during the period of
| ||||||
13 | re-employment, except that this suspension does not apply to | ||||||
14 | any
distributions payable under the self-managed plan | ||||||
15 | established under Section
15-158.2 of this Code or under a | ||||||
16 | Tier 3 plan established under Article 2, 14, 15, 16, or 18 of | ||||||
17 | this Code .
| ||||||
18 | The provisions of the Article under which such employment | ||||||
19 | would be
covered shall govern the determination of whether the | ||||||
20 | employee has returned
to employment, and if applicable the | ||||||
21 | exemption of temporary employment or
employment not exceeding | ||||||
22 | a specified duration or frequency, for all
participating | ||||||
23 | systems from which the retired employee is receiving a
| ||||||
24 | proportional annuity under this Article, notwithstanding any | ||||||
25 | contrary
provisions in the other Articles governing such |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | systems.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | (Source: P.A. 91-887, eff. 7-6-00.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | becoming law.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|